The German government has agreed to support national flag carrier Lufthansa with 9 billion euros ($9.74 billion) in aid in light of coronavirus-related financial troubles in exchange for a blocking minority and one or two mandates on the supervisory board, Business Insider reported on Tuesday, citing the company's sources
MOSCOW (Pakistan Point News / Sputnik - 28th April, 2020) The German government has agreed to support national flag carrier Lufthansa with 9 billion Euros ($9.74 billion) in aid in light of coronavirus-related financial troubles in exchange for a blocking minority and one or two mandates on the supervisory board, business Insider reported on Tuesday, citing the company's sources.
According to the media outlet, a working agreement on key issues was reached at a secret meeting on Monday between representatives of the government and Lufthansa. The carrier's chief executive, Carsten Spohr, is expected to hold a meeting with Chancellor Angela Merkel and Finance Minister Olaf Scholz on Tuesday and formally ink the deal.
Lufthansa's press service said earlier in April that the company expected the travel industry to take years to bounce back after suffering a crushing blow from coronavirus-related restrictions. Spohr, on his part, said that due to the losses the entire aviation industry faces over the coronavirus pandemic, its future cannot be guaranteed without state support.
According to the German Federal Statistical Office, the country's aviation tax revenues fell by 56.7 percent year-on-year in March as passenger planes across the world have been left grounded due to the COVID-19 global pandemic.
In a report published on April 14, the International Air Transport Association estimated that the COVID-19 pandemic will result in passenger aviation revenues falling by 55 percent, or $314 billion, in 2020 when compared to the previous year.
Germany has confirmed 1,144 new COVID-19 cases over the past 24 hours, with the total count reaching 156,337, according to the health authorities.
