Lufthansa confirmed Thursday that it is negotiating a “€9 billion( $10 billion) stabilization package” from Germany’s Federal Economic Stabilization Fund, as the COVID19 Pandemic continues to have a severe impact on international travel.
“The negotiations and the process of political decision-making are still ongoing,” the airline said in a statement.
The bailout could includes a non-voting capital component, known as a so-called silent participation, a secured loan, and a capital increase, which could leave the German government with a stake of 25% plus one share, Lufthansa said.
Deutsche Lufthansa also added that, Various alternatives of a capital increase are being discussed, at the moment, which includes an increase at the nominal value of the share, if necessary, after a capital cut.
Moreso, The government is also seeking representation on the company’s supervisory board, and the airline group may be required to waive future dividend payments.
The negotiations is still on going, with the airline sole aim of ensuring this future viability and prospective, is for the benefit of its customers and employees.