Lufthansa Delays Decision on Government Bailout

Frankfurt (dpa) - Lufthansa has delayed a decision on the multibillion-euro bailout deal on offer from the German government, pending conditions expected to be set by the European Commission, the troubled airline said on Wednesday.

The regulatory measures could "lead to a weakening of the hub function at Lufthansa's home airports in Frankfurt and Munich," the company said in a note to shareholders.

It called for alternative scenarios to be analysed, while noting that a government bailout was "the only viable alternative for maintaining solvency" at the flagship carrier.

Lufthansa said it is not planning an extraordinary general meeting for the time being.

As with many of its competitors, Lufthansa plunged into financial crisis when the majority of its planes were grounded due to the coronavirus pandemic.

The bailout deal, announced on Monday, provides for aid and equity measures worth 9 billion euros (9.8 billion dollars). It is yet to be approved by Lufthansa's supervisory board and the European Commission's competition watchdog.

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