The €9 billion deal to save Lufthansa turns the German government into the single largest shareholder in Europe’s second-largest airline
, but the result is the largest airline rescue package and the biggest backstop yet from Germany’s massive Economic Stabilization Fund launched to keep the country’s economy from collapsing under the stress of the pandemic.
“When the company is afloat again, the state will sell its shares,” Finance Minister Olaf Scholz said Monday, adding he hoped to do so with a small profit. Lufthansa has been badly wounded by the coronavirus. Management said last month it is losing around €1 million an hour, and is carrying only about 1 percent of its normal passenger load.
“Just because you get bailed out it doesn’t mean you won’t need to fire people,” said an industry official working in the German aviation industry, something that might be more difficult if politicians are on the board.
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