Lufthansa Under Mounting Pressure to Accept Government Stake
- Airline has so far resisted Germany taking equity stake
- Concerns about debt servicing, uncertain outlook pressure firm
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Deutsche Lufthansa AG Chief Executive Carsten Spohr is facing mounting pressure to hand over an equity stake to the German government to as the airline fights for survival in the Coronavirus crisis, according to people familiar with the matter.
Lufthansa representatives are locked in talks with the cabinet in Berlin, the people said, asking not to be identified because the matter is private. Spohr has resisted the idea Germany would need to take a direct equity stake, preferring instruments such as loans or credit guarantees to shore up cash reserves.