Lufthansa’s German Bailout May Shrink With Rival Aid Coming In

  • Swiss, Austrian terms are said to be more favorable to airline
  • Zurich, Vienna vie for continued presence at airport hubs
The Deutsche Lufthansa AG logo sits on a departure hall cordon as the airline and airport operator Fraport AG showcase new coronavirus safety measures at Frankfurt Airport in Frankfurt, Germany, on Wednesday, June 17, 2020. Deutsche Lufthansa said a low turnout at its extraordinary general meeting next week is placing its 9 billion-euro ($10 billion) German bailout at risk of falling apart.Photographer: Alex Kraus/Bloomberg
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Germany and Deutsche Lufthansa AG are considering cutting back the country’s 9 billion-euro ($10.1 billion) aid package as the airline group closes in on additional commitments from Switzerland, Austria and Belgium, people familiar with the discussion said.

The government is ready to lower the burden for Germany’s taxpayers and is weighing whether to reduce an earmarked 3 billion euros of loans to Lufthansa from the state-run Kreditanstalt fuer Wiederaufbau fund, the people said, asking not to be named discussing a confidential matter.