Germany is in talks to provide Lufthansa with billions of euros in state aid and could take a stake in the airline, which has grounded 95% of its fleet due to the coronavirus pandemic, according to Reuters.
The government and airline are discussing loans as well as a possible equity investment as Lufthansa grapples to cope with Berlin's order to all but halt its operations, Reuters said.
According to Reuters, Lufthansa is working with banks including Deutsche Bank in its talks with the German government and state bank KfW, the people said. Goldman Sachs had been expected to secure a leading role, but it remained unclear whether the U.S. bank has been mandated, they added.
Last week, Lufthansa said it had not yet applied for state aid but was in talks with lenders and authorities about what kind of help would be possible if needed.
Lufthansa, like other German companies, could seek a loan 80% guaranteed by state bank KfW and 20% backed by commercial banks, while an equity contribution - possibly in the form of non-voting capital - is also an option.