Lufthansa hopeful of securing government bailout

 Lufthansa is hopeful its bailout talks with the German government can be concluded soon, the airline’s board told staff in a letter seen by Reuters, adding that it is also considering alternatives such as creditor protection.

Lufthansa is negotiating a 10 billion euro bailout that would result in the government taking a 25.1% stake in the airline, weekly paper Der Spiegel said on Friday.

Travel bans have forced the German group to ground 700 of its aircraft, leading to a 99% drop in passenger numbers and causing the group, which includes Swiss and Austrian Airlines, to lose about one million euros ($1.1 million) in liquidity reserves per hour.

“We estimate that these talks can lead to a conclusion soon,” Chief Executive Carsten Spohr and board members wrote in the letter, adding that they are also checking alternative options but do not expect to need them.

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