Lufthansa seeking 290 million euro loan for Belgian airline -media

FILE PHOTO: Aircrafts of the German carrier Lufthansa are parked on the tarmac, as the spread of the coronavirus disease (COVID-19) continues, at the airport in Frankfurt, Germany March 24, 2020. REUTERS/Ralph Orlowski

BRUSSELS (Reuters) – German airline Lufthansa (LHAG.DE) is seeking a loan of 290 million euros (253 million pounds) loan from the Belgian government to avoid the bankruptcy of its Belgian subsidiary Brussels Airlines, Belgian broadcaster LN24 said on Friday.

The Belgian government declined to comment. LN24 said negotiations had been suspended. Almost all of Lufthansa’s flights have been grounded by the coronavirus outbreak.

Belgian Minister of Finance Alexandre De Croo is leading talks with the German carrier.

Lufthansa Chief Executive Carsten Spohr said earlier this month the company would seek state aid in Germany, Switzerland, Belgium and Austria because of the extended duration of the health crisis.

Reuters reported this week that Lufthansa is aiming to finalise a state aid rescue package worth up to 10 billion euros next week, according to people involved.

Reporting by Marine Strauss; editing by Jonathan Oatis

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