Lufthansa warns bailout deal could collapse

Lufthansa warned Wednesday (June 17) that its 10 billion dollar bailout deal could fall apart.

If that happens the airline says it could be forced to seek protection from creditors.

The comments come after German billionaire Heinz Hermann Thiele criticised the deal.

He says he’s raised his stake in Lufthansa to over 15%, and wants other options to be explored.

Though he hasn’t explicitly said he will vote against.

The deal gives the German government two seats on the firm’s board, and a 20% stake.

Now the package will go to a vote at a virtual general meeting on June 25.

If attendance is below 50%, two thirds of those present will need to vote yes for it to pass.

The board says that’s by no means guaranteed.

German Finance Minister Olaf Scholz says there is no alternative though:

"I think we have to understand that this can't happen a second time because it reduces the trust in actions a democratic state has to decide on and we have found a good, balanced solution with the Commission, with the German government, with the company, and I think a lot of people share this view."

Lufthansa this week said it was seeking to strike agreements with worker representatives over job cuts.

It wants to shed the equivalent of 22,000 full-time positions.