Lufthansa has agreed to a $9.9 billion bailout from the German federal government as it seeks to avoid financial collapse as a result of the COVID-19 pandemic. Under the plan, the Economic Stabilization Fund will take a 20% stake in the airline, which it hopes to sell by 2023. As part of the package, the German government will also inject $6.2 billion in non-voting capital, known as a “silent participation.” Part of these funds can be converted into an additional 5% equity stake. This would then enable the German government to veto any potential hostile takeover bids. The agreement is subject to approval by multiple authorities. The bailout deal is the result of weeks of talks between Lufthansa and the German government about financial aid and will help save up to 10,000 jobs.