The Swiss government has agreed a CHF1.5 billion (€1.4 billion) support package for Swiss International Air Lines.
The Federal Council of Switzerland agreed a state guarantee of loans for Swiss and Zurich-based subsidiary carrier Edelweiss, both part of the Lufthansa Group of airlines.
The guarantee of 85% of the loans by a consortium of Swiss banks still has to be approved by the Swiss parliament, which will debate the matter early next week.
More: Lufthansa faces cash crunch ‘within weeks’
Parent group Lufthansa confirmed it “continues to negotiate intensively with the governments in Germany, Austria and Belgium” on financial support.
Lufthansa has sought a €9 billion rescue package from the German government about and indicated this week that it could seek protection from creditors while undergoing restructuring.
Unions representing Lufthansa pilots, cabin crew and ground staff have demanded job guarantees in return for government support.
Austrian Airlines confirmed it had applied for €767 million in state aid from the Austrian government, in the form of loans and grants.
Austria’s government has said it would require job guarantees and an assurance on the continuance of operations at Vienna in return for aid.