The largest German corporate rescue since the crisis struck will see the government get a 20% stake in carrier Lufthansa.

The 9 billion euro, or 9.8 billion dollar stake could rise to 25% plus one share in the event of a takeover attempt.

Lufthansa and Berlin have been locked in talks for weeks in an attempt to save thousands of jobs.

Germany's Finance Minister Olaf Scholz said on Monday (May 25) that until now, Lufthansa had been healthy and profitable:

"The efforts that we are undertaking are limited to a certain timeframe. Once the company has got its footing again then the state will sell its shares with what I hope will be - and not only because I am finance minister - a small profit which will then allow us to finance the many, many obligations we now need to fulfill with other companies that need us."

Berlin, which has set up a 100 billion euro fund to take stakes in struggling companies, said it plans to sell its share in Lufthansa by the end of 2023.

Lufthansa will separately receive a 3-billion-euro three-year loan from state-backed KfW and private banks.

The bailout still requires approval by shareholders as well as the European Commission.

But shares were up over six percent on Tuesday (May 26) morning, following a public holiday for most of Europe.

The major travel slump has left even the strongest airlines struggling.

Others including Air France-KLM and U.S. carriers American Airlines, United Airlines and Delta have also sought state aid.