• Lufthansa in trouble

    From Aviation HQ@2:292/854 to All on Tue Apr 28 14:08:04 2020
    The German government will help Lufthansa with nine billion euros in state aid. In return, the government will receive a blocking minority interest and a seat on the supervisory board. Business Insider reports this on Tuesday. Reuters reported moments later that there is no final agreement yet.

    Lufthansa and representatives of the German government are said to have reached an agreement on Monday for the emergency aid package. According to Business Insider, CEO Carsten Spohr wanted to seal the deal on Tuesday with Chancellor Angela Merkel and Finance Minister Olaf Scholz, but according to Reuters, that is uncertain because no final agreement has yet been reached.

    Due to the corona crisis and global travel restrictions, Lufthansa has the majority of the fleet aground. The company is currently losing approximately one million euros per hour. Without state aid, the company would go bankrupt within a few weeks.

    Last week, Lufthansa Group already announced its urgent need for state aid when presenting the quarterly figures. The Lufthansa Group lost 1.2 billion euros in the first quarter on sales that decreased by 18 percent to 6.4 billion euros. In March, sales even fell by 47 percent.

    --- D'Bridge 4
    * Origin: AVIATION ECHO HQ (2:292/854)