By Tony Winterburn • 29 April 2020 • 9:08
GERMAN holidaymakers thinking of coming to Spain later on in the year have been dealt another blow as Lufthansa, one of the world’s biggest airlines looks set to file for bankruptcy. Last-minute bail-out meetings were being held throughout the night as the German government tried to bash out a deal to save the ailing carrier.
The company would take the bailout money but the state won’t get a say: this is a concise summary of what Lufthansa’s Executive Board, headed by CEO Carsten Spohr, has been telling German politicians in the past few weeks.
Lufthansa currently transports only 1 per cent of passengers compared with a year ago in Europe, some 100 aircraft of its 760-strong fleet could be idled and 10,000 jobs are in danger, CEO Carsten Spohr said last week. It is understood the airline won’t be able to survive without state aid, but there is a chance it may knock back a financial lifeline from the German government for one reason.
Germany is willing to offer up to $15 billion in aid, but the airline is showing resistance because of the terms attached to the offer. According to reports, the government is seeking at least a 25 per cent stake in the airline in exchange for the bailout and would have at least two seats on the company’s supervisory board.
With the hours ticking on, a statement is due very soon on the final decision and fate for Germany’s flagship carrier, surely the government cannot allow its demise?
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