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Lufthansa Airline Is Losing ₦426 Million Per Hour, Closes In On ₦3.9 Trillion State Rescue Deal
Germany’s largest airline, Lufthansa is closed in on $10 billion (₦3.9 Trillion) state rescue deal.
The deal will result in German government taking a 20% stake in the carrier.
Lufthansa airline said it’s losing around one million euros (₦426 million) per hour due to the coronavirus pandemic.
The carrier has been canceling 3,000 flights per day, as 700 of its 760 aircraft are currently grounded.
Lufthansa airline is close in on $10 billion (₦3.9 Trillion) state rescue deal.
Deutsche Lufthansa AG, commonly known as Lufthansa, is in advanced talks over a 9 billion euros ($9.9 billion or ₦3.9 Trillion) state bailout that would see Germany take a 20% stake in its flagship airline.
The airline is seeking funds as countries battle to save an aviation industry hammered by the coronavirus pandemic.
Few weeks ago, Lufthansa Group said it’s losing around one million euros (₦426 billion) per hour due to the coronavirus pandemic.
The airline group has been canceling 3,000 flights per day as 700 of its 760 aircraft are currently grounded.
On Thursday, Lufthansa said a deal would involve the government taking two seats on its supervisory board; despite Lufthansa CEO Carsten Spohr’s argument against any government control at the company’s AGM earlier this month.
Lufthansa CEO Carsten Spohr said :
“Up until the corona pandemic, we as the Lufthansa group were competitive and successful. We were hit by this crisis through no fault of our own. We therefore now need government support, but we do not need government management,”
The airline has been in talks with Germany for weeks over aid to help it cope with what is expected to be a protracted travel slump.
Sources involved in the negotiations said the government’s economic stabilization fund had not yet put forward a final offer.
Lufthansa spokesman said :
“There are still some unresolved issues to be worked out. As soon as that is done, the management board could give its approval,”
Rival airlines such as U.S. carriers American Airlines, United Airlines and Delta Air Lines, and Franco-Dutch group Air France-KLM have also sought state aid.
Lufthansa said it hoped the deal could be concluded promptly to secure its long-term solvency. It is set to resume flights to 20 more destinations in June.
The carrier is the largest German airline which, when combined with its subsidiaries, is the second largest airline in Europe in terms of passengers carried.
