Reported by dpa International, Germany's flagship carrier, Lufthansa, is exploring the possibility of declaring insolvency, instead of having the state intervene, as it seeks a way of dealing with the economic fallout from the coronavirus pandemic.

Lufthansa, Europe's largest airline, announced last week that the airline is losing one million Euros per hour. They already have plans to restructure and downsize some of their fleet.

The insolvency approach being considered would see the company placed under the administration of a custodian, it would then be allowed to restructure under the current management.

According to the cabin crew union Ufo, Lufthansa chief executive, Carsten Spohr, has said internally that he would prefer to lead the company into this type of insolvency; rather than have politicians meddle with the business.

In an interview with the German newspaper Die Zeit, Spohr he warned against having too much government influence in his company. Questions such as "if we fly to Osaka from Munich or from Zurich" should never be political.

Spohr told Die Zeit that talks are under way "with many governments in Europe about support for our airline."

Source: dpa International