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
the day before you published this the business insider said LH would accept 10 billion in State aid using equipment as collateral and that there will be no oversight from the Government. https://www.businessinsider.com/german-state-bailing-lufthansa-out-of-bankruptcy-with-10-billion-2020-4?r=US&IR=T
Sad times…….it seems the management prefer bankruptcy rather than help from the state? I have heard this is about power grab? Pensions are protected and other things but re-starting can change % ownership,shares etc and other stuff! Thats why other companies do this too outside of aviation to benefit via bankruptcy!
Good maybe a better livery for the new Lufthansa? Maybe renamed Lufthansa Condor??
I like that image by some concept artist who has an all blue livery with white tail fin logo!! Looks great!!
Also what about BA!!! IAG the SUPREME COST CUTTERS! I frankly feel BA is no-longer British Airways, its a sub-brand of Willie Walsh creation Iberia IAG! Thats why with Mr.Cruz at the Helm its becoming more and more ‘dumbed down’!
Such a shame as once a top airline, now a just above Ryan Air quality job! Very sad that my National Airline is a joke compared to the Arabic airlines! BA should be like Qatar Airways and Emirates standards…….What the hell is going on cost cutting Mr.Cruz doing???????????? Keep the staff as if there is a sudden boom for getting away as i feel people will travel as feed up being locked in! Keep them,saves costs in re-training in future and getting people back!
Also here is an example of cut-back BA job! They get the excellent brand new A350-1000 right,opt for the cheapest interior walling/decor and in their entertainment system avoid having to pay the extra for outside cameras for customers to view whilst flying and take-off etc.Only world map! Such tightwads its unreal! Just for that reason BA you have lost me for trans-atlantic flights ,i will book with Virgin if they are still around for the USA as they paid the extras for better interiors and all classes have access to the outside cameras to view aerial views as well as world map! Unreal the tightness of BA on their new A350 ‘the pride of their fleet’! Went for cheapest deal they could get and you would think they would make their ‘star aircraft’ the best it could be in their fleet as its the new Queen of the skies for them as the B747’s are now retiring! Shameful.
Sounds like LH CEO plays hard ball with the German government in order to achieve better terms for the inevitable stimulus. After all he holds the by the balls since LH is a huge employer…..