Coronavirus: German government takes over Lufthansa airline

The German Government and Lufthansa have agreed on a much-anticipated bailout deal to help the airline cope with losses from the coronavirus pandemic, both sides announced on Monday.

The deal, which provides for aid and equity measures worth nine billion euros ($9.8 billion), is yet to be approved by Lufthansa’s supervisory board and the European Commission’s competition watchdog.

The German government said that Lufthansa had been profitable before the pandemic, but is now facing the biggest financial crisis in its history.

The pandemic has grounded around 90 per cent of its planes.

At one point, the firm was losing about 800 million euros per month.

The stabilisation package takes into account the needs of the company, as well as the needs of taxpayers and its employees.

The status of some 138,000 employed by the airline and its many subsidiaries, which include Austrian, Brussels, Eurowings, Swiss and others, along with Lufthansa Cargo, was a major factor in talks.

The German economic stabilisation fund, set up by the government during the coronavirus crisis to be able to acquire stakes in important companies in an emergency, approved the deal earlier on Monday.

Lufthansa’s executive board also approved the deal.

As part of the bailout, the government would receive a 20-per-cent stake in the company.

Some of the conditions, Berlin has set before it will take part, include more stringent environmental protections.

 

 

– DPA/NAN

About Don Saint

PR Guru / Author / Promoter / Controversial Writer / Hip Hop Artiste / Actor / Human Rights Activist. The First Nigerian Hip Hop Artiste to obtain a Masters Degree (M.A) in Arts ( Religion & Human Relations). The author of one of the most controversial books in Nigeria; "Emancipation from Masturbation". With over 12 Movies and 3 Musical albums since 2003. Former Events Manager at Silverbird’s Rhythm Fm Awka Station till 2010. For more info. Call : 08033239298.

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