Lufthansa is nearing an agreement with the German government for a €9-10 billion ($9.8-10.9 billion) rescue package made up of several components as the airline aims to resume a substantial amount of flights in June.
Lufthansa subsidiary Austrian Airlines said April 29 that it needs €767 million ($833 million) in financial assistance from the state to survive the COVID-19 crisis.
Lufthansa Group said April 23 that it needs financial assistance by its home countries to be able to survive as it cannot get sufficient access to additional liquidity in financial markets.
Lufthansa is to permanently decommission more than 40 aircraft including six Airbus A380s, reduce Eurowings’ long-haul business and scrap its Germanwings brand.
Lufthansa decided April 7 to make deep cuts to its future fleet, repositioning it to becoming an airline around 20% smaller than before the coronavirus pandemic crisis.
Lufthansa Technik could provide “attractive” collateral for its parent airline group to raise financing to ensure its survival through the coronavirus crisis, Credit Suisse has said.
Lufthansa Group plans to make massive cuts to its over €3 billion ($3.4 billion) in planned investments this year, as the airline prepares for an extended period of no or very little demand.
Following increased government travel restrictions and a massive drop in demand related to the COVID-19 coronavirus outbreak, Brussels Airlines, Latvian flag carrier Air Baltic and Italian regional carrier Air Dolomiti have all decided to temporarily suspend operations.
By Jens Flottau, Helen Massy-Beresford, Tony Osborne
Lufthansa Group has become the latest European airline to apply for state aid in its four home countries to address a nearing liquidity crisis, the airline confirmed Mar. 13.
Lufthansa subsidiary Austrian Airlines has applied to temporarily reduce work hours for its 7,000 employees as the airline copes with a dramatic drop in demand because of the COVID-19 outbreak.