Europe’s leading international airline loses $ 1 million per hour

US, WASHINGTON (ORDO NEWS) — Lufthansa is in talks with the German government on the terms of the agreement to rescue the company: according to CNN, the air carrier is already on the verge of bankruptcy. The television company notes that the loss of Lufthansa is $ 1 million per hour.

At the annual general meeting held yesterday in virtual format, Lufthansa reported a loss of € 1.2 billion ($ 1.3 billion), outlining in extremely gloomy tones the situation in which the global air transportation market is currently located. Moreover, as noted by Bloomberg, the leadership of the Lufthansa Group did not respond to questions from shareholders regarding plans to rescue the group.

Meanwhile, it became known that the Swiss authorities agreed to guarantee 85% of the loan of $ 1.5 billion for local carriers. Including Swiss International Airlines – the largest company in the country. But the group also includes carriers from Germany, Austria and Belgium, so Lufthansa continues to ask for help.

According to Bloomberg, the group is agreeing with the German authorities on financial assistance in the amount of € 10 billion, offering the government in return a 25.1% stake in the company and a place on its supervisory board.

However, analysts are concerned that government intervention could hinder Lufthansa’s ability to quickly implement its planned restructuring program, which will reduce its fleet by 13% and could lead to a reduction of up to 10 thousand jobs. About two-thirds of employees, or more than 80 thousand people, are already working on a reduced schedule.

At the same time, company management emphasizes that it will not give up control to the state. During the general meeting, Lufthansa CEO Karsten Spor emphasized that Lufthansa wants to maintain its “entrepreneurial freedom of decision and action.” “Therefore, now we need government support, but we do not need government,” he added.

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