Since the month of March, there are many airlines that have decreased their operations due to the Covid-19, most of them have been economically affected because there are no commercial flights, some have modified their services to stay afloat but others have not been able, which some experts consider that the airport industry is at risk.
In the article Covid-19 Measures may Bankrupt Multiple Airlines it is exposed how the expansion of the coronavirus is turning the process of flights and services provided by the airlines, due to the border restrictions that the Different governments significantly limit their activities and income.
Maintain Lufthansa operations
Lufthansa is a German airline that began operations in 1926 and since 2009 is considered the largest airline in Europe, which is why it is very important to the German government, in addition to its long history and services it provides; It is a company that has been afloat for a large number of years and generates a lot of profits during the year.
As a result of the coronavirus outbreak, the German airline has had to make adjustments, cuts and even closings of some of its headquarters, because the financial decrease has been significant and they are looking for ways to stay on the market; This is why the German government is evaluating entering the capital and helping during this time.
They have mentioned that they are still in negotiations with the German state to define what will be the terms of this entry into the company; from Lufthansa they want the state of Germany to take risks on their investment and then not have a debt that could paralyze the airline, in addition, that they do not have the right to vote in the decisions that are to be made, that is, that they can intervene in their processes and that the participation they will have can be carried out by them.
On the other idea, the government has proposed several guidelines but they have not yet reached a total agreement, which if they support is to enter the capital without having the right to vote, however, they want fixed interests to be maintained and thus be able to ensure their investment, this is what the airline is concerned that must take risks.
Although it has not yet been decided whether the inclusion of the German government in the airline will materialize, most experts consider that this will be the case; Although, there are federal states like Bavaria and Hesse that are interested in joining as well, have shown their interest and have made themselves available to the airline to accept its support.
What do you think about this topic? Do you think the support of the German government is necessary for the Lufthansa airline?
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