Lufthansa Faces Arduous Climb Out of Crisis After Bailout Sealed

Deutsche Lufthansa AG dodged insolvency. Now Europe’s biggest airline faces the arduous task of transforming itself into a leaner carrier to compete in an air-travel market hamstrung by the coronavirus, Bloomberg News reported. The approval of a 9 billion-euro ($10.1 billion) German bailout concludes weeks of sometimes rancorous negotiations with the government and follows frenzied speculation in recent days over whether billionaire Heinz Hermann Thiele, Lufthansa’s largest shareholder, would scupper the deal. Instead, he backed it. With the rescue sealed, Chief Executive Officer Carsten Spohr’s next challenge will be a restructuring to reflect a collapse in air travel and the dim prospects for a quick revival, especially on the business routes Lufthansa favors. The airline has said it may have to shrink its fleet by 100 jets and shed some 22,000 of its 140,000 or so employees. Read more