On Friday, May 29, the leadership of the German aviation concern Deutsche Lufthansa AG, during negotiations with the state over the payment of a multi-billion-dollar aid package, first announced the possibility of bankruptcy. A statement was made by the Lufthansa Supervisory Board, published by Focus..

We are talking about bankruptcy through the self-government procedure, which implies the refusal of state aid and the possibility for the debtor to manage his property and continue to work.. According to newsru. co. il, this option of bankruptcy will allow Lufthansa to suspend the refund of tickets for a total of 1.8 billion euros, as well as simplify the dismissal of staff and the closure of unprofitable subsidiaries. As a result, far more than 10 thousand people who were mentioned before can lose their jobs.

The company, according to its own estimates, now incurs losses of 1 million euros per hour against the backdrop of the suspension of flights of the vast majority of its aircraft. This means that reserves of about 4 billion euros will be spent in the fall of 2020.. Therefore, the process of self-government will be possible no earlier than 2021.

The Lufthansa Supervisory Board on Wednesday did not approve the 9 billion euro financial assistance package proposed by the German government after the European Commission tried to force the airline to abandon key slots at Frankfurt and Munich airports.

Lufthansa shares down by about 44% since early 2020.