German Government Backs Vouchers Over Refunds For Lufthansa Passengers - Simple Flying

In order to manage its liquidity, Lufthansa may issue its customers with vouchers for future travel instead of refunds. This week, the German government appealed to the European Commission to ask for special permission to avoid a hefty bailout. In response, the European Commission stated that normal protocol should still be followed.

Angela Merkel holds Lufthansa plane model
Angela Merkel sides with Lufthansa in order to protect funds. Photo: Getty Images

The government wants alternatives to cash bailouts

Many airlines are now reaching out to their respective governments in order to secure funds that will provide them with some sense of financial security. Whilst some have been granted, a number of international airlines are still waiting for bailouts and terms to be agreed upon.

One such airline is Lufthansa. It is now working with the German government in order to secure additional options that would avoid a hefty state bailout.

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rainbow over a340
Lufthansa hopes it will be able to salvage some of its liquidity. Photo: Getty Images

In Germany, €1.2tn (US$1.3tn) has been set aside for economic recovery post-coronavirus. That sum is compromised of a German government designed package of €750bn (US$827bn) to support the economy and an additional €500bn added by the Kreditanstalt fuer Wiederaufbau development bank. However, with so many companies struggling at this time, the government is looking for other ways to mitigate the cost of airlines that need a cash injection.

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Earlier this week, on Thursday 2nd April,
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