Lufthansa seeks government support amid coronavirus hit

Lufthansa is looking into government support amid the “immense” fallout from the coronavirus, which could burden travel demand for months. To avoid layoffs after slashing capacity by as much as 50%, the airline is examining the implementation of so-called short-time work, the company said Sunday. The program, known as “Kurzarbeit” in German, involves the government offsetting wages lost when companies are forced to temporarily halt work. With some countries restricting flights from Germany, which has more than 800 cases, “the impact on our booking situation is immense,” CEO Carsten Spohr said in an internal memo. “We must assume that it may take months before we will see first signs of stability,” he said in the message recorded on Friday. Chancellor Angela Merkel’s ruling coalition is meeting Sunday evening in Berlin to map out a strategy to mitigate the damage from the epidemic on Europe’s largest economy. Looser rules for Kurzarbeit, which would make it easier for companies to apply and could increase payouts, are on the agenda. Economy Minister Peter Altmaier also proposed expanding government loans and guarantees and implementing additional measures if demand and supply disruptions intensify because of the global epidemic. The government is also considering accelerating a planned tax cut.<br/>