Frankfurt – The regional German airline LGW, owned by the Berlin-based Zeitfracht company, on Wednesday filed for bankruptcy owing to the coronavirus crisis.
“The insolvency is a direct consequence of the travel restrictions and the general economic situation during the coronavirus pandemic,’’ a spokesman said of the filing at Dusseldorf’s district court.
LGW, which comprises 15 aircraft and 354 employees, of late had exclusively operated with its own crews on behalf of Lufthansa subsidiary Eurowings.
However, that lease agreement was terminated during the crisis.
LGW had found it impossible to obtain new orders, but the airline will continue to look for them under its own administration, intending to keep the option open for employees to be involved when air traffic picks up again.
The employees of LGW had been sent into short-time work even before the insolvency, without additional payments.
According to the unions, payments will continue despite the insolvency.
A spokesman for the pilots’ union Vereinigung Cockpit explained that they are now seeking talks with management.
LGW is the second German airline to declare bankruptcy due to the coronavirus pandemic, at the beginning of April,
Thomas Cook Aviation, comprising six propeller planes, has also suffered the same fate.