In late May, media outlets reported that German flagship carrier Lufthansa could go bankrupt if negotiations with the government over a multi-billion coronavirus-related emergency assistance package fail to result in a consensus.

The European Commission on Thursday approved a move by the German government to bail out the nation’s flagship carrier Lufthansa for 6 billion euros.

"This substantial amount of aid will help Lufthansa weather the current coronavirus crisis, which has hit the airline sector particularly hard”, EU competition commissioner Margrethe Vestager said.

The bailout programme will help the German air titan to stay afloat amid the coronavirus crisis but the company will have to give up prized slots at the Frankfurt and Munich airports to ensure fair competition.

Earlier in the day, the Associated Press reported that Lufthansa was seeking shareholders' support at an extraordinary general meeting for a 9 billion-euro ($10.2 billion) rescue package. 

At the same time, the airline and the union UFO, which represents cabin crews, stated they had agreed on a deal that will allow the company to save more than 500 million euros ($554 million) through the end of 2023.