Lufthansa Saved

Lufthansa shareholders yesterday approved a bailout package from the German government worth €9 billion (£8.1 billion/$10 billion) after earlier doubt that the plan would be passed.

lufthansa-group-airlines-to-kickstart-operations-from-juneEarlier in the week, a major shareholder alarmed the government and airline suggesting that he would block the plan. Heinz-Hermann Thiele owns 15.5% of the airline shares and resisted the conditions imposed on the rescue package.

The German government has insisted on a 20% stake in the airline and two members on the board. For a staunch capitalist, this was probably represented too much government interference and Thiele preferred a more indirect approach via government-guaranteed loans.

Lufthansa A321 new livery e1521227831703 - Travel Radar - Aviation News
Lufthansa A321 ©TJDarmstadt

In any event, Thiele was persuaded otherwise and voted for the proposal. And not a moment too soon. 80% of the airline’s aircraft are grounded and the Chairman Karl-Ludwig Kley told the meeting ‘We are living from the reserves we set aside in good years. Without support, a bankruptcy looms in the next few days.

LH isn’t out of the woods yet. Neither are the other carriers in the Group stable: Brussels, Swiss and Austrian airlines. The CEO Carsten Spohr has said that the airline faces a ‘new normal’ of reduced demand for several years. Once the situation has stabilised, the government has said it would dispose of its 20% shareholding and presumably remove its two directors.

Subscribe to our Weekly Digest!

More News

Travel Radar
Travel Radar
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]



Please enter your comment!