Airlines Lufthansa Shareholders pave way for €9 billion bailout

The shareholders of Deutsche Lufthansa AG have voted in favour of accepting a €9 billion Bailout of the airline.

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In total, around 98 percent of all shareholders have approved the stabilization measures at an Extraordinary General Meeting of Lufthansa Group AG yesterday. The capital measures and the participation of the Economic Stabilisation Fund (WSF) by the Federal Republic of Germany will include loans of up to €9 billion.

Around 30,000 shareholders attended the Extraordinary General Meeting and represented a total of 39.0 percent of the share capital. Of the 30,000 shareholders, 98 voted to accept the company’s resolution after the Coronavirus hit the company hard.

Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG says: “The decision of our shareholders provides Lufthansa with a perspective for a successful future. On behalf of our 138,000 employees, I would like to thank the German federal government and the governments of our other home countries for their willingness to stabilize us. We at Lufthansa are aware of our responsibility to pay back the up to 9 billion euros to the taxpayers as quickly as possible.”

However, by agreeing on the stabilization package, the airline is also giving up landing and take-off slots at hub airports. Furthermore, the airline has to offer a silent participatory stake to the Federal Republic of Germany.

The Lufthansa had to park the overwhelming majority of its fleet for months now, after the travel demand heavily decreased due to the Coronavirus-outbreak and the followed travel restrictions by the countries. Now, Lufthansa and its subsidiary airlines are slowly brining back their scheduled operations.

In the coming weeks, the flight schedule will be expanded, and the plan is, to include 90 percent of all originally planned short-haul destinations by September.  Furthermore, until then, the airline seeks to operate 70 percent of all originally planned long-haul destinations.

Lufthansa released, that the decision on the approval of the stabilization measures in the other home markets of Lufthansa Group will be made in the near future. The company added that the European Commission had already approved the stabilization package beforehand.

Source © newsroom.lufthansagroup.com

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