Lufthansa
AviationWorld News

German government to control 20% of Lufthansa airlines in exchange for €9 billion bailout

307

The German government agreed to a €9 billion deal on Monday to save flag carrier Lufthansa, turning the German government into the single largest shareholder in Europe’s second-largest airline as it looks to restart flights next month following weeks of lockdown.

Underscoring the trouble facing airlines, Lufthansa’s current market capitalization is less than the size of the bailout. But as a strategic asset for an export nation, keeping its flag carrier flying is a no brainer in Berlin with broad political support despite some concerns from the opposition Greens and liberals.

Lufthansa has been badly wounded by the coronavirus. Management said last month it is losing around €1 million an hour, and is carrying only about 1 percent of its normal passenger load.

Lufthansa Group, which also includes brands such as Austrian, Swiss, Brussels Airlines and Eurowings, was forced to ground almost all of its fleet and close its Germanwings subsidiary. The bailout puts wind behind Lufthansa’s plan to get flights going again to popular tourist hotspots such as Mallorca and Venice from next month.

The government has promised to appoint “independent experts” to its two board seats, which rules out politicians. In Germany’s multi-tiered corporate governance structure, which mandates worker representation on supervisory boards, keeping politicians out of the boardroom is important for executives who may need to make tough choices.

Leave a comment

Related Articles

63-year-old woman, teenage girl, two others killed in U.S. stabbing spree

A man armed with a knife went on a stabbing spree in...

Ex Guinea-Bissau President’s Son Jailed in U.S. for Drug Trafficking

Malam Bacai Sanha Jr, the son of a former president of Guinea-Bissau,...

Togo dumps presidential system for parliamentary, adopts new constitution

Togolese lawmakers adopted a new constitution on Monday, moving the West African...

U.S. state bars under-15 children from having social media accounts

Florida State Governor Ron DeSantis has signed a bill prohibiting children younger...

U.S. bridge collapses after cargo ship collision, casualties feared

The Francis Scott Key Bridge in the US city of Baltimore collapsed...

Outgoing Pres. Sall congratulates Senegal’s opposition leader Faye on presidential poll victory 

by Paul Ejime Outgoing Senegal’s President Macky Sall, on Monday congratulated opposition...

Senegal presidential poll: 44-year-old opposition leader, Bassirou Diomaye Faye, leads

Opposition leader Bassirou Diomaye Faye is leading in the early race in...

Moscow attack: Four suspects in custody, death toll hits 137

Russia has charged four men who, it says, attacked a Moscow concert...

Senegalese file out on Sunday to elect new president

Senegal’s 7.4 million registered voters came out in large numbers on Sunday...

Moscow’s terrorist attack: Death toll rises to 115

The Russian investigative committee said at least 115 people have died after...

40 killed as gunmen attack concertgoers in Moscow after US Embassy warnings

Just west of Moscow, three attackers dressed in military fatigues stormed into...

“I am now in the early stages of cancer treatment,” Kate Middleton, Princess of Wales, reveals 

After weeks of intense rumours about her health, Kate, the Princess of...

Botched tenure elongation: Senegalese intercede for peaceful, transparent, successful March 24 presidential poll

Ahead of the 24th March crucial presidential election, Christian and Muslim faithful...

13th All  African Games: IWF restates zero tolerance for doping

Mohammed Jalood, the President, International Weightlifting Federation (IWF), says the body has...

Ahead of inauguration, Abubakar Imam International Airport, Minna renamed after Pres. Bola Tinubu

In anticipation of the President’s inauguration on March 11, the Niger State...

Haiti declares curfew as it tries to restore order after weekend jailbreak

Haiti’s government declared a state of emergency and curfew Sunday in a...

Blackout in California as the biggest snowstorm of the season hits the city 

A blackout in California occurred after a powerful snowstorm raged overnight into...