Deutsche Lufthansa wants to get out of the crisis – economy

Lufthansa begins a multi-billion capital increase to repay German state aid. The gross proceeds of the issue will amount to 2.14 billion euros, as announced Sunday evening the company MDax in Frankfurt. The subscription price is 3.58 euros per new share. The new papers are expected to be offered to shareholders from September 22 to October 5 at a subscription ratio of 1: 1.

Lufthansa intends to use the net proceeds to repay the tacit participation I of the German Economic Stabilization Fund (FSM) in the amount of 1.5 billion euros. In addition, the intention is to repay the implied participation II in the amount of one billion euros in full by the end of the year and also to terminate the unused part of the implied participation I of here there. Lufthansa boss Carsten Spohr recently stressed that he wanted to regulate the repayment of German state aid with the current federal government. “We would like to clarify the situation with the current contact persons,” said the head of Germany’s largest air group almost two weeks ago. Lufthansa has already repaid a billion euro loan to state bank KfW.

Spohr had already announced the current capital increase for the reimbursement of tacit participation in the economic stabilization fund. It was only in the second quarter that Lufthansa took an additional 1.5 billion euros from the second silent contribution from the federal government. In total, it took state aid amounting to four billion euros. The money comes from Germany and the neighboring states of Belgium, Austria and Switzerland. The repayment of all state aid is also a prerequisite for further mergers and acquisitions between European airlines. As long as companies in the sector are supported by the state, they are prohibited from merging.

Even before the Corona crisis, it was clear there would be further consolidation, Spohr said. The crisis practically hit the pause button in this process. “When this government stabilization is paid off, that pause button will come back into play,” the manager said. “Because we have too many airlines in Europe.” Due to the corona pandemic and associated travel restrictions, airlines around the world have lost most of their business over the past year. Many have escaped bankruptcy only thanks to billions in government aid.

Related Articles

Back to top button