The days of Lufthansa in the first German stock market league are probably numbered. The airline could fly out of the Dax.
- Lufthansa declines Corona*-State aid for now, but there is an approximation
- Airline must surrender take-off and landing rights at Frankfurt Airport * for the rescue package
- The Lufthansa share could fly out of the Dax
–
Update from Thursday, June 4th, 2020, 8:38 am: The descent of the Lufthansa share in the Corona crisis, the airline’s relegation from the Dax is likely to follow. The decision should be made this Thursday evening (June 4th, 2020) at 10 p.m. The Berlin real estate group Deutsche Wohnen is considered a potential climber in the German share index.
The Lufthansa is in the Corona crisis came under heavy pressure because air traffic has hardly been possible for months. This is why thousands of jobs are at risk in the group with around 138,000 employees. The federal government has put together an aid package that provides various aid and equity measures totaling around nine billion euros. In return, the state economic stabilization fund (WSF) is to take over 20 percent of the shares. It is also planned that the federal government will hold two posts on the 20-member supervisory board of the Lufthansa occupied.
Frankfurt Airport: Lufthansa announces conversion – Airline reports billions in loss
Update from Tuesday, 3.06.2020, 07.50 a.m .: The battered Lufthansa plans massive renovations and cuts despite their planned state bailout. “In view of the foreseeable very slow recovery in demand, we now have to counteract it with far-reaching restructuring measures,” said CEO Carsten Spohr on Wednesday in Frankfurt. The figures for the first quarter show a loss of billions for the airline: The group made roughly 2.1 billion euros – compared to 342 million sales last year. The Executive Board has not yet publicly announced whether and how job cuts will take place in the course of this restructuring.
“Worldwide air traffic has almost completely come to a standstill in the past few months. This has burdened our Q1 result in an unprecedented dimension. We work hard to defend our top position, ”said Lufthansa Group CEO #CarstenSpohr pic.twitter.com/bCBwEUXxLR
– Lufthansa News (@lufthansaNews) June 3, 2020
–
What is certain is that the Lufthansa the cash inflow will have to increase significantly in order to be able to repay the loans and interest quickly, says board member Thorsten Dirks. Meanwhile, the demand for air travel tends to decline. The airline expects that several hundred aircraft in the fleet will not be allowed to fly in the coming years.
Lufthansa is taking the next step towards state aid
Update from Monday, June 1st, 2020, 3:47 pm: The board of directors of the severely battered Lufthansa accepts the requirements imposed by the EU Commission for a state rescue package. The airline announced after a meeting of the panel. Lufthansa must take off and landing rights on airport Frankfurt and hand it over to Munich Airport. The general meeting still has to approve.
CEO Carsten Spohr said that stabilizing Lufthansa was not an end in itself. “Together with the federal government, our goal must be to defend our leading position in global air traffic. We are grateful to everyone involved in stabilization for this perspective, including our customers, employees and shareholders, ”Spohr is quoted as saying.
Update from Saturday, May 30th, 2020, 6:30 am: The badly battered Lufthansa wants the EU Commission’s requirements for the planned Billion dollar rescue package the federal government. As the company announced on Saturday night, the board decided to accept a compromise previously negotiated between Berlin and Brussels. Accordingly, Lufthansa must Take off and landing rights at the airport Frankfurt and to competitors at Munich Airport submit.
Frankfurt Airport: Lufthansa takes a step towards state aid
As the Lufthansa announced that the scope of the commitments required by the EU Commission has been reduced compared to initial plans. The company is therefore obliged on airport Frankfurt and transferring the stationing of up to four aircraft, including up to 24 take-off and landing rights, to one competitor each at Munich Airport.
The Lufthansa Supervisory Board must now rescue package including the EU requirements. The company then plans to convene an extraordinary general meeting promptly to obtain shareholder approval for the package.
Frankfurt Airport: Agreement with Lufthansa is still pending
The Ministry of Economy also points out that the Agreement not yet tied downis: “Incidentally, the talks with the EU Commission on state aid approval continue,” says a statement early Saturday morning. But: “With the intermediate step now achieved, the way is cleared for referral to the Annual General Meeting.”
A spokeswoman for the Brussels authorities announced early Saturday morning that the promises made by Germany to safeguard competition had been noted. The commitments from Lufthansa are for the benefit of consumers and effective competition. Negotiations have not yet ended with the compromise. Brussels still has to agree to the package. The federal government has to notify it.
Timetable published: In June, Frankfurt Airport will fly again
+++ 15.56 p.m .: The air Line Lufthansa has announced that it and its subsidiaries Austrian Airlines, Brussels Airlines and Air Dolomiti plan to offer more flights again in June. The subsidiaries, in particular, had almost completely ceased operations due to the Corona crisis.
Lufthansa announced that the airlines in its group will again have around 2,000 weekly flights in the coming month links want to operate to around 130 international destinations. That is about 15 percent of the capacity of flights compared to the previous year.
Update from May 28, 2020, 12.50 p.m .: In negotiations with the EU Commission on the Lufthansa rescue package According to information from the German press agency, the Federal Government does not expect a result until after Pentecost.
Approval by the EU Commission in Brussels for the planned state aid in the amount of nine billion euros is still pending. The Lufthansa Supervisory Board postponed the decision to accept the government bailout package on Wednesday (May 27, 2020), primarily due to concerns about possible requirements regarding take-off and landing rights.
State aid debate: Lufthansa rejects offer
First report from May 27th, 2020: Frankfurt – Lufthansa has initially rejected the federal government’s Corona bailout package in the amount of nine billion euros. The supervisory board did not reach a final decision on Wednesday. The press agencies dpa and AFP report this in unison.
Concern about Lufthansa take-off rights at Frankfurt Airport
The concern about the requirements of the EU Commission is too great. These could jeopardize take-off and landing rights, and the airline would also suffer consequences at the Lufthansa hub at Frankfurt Airport. Because the approval for the Corona rescue package may be subject to conditions.
These conditions would include that Lufthansa would have to surrender take-off and landing rights at Frankfurt Airport, among other places. This would ensure that Lufthansa would not have supremacy while receiving government support. The Lufthansa Supervisory Board now says it is considering alternatives to the Corona rescue package. Personal bankruptcy would also be possible, also known as the “protective shield procedure”.
Lufthansa Supervisory Board postpones decision on convening general meeting. More information: https://t.co/AE1w59vxYh pic.twitter.com/LzMfb8eAGL
– Lufthansa News (@lufthansaNews) May 27, 2020
–
Joint venture between Lufthansa and Frankfurt Airport planned
It was only on the previous day (May 26, 2020) that Lufthansa announced a joint venture with the operator of Frankfurt Airport. As the branch service Aero Telegraph reports, the joint operation of a terminal at Frankfurt Airport by Lufthansa and Fraport is under discussion. The announcement coincided with the news that the EU Commission could make the withdrawal of start slots at Frankfurt Airport a requirement for Lufthansa to have a corona rescue package.
Corona rescue package for Lufthansa requires approval from the EU Commission
The planned aid would have been a combination of silent participations, loans and state participation. The next step should have been approval by the EU Commission. The corona pandemic and the slump in travel traffic had brought Lufthansa into trouble. The hubs in Munich and at Frankfurt Airport currently serve primarily as parking spaces for Lufthansa aircraft, as flight operations have been cut back significantly.
The competition had criticized the planned Corona help for Lufthansa. Ryanair boss O’Leary had threatened to sue the aid because it would give Lufthansa a competitive advantage.
By Marcel Richters
The German government will support Lufthansa with a rescue package worth billions. The goods chain Galeria Karstadt Kaufhof, which was badly hit by the Corona crisis, is also hoping for government aid.
Lufthansa is starting a charter flight from Frankfurt Airport to China. There are 200 people on board – but not all of them are corona-free.
* fnp.de is part of the nationwide Ippen-Digital editors network.
List of rubric lists: © Tino Schöning / dpa
–
