Happy businessman Heinrich Hermann Thiele opposed to the rescue package, the government will give 20% to 15% are treated by the airline and dilute dilute the value of its own holding. However, just hours before the vote, he relented, paving the way for the deal to be approved. 7% higher in company shares closed Thursday at Frankfurt.
At the meeting straight to shareholders, Lufthansa CEO Carsten Spohr appealed for help. "We are asking for nothing less than to save your approval to Deutsche Lufthansa," he said.
The uncertainty over the vote's forced Thiele Lufthansa to an incredible degree. Forward the expenditure of staff salaries for three days this month, as "guaranteed payment" in the context of the "uncertainty" surrounding the bailout, Spohr wrote a letter to CNN that the developer may seem Business.
Time is running out. Lufthansa lost € 1.2 billion ($ 1.3 billion) in the first and fourth last month that it was burning through € 1 million ($ 1.1 million) in cash every hour. It is also € 4 billion ($ 4.5 billion) in cash on May 5.
"We simply do not have any money," Lufthansa chairman Karl-Ludwig Kley to shareholdersIn the meeting on Thursday. Massive reserves in good years and will soon be depleted government does not help to insolvency rooms, and added.
The allies of the stock in the company, 39% of the face blushes with guilt voted almost unanimously, to back the bailout. Accepting the deal on the table was a "good luck in a rational decision," he says through these Hellgren, the German director and analyst at investment bank Landesbank Baden-Württemberg.
That would be a lot of in the votes of ", which met with the evil one" of things, he added and tried to pull the power of Lufthansa to insolvency is to start.
How vital Germany
Global aviation is not expected to recover some years. Lufthansa, of which the airlines which are in Germany, Switzerland, Austria and the Netherlands, which is the planning of his ships from the storm if he were allowed to drink in the program from the 13% 22,000 He spoke many things to me, could make out of the office of the cake. Kley said that 80% of its fleet to be grounded.
The company said in a statement Thursday it had reached to the UFO, one of the labor unions that represents flight attendants;The only € 500 million ($ 562 million) to secure the costs, while the layoffs were not forced to four years. The savings will be in effect buyouts, pay freezes, reduced hours of unpaid leave, early retirement and a temporary cut in pension contributions.
Spohr shareholders in the company to reach a similar course with the pilots, the union said VC with a third union, Modern been "disappointing."
The group of airlines carried 145 million passengers in 2019 to move and play a vital role in Europe and ship out. "Politicians knowandGermany is the biggest for the export of the nation Lufthansa said Spohr.
The $ 1.5 billion loan from the Swiss government that the group receiving the kingdom and the title of Poland from € 450 million ($ 507 million) backed the package in the Austrian Empire. Belgian government is still talking.
Germany bailout will give the government the right to appoint two members of the company's board care, and analysts said the team could restructuring efforts.
To be able to attract investment risk of becoming less and less competitive Lufthansa restructuring plans in the future, if not delayed, said Thomas Glynn, head of equity research at Credit Suisse European transport.
- Mark Pleitgen Eoin McSweeney attention in the news.
