Lufthansa board reject € 9 Bn rescue plan

[Tartiflette Fan]

The LH supervisory board ( Aufsichtsrat ) has reportedly rejected the plan because the conditions imposed by the EU ( giving up slots in Frankfurt and Munich ) were too detrimental to the business. I'm too new to post a link, so here is the relevant text from the FAZ.

"Aufsichtsrat der Lufthansa habe dem neun Milliarden Euro schweren Stabilisierungspaket des Staates am Mittwoch wegen Auflagen der EU nicht zugestimmt.

Die von der Wettbewerbsbehörde geforderten Auflagen bedeuteten eine Schwächung der Drehkreuze an den Flughäfen München und Frankfurt, teilte die Fluggesellschaft zur Begründung mit. Die daraus resultierenden wirtschaftlichen Auswirkungen sowie mögliche Alternativszenarien müssten intensiv geprüft werden. „Vor diesem Hintergrund hat der Aufsichtsrat dem Stabilisierungspaket in Zusammenhang mit den EU Auflagen nicht zustimmen können.“

[733driver]

To be fair, they haven't exactly rejected the plan. They just haven't approved it (yet). They say they need some time to analyze the implications.

[Tartiflette Fan]

Yes, you are correct to say that, however I think it's clear from the rest of the article that that is just some diplomatic flim-flam to help them get a better deal. The article says that the German side of the deal ( German government/Lufthansa ) was only finalised on Monday, and also quotes the responsible German minister as saying that they are going to push Brussels hard, so that it doesn't undermine the industry. In such circumstances it is normal not to unnecessarily antagonise the other parties ( unless you are MOL ), so by their actions LH are making it easy for the Bundesregierung to go back to Brussels and say " We told you not to be too hard on them, they have turned it down "

I suppose it makes the situation even more complicated that the discussions over the huge EU grant/loan package (mainly for S Europe ) is being hotly discussed and Germany is currently in the middle between the "Frugal Four " and the "Club Med " ( just to stay in tabloid vernacular ) states and, additionally , there was that momentous BVG ( Constitutional Court ) decision just a few weeks ago.

[Denti]

Lufthansa always had a plan B, which is going through the german chapter 11 process (Planinsolvenz in Eigenverwaltung). That would allow them to get the pension pots and there is more than enough money in that pot to weather this storm. An additional bonus would be of course that they could finally get some real concessions from their unions. Will be quite interesting to see that unfold.

Even more interesting is however that france, netherlands and germany are quite willing to give their aviation sectors huge bailouts, while apparently the UK is not. Putting all UK airlines at a distinct disatvantage.

[the_stranger]

Even more interesting is however that france, netherlands and germany are quite willing to give their aviation sectors huge bailouts, while apparently the UK is not. Putting all UK airlines at a distinct disatvantage.
Just to clarify, the Dutch government isn't giving KLM money, they broker a loan for them at commercial banks.

Only in case of KLM not being able to pay back the loans, the government will pick up the tab. But for now there are only commercial loans (against a rather high interest, if rumours are true).
Of course the government do pose strict demands on KLM for this help.

[Tartiflette Fan]

Lufthansa always had a plan B, which is going through the german chapter 11 process (Planinsolvenz in Eigenverwaltung). That would allow them to get the pension pots and there is more than enough money in that pot to weather this storm. An additional bonus would be of course that they could finally get some real concessions from their unions. Will be quite interesting to see that unfold.

Even more interesting is however that france, netherlands and germany are quite willing to give their aviation sectors huge bailouts, while apparently the UK is not. Putting all UK airlines at a distinct disatvantage.

I did read criticism of the Lufthansa board that they had (apparently ) not considered any measures other than the government rescue or insolvency. Perhaps your reply puts flesh on those bones.

I'm not actually sure why the actions of F/NL/D should necessarily disadvantage British airlines. They are all loan schemes AFAIK , and from memory, the proposed interest on the LH loan was 9% by 2030, so certainly not cheap. If the British airlines can either fund themselves ( IAG obviously , EJ probably ) then they don't need the helping governmental hand, which may simply avoid long weeks of negotiation with banks. Government help may well be seen as detrimental by company managements because:
a) There will be pressure not to cut jobs and pay generous redundancy to those who have to leave
b) There may be interference in planning ( number of bases etc ) and re-organisation of working rules for staff.
c) The unions will be much strengthened in their negotiating position.

[BEA 71]

I understand the the biggest hurdle are the Brussels watchdogs, who demand Lufthansa to give up ( valuable ) slots at the hubs at Frankfurt and Munich, which not only the board, but also the unions and the federal state of Hesse strongly oppose.

[Denti]

Well, as Germany and Lufthansa have not even applied for the anti competition case there is no ruling or any decision at all. They suspect there might be something like that, but they do not know. The board simply wants to go the other path, which is a lot more lucrative and would keep the politicians away from the board as well as not diluting the shares. Get rid of the pension pot, there is more than enough money in there, that is what the capital side of the board always wanted.

[His dudeness]

Of course the government do pose strict demands on KLM for this help. Such as givin up slots for nice folks like Mr.O`Leary to pick from?

Alitalia gets Government bailout after bailout for years and now - in midst of the GOVERNMENT driven shutdown - "we" can´t help LH who was a profitable Airline with quite a lot of high paid jobs who contribute hugely towards social security and taxes in Germany, whilst Mr.O`Leary does largely not (contribute) ? How I envy the Brits for Brexit. The EU is scam, through and through.

[the_stranger]

No, they are not that stupid...

[pilot9248]

&His dudeness, it was in fact the UK who opened the door for Ryanair and enabled it to become what it is today. As to the rest of your rant, that is a discussion for Jet Blast, not this subforum. I would agree with the other posters here that this “rejection” is just part of the political process. I’m sure a sensible solution will be found, it just won’t be as headline-grabbing.

[His dudeness]

Oh, "my rant" is to your majesties dislike ? Read what the not elected Madame Vestager said about the case and maybe then (I doubt it, but..) you´ll understand what I´m saying. Whilst everybody seems to agree that Germany should pay, because we are fiscally a bit more responsible than at least the club med (AND have the highest taxation WORLDWIDE) the same nice persons dislike us being able to do so.

[dirk85]

They are asking to give up what, 6 pairs of slots? Over how many hundreds? Hardly a huge ask in exchange for a 9B bailout...

[foxcharliep2]

Whilst everybody seems to agree that Germany should pay, because we are fiscally a bit more responsible than at least the club med (AND have the highest taxation WORLDWIDE) the same nice persons dislike us being able to do so.

Well said - Cannot agree more with your "rant" that makes complete sense to me being retired LH and a tax payer in Germany.
Nobody in the non-elected EU-cracy has asked how the billions given away to less fiscally responsible countries will be spent or managed or even controlled.
But LH is supposed to give up valuable slots to companies that dodge fair employment contracts, pay little to no taxes in Germany and mostly depend on subsidies to sell cheap tickets.
Makes no sense. Except maybe in Brussels.

[Tartiflette Fan]

Some more information in the following article. The EU initially required the withdrawal of 20 aircraft, LH offered three and there seems to be a basis for agreement on eight, split equally Frankfurt /Munich. That's 24 take-off/landing-slots.

I can't post a link, however this was in today's German Focus magazine.

[pilot9248]

Dudeness and foxcharlie,
following a long discussion with a friend and colleague in Germany I now understand the situation much better and would like to clarify that I am in agreement with both of you regarding your concerns about companies that commit “Sozialdumping” being given a leg up vs. LH who it appears are trying to be socially responsible and also have not announced mass redundancies as have many of their competitors (to my knowledge at least). I simply don’t think it’s helpful to use what I see as clumsy “Stammtisch” language to describe complex issues such as cabotage. I have seen too much damage being caused when valid concerns are being abused to drive political agendas that are not in our (European aviation professionals and taxpayers) interests. However, I also wonder why some member states seem to think they must comply 100 percent of the time with everything the EU says while others seem to be able to creatively adapt and interpret the law as they see fit. Perhaps the German government should have given LH the money and sorted out the business with the EU later as not to prolong the critical situation which LH finds itself in at the moment.

[esa-aardvark]

German government should have given LH the money and sorted out the business with the EU later as not to prolong the critical situation which LH finds itself in at the moment.


Sometimes better to beg forgiveness than ask permission

[foxcharliep2]

theturbofantastic Thank you for your well balanced comment and your understanding of the issue.
I'd only disagree on the term "clumsy Stammtisch language" as it is un-logical decisions like these from the EU that heat up the Stammtisch and provoke resistance to being milked by Brussels while having a socially responsible company punished.

[His dudeness]

...and all the while same person in Brussels (Mrs.Vestager) has apparently no trouble whatsoever in the case of Italia who is direct state subsidies/bailouts since 2008 if memory serves correctly.

There is an additional thing that drives me nuts: "we" will be largely be "responsible" for the biggest money rain the club med in the EU has ever seen. They say its going to be 1750 billion Euros, without ANY conditions against misuse. And 9 for DLH is a serious problem ? AF-KLM gets government money as well. And I´m sure a lot of other airlines will get money from "their" respective governments as well.

I´m utterly convinced, would DLH not be German, things would be handled differently in Brussels. And I´m sick and tired of this ****.

[Bidule]

... (AND have the highest taxation WORLDWIDE)

According to the OECD, it is far from being correct: https://www1.compareyourcountry.org/tax-revenues-global


... AF-KLM gets government money as well. .

AF had to leave almost all its domestic network to get the money (and this will lead to HOP! disappearing soon)

[armagnac2010]

Germany is being treated fairly, like any other EU countries. Following Air Berlin demise, with Condor future in doubt, DLH has very little competition hence the need to ensure some redistribution of slots. This might not benefit DLH stockholders; but this will benefit German customers.

DLH biggest problem are internal, really. The Germanwings/Eurowings saga, to start with. Low service; high cost. DLH management dumped their inability to address the company high cost on their customers, destroying in the process their Lufthansa brand in all German places but FRA and MUC. Poor operational records of both ventures (not surprising - LBA audits are a joke). DLH acquisitions outside of Germany fared better in German speaking countries, Austria and Switzerland, than in other, Belgium or Scandinavia. I won't elaborate of the reasons, subjectivity might step in.

Your reference to the Club Med is really disturbing. Please keep in mind the biggest flow of money over Europe will remain the Marshall Plan. It resulted from a German madness, incidentally.

[lederhosen]

Whilst it might have been tempting for management to tough this out. I have heard that one reason they decided not to was concern as to what would happen to their own jobs in an insolvency. The concessions asked for also don't look impossible. Yes it is unhelpful to Lufthansa's home base dominance strategy. But giving up slots at a time when traffic is forecast to be significantly lower is probably manageable. If some go to Ryanair then the EU can probably use that as a sop to O'Leary.

[foxcharliep2]

...and all the while same person in Brussels (Mrs.Vestager) has apparently no trouble whatsoever in the case of Italia who is direct state subsidies/bailouts since 2008 if memory serves correctly.

At least we have "Mutti" fighting for LH vs Vestager - never thought I'd be praising her, but she's doing the right thing.

https://www.politico.eu/article/merkel-tough-fight-with-brussels-lufthansa-rescue-european-commission/

[dirk85]

And people accidentally forget that if it wasn’t for the club med countries also condoning the equivalent of hundred of billions of euros in war reparations, Germany would not be where it is today, taking advantage of a powerful industrial base and a strong euro fuelling their massive commercial surplus at the expense of the rest of the UE

[His dudeness]

Your reference to the Club Med is really disturbing.

Is it ? I feel sorry for you and your hurt feelings. Have a look at the median wealth per person of Spain, Italy, Portugal and even Greece: higher than that of the Germans. The 2019 numbers in USD are:

F - 101.942
SP - 95.360
I - 91.889
P - 44.025
GR - 40.000

D - 35.313

[armagnac2010]

Compared with Germany, people in other countries tend to own their living place, rather than renting it and spending their income on useless luxury car leasings. This is indeed why there are no speed limits on Autobahn; get the average German family to spend a disproportionate amount of their wages on Mercs or BMW. We all know buying a car is the best way to lose capital. So in the end, German median wealth is low, compared to the living standards of the country. A respectable choice, except it promotes CO2 emissions, and hopefully the EU will pay a closer look at it.

Back to the topic, bitte. Ensuring DLH has some minimal competition will actually benefit the flying public flying to and from Germany, mostly German presumably. Not only the ones flying to Ibiza, but also the business people, DLH fares are simply horrendous in business.

The bailout plan is money for the stakeholders, and to a lesser degree, for the employees; they save their investment and keep their jobs. Redistributing slots will benefit the general public, ie the taxpayers.

A fair deal, isn’t it?

[JCviggen]

Have a look at the median wealth per person of Spain, Italy, Portugal and even Greece: higher than that of the Germans.

You know what they say about statistics, right?

There are lots of asterisks than you can put next to these numbers as every country has different habits and ways of accounting that strongly influence numbers like this. Private vs public assets etc.

If you look at _all_ the numbers (even those that don't fit your bias) rather than picking one you can see the story is entirely different.

[BEA 71]

Is your Ivory Tower situated in the Kremlin, Armagnac 2000? This reads like the left wingers ( commies ) comments in the newspaper. In what a world are you living? I do not own a car, because I can´t afford it any more, I walk, or use public transport if necessary. Your comments are full of hate.

[foxcharliep2]

Back to the topic, bitte. Ensuring DLH has some minimal competition will actually benefit the flying public flying to and from Germany, mostly German presumably. Not only the ones flying to Ibiza, but also the business people, DLH fares are simply horrendous in business.

Redistributing slots will benefit the general public, ie the taxpayers.

A fair deal, isn’t it?

No it isn't - and maybe you should lay off the Armagnac as it tends to cloud your vision.

LH has always had competition, both out- and inside Germany. No problem with that.

In my 35+ years flying for LH I have never been to Ibiza and only once to Palma. We never made money flying tourists.
Business people are happy to pay a decent price to have a reliable airline fly destinations that they would otherwise not reach like many East European-Ex-Soviet places and other destinations that western airlines do not fly to.

Redistributing slots to airlines like Ryanair and Easyjet will benefit the general public you comment - good joke, next joke, when it is taxpayers like me that subsidize their operations like in Hahn ( yes, that one cow village touted as Frankfurt by Ryanair ). Bad joke.

Not fair at all. Danke.

[dirk85]

How would easyJet be subsidized? They pay taxes and social security the same way LH does, they have unions, and they get no incentives from local regions.

[foxcharliep2]

Another bad joke ...."Italy just can’t break up with Alitalia.

And it's an expensive relationship. After at least six failed rescue plans over the past 12 years, the Italian government has once again stepped in to prop up its flag carrier, now bludgeoned by the coronavirus crisis. Rome has decided to renationalize (https://pro.politico.eu/news/italy-to-bail-out-alitalia-for-e3b) it with more than €3 billion of public money.

For both ordinary Italian voters and European Commission officials policing government subsidies, questions about how long Italy can keep treating an airline as the most sacred of cows (and keep shoveling money into a black hole) are only growing louder.

“Italians see Alitalia as a spaghetti strainer — you pour in money and it comes straight out,” said one former manager.

Indeed, the company has burned through an eye-watering €10 billion in bailouts and loans since it was privatized in 2008.

“You could say the coronavirus has been both the worst thing and the best thing for Alitalia,” the manager continued. “The losses have been enormous, but it has given the government an excuse to nationalize.”

https://www.politico.eu/article/alitalia-airline-too-italian-to-fail/

[vikingivesterled]

Well the tide ran out and the ones left standing naked was surprise surprise the germans. Maybe their towels was left on a sunbed somewhere.
Pehaps it shouldn't have been so surprising, at least for they who knew they couldn't make money on transporting tourists. Well according to foxcharliep2 that is. But are instead depending on they who don't pay for the ticket themselves, and hopefully are not looking at the costs. That in a downturn is a castle built on sand. Now all their commentators are busy searching for airlines doing worse than themselves, and the only one they found was Alitalia. That just makes it even more sad.

[BEA 71]

There are hundredthousands of airline people fearing the loss of their jobs for good. Friends, colleagues, many of them the finest one can think of, no matter, which airline they work for. In " my days " there was a brotherhood of airliners, and I have no doubt, it still exists. But all, some commentators can do, is to spread words of hate and accusations. No one is responsible for the present situation, the virus affects them all, the subsidies and aids paid to airlines will in the end achieve nothing. The surviving airlines will have to find a way to get out of that misery. Competition at all costs is a nuisance. Years ago, the German Internal Services ( IGS ) were operated by Pan American and British European Airways. When the passenger numbers dropped significantly, either airline was flying with half-empty aircraft, creating heavy losses. In spite of the fierce competion, both airlines decided for a split of routes, so they could secure reasonable loads and income. I think it was the wisest decision of this kind in airline history. Mrs. Vestager would have fainted. Of course this was only possible due to the status of the Berlin air traffic. You can " throw " new routes at other airlines for the sake of competition, but with the high unemployment rates in many countries, there won´t be many passengers who can afford to buy are airline ticket. The demand will set the rules. As it always was the case.

[His dudeness]

A respectable choice, except it promotes CO2 emissions, and hopefully the EU will pay a closer look at it.

Back to the topic, bitte. Ensuring DLH has some minimal competition will actually benefit the flying public flying to and from Germany, mostly German presumably.

Do you see the contradiction in your comments....?

[His dudeness]

You know what they say about statistics, right?

I think I do.

[His dudeness]

Compared with Germany, people in other countries tend to own their living place, rather than renting it and spending their income on useless luxury car leasings. This is indeed why there are no speed limits on Autobahn; get the average German family to spend a disproportionate amount of their wages on Mercs or BMW. We all know buying a car is the best way to lose capital. So in the end, German median wealth is low, compared to the living standards of the country. A respectable choice, except it promotes CO2 emissions, and hopefully the EU will pay a closer look at it.

I´m regurlarly in France, Spain, Greece and have been so for a considerable time (being an executive pilot for 30 years + now). I always wondered why there are no cars on the roads in the club med, just donkey carts. Thanks for enlightening me.

Do you even realize how dumm your arguments are ? Do you have ANY idea what a nurse, a salesperson, an average low paid person in Germany earns ? And what the costs of living is ?

IF you find a way, how - say my wife, who is an assistant to a dentist - can survive and drive Merc or an BMW on her 1200€ salary (after taxes) if she would not be married, but would have to rent her own little flat (30 square meter comes at about 450-600€/Month), let me know. Or get her own flat or house.
In reality she drives a used Smart For 2 we bought for 8000€ years ago and will keep that car for the foreseeable future.

I have the distinct feeling that you don´t have the slightest idea about realities of living in Germany. And no, I´m not complaining, I´m relatively well off.

[Luke258]

According to the OECD, it is far from being correct: https://www1.compareyourcountry.org/tax-revenues-global




AF had to leave almost all its domestic network to get the money (and this will lead to HOP! disappearing soon).

.
Well don't forget that France currently owns quite some stake in AF. Heard no complaints about that from the danish Lady in brussels.

[Bidule]

It may be because LH dominance at FRA and MUC is very much above the AF dominance at CDG. In fact, in Europe (except IST), LH is the first dominant carrier at its hubs

Source: https://www.oag.com/oag-megahubs-2019

.

[lederhosen]

When you count all the group airlines LH has around about two thirds of the slots at Munich and Frankfurt according to Aerotelegraph.com (in german). I admit to being surprised but it happened gradually as they took over Swiss, Austrian, Brussels and a lot of the Air Berlin business (indirectly via Eurowings etc.). I am not sure a little competition particularly price wise would be bad when things get going again.

[Tartiflette Fan]

Today LH presented financial results for the first quarter. There was a loss of € 2 100 million ( 2019 € 342 million loss)

Accompanying comments were:
Currently about 700 of 763 planes grounded
Estimate for coming year ( that seems to mean 2021 ) 300 grounded
..................2022 200 grounded
..................2023 100............

Details from today's Focus magazine

[Less Hair]

They now want to sell and lease back their aircraft to generate cash. Up to 500 a/c their CEO only sort of joked.

[Luke258]

It may be because LH dominance at FRA and MUC is very much above the AF dominance at CDG. In fact, in Europe (except IST), LH is the first dominant carrier at its hubs

Source: https://www.oag.com/oag-megahubs-2019

.
Oh now I see. Se french are mad because they are not the Leaders in the branche. According to german news, some high Level french EU politicians were trying to take a Chance against Lufthansa.

[CargoOne]

FRA is the only European mega hub which is not located at megapolis city, so LH dominance is quite understandable.

ps I was rather surprised EK is just 49% at DXB.

[lederhosen]

Who said don't trust any statistics you did not make up yourself? I am not sure we are comparing like with like when we talk about megapolis airports. Frankfurt (not Munich) benefits from an excellent internodal transport system. The train feeds passengers from an impressively large catchment area.

A lot of people in Germany think the EU is picking on Lufthansa. But frankly I think hub dominance, particularly when a number of other companies are likely to come out of this significantly weakened, is a fair subject of public interest. Big companies are getting a lot of support (e.g. BASF in the UK getting effectively over a million euros per employee according to today's Times newspaper) while small companies are struggling.

[EAM]

FRA is the only European mega hub which is not located at megapolis city, so LH dominance is quite understandable.


That depends a bit on how you see it, of course Frankfurt with only 750.000 people is not a big city, but the Rhein Main Gebiet which surrounds Frankfurt has about 5.7 Million people, all within less than 1 hour of the airport.

[Longtimer]

LH has received approval to operate it's flights to / from Canada using City Line:
Here is the public CTA approvalDetermination No. A-2020-103
May 27, 2020APPLICATION by Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) [Lufthansa], on behalf of itself and Lufthansa CityLine GmbH (CityLine), pursuant to section 60 of the Canada Transportation Act, SC 1996, c 10 (CTA), and section 8.2 of the Air Transportation Regulations, SOR/88-58 (ATR).

Case number:
20-04377Lufthansa, on behalf of itself and CityLine, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Lufthansa to provide its scheduled international service between Germany and Canada using aircraft with flight crew provided by CityLine, beginning on August 1, 2020, to July 31, 2021.

Lufthansa is licensed to operate scheduled international services in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009.

The Agency has considered the application and the material in support and is satisfied that it meets the requirementsof section 8.2 of the ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Lufthansa of aircraft with flight crew provided by CityLine, and the provision by CityLine of such aircraft and flight crew to Lufthansa, to permit Lufthansa to provide its scheduled international service on licensed routes between Germany and Canada using aircraft and flight crew provided by CityLine, beginning on August 1, 2020, to July 31, 2021.

This approval is subject to the following conditions:

Lufthansa shall continue to hold the valid licence authority.
Commercial control of the flights shall be maintained by Lufthansa. CityLine shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.
Lufthansa and CityLine shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
Lufthansa shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
Lufthansa and CityLine shall advise the Agency in advance of any changes to the information provided in support of the application.

https://www.otc-cta.gc.ca/node/569347

[sekmeth]

The 25th will be a huge day for LH.
A private investor has bought (at least) 15% of the stocks.
In multiple interviews he is quoted being negative about the state funding.
currently people - including the LH management - take into account that there will not be a 2/3th majority for the aid.
Consequently LH will file for bankruptcy protection..
the investor is said to gain roughly 300million euro with these actions. His gain will make in a worst case scenario over 30000 people jobless.
let’s hope for a miracle!

[Less Hair]

It might turn ugly it seems.

[Banana Joe]

Heinz Hermann Thiele, not a really young guy. And in a few years those 300 million euro won't be of much help to him.

[Less Hair]

Tomorrow he is set to meet the finance minister and the LH CEO after he threatened to veto the government bailout.

[Denti]

Heinz Hermann Thiele, not a really young guy. And in a few years those 300 million euro won't be of much help to him.
When has that ever stopped anyone? Joe Biden is in the same age bracket...

[Tartiflette Fan]

Because of the possibility of insolvency at the end of the month, Lufthansa is paying salaries on June 22nd instead of the regular date of June 27th.

"„Wir alle stehen vor einer Schicksalswoche für unsere Lufthansa“. Wie das "Bild"-Zeitung schrieb, werden bereits am heutigen Montag, dem 22. Juni, die Juni-Gehälter aller 138.000 Lufthansa-Mitarbeiter ausgezahlt. Üblicherweise ist der 27. Juni Zahltag bei der Airline."

Focus magazine June 22.

[RevMan2]

While I'm happy to have seen this month's salary in my bank account yesterday, I can't help but think that it's also a ploy to signal to the world, the government and the employees how precarious the situation is and will be by the end of the week.

[sekmeth]

Yes, LH had the salary yesterday. Hopefully the other branches (GWI) will also get payed this month. So far nothing..

[golfyankeesierra]

How can you make, as a shareholder, 300mil with a bankruptcy?

[sekmeth]

Because LH is worth over 10 billion (cash, assets etc) but with the current stock prices it costs 4.5 billion.
With the German version of chapter 11 bankruptcy protection he can liquidate the airline (and part of the pension pot as well), and make millions in the process.

[BDAttitude]

Thiele is not an anglo american hedge fund. Personally I give him a leap of faith. If he manages to push government investment below blocking minority this will be beneficial for LH in future. Still hope this turns out well.

That said I'm very critical on what's going on with LHs subidiaries. Their two class society amongst their staff plays out very badly at the moment.

[Tartiflette Fan]

According to newspaper reports (FAZ ) Thielen is going to vote for the rescue deal with government participation.

[foxcharliep2]

Confirmed.

https://www.n-tv.de/wirtschaft/Thiele-wird-Lufthansa-Rettung-unterstuetzen-article21869180.html

[Shen505]

Shareholders just approved the rescue package with 98% of consent.