Lufthansa board reject € 9 Bn rescue plan
They now want to sell and lease back their aircraft to generate cash. Up to 500 a/c their CEO only sort of joked.
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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
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Source: https://www.oag.com/oag-megahubs-2019
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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.
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.
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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.
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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:
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.
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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!
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!
It might turn ugly it seems.
Tomorrow he is set to meet the finance minister and the LH CEO after he threatened to veto the government bailout.
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Thread Starter
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.
"„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.
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.
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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.
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.
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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.
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.
Thread Starter
According to newspaper reports (FAZ ) Thielen is going to vote for the rescue deal with government participation.
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