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Lufthansa shareholders voted almost unanimously in favor of the Government rescue package of $10 billion on Thursday, following a tense week as airline’s largest single stock holder threatened to block the deal.
Billionaire businessman Heinz Hermann Thiele had opposed the bailout package, which will give the government a 20% stake in the airline and dilute the value of his own 15% holding.
But just hours to go before the vote, he pulled back his decision, which allowed the deal to be approved.
Due to uncertainty over Thiele’s vote, the airline took some extraordinary steps., It brought forward the staff salaries by three days this month to ensure guaranteed payment in the event of voting fails.
Lufthansa lost $1.3 billion in the first quarter and said last month that it was burning through $1.1 million in cash every hour.
It had $4.5 billion in cash as of May 5.
Lufthansa group, which owns airlines in Germany, Switzerland, Austria and Belgium, is planning a sweeping restructuring program that would trim its fleet by 13% and could result in as many as 22,000 job cuts.