Copyright © 2019 News in Flight | All Rights Reserved
The Supervisory Board of Deutsche Lufthansa AG has not approved the bailout package offered by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany, during the Board meeting today – 27 May 2020.
The Supervisory Board says the package “would lead to a weakening of the hub function at Lufthansa’s home airports in Frankfurt and Munich. The resulting economic impact on the company and on the planned repayment of the stabilization measures, as well as possible alternative scenarios..”
“Against this background, the Supervisory Board was unable to approve the stabilization package in connection with the EU conditions. However, the Supervisory Board continues to regard WSF stabilization measures as the only viable alternative for maintaining solvency.” Lufthansa said in a statement..
The German government, offered a rescue package of €9bn, by taking 20% stake of Lufthansa at a share value of €2.56 per share.
And further €5.7bn funding in the form of equity capital can be paid down by Lufthansa in whole or in part on a quarterly basis to take back full control of the Airline by 2027.
Lufthansa group has been burning €1 million per hour after COVID-19 which slid the passenger traffic to just 1 percent of their usual capacity.