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Shareholders okay Lufthansa $10-B rescue

FRANKFURT AM MAIN (AFP) – Lufthansa shareholders on Thursday overwhelmingly backed a nine billion euro ($10 billion) bailout by the German government, saving Europe’s largest airline group from bankruptcy after the coronavirus crushed travel demand.

Over 98 percent of shareholders accounting for 39 percent of Lufthansa stock voted in favor of the resue package in a special meeting held online because of the pandemic.

”We will make this work, thank you for your trust,” chairman Karl-Ludwig Kley said.

The bailout will see the German state take a 20-percent stake in the group, bringing it back on board for the first time since Lufthansa’s 1997 privatization.

CEO Carsten Spohr said the shareholders’ green light gave Lufthansa and its 138,000 employees ”a perspective for a successful future”.

Ahead of the vote, Spohr urged investors to seize a ”historic moment” to secure the survival of the airline giant.

Their blessing was all but guaranteed after the group’s biggest shareholder, German rail industry tycoon Heinz Hermann Thiele, dropped his objections to the bailout at the 11th hour.

German Economy Minister Peter Altmaier called the green light ”good news” for employees and said the rescue package gave Lufthansa the chance ”to overcome the biggest crisis in its history”.


Source: Manila Bulletin (https://business.mb.com.ph/2020/06/26/shareholders-okay-lufthansa-10-b-rescue/)

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