Lufthansa, a German airline, has fully reimbursed the German government for overcoming the crisis caused by the corona virus outbreak. The company announced in Berlin that it had repurchased the last stake in the Economic Stabilization Fund (WSF) to support German companies plagued by the disease and to prevent foreign acquisitions of one billion euros (HUF 366 billion).
Lufthansa has spent 3.5 3.5 billion to repay government aid. Another tranche of quiet shares was repurchased in October for € 1.5 billion, and a கடன் 1 billion loan from the State Development Bank (KfW) was repaid in February.
The German government, through the WSF and KfW, created a € 9 billion package to help Lufthansa last spring, shutting down the global aviation sector almost completely due to the epidemic. The company called for about 3.8 billion euros.
After the repayment, 14.09 per cent of the shares will be in the hands of the government. The WSF first bought a 20 percent stake for 306 million euros last July. Under the agreement between the fund and the company, the sale of shares will begin in August this year and end by October 2023.
This is a good deal
“On behalf of all Lufthansa employees, I would like to thank the German government and the German taxpayers,” said Lufthansa CEO Carsten Sbor. He stressed that the renewed increase in demand for aircraft, the rationality of corporate operations and the return to confidence in the company in the capital market made it possible to get out of the state recovery package.
Federal Finance Minister Olaf Scholes said in a government statement that this was an “important and right” decision to help Lufthansa save tens of thousands of jobs during difficult times. In addition, the bailout is “a good deal for the treasury” because the sale seems to close the deal with a profit. It shows that “smart policy pays off,” said Olaf Scholes, who will head the new federal government that will be formed in December.
Lufthansa is the largest German player in the aviation industry. Together with its subsidiaries, it employed about 135,000 people before the epidemic. At the end of September this year, it had 107,000 employees.
Named Lufthansa, the group had revenues of 5. 5.2 billion in July-September, 96 per cent higher than the previous year, on Eurovings, Austrian Airlines, Edelweiss Airlines in Switzerland and Brussels Airlines in Belgium at 2 2, 7 billion. Post-tax losses fell to 72 million euros from 2 billion euros a year earlier. Business improved mainly due to the efficiency of the freight business. The group carried 19.6 million passengers in three months, up from 46 percent in the third quarter of 2019, the same period before the epidemic.