Freight News, Air

Lufthansa shareholders agree state rescue deal

[ June 26, 2020   //   ]

Shareholders of Lufthansa Cargo parent company Deutsche Lufthansa voted to accept capital measures and participation by the German state Economic Stabilisation Fund (WSF) at an extraordinary general meeting on 25 June.

The package provides for stabilization measures and loans of up to €9 billion including a €5.7bn “silent capital contribution” by the WSF, in return for a 20% stake in the share capital.

Shareholders also voted in favour of granting two conversion rights for parts of the silent capital contributions to safeguard the Federal Government in case of a takeover of Lufthansa and also to secure the interest payments for the silent capital contribution.

Lufthansa Group says that it is meanwhile working at full speed to get services running again. The plan is to operate 90% of all originally planned short-haul destinations and 7% of long-haul destinations by September.