At the end of May, the German government agreed to support Lufthansa to secure its future after the pandemic. A vote among the stockholders should give the green light, but there are some problems.
Photo by Brandon Ravelo | AeroNewsX
Lufthansa needs state aid to survive as the coronavirus pandemic has greatly hurt the carrier. In May, the German government agreed on a €9 billion bailout, which comes with some conditions. To continue the bailout, Lufthansa stockholders had to register last Thursday. Only 38 percent of stockholders registered, so the airline must take it to a vote that needs 67 percent support. If over 50 percent had registered, the plan would have been automatically approved.
Many of the stockholders are not satisfied with the bailout plan. Heinz Herman Thiele, who owns 15% of Lufthansa stocks, shares the same dissatisfaction. There have been negotiations between the government and Heinz. According to an interview with Bloomberg, the German government will make a profit with a 20% stake, which will reduce the value of his stake in the carrier. Even though the billionaire does not agree with the bailout plan, he does not want to lose all of his stock in the event the airline collapses.