At the edge of the bankruptcy, the German airline, nailed to the ground early 2020 because of the pandemic, had its salvation only to a massive intervention of the state.
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The German airline Lufthansa has crossed an important stoppage of crisis. Friday, November 12, she announced that he repaid the last tranche of public aid received during the health crisis, 1 billion euros. Asked this weekend by several media, Carsten Spohr, the group director, “said herself” relieved and proud “. Nailed to the ground early 2020 because of the Pandemic related to Covid-19, at the edge of the bankruptcy after experiencing the best three years of its history, Lufthansa had no salvation only to a massive intervention of the state.
Lufthansa’s life plan, Fouclated on May 25, 2020, included a packet of 9 billion euros guaranteed by Berlin, Austria, Switzerland and Belgium. 3.8 billion euros in total were used by the company, now reimbursed.
Change of creditors
Three elements allowed the company to operate this reversal. The first is the successful investment, a few days ago, an obligation on the markets, amounting to 1.5 billion euros. Lufthansa did not deenderly, she simply changed creditors. For the management of the company, repeated Mr. Spohr, it is better to be indebted with the markets than the state. The company has the hands free to operate bus buying, for example, but also to start pouring bonuses and dividends.
Add a clear resumption of activity. The lifting of entrance restrictions in the United States, a very important market for the German company, led to a leap of the request. Business trips, prevented for almost two years, fell sharply from the early days of opening. And cargo activity, taking advantage of the current disturbances of ship deliveries, records record results. Lufthansa announced a doubling of its sales in the third quarter compared to last year at the same period, at 5.2 billion euros, as well as a slight operating profit, at 272 million euros.
The third element is due to the drastic decline in operating costs. During the crisis, the company organized a gigantic social plan: 30,000 jobs were removed in recent months, based on voluntary departures. The announced goal of management is to keep staff above the 100,000 employees. Currently, 107,000 people work for the company.
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