Relief rally at Lufthansa

SIgnale by major shareholder Heinz Hermann Thiele for a possible approval of the state bailout of Lufthansa cause the airline’s share price to rise before the extraordinary general meeting this Thursday. The listing of the medium-sized stocks in the MDax now rises by more than 10 percent to a little less than 10 euros.

It also helps that the competition authorities of the EU Commission have approved the federal government’s rescue package. However, the release of the € 6 billion recapitalization aid is subject to the condition that the largest German airline complies with obligations to avoid distortions of competition. Among these is that Lufthansa has to surrender take-off and landing rights at the main locations in Frankfurt and Munich. This should enable the competition to build a base with up to four aircraft at the locations.

It was also well received on the market that the group and the Ufo union have now agreed on a crisis package for flight attendants with savings of more than half a billion euros.

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Major shareholder Thiele initially had a stake in the F.A.Z. against the state’s entry under the current conditions, but then signaled approval the evening before. The billionaire holds more than 15 percent of Lufthansa shares and could therefore have prevented the state from entering the country on his own.

If Thiele rejects the rescue package, Lufthansa threatens bankruptcy and investors would have to expect high exchange rate losses. It looks like the price risk for Thiele in connection with bankruptcy is too high, said a dealer.

From 12 noon, investors decide whether or not to let the state join as a shareholder. This is closely linked to the nine billion euro rescue package that had been laboriously negotiated between Frankfurt, Berlin and Brussels in the weeks before. If the state entry bursts, the rest of the package of silent participation and KfW loan is no longer applicable.


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