A delicate balancing act
The on-going conflict in Ukraine has sent shockwaves through global energy markets, impacting everything from international relations to commodity prices.
Lufthansa’s shareholders have decided to accept the German government’s 9-billion-euro ($10 billion) stabilization package, the company said.
Since the coronavirus hit Europe, the Lufthansa group, which includes Brussels, Austrian and Swiss Airlines, has been losing around 1-million-euro ($1.1 million) on an hourly basis.
A report by Xinhua news agency quoted the company as saying, as many as 98 per cent of shareholders voted to approve the measures at a general meeting on Thursday.
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Earlier on Thursday, the European Commission’s competition officials also approved the rescue package.
The package of loans and various measures was offered via Germany’s Economic Stabilization Fund in late May to help the airline weather the coronavirus crisis.
After this, the German government will take over to 20 per cent of company’s shares, reports stated. This will make the government as company’s major shareholder.
Prior the deal was approved, the general meeting of shareholders was held, in which the package received a green light from both the Management Board and the Supervisory Board of the company.
In Lufthansa’s tweet, CEO Carsten Spohr said that Thursday’s decision “ensures outlook for the future”.
The tweet also said that the flight schedules of the group’s airlines will be further expanded.
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