Major Lufthansa shareholder Hermann Thiele clears the way for the state rescue package. But there is not only good news for customers. The most important questions and answers.
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Why is?
Lufthansa has agreed with the German government on a rescue package worth nine billion euros. The state economic stabilization fund will receive a 20 percent stake in the airline and two seats on the supervisory board. However, shareholders must approve the plan at an extraordinary meeting on Thursday afternoon. Major shareholder Hermann Thiele, who holds almost 15.6 percent of the Lufthansa shares, left open until the end whether he voted for the plan. On Wednesday evening, he now decided that he would vote for the rescue plan, quotes the “FAZ”.
Thiele only holds 15.6 percent of the shares. Why could he have prevented the rescue plan?
If less than 50 percent of the capital is represented at a general meeting, a capital increase requires the approval of a two-thirds majority of the capital present. Since, according to Lufthansa, not even 40 percent of the capital will be represented at Thursday’s Annual General Meeting, Thiele could have avoided this two-thirds majority on their own.
Why did Thiele want to vote against the plan?
Thiele criticized that the targeted state share could make the restructuring difficult. The existing shareholders would also have to accept a loss in value as a result of the capital increase and they would not have had enough time to deal with the matter. On the other hand, insolvency would have had little benefit for Thiele. His share package would then be significantly less worth how much money shareholders would get if it were unclear. Thiele’s strategy could be described as a bluff: with his threat, he may have speculated on renegotiations. However, because the German government remained tough, there was hardly any other option left than to agree to the rescue plan.
What do the developments mean for Swiss?
The Federal Council reached an agreement with Swiss on a rescue package weeks ago and wants to guarantee a maximum loan of CHF 1.275 billion. However, the federal government has made it clear that the money will only flow if Lufthansa also agrees on a rescue package with the German government and this also applies to the shareholders. It now looks like this – and the first credit tranches to Swiss can flow. The future of the airline should therefore be secured for the time being.
What now is waiting for the staff?
Swiss employs around 9,500 people. The conditions that the Federal Council set for the rescue package also include a significant reduction in costs. This could be done through job cuts. However, the airline emphasized that this is not the only possibility (CH Media reported). So far, neither Swiss nor its sister Edelweiss have announced job cuts. Instead, Swiss relies on a hiring freeze, long short-time work, retirement and other measures. The mother Lufthansa agreed on Wednesday with the cabin union UFO on an austerity package, which provides for reduced remuneration. Terminations should also be prevented there. Lufthansa has not yet reached an agreement with the pilots and ground workers.
What is the next step for Swiss customers?
Swiss plans to return to 85 percent of all destinations by autumn, albeit significantly less frequently than before the crisis. The airline continues to cancel flights flexibly and at relatively short notice: “Due to the ongoing corona virus situation, Swiss will have to further adjust the flight offer and make further flight cancellations,” it says in emails to affected customers. Those affected can rebook tickets until the end of August and receive a discount of CHF 50. However, the airline is still in arrears with the reimbursement, customers sometimes have to wait for weeks.
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