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World

26. 06. 2020. 15:20   >>  15:20 0

THE MAJORITY OF SHAREHOLDERS DECIDED

State owns 20 percent of the company, Lufthansa saved

Lufthansa shareholders gave the necessary majority of more than two-thirds, that is 98% approving a 9 billion-euro rescue package on Thursday that will see the German government take a 20% stake after management told them the airline was running out of money and faced years of reduced demand for air travel.

German Finance Minister Olaf Scholz welcomed a vote of Lufthansa shareholders.

"That is very, very good news", Scholz told reporters in Berlin, after shareholders gave the necessary majority of more than two-thirds by voting 98.04% to 1.96% at an extraordinary shareholder meeting held online with just the one agenda item.

"Good news for the company itself, good news for the Lufthansa employees, and also good news for Germany as a business location," he said.

The package will see the government take a 20% stake through its economic stabilization fund and get two seats on the board.

The German government could raise its stake to block any outside takeover. The airline will also embark on extensive restructuring to lower its costs because it is expected to take years before business returns to normal.

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