Article Hero

Lufthansa gets another stimulus package

1591784228.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Lufthansa can fly again.

Even though the world slowly gets back to what used to be the status quo, there are still some industries fighting the pandemic's effects. One of those is aviation, in which major companies had to file for bankruptcy, dismiss staff, or ask governments for loans just to be able to survive.

One of those companies is Lufthansa, which secured this week a loan from the Austrian government. The grant worth 508 million EUR ($450 million) is to consolidate operations as a carrier in Vienna and to protect the 7,000 jobs.  

The stimulus package consists of 300 million EUR in loans from several banks, and it is guaranteed by the state, while the rest is made up from grants.

Unlike the German government, which has a stake in the company, the Austrian government agreed upon expansion of the Vienna hub, which would compete with the Munich and Zurich ones.

Moreover, the company must halve its carbon emissions by 2030. The minimum price for a ticket is to be set at 40 EUR and a 30 EUR tax will be introduced on flights up to 350 km.

During today’s trading session, Lufthansa stocks fell by more than 4%.

If you want to know more, register now!

Sources: reuters.com, flightglobal.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.