Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lufthansa to start asset disposal programme with Airplus sale in summer: sources

Stock MarketsMar 10, 2021 12:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Lufthansa plane takes off behind a grounded jet at the airport in Frankfurt

By Arno Schuetze and Ilona Wissenbach

FRANKFURT (Reuters) - Lufthansa is planning to launch an asset disposal programme as early as summer with the sale of its 1 billion euro ($1.19 billion) Airplus unit as the German carrier seeks to raise cash to emerge from a government bailout, people close to the matter said.

Lufthansa is working with Goldman Sachs (NYSE:GS) on the divestiture of the business travel expenses manager, the sources said, adding that the summer timing of the auction will depend on bookings picking up after lockdown restrictions ease.

Lufthansa declined to comment while Goldman Sachs was not immediately available for comment.

Chief Financial Officer Remco Steenbergen said last week that Lufthansa will evaluate strategic options for Airplus and the international business of its caterer LSG once it is able to realise the full value of these businesses.

Lufthansa is also considering a listing or stake sale of maintenance unit Lufthansa Technik, Steenbergen said, adding that a such deal would be complex as it would need to ensure Lufthansa's continued access to know-how and intellectual property and not have negative repercussions on relationships with customers.

The coronavirus pandemic led Lufthansa to report a record 6.7 billion euro loss for 2020 last week and the carrier said it will operate at 40-50% of pre-crisis capacity this year, lowering its earlier 40-60% ambition.

Summer travel will nonetheless pick up swiftly whenever restrictions are eased, Chief Executive Carsten Spohr said, and Lufthansa stands ready to restore 70% of its schedule "in the short term".

However, Lufthansa expects recovery in business trips to occur slower than in leisure travel, as many companies have learned during the pandemic that video conferences can replace a lot of face-to-face meetings.

Lufthansa received a government-backed 9 billion euro rescue last June. To avoid drawing on some of the costly bailout money, Lufthansa is aiming to reap funds from asset sales instead.

Lufthansa is still burning through 10 million euros a day as lockdowns and travel restrictions weigh on its business.

Airplus in 2020 posted an adjusted loss before interest and taxes of 146 million euros as bookings were wiped out in the pandemic, compared to a year-earlier profit of 2 million euros.

($1 = 0.8410 euros)

Lufthansa to start asset disposal programme with Airplus sale in summer: sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email