At its meeting on May 27, the Supervisory Board of Deutsche Lufthansa AG discussed the acceptance of the stabilization package offered by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany, including the necessary convocation of a General Meeting.
The Supervisory Board has taken note of the conditions currently indicated by the EU Commission. They would lead to a weakening of the hub function at Lufthansa’s home airports in Frankfurt and Munich. The resulting economic impact on the company and on the planned repayment of the stabilization measures, as well as possible alternative scenarios, must be analyzed intensively.
Against this background, the Supervisory Board was unable to approve the stabilization package in connection with the EU conditions. However, the Supervisory Board continues to regard WSF stabilization measures as the only viable alternative for maintaining solvency.
Deutsche Lufthansa AG will not convene an Extraordinary General Meeting for the implementation of the stabilization measures for the time being.
Infographic: Ryanair Can Survive Ten Times Longer than Lufthansa Without State Aid
- Ryanair can remain solvent for 99 weeks without state aid
- Lufthansa’s liquidity will only cover 10 weeks
- Ryanair market value 194% higher
- Higher demand for Lufthansa stocks
While Ryanair’s liquidity is sufficient to cover costs for another 99 weeks, Lufthansa is facing insolvency in 10 weeks without state subsidies. This is shown in a new infographic from Kryptoszene.de.
In March this year, Ryanair reduced its flight schedule by 97%. The Lufthansa Group in turn cut 94% of its flights. Despite similar conditions in dealing with the corona crisis, there remains a huge gap between the two largest European airlines, as can be seen in the infographics.
In terms of market capitalization, Ryanair’s market value of 12.1 billion euros exceeds that of Lufthansa by 194%. The German airline’s shareholders have recently been left hanging. In review, the price of Lufthansa shares fell by 50.4% this year, while Ryanair’s market capitalisation climbed by 12.1% over the same period.
Nevertheless, shares in the Lufthansa Group are enjoying greater popularity these days. This is illustrated in the analysis of Google search queries. The Google trend score in the last week of May was 74, while the score for Ryanair shares wallowed at 37. A value of 100 stands for the largest possible relative search volume.
“The evidence seems to suggest that Ryanair is far more likely to survive the corona crisis relatively unscathed,” according to cryptoscene analyst Raphael Lulay. “The fact that Lufthansa investments are more attractive to the majority of German investors may seem surprising in light of this. However, it may also be that political tailwind is giving shareholders, and thus also the crane, a boost”.
The full story with the infographic, facts and more statistics:
Lufthansa aircraft photo gallery: