Lufthansa Group

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Deutsche Lufthansa AG
FWBLHA
DAX Component
HeadquartersCologne, Germany
Key people
Carsten Spohr (Chairman)[1]
Revenue€36.42 billion (2019)[2]
€2.02 billion (2019)[2]
€1.21 billion (2019)[2]
Total assets€42.66 billion (2019)[2]
Total equity€10.15 billion (2019)[2]
Number of employees
138,353 (2019)[2]
SubsidiariesAirlines:

Ground services:

Websitewww.lufthansagroup.com

The Lufthansa Group (legally Deutsche Lufthansa AG) includes Lufthansa, Swiss, Austrian Airlines and Brussels Airlines. Eurowings and Lufthansa's "regional partners" are also group members.[3] Due to the COVID-19 pandemic the company is partly state-owned as of July 2020.

History[edit]

Early days[edit]

At the beginning of 1995, Deutsche Lufthansa AG made some structural changes and aimed at creating independent operating companies of the aviation group such as Lufthansa Technik, Lufthansa Cargo and Lufthansa Systems. Three new companies who joined later in the Lufthansa Group are LSG Sky Chefs, Condor and Lufthansa CityLine.[4]

COVID-19[edit]

On 14 May 2020, Lufthansa said it would resume flights between Toronto and Frankfurt as of 3 June. Prior to the pandemic, the Lufthansa Group airlines operated 64 weekly flights between the two countries. The airline's recovery plans involve high-density cargo to replace paying customers. The Lufthansa Group airlines now require all passengers to wear a mask while aboard.[5]

Also on 14 May, the Group released the news that it planned to operate 1,800 weekly flights by the end of June.[6]

On 24 June, principal shareholder Heinz Hermann Thiele, who owns a 15.5% share of the Group, indicated that he would vote in favour of the bailout by the German government,[7] which was expected on 23 June to take a 20% share of the company and two seats on the company's board of directors in exchange for $10 billion.[8] The transaction was pre-approved by the EU Commission and had the support of the company's trade unions, who offered to forgive $1.55 billion euros in exchange for job guarantees. At this time, the company was insolvent.[7]

On 25 June, a majority of 98.04% of shareholders voted for the state aid.[9] As of July 6 the Federal Republic of Germany holds a 20.05% share via the "Economic Stabilisation Fund" (German: Wirtschaftsstabilisierungsfonds) by the Federal Ministry for Economic Affairs and Energy.[10][11]

Activity[edit]

Main activities[edit]

The activities of the Lufthansa Group are divided into three business areas:[12]

Type Company
Network Airlines
(Spoke-hub transit)
Germany Lufthansa
Germany Lufthansa Cityline
Italy Air Dolomiti
Austria Austrian Airlines
Belgium Brussels Airlines
Switzerland Swiss International Air Lines
Eurowings
(Point-to-point transit)
Germany Eurowings
Germany Eurowings Discover
Turkey SunExpress (50%)
Aviation services

Other activities[edit]

References[edit]

  1. ^ "Lufthansa Group company management". lufthansagroup.com. Retrieved 25 May 2020.
  2. ^ a b c d e f "Annual report 2019" (PDF). Lufthansa Group. 2020-03-19. Retrieved 25 May 2020.
  3. ^ "Lufthansa Group". Retrieved 15 May 2020.
  4. ^ "The 1990s". lufthansagroup.com. Retrieved 25 May 2020.
  5. ^ "Lufthansa prepares to resume flights to Canada in June". CBC. 14 May 2020.
  6. ^ "Lufthansa Group To Operate 1,800 Weekly Flights By End Of June". Simple Flying. 14 May 2020.
  7. ^ a b Taylor, Edward (24 June 2020). "Lufthansa shareholder Heinz Hermann Thiele to endorse bailout". The Globe and Mail Inc. Reuters.
  8. ^ "Lufthansa set for showdown with billionaire investor Thiele over $10 billion bailout". MarketWatch, Inc. 23 June 2020.
  9. ^ "Lufthansa-Aktionäre stimmen Staatseinstieg zu" (in German). Frankfurter Allgemeine Zeitung (FAZ). 25 June 2020. Retrieved 19 December 2020.
  10. ^ "Shareholder structure of Lufthansa Group". Retrieved 19 December 2020.
  11. ^ "Economic Stabilisation Fund (ESF)". Retrieved 19 December 2020.
  12. ^ "Business segments". lufthansagroup.com. Retrieved 25 May 2020.