The German government plans to sell part of its stakes in Lufthansa

The German government plans to sell part of its 20 percent stake in Lufthansa, which it acquired last year in exchange for financial assistance during the new coronavirus pandemic. The owner of the share in the largest aviation group in the country is the economic stabilization fund, which was created last year to help companies in Germany overcome the pandemic. In view of the improvement in the aviation situation, it plans to sell part of its stake, according to a statement that the fund wants to reduce its ownership "by a maximum of five percent in a few weeks". The Lufthansa Group, which also includes Austrian, Swiss and Brussels Airlines, provided financial assistance totaling € 9 billion last year to rescue it from bankruptcy. For this, the state gained a 20 percent stake in the group for 300 million euros. However, the aid was considered temporary and Berlin will now start selling its shares due to recent positive developments in the airline, WSF said. Lufthansa halved its losses in the second quarter of 2021 compared to the same period last year, as travel restrictions to stop the pandemic eased with advances in vaccination and passengers returned. After increasing the number of ticket reservations, the group recorded a positive cash flow for the first time since the beginning of the health crisis. He is expected to return to profit later this year. However, Lufthansa is also undergoing restructuring to reduce costs, which will include thousands of job losses. It has released 30,000 people since the beginning of the pandemic. As part of the recovery plan, the airline will reduce its current fleet from 800 aircraft to 650 aircraft by 2023. The WSF also said that by the end of 2023, it would sell the entire stake in Lufthansa, which is currently worth more than € 1 billion. The Lufthansa group plans to issue new shares, probably before the parliamentary elections in Germany on September 26, in order to return the money for its rescue to taxpayers. Shareholders have already approved a potential capital increase of up to 5.5 billion euros.