Other sources are reporting only $1B. What is this article based on?
German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
11–20 of 178 posts
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#12Yahoo finance says their market cap is 4 billion [0] and yet they are getting a bailout worth 2.5 times their market cap. That's crazy. [0]: https://finance.yahoo.com/quote/lha.de/
They are trading at a really small fraction of their book value, currently 0.37[1]. In addition, their book value is being weighed down by debt.
I don't know why people fixate on market cap in cases like this.
[1] https://finance.yahoo.com/quote/LHA.DE/key-statistics?p=LHA....
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#13Meanwhile American Airlines needs like 12 trillion dollars to keep the lights on. Can't wait for the day where we let that pathetic airline fail.
What angered me even more they don't care. Recent news shows that "post"-covid they cram people like sardines and mask are optional because... there is no law forcing them.
Its such a terrible thing that multi billion dollar behemoth needs laws and regulation for every single damn thing, and can never lead as an example.
https://www.businessinsider.com/american-airlines-full-fligh...
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#14Yahoo finance says their market cap is 4 billion [0] and yet they are getting a bailout worth 2.5 times their market cap. That's crazy. [0]: https://finance.yahoo.com/quote/lha.de/
Also no the first time the government is bailing them out
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#15Does it mean that every german will have to pay about $10B / 80m = 125 euros for that ? So it means that they'll have, for example, to wait a little longer to buy their next phone, or lunch ? (I ask the question here because that's the kind of reasoning I read in the press but I'd like to know if it's as simple as that)
Nope. Because they have already paid all of this in taxes. It means, that the 10 bn won't get 'invested' by the government in another project, e.g., welfare benefits, infrastructure, health, or education. Alternatively, it means: nothing of all of those, but inflation will rise an additional 0.0001% (if the funding source is printing money vs. using tax payer money)
There is no direct link between printing money and inflation. But 0.0001% seems too optimistc.
For example the EZB has about 5 Trillion Euros out. 10B more would increase the amount of EZB money by 0.025%.
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#16Regarding US bailouts, can someone here more knowledgeable can help me understand how a company that has been fined tens of millions of dollars for ocean pollution, is not US-based incorporated, does not pay taxes on US soil, is in large part responsible for citizens obesity, and hire less than 0.17% American citizens, got bailed out by Feds to the tune of billions of dollars?
https://www.wsj.com/articles/how-fed-intervention-saved-carn...
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#17Aren't state aids forbidden in the EU?
> A company which receives government support gains an advantage over its competitors. Therefore, the Treaty generally prohibits State aid unless it is justified by reasons of general economic development. To ensure that this prohibition is respected and exemptions are applied equally across the European Union, the European Commission is in charge of ensuring that State aid complies with EU rules.
https://ec.europa.eu/competition/state_aid/overview/index_en...
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#18Meanwhile American Airlines needs like 12 trillion dollars to keep the lights on. Can't wait for the day where we let that pathetic airline fail.
The world didn't end when Pan Am failed, although many thought it would. No reason to prop up shitty businesses that continue to make bad decisions, I don't care how large they are. If there is demand for their service supply will appear. Rewarding bad decision making with artificial demand is degenerate.
Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#19Re: German government to bail Lufthansa out of bankruptcy with nearly $10B state aid
#20Based on my experience with Lufthansa. That's an organization that should fail. If anything happens on your journey that is not average, the agents always blame you first.