Kiwi Flyer
May 25, 04, 12:25 am
NZ Herald (http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3568499&thesection=business&thesubsection=latest)
Lufthansa, the German flag-carrier, stunned the airline industry yesterday by springing a €750million ($1.47billion) rights issue on its shareholders.
The rights issue, thought to be the biggest ever by an airline, follows a loss at Lufthansa of nearly €1bn last year. The proceeds will be used to help finance the €4.7bn cost of buying and introducing 15 new Airbus A380 super-jumbos.
The surprise announcement sent Lufthansa shares into a tailspin, the price falling by 7 per cent at one stage before recovering slightly to end the day 5 per cent lower at €11.50, valuing the company at €4.4bn.
Lufthansa's move will raise speculation that other large carriers will be forced into capital-raising exercises in the face of continued uncertainty in the airline market, savage price-cutting and soaring fuel prices.
...
Lufthansa, the German flag-carrier, stunned the airline industry yesterday by springing a €750million ($1.47billion) rights issue on its shareholders.
The rights issue, thought to be the biggest ever by an airline, follows a loss at Lufthansa of nearly €1bn last year. The proceeds will be used to help finance the €4.7bn cost of buying and introducing 15 new Airbus A380 super-jumbos.
The surprise announcement sent Lufthansa shares into a tailspin, the price falling by 7 per cent at one stage before recovering slightly to end the day 5 per cent lower at €11.50, valuing the company at €4.4bn.
Lufthansa's move will raise speculation that other large carriers will be forced into capital-raising exercises in the face of continued uncertainty in the airline market, savage price-cutting and soaring fuel prices.
...