So back to topic, which was Ryanair threatening EU over state aid for airlines.
Any new complaints about IB receiving aid from Spain? A state, where other than Germany, FR has a strong presence and also flies within the country?
IB is getting a 1 billion EUR 70% state-guarantee on a loan for itself and VY.
200 aircraft in the fleet.
Balance sheet effect: zero, just securing liquidity.
Competition effect: minimal, just surviving
LH is getting 6 billions in equity that they can keep, with minimal harm and diluton of existing investors, and 3.5 billions straight from a government bank.
Swiss getting 1.5 billion CHF 85% state-guarantee on a loan.
Awaiting more money from Belgium and Austria.
750 aircraft in the fleet.
Balance sheet effect: LH: 6 billions capital injection from the government, 3.5 billion in direct loans they can make disappear. LX: Loan pursued a bit excessive for its size but still acceptable.
Competition effect: LH : don't get me started. LX: Easyjet CH being rejected constitues an unfair advantage.
Air France-KLM: all loans, so just securing liquidity, although we need to take a look at whether they really needed 10 billions, seems excessive. AF-KLM were not insanely profitable so they had less margin to build liquidity over the years. Low market capitalisation, so not easy to issue new equity.
US airlines: all loans except for payroll partially covered by grants, the rest covered by loans and airlines' own liquidities. Loans are a bit excessive in amounts, big profits at some airlines before this crisis, lots of share buybacks which reflect of poor financial management.
So as you can see, it's Apples and oranges.
Most people here seem unhappy with the size and way the LH rescue subsidy is being constituted.
Add the fact that LH was the largest and most profitable aviation group in Europe until 2 months ago, no excuse for low liquidity.
Here there are no question marks, there clearly is a problem.
Last edited by Waterbomber2
on Sat May 02, 2020 2:53 pm, edited 3 times in total.