Lufthansa Explores Partial Sale Of Aircraft Business As It Battles Strikes, Workforce Shortage

  • Deutsche Lufthansa AG DLAKY looks to talk with private equity investors in December regarding a partial sale of its aircraft maintenance business Lufthansa Technik, Reuters reports citing Handelsblatt.
  • In a best-case scenario, the board could have a list of non-binding offers in January 2023. 
  • The board aimed for a valuation of €6 billion - €8 billion ($5.99 billion-$7.99 billion), including debt.
  • Since the Covid-19 outbreak first erupted, the aviation sector has been in turmoil. Circumstances forced airlines to strengthen their battle plans to counter this summer's travel turmoil due to a perfect storm of strikes and workforce crisis.
  • Passenger numbers for leisure and business flights rebounded to exceed pre-pandemic numbers; however, the airline industry staff shortage has pushed the airlines to cancel several flights and routes.
  • Earlier, the plot's union threatened additional disruption to Lufthansa during the busy summer travel unless it met their pay hike demand.
  • Lufthansa canceled over 1,000 flights due to the ground staff's strike, which had already shaken the airline.
  • Price Action: DLAKY shares closed at $6.11 on Wednesday.
  • Photo via Wikimedia Commons
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