Environmental catastrophes and political unrest
The earthquake and nuclear catastrophe in Japan and the political unrest in the Middle East/Africa region had a severe effect on the course of business in some cases – depending on the different Group companies. Whereas the cancellation of connections to and from Tokyo mainly impacted Lufthansa Passenger Airlines and Lufthansa Cargo, it was bmi and Austrian Airlines in particular that suffered from the temporary suspension of flights to some destinations in North Africa.
New air traffic tax depresses passenger business
The air traffic tax on flights from Germany introduced at the beginning of the financial year makes ticket prices for German travellers more expensive. This was a particular burden on the traffic figures at Germanwings in 2011, as passengers in border regions chose to fly from airports abroad in some cases. Austrian Airlines is similarly affected by the new air traffic tax in Austria.
Fleet modernisation progressing with new orders
The Supervisory Board approved orders for new aircraft in the reporting year. As well as 30 planes from the Airbus A320neo family, the decision also covers deliveries of two additional Airbus A380s and five Boeing 777F freighters. This advances the fuel-efficient modernisation and expansion of the Lufthansa Group fleet. Altogether the orders in 2011 were for a total of 47 new aircraft with a list price of EUR 4bn, which are to be delivered successively from 2012.
Lufthansa signs contract for the sale of bmi
On 22 December 2011 Deutsche Lufthansa AG and International Airlines Group (IAG) signed an agreement on the sale of British Midland (bmi) to IAG. The gross purchase price is GBP 172.5m in cash (around EUR 207m). Taking the agreed adjustments into account, however, the net purchase price is expected to be significantly negative. With the transaction Lufthansa is disassociating from a sustainably loss-making subsidiary. Closing of the deal is targeted for the first quarter of 2012 and is subject in particular to approval by the competition authorities.