Lufthansa still pondering MRO unit options as strengthening efforts continue

Lufthansa Group is still evaluating whether to carry out a partial divestment of its MRO business despite progress on improving its balance sheet. The group secured financial support during the initial Covid crisis from the governments of its home nations, most notably major funding from Germany’s Economic Stabilisation Fund. The airline has already paid back the largest parts of the stabilisation measures after completing a E2.2b capital raise this summer, and has reiterated its intent to return the remaining E1b by year-end and to cancel the undrawn part of the financing package. ”We have come a long way with regards to our operational and financial restructuring,” said Lufthansa Group CE Carsten Spohr, on a Q3 results call. ”I am not aware of any other airline, of significant size in the world, which has paid back its stabilisation packages as fast as we are doing.” It marks early steps as the airline eyes an investment-grade rating in the medium term. Lufthansa CFO Remco Steenbergen says: ”We clearly believe investment-grade rating is helpful: it helps you in terms of cost, but also having a strong balance sheet helps you to get through storms.” <br/>