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Are you kidding. We citizen will earn money by that. Germany will borrow 10 billion with negative interest and invest in a solid company at a low point. Now yo

by oaiey 7y ago

Are you kidding. We citizen will earn money by that. Germany will borrow 10 billion with negative interest and invest in a solid company at a low point. Now you can argue, that the flight sector will never recover, which I agree too, but that will not change anything. Lufthansa is a very solid airline. There will be hundreds of small airlines leaving the market with the Lufthansa to pick the market shares up.

Flip-per 7y ago
I'm not sure whether you are serious. But if you are: There are not many people who agree on your opinion, otherwise the share price would be way higher.
- oaiey 7y ago
  Airlines have a very low profit margin business. They earn very less for the amount of money they invest in the product. Therefore, capitalists are not very interested in the dividend. It is also a high risk business as the market is very volatile (see current crisis) and have a high merger/fail rate. Lufthansa is one of the top carriers in the world with a solid infrastructure and network. The eliminated many competitors by just letting them starve themselves in low prices while Lufthansa never compete. I personally do not doubt their value. But the overall market is not an investment friendly one.
danielfoster 7y ago
And increasing the ticket prices Germans pay with their own money through the continuation of their government-sponsored monopoly.
- oaiey 7y ago
  Well.. Lufthansa does not have a monopoly in Germany. We have solid railway infrastructure within Germany, other Airlines servicing us in all directions. Lufthansa will have to offer competitive prices. However, yes, flying will become more pricy. Around the world. We will see lower passenger numbers for many many years, mid-term many have to financially recover, long term environmental and viral concerns will be a permanent affect on tourism. Increased digitalization will reduce business travel. And all of that while the costs of the airlines increases due to stable fix costs and increased security/hygiene/... regulations. So yes, flying will become more expensive. But not due to government sponsorship and monopolies (for LH in Germany).
  - danielfoster 7y ago
    You're right about the railways and other European railways. But DB is constantly late. A friend of mine has a BahnCard 100 but gave up on the train and now flies-- Dusseldorf to Berlin has taken him up to 9 hours in the past with delays. And most economists would agree LH definitely has a monopoly on the German market, especially for international travel: https://www.neweurope.eu/article/lufthansa-reaps-home-market-monopoly-premium/ https://www.neweurope.eu/article/lufthansa-reaps-home-market... It also gets special tax treatment from the government versus Easyjet and Ryanair: https://pointmetotheplane.boardingarea.com/germanys-climate-tax-protects-lufthansas-monopoly-in-the-country/ https://pointmetotheplane.boardingarea.com/germanys-climate-...

by oaiey 7y ago

Flip-per 7y ago

I'm not sure whether you are serious. But if you are: There are not many people who agree on your opinion, otherwise the share price would be way higher.

oaiey 7y ago
Airlines have a very low profit margin business. They earn very less for the amount of money they invest in the product. Therefore, capitalists are not very interested in the dividend. It is also a high risk business as the market is very volatile (see current crisis) and have a high merger/fail rate. Lufthansa is one of the top carriers in the world with a solid infrastructure and network. The eliminated many competitors by just letting them starve themselves in low prices while Lufthansa never compete. I personally do not doubt their value. But the overall market is not an investment friendly one.

danielfoster 7y ago

And increasing the ticket prices Germans pay with their own money through the continuation of their government-sponsored monopoly.

oaiey 7y ago
Well.. Lufthansa does not have a monopoly in Germany. We have solid railway infrastructure within Germany, other Airlines servicing us in all directions. Lufthansa will have to offer competitive prices. However, yes, flying will become more pricy. Around the world. We will see lower passenger numbers for many many years, mid-term many have to financially recover, long term environmental and viral concerns will be a permanent affect on tourism. Increased digitalization will reduce business travel. And all of that while the costs of the airlines increases due to stable fix costs and increased security/hygiene/... regulations. So yes, flying will become more expensive. But not due to government sponsorship and monopolies (for LH in Germany).
- danielfoster 7y ago
  You're right about the railways and other European railways. But DB is constantly late. A friend of mine has a BahnCard 100 but gave up on the train and now flies-- Dusseldorf to Berlin has taken him up to 9 hours in the past with delays. And most economists would agree LH definitely has a monopoly on the German market, especially for international travel: https://www.neweurope.eu/article/lufthansa-reaps-home-market-monopoly-premium/ https://www.neweurope.eu/article/lufthansa-reaps-home-market... It also gets special tax treatment from the government versus Easyjet and Ryanair: https://pointmetotheplane.boardingarea.com/germanys-climate-tax-protects-lufthansas-monopoly-in-the-country/ https://pointmetotheplane.boardingarea.com/germanys-climate-...