22-Jan-2010 1:52 PM

Lufthansa to reducing borrowings in 2010; focus in 2010 will be to fund aircraft purchases

Lufthansa’s Head of Corporate Finance, Markus Ott, stated the carrier plans to reduce borrowings in 2010 after raising EUR2.4 billion in bond sales, loans and leases in 2009 to fund its acquisitions (Bloomberg, 21-Jan-2010). Mr Ott added that the carrier’s focus in 2010 is to fund aircraft purchases, with total new debt to be “significant lower” than 2009 levels. He added that the carrier is currently discussing financing opportunities that “exceed USD700 million”, talking to commercial banks about standard bank loans, as well as to some banks and other parties that could offer tax-leasing structures.

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