The German aviation giant Lufthansa puts an end to the plans to transfer the activities of Brussels Airlines to budget subsidiary Eurowings. On the other hand, Brussels Airlines will in the future connect more closely with the other so-called network companies of the Lufthansa group, such as Lufthansa, Austrian Airlines and Swiss. However, savings are necessary.
Lufthansa incorporated Belgian society in its entirety in 2016. In the third quarter of this year, the German parent company, which is catching up with investors on Monday, will make a proposal for plans to kick things around at Brussels Airlines. Eurowings will continue to focus on short flights within Europe.
Lufthansa also announced that it would change its dividend policy. Under the new scheme, shareholders of the German aviation giant should receive 20 to 40 percent of the net profit adjusted for one-off items. That is now 10 to 25 percent of the gross profit.
According to Lufthansa, the new scheme would provide more flexibility. Lufthansa does not interfere with arrangements regarding purchasing programs and special dividend.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email [email protected]