Page 54 - World Airnews Magazine June 2020 Edition

NEWS DIGITAL

EMBRAER COMMERCIAL AND

EXECUTIVE JET DELIVERY

Union Aviation Safety Agency) and the FAA (Federal Aviation
Administration).

Embraer delivered a total of 14 jets in the first quarter of 2020, The new Phenom 300E is the recently enhanced version of the
of which five were commercial aircraft and nine were executive Phenom 300 series, which was the most delivered business jet
series in the 2010s.
jets (five light and four large). Also in this period, Emgepron, a Brazilian state-owned company
As of March 31st, the firm order backlog totalled (US) $15.9 linked to the Ministry of Defence through the Brazilian Navy
billion. Command, and Águas Azuis, a company created by ThyssenKrupp
Historically, Embraer seasonally has fewer deliveries during the Marine Systems, Embraer Defence & Security and Atech, signed
first quarter of the year, and in 2020 in particular, the commercial the contract to build four state-of-the-art Tamandaré Class Ships,
aircraft deliveries in the first quarter were also negatively impacted with deliveries scheduled between 2025 and 2028. Q
by the conclusion
of the separation of
Embraer’s Commercial
Aviation unit in
January.
During the first quar-
ter, Embraer Executive
Jets announced that
the new Phenom 300E
was granted its Type
Certificate by ANAC
(National Civil Aviation
Agency of Brazil),
EASA (European

AIRLINES
ECONOMIC STABILISATION FUND

FOR LUFTHANSA

The subscription price will be 2.56 Euro a term of three years. This facility is still
per share, so that the cash contribution subject to the approval of relevant bodies.
Deutsche Lufthansa AG has been will amount to about 300 million Euro. The The expected conditions relate in
informed by the Economic Stabilisation WSF may also increase its stake to 25% plus particular to the waiver of future dividend
Fund (WSF) of the Federal Republic of one share in the event of a takeover of the payments and restrictions on management
Germany that a stabilisation package that company. remuneration. In addition, two seats on
allows for measures and loans of up to In addition, in the event of non-payment the supervisory board are to be filled in
Euro 9 billion of remuneration by the company, a further agreement with the German government,
portion of the silent participation is to be
The WSF will make silent participations of convertible into a further shareholding of one of which is to become a member of
up to 5.7 billion euros in total in the assets 5% of the share capital at the earliest from the audit committee. Except in the event
of Deutsche Lufthansa AG. Of this amount, 2024 and 2026 respectively. of a takeover, the WSF undertakes not
approximately EUR 4.7 billion is classified The second conversion option, however, to exercise its voting rights at the Annual
as equity in accordance with the provisions only applies to the extent that the WSF has General Meeting in connection with the
of the German commercial code (HGB) and not previously increased its shareholding usual resolutions of ordinary Annual
IFRS. in connection with the above-mentioned General Meetings.
In this amount, the silent participation is takeover case. Conversion should also be The stabilisation package still requires the
unlimited in time and can be terminated by possible for dilution protection. Subject to final approval of the management board
the company on a quarterly basis in whole the full repayment of the silent participa- and the supervisory board of the company.
or in part. In accordance with the agreed tions by the company and a minimum sale Both bodies will come together shortly
concept, the remuneration on the silent price of EUR 2.56 per share plus an annual to adopt resolutions on the stabilization
participations is 4% for the years 2020 and interest of 12%, the WSF undertakes, package. The capital measures are subject
2021, and rises in the following years to however, to sell its shareholding in full at to the approval of an extraordinary general
9.5% in 2027. the market price by 31 December 2023. meeting.
Furthermore, the WSF will subscribe to Finally, the stabilisation measures Finally, the stabilisation package is
shares by way of a capital increase in order are supplemented by a syndicated subject to the approval of the European
to build up a 20% stake in the share capital credit facility of up to EUR 3 billion with the Commission and any competition-related
of Deutsche Lufthansa AG. participation of KfW and private banks with conditions. Q

World Airnews | June Extra 2020
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