Lufthansa raising capital to buy planes

Lufthansa raising capital to buy planes

Lufthansa plans to raise at least 750 million euros ($904 million) in a share capital issue to help buy Airbus A380 planes, it said on Monday.

"With this capital measure, we invest in the future of our network-carrier model," Chief Executive Wolfgang Mayrhuber said in a statement.

Lufthansa said Airbus's new double-decker A380 aircraft, which can carry more than 800 passengers in some configurations, will lead to significant cost advantages on long-distance routes.

The airline said it would issue 76.3 million new shares at a price of at least 9.85 euros per share, offering existing shareholders one new share for every five they hold.

The subscription price will be announced on June 1, and the subscription period will run June 3-16, it said. The new shares will begin trading on June 17. Dresdner Kleinwort Wasserstein and Morgan Stanley are managing the issue.