German government has offloaded its 20% stake in Lufthansa , that was acquired during the Pandemic Aid !

The German government has sold off its 20% stake in Lufthansa Group , that was acquired during the coronavirus pandemic , a statement revealed on Tuesday.

Europe's second-largest airline had experienced severe financial fallout from travel bans put in place around the globe to slow the spread of the coronavirus outbreak. Around 95% of Lufthansa's fleet was grounded during the Pandemic.

• Majority of around 760 Lufthansa aircraft had been grounded due to Pandemic. 
• The bailout effectively saved the airline from bankruptcy in June 2020.
• WSF had planned to offload the complete stake, valued at $1 billion, before the end of 2023.

As aviation sector was among the hardest hit by the coronavirus pandemic , the German Federal Government had taken a stake to help the airline mitigate the effects of the global pandemic.

This investment was done by the Economic Stabilization Fund (WSF), that  was established in March 2020. The Special fund's core objective was to stabilize major German companies and by doing so, preserve jobs.

Out of the total €9 billion bailout package , €5.7 billion was a silent capital contribution from the state , along with a €300 million share package . The remaining €3 billion was agreed to be a loan from state-owned development bank KfW. 

But , the WSF, which saved Flag bearer from bankruptcy during the pandemic with a bailout package totalling 9 billion euros ($8.97 billion), had progressively reduced its stake in recent years with the aim of offloading it completely by October of 2023.

Reportedly , It has now sold the last remaining shares to international investors in a block placement for 455 million euros .

However , it was a good deal out of the Pandemic Aid cycle for the Government , It earned a total of 1.07 billion euros from selling its shares , yielding a 760 million euro profit from the investment.