Lufthansa Case
research, which he had made. As a result Ruhnau didn't loss. His decision to cover half an
explosure brought to company 225 mil. DEM, because in the worst case if he used full forward
cover company would pay 1,6 billion DEM against 1,375 billion Ruhnau paid.
3)In 1985 the foreing currency options were a related new financial instrument for explosure
management. Also analysts thought that 96 mil dollars was too big money amount for the
purchase of an instrument, which hedger expected not to use.
4)We cant exactly answer, why Herr Ruhnau preffered Boeing to Airbus. But we can suppose
that quality of Boeing jet and its technical characteristics surpassed Airbus jets. Also we can
suppose thar Herr Ruhnau got a very good offer from Boeing and bought jets at a discount price.
In conclusion we must to say that Board of Lufthansa should retain Herr Heinz Ruhnau as
Chairman because he achieved a significant business results.
annaabi.ee 
