It was February 14,1986, and Herr Heinz Ruhnau, chairman of Lufthansa (Germany) was summoned to meet with Lufthansa's board.The board's task was to determine if Herr Ruhnau's term of office should be terminated. Herr Ruhnau had already been summoned by Germany's transportation minister to explain ius supposed speculative management of Lufthansa's exposure in the purchase of Boeing aircraft.
In January 1985 Lufthansa (Germany), under the chairmanship of Herr Heinz Ruhnau, purchased twenty 737 jets from Boeing (U.S.). The agreed upon price was $500,000,000, payable in U.S. dollars on delivery of the aircraft in one year (January 1986). The U.S. dollar had been rising steadily and rapidly since 1980, and was approximately DM3.2/$ in January 1985. If the dollar were to continue to rise, the cost of the jet aircraft to Lufthansa would rise substantially by the time payment was due.
Herr Ruhnau had his own view or expectations regarding the direction of the exchange rate. Like many others at the time, he believed the dollar had risen about as far as it was going to go, and would probably fall by the time January 1986 rolled around. But then again, it really wasn't his money to gamble with. He compromised. He covered half the exposure ($250,000,000) at a rate of DM3.2/$, and left the remaining half ($250,000,000) uncovered.
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february summoned 14,1986 'ej herr heinz ruhnau, chairman lufthansa (DoyIchlan) je lufthansa tIj ghom. [tIj ghIgh vaj ghotvam baq herr ruhnau wabmey mIw'e' qIlmeH pIj. ghaHDaq BERNARDO. chonayta' summoned herr ruhnau pong DoyIchlan transportation vIDa QIj ius speculative management lufthansa exposure pa' ngaSwI' tu'lu' qaStaHvIS wo'Daq boeing aircraft.pa' january 1985 nobqang bopummeH herr heinz ruhnau, chairmanship je' lufthansa (DoyIchlan), 737 jets vo' boeing ((u.s.)). Qochbe' ghaH 'ay' $ 500,000,000, payable pa' u.s. dollars delivery aircraft wa' nem (january 1986). Hu'DI' loD poH 'ej tlhoS tam wabvetlh qaSchoH 1980 'ej approximately dm3.2 ghap $ neH january 1985 u.s. dollar. qaSchugh dollar Hu'DI' loD taH, Hu'DI' loD jet aircraft lufthansa cost substantially pong poH payment due.jIH pIHbogh, laHwIj quv, vIchID tam rate lurgh pagh muSujmo' herr ruhnau nIb law' latlhpu' legh poH, Hu'DI' loD dollar umqu' ghot law' Hop Hoch vay', SIbI' 'oH Har ghaH 'ej jIchegh pum pong poH around tetlh january 1986. 'ach vaj yImuH 'oH qar wasn't gamble Huch. moS ghaH. bID exposure ($ 250,000,000) yuvtlhe' DeSDu' rate dm3.2 ghap $ je ratlh bID mej ghaH uncovered ($ 250,000,000).
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