Lufthansa

[COVID-19] In order to counteract the economic effects at an early stage, Lufthansa adopts a package of measures to lower costs

Share

  • Budget reduction in the administrative areas
  • Offer of unpaid leave for employees
  • Expansion of options for part-time work planned
  • New recruitment suspended

In order to counteract the economic impact of the coronavirus at an early stage, Lufthansa is implementing several measures to lower costs: among other things, all new hires planned for the airline with the crane will be reassessed, suspended or deferred to a later date. Lufthansa is also offering employees unpaid leave effective immediately. An expansion of part-time work options in the context of collective bargaining agreements is currently being examined.

All planned flight attendant and station personnel training courses as of April 2020 will not be carried out. For the time being, the participants of courses that are already in progress will not be hired. However, the aim remains to be able to offer the participants employment contracts in the long term. In the administrative areas, the core brand Lufthansa will reduce its project volume by ten percent and the budget for material costs by 20 percent.

Following a thorough assessment of all available information on the effects of the novel coronavirus, Lufthansa Group had already cancelled all flights by Lufthansa, SWISS and Austrian Airlines to/from mainland China until the end of the winter flight schedule on 28 March. Due to the current demand situation for flights to and from Hong Kong, capacity adjustments have already been made on this route, and additional frequency adjustments to and from Frankfurt, Munich and Zurich are planned. In purely mathematical terms, 13 Lufthansa Group aircraft are currently on the ground.

It is not yet possible to estimate the expected impact of the current developments on earnings. The group will be commenting on this matter at the press briefing for the annual results on 19 March.

This post was published on 26 February 2020 09:59

André Orban

M. Sc. Engineering

Published by
André Orban

Recent Posts

San Francisco files lawsuit against Oakland over airport name change

San Francisco has filed a federal trademark infringement lawsuit against Oakland over the latter's plan…

19 April 2024

Chile announces new commercial airport in Valparaíso region, set to open in 2027

President Gabriel Boric and Minister of Public Works Jessica López unveiled plans for a new…

19 April 2024

FAA launches investigation following runway incident at Reagan Washington Airport

The Federal Aviation Administration (FAA) has announced an investigation into an incident at Ronald Reagan…

19 April 2024

Stored Cathay Pacific Airbus A330 catches fire during dismantling at Ciudad Real Airport, Spain

On 18 April, a stored and former Cathay Pacific Airbus A330-300 (last known registration B-HLF)…

19 April 2024

Portugal’s Left Bloc proposes ending domestic flights by 2030 in favour of rail travel

The Left Bloc in Portugal is urging the government to eliminate domestic flights between Porto,…

19 April 2024

UK Ministry of Defence enhances fleet with additional Airbus H145 helicopters

The UK Ministry of Defence has placed an order for six Airbus H145 helicopters to…

19 April 2024