Lufthansa in 2020

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LJ
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Re: Lufthansa in 2020

Post by LJ »

Ansett wrote: 01 Jun 2020, 00:32 At this very moment when all airlines have very reduced flight schedules and will probably not go back to "normal" until quiet some time, 24 slots and the flights which go with it are nothing for LH. It's the future, of course, which bothers them. Especially, if I understood correctly, that these slots have to go to EU airlines which have not received State aid (correct me if I misunderstood). So, one thinks immediately of FR. The question, however, is : will FR be interested if it does not get very favorable "conditions" at FRA/MUC ?
Ryanair is probably ineligible due to the GBP 600mn it received from UKs Covid Corporate Financing Facility.

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Re: Lufthansa in 2020

Post by sn26567 »

LJ wrote: 01 Jun 2020, 18:18
Ansett wrote: 01 Jun 2020, 00:32 At this very moment when all airlines have very reduced flight schedules and will probably not go back to "normal" until quiet some time, 24 slots and the flights which go with it are nothing for LH. It's the future, of course, which bothers them. Especially, if I understood correctly, that these slots have to go to EU airlines which have not received State aid (correct me if I misunderstood). So, one thinks immediately of FR. The question, however, is : will FR be interested if it does not get very favorable "conditions" at FRA/MUC ?
Ryanair is probably ineligible due to the GBP 600mn it received from UKs Covid Corporate Financing Facility.
The agreement with the EU says "The slots can only be taken over by a European competitor that has not itself received any substantial state recapitalisation as a result of the corona pandemic."

One may consider that the subsidy received by Ryanair is not "substantial" in comparison with Lufthansa or Air France, or that it is not a "state recapitalisation".
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Re: Lufthansa in 2020

Post by sn26567 »

Wizz Air is Interested in principle in taking Lufthansa remedy slots at Frankfurt and Munich, says CEO József Váradi, but it will need to make an assessment of whether it makes commercial sense.
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Re: Lufthansa in 2020

Post by rwandan-flyer »

Coronavirus: Lufthansa, parent company of Brussels-Airlines, plans to cut 22,000 jobs worldwide


By Sudinfo with AFP

The first European airline group Lufthansa, in the midst of a crisis due to the coronavirus pandemic, intends to cut 22,000 jobs worldwide, or 16% of its workforce, the company told AFP on Wednesday.

"We are going to have 22,000 fewer full-time equivalent jobs in the Lufthansa group, half of which are in Germany," the company said, adding that it wanted "as far as possible" to avoid layoffs.


https://www.sudinfo.be/id204507/article ... imer-22000

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Re: Lufthansa in 2020

Post by rwandan-flyer »

Lufthansa’s German Bailout May Shrink With Rival Aid Coming In


Germany and Deutsche Lufthansa AG are considering cutting back the country’s 9 billion-euro ($10.1 billion) aid package as the airline group closes in on additional commitments from Switzerland, Austria and Belgium, people familiar with the discussion said.

https://www.swissinfo.ch/eng/lufthansa- ... n/45845186

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Re: Lufthansa in 2020

Post by Flanker2 »

sn26567 wrote: 01 Jun 2020, 18:40
LJ wrote: 01 Jun 2020, 18:18
Ansett wrote: 01 Jun 2020, 00:32 At this very moment when all airlines have very reduced flight schedules and will probably not go back to "normal" until quiet some time, 24 slots and the flights which go with it are nothing for LH. It's the future, of course, which bothers them. Especially, if I understood correctly, that these slots have to go to EU airlines which have not received State aid (correct me if I misunderstood). So, one thinks immediately of FR. The question, however, is : will FR be interested if it does not get very favorable "conditions" at FRA/MUC ?
Ryanair is probably ineligible due to the GBP 600mn it received from UKs Covid Corporate Financing Facility.
The agreement with the EU says "The slots can only be taken over by a European competitor that has not itself received any substantial state recapitalisation as a result of the corona pandemic."

One may consider that the subsidy received by Ryanair is not "substantial" in comparison with Lufthansa or Air France, or that it is not a "state recapitalisation".
Ryanair would only be eligible after a year and a half as the slots are initially reserved to new competitors.
This clause is very restrictive.
But Wizzair could be considered a new competitor, what a blow in their face if they can set up in FRA and MUC.

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Re: Lufthansa in 2020

Post by Flanker2 »

The LH shareholder vote will be interesting to watch.
There is just one investor that has a big position, most other stock is owned by short-term speculators or funds who can take their gains or cut their losses and close their positions and who would not be interested in voting.

Will the investor in question really vote against the bailout? I doubt it, he's probably just making it look like LH got a bad deal when in reality it's a huge hand-out. He's probably already positioning for the next bailout.

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Re: Lufthansa in 2020

Post by sn26567 »

The pilots' union Vereinigung Cockpit calls on all shareholders to register for the General Meeting of 25 June and to vote in favour of the Management's proposal (and thus the State aid package). It doesn't happen very often that a union calls to vote for management.
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Re: Lufthansa in 2020

Post by sn26567 »

Ansett wrote: 28 Jun 2020, 19:19 https://www.handelsblatt.com/unternehme ... 52598.html

Thorsten Dirks resigns as member of the LH Board in charge of digitalization because he will not receive his bonus on account of the conditions of the deal between Berlin and LH, which says that no bonuses may be paid. No comment !
TD was also CEO of the Eurowings Group (EW/SN).
Is he still co-chair of the Board of Directors of SN Airholding next to Jan Smets ?

https://www.brusselsairlines.com/com/co ... ation.aspx
I would have thought that he got fired for the Eurowings debacle (camouflaged as a departure by mutual agreement).

If he is no longer on the LH Board, he will probably be replaced as co-chair of SN Airholding. By Christina Foerster?
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Re: Lufthansa in 2020

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Ansett wrote: 29 Jun 2020, 19:21 TD leaves SN Airholding's Board. No replacement appointed, yet.
Lufthansa reorganizes responsibilities on the Executive Board

Executive Committee of the Supervisory Board resolves a new allocation of responsibilities

The Executive Committee of the Supervisory Board of Deutsche Lufthansa AG today approved a new allocation of responsibilities for the Executive Board. The former "Finance & IT" department will not be replaced following Thorsten Dirks' departure. The responsibilities will be assigned to the other management departments of the Executive Board.

Carsten Spohr will assume additional responsibility for the finance functions in the CEO's department, until further notice. Following the departure of former CFO Ulrik Svensson in April, due to illness, the position of CFO is to be filled again in the coming months. In the future, the finance functions will be bundled in a separate department.

Christina Foerster will assume responsibility for the areas of "IT and Digitization" and the Lufthansa Innovation Hub in addition to her current duties. Both areas were previously assigned to the "Finance & IT" division. This means that "IT and Digitization", "Innovation" and "Product Development" will in future be in the same hands with an all-encompassing customer responsibility. Christina Foerster's department will be renamed "Customer, IT & Corporate Responsibility".

The "Human Resources Development" department, previously under the responsibility of Christina Foerster, will return to the "Human Resources and Legal" department under the leadership of Michael Niggemann.

The central management of the restructuring and transformation program will be assigned to Detlef Kayser, who will continue to head the "Airline Resources & Operations Standards" department.
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Re: Lufthansa in 2020

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Lufthansa shareholder Heinz-Hermann Thiele has confirmed his long-term interest in the airline and does not intend to obtain further voting rights in airline within the next 12 months.
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Re: Lufthansa in 2020

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Lufthansa to create a new unit to operate to tourist destinations, both short- and long-haul. The code name of the project is ‘Ocean’.

In competition with Eurowings? :roll:
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Re: Lufthansa in 2020

Post by Homo Aeroportus »

sn26567 wrote: 07 Jul 2020, 20:38 Lufthansa to create a new unit to operate to tourist destinations, both short- and long-haul. The code name of the project is ‘Ocean’.

In competition with Eurowings? :roll:
Project Ocean was already mentioned by the Propaganda Abteilung on the "Brussels Airlines in 2020" back in April.

H.A.

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Re: Lufthansa in 2020

Post by Flanker2 »

Deutsche Bank CEO says that they enjoyed the way working from home has worked so far, material reduction in travrl costs, considering implementing it permanently to cut travel costs, but also on real estate costs.

https://youtu.be/c3MMdt9LWzE

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Re: Lufthansa in 2020

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Lufthansa Cargo to cut 500 jobs worldwide, as the group restructures to cut costs and re-size the business.
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Re: Lufthansa in 2020

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Homo Aeroportus wrote: 08 Jul 2020, 09:12
sn26567 wrote: 07 Jul 2020, 20:38 Lufthansa to create a new unit to operate to tourist destinations, both short- and long-haul. The code name of the project is ‘Ocean’.

In competition with Eurowings? :roll:
Project Ocean was already mentioned by the Propaganda Abteilung on the "Brussels Airlines in 2020" back in April.

H.A.
"Ocean" will not be the name of a new airline, but just the concept that will unite the different subsidiaries (Eurowings, Germanwings, SunExpress Germany, ... and Brussels Airlines?) operating flights to tourist destinations under a single AOC to save costs.

Lufthansa recently registered a new GmbH based in Frankfurt under the name “Ocean” in the commercial register, as the company itself confirmed after “Die Welt” had initially reported on it.

Lufthansa will focus more heavily on tourist destinations in the future, and this is mainly due to the coronavirus crisis, after business flights, in particular, have plummeted in the wake of the pandemic and the recovery is likely to be significantly less than for holiday flights.

It remains to be seen in the future whether the establishment of “Ocean” will provide Lufthansa with a decisive advantage and help save additional costs.

If you read German, the information can be retrieved here: https://reisetopia.ch/news/lufthansa-gr ... ugbetrieb/
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Re: Lufthansa in 2020

Post by sn26567 »

More details about "Ocean" (received from Brussels Airlines PR):

1. As oldblueeyes already mentioned in the Brussels Airlines in 2020 topic, Ocean will cover only the long-haul tourist destinations (which is not clear from the Swiss article cited above). Thus no SN route included in the Ocean network.

2. The four SN A330s based in Düsseldorf might be part of the project, on a wet-lease basis.
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Re: Lufthansa in 2020

Post by oldblueeyes »

In fact, there are some elements that could drive the concept.

- Edelweiss as benchmark - after lack of success with decentral long haul routes, the Eurowings A332 were rebased to FRA and MUC and should fly with hub feeding, similar to what Lufthansa is doing for Condor (1/3 of pax are transfer pax)
- possibly ex decentral Lufthansa routes from DUS
- possibly tight routes with low small business cabin - ex JUMP routes flown by the 343 op by Lufthansa Cityline, now returning to Lufthansa

Ocean is a concept name, not a brand name. Some declarations in the past were in the idea of a "rather known brand" for operations. What ever this might be.

Could be also a platform for contracting seat contingents - who knows?

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Re: Lufthansa in 2020

Post by sn26567 »

More details on Ocean:

https://www.aviation24.be/airlines/luft ... k-namibia/

Brussels Airlines will operate some of the long-haul flights, starting with Frankfurt-Windhoek in September.
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Re: Lufthansa in 2020

Post by rwandan-flyer »

Lufthansa halts talks with union on staff cost cuts

German airline Lufthansa said on Thursday it had walked away from talks with union Verdi over a package to cut staff costs and would only return to the negotiating table if Verdi offers significant labour cost savings.

https://finance.yahoo.com/news/lufthans ... 1597424745

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