Covid-19: Lufthansa Group Decides on First Restructuring Package

Photo Source: Lufthansa Group

Lufthansa Group’s executive board has decided on extensive measures to reduce the capacity of flight operations and administration long term, as a result of the coronavirus crisis.

According to its assessment, it will take months until the global travel restrictions are completely lifted and years until the worldwide demand for air travel returns to pre-crisis levels.

The decisions will affect almost all flight operations of the Lufthansa Group.

Lufthansa

Photo Source: @Lufthansa

At Lufthansa, six Airbus A380s and seven A340-600s as well as five Boeing 747-400s will be permanently decommissioned. In addition, eleven Airbus A320s will be withdrawn from short-haul operations.

With this decision, Lufthansa will be reducing capacity at its hubs in Frankfurt and Munich.

Furthermore, Lufthansa Cityline will also withdraw three Airbus A340-300 aircraft from service.

Eurowings

Eurowings will also be reducing the number of its aircraft. In the short-haul segment, an additional ten Airbus A320s are planned to be phased out.

The airline’s long-haul business which is run under the commercial responsibility of Lufthansa, will also be reduced.

In addition, the implementation of Eurowings objective of bundling flight operations into only one unit, which was defined before the crisis, will now be accelerated.

Lufthansa also announced that Germanwings flight operations will be discontinued, adding that all options resulting from the grounding will be discussed with the respective unions.

Austrian & Brussels Airlines

The restructuring programs already initiated at Austrian Airlines and Brussels Airlines will be further intensified due to the coronavirus crisis. Among other things, both companies are working on reducing their fleets.

SWISS

SWISS International Air Lines will also adjust its fleet size by delaying deliveries of new short haul aircraft and consider early phase-outs of older aircraft.

In addition, the Lufthansa Group airlines have already terminated almost all wet lease agreements with other airlines.

The group said that inevitable downsizing of flight operations would be implemented in a socially responsible manner through collective employment models.