All the turmoil in Lufthansa

All the turmoil in Lufthansa

Lufthansa: will cut 22,000 jobs, half in Germany. The German government has approved 9 billion aid for the airline, all the major carriers in the world that the states are saving

Slimming cure for Lufthansa.

Lufthansa plans to cut 22,000 jobs worldwide, or 16% of its workforce, due to the impact of the Covid epidemic, the German carrier told AFP .

THE EXEMPTIONS OF LUFTHANSA

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

HOW LUFTHANSA WILL MOVE

Lufthansa aims to avoid dry layoffs, thanks to "partial unemployment" and agreements negotiated with unions.

THE GROUP

The group, which also owns the European companies SWISS, Austrian, Brussel Airlines and Eurowings, has 135,000 employees worldwide.

THE SCENARIO FOR LUFTHANSA

At the beginning of June, the head of the group Carsten Spohr had estimated the number of excess employees at only 10,000. But "demand in air traffic will resume visibly very slowly," said the airline, which also plans to cut 100 of the 763 aircraft in its fleet.

THE COMMENT OF THE COMPANY

"Without a significant reduction in staff costs during the crisis, we will ruin the possibility of a better restart and risk weakening Lufthansa," comments Michael Niggemann, head of human resources on the group's board of directors.

THE NUMBERS

The coronavirus pandemic had a strong impact on the activity of the main European air group. Lufthansa posted a net loss of 2.1 billion euros in the first quarter of 2020. In the coming months the group will certainly increase in power after relaunching some routes in June, but in terms of airline seats the group will return to 40% in September.

DETAILS ABOUT GERMANY PRO LUFTHANSA

The Merkel government has engineered a 9 billion package for the German airline, which in the first quarter of 2020 recorded a net loss of 2.1 billion euros.

The state will enter the capital and will be the first shareholder with a 20% stake (with the possibility of increasing to 25%). The stabilization fund will acquire holdings of up to € 5.7 billion, € 4.7 billion of which classified as equity. It will also subscribe shares as a capital increase in order to constitute a 20% stake in the share capital. The cash contribution will amount to approximately 300 million. 3 billion should go to Lufthansa's coffers in the form of loans from the public bank Kfw (private banks for 600 million euros also participate in the figure).

Everything, however, is yet to be decided (the top management of Lufthansa are still undecided whether to accept aid because of the conditions imposed by the EU) .

NOT ONLY ALITALIA. THIS IS HOW AIR COMPANIES IN THE WORLD WILL BE HELPED BY STATES


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/tutte-le-turbolenze-di-lufthansa/?utm_source=rss&utm_medium=rss&utm_campaign=tutte-le-turbolenze-di-lufthansa on Thu, 11 Jun 2020 14:10:38 +0000.