Lufthansa Group has implemented a restructuring package in response to the significant decline expected in air travel as a result of the coronavirus crisis, affecting almost all flight operations of the Lufthansa Group.
This includes the suspension of aircraft leading to the first permanent capacity reduction, according to a company statement.
The Executive Board of Deutsche Lufthansa AG does not expect the aviation industry to return to pre-coronavirus crisis levels swiftly. According to its assessment, it will take several months until the global travel restrictions are completely lifted and years until the worldwide demand for air travel returns to pre-crisis levels. Based on this evaluation, the Executive Board has implemented extensive measures to reduce the capacity of flight operations and administration long term.
At Lufthansa, six Airbus A380s and seven A340-600s, in addition to five Boeing 747-400s, will be permanently decommissioned. In addition, eleven Airbus A320s will be withdrawn from short-haul operations. The six A380s were already scheduled for sale to Airbus in 2022. The decision to phase out seven A340-600s and five Boeing 747-400s was taken based on the environmental as well as economic disadvantages of these aircraft types. With this decision, Lufthansa will be reducing capacity at its hubs in Frankfurt and Munich. Lufthansa Cityline will withdraw three Airbus A340-300 aircraft from service. Since 2015, the regional carrier has been operating flights to long-haul tourist destinations for Lufthansa.
Eurowings will cut the number of its aircraft in the short-haul segment with an extra ten Airbus A320s planned to be phased out. Additionally, Eurowings long-haul business which is run under the commercial responsibility of Lufthansa, will be reduced. The implementation of Eurowings objective of consolidating flight operations into one unit, which was defined before the crisis, will now be accelerated. Germanwings flight operations will be discontinued.
The restructuring programs already initiated at Austrian Airlines and Brussels Airlines will be further intensified due to the coronavirus crisis. Both companies are working on reducing their fleets. 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.
According to the company statement, the aim is to offer as many people as possible continued employment within the Lufthansa Group. Talks with unions and workers councils are to be arranged quickly to discuss, among other things, new employment models in order to keep as many jobs as possible.
