All the Lufthansa post Covid troubles
Lufthansa: jobs cut and fleet devalued. All the details
Lufthansa has a plan for post Covid. The recovery, as well as from state aid, goes from a devaluation of 1.1 billion euros of the aircraft fleet.
Outbound operating cash flows, the company argues, need to be reduced by € 100 million per month, while staff cuts could exceed 22,000. All the details.
RESUMPTION OF TRAVEL MORE 'SLOWER THAN EXPECTED
Let's start with the scenario. The resumption of flights is slower than expected: “The outlook for international air traffic has deteriorated significantly in recent weeks. With the end of the summer travel season, passenger and booking numbers are falling again, after a slight recovery trend was recorded in July and August ", claims the company , adding that" the previous hypothesis that an average level of production of 50% of the previous year's value would have been reached in the fourth quarter of the year no longer appears realistic ”.
DEVELOPMENT IN VIEW
And that's why the German company is forced to devaluate up to 1.1 billion euros in the third quarter of long-term parked aircraft and those that need to be scrapped. These include 8 Airbus A380s and 10 Airbus A340-600s.
FLEET REVIEW
In the long term, Lufthansa has foreseen a permanent reduction “of the group-wide capacity of 150 aircraft starting from the middle of the decade (the starting point is the group's fleet, including aircraft in wet lease)”.
STAFF CUTS
Not just a fleet. The restructuring initiated by the German group could result in staff cuts of well over 22,000 units, a number previously announced. "The previously announced arithmetic surplus of 22,000 full-time positions has increased following the decisions for the third package of the restructuring program," writes Lufthansa, adding that: "the adaptation of permanent personnel in flight operations will be adapted to further market developments. The compensation and reduction of staff overcapacity will be discussed with the responsible employee representatives ”.
CUT OF MANAGEMENT POSITIONS
A 20% cut in executive positions is also expected, which will be made by the first quarter of 2021.
THE REDUCTION OF CASH FLOW
The company also expects a reduction in operating cash flows of 100 million: the cash outflow is expected to be reduced from the current approximately 500 million euros per month to an average of 400 million euros per month in winter 2020/21.
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-grane-di-lufthansa-post-covid/ on Tue, 22 Sep 2020 13:20:49 +0000.