The Lufthansa Group executive board has decided on a number
of restructuring moves to combat the financial impact of the Covid-19 outbreak,
including permanently decommissioning aircraft and closing its Germanwings
low-cost subsidiary.
In a statement, the company said its board “does not expect
the aviation industry to return to pre-coronavirus levels very quickly”. It
believes it will take months to completely lift global travel restrictions and
years for worldwide demand for air travel to return to pre-crisis levels.
At Lufthansa, six Airbus A380s, seven A340-600s and five
Boeing 747-400s will be permanently decommissioned, with a further 11 A320s to
be withdrawn from short-haul operations.
According to the group, the A380s were already scheduled for
sale to Airbus in 2022, with Lufthansa moving towards more fuel-efficient
aircraft for its long-haul operations. It said the decision to retire the A340s
and B747s was taken based on the environmental and economic disadvantages of
the planes.
The decision means Lufthansa will be reducing its capacity
at Frankfurt and Munich.
Furthermore, Lufthansa Cityline, which operates long-haul
flights to tourist destinations, will also withdraw three Airbus A340-300s,
while low-cost carrier Eurowings will phase out an additional ten A320s – the group
had already been preparing a restructuring as part of a turn-around
plan to return to profitability. That plan will now be “accelerated”, according
to the group.
Germanwings will cease all flight operations, with Lufthansa
in discussions with unions to outline “all options resulting from this”.
The restructuring programmes already initiated at Austrian
Airlines and Brussels Airlines will also be “further intensified”. Both
carriers are looking to reduce their fleet size, while Swiss International Air
Lines will delay deliveries of new short-haul aircraft and consider early
phase-outs for older planes.
In addition, Lufthansa Group airlines have terminated almost
all wet lease agreements with other airlines.
The group said: “The aim remains the same for all employees
affected by the restructuring measures: to offer as many people as possible
continued employment within the Lufthansa Group. Therefore, 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.”