Reklam
Reklam
Reklam
Reklam
Reklam

Lufthansa starts reducing fleet, cutting jobs to pay back state aid

GERMAN flag carrier Lufthansa will cut 20 per cent of managerial positions and accept no more than 80 planes from its current order book to be able to repay as much EUR9 billion (US$10

09 July 2020 - 19:00

GERMAN flag carrier Lufthansa will cut 20 per cent of managerial positions and accept no more than 80 planes from its current order book to be able to repay as much EUR9 billion (US$10.1 billion) in state aid, reports Bloomberg.

The airline will also cut 1,000 administrative jobs amid a slump in travel demand caused by the coronavirus. The airline??s plan to scale back on deliveries will reduce spending on new jets by half.



Lufthansa last month got shareholder approval for the biggest German bailout package outside of banks and financial institutions in years, but the refinancing means debt will swell and shareholders will be diluted by a 20 per cent stake handed to the government.



The airline has the biggest fleet of any in Europe and the highest labour cost, and will have to reduce both to pay back borrowings before coupon payments rise. The company says it has 22,000 surplus full-time positions but will avoid firing staff wherever possible.


SeaNews Turkey

This news 220 hits received.

COMMENTS

  • 0 Comment