Cost-cutting in the wake of the coronavirusLufthansa is grounding ten more aircraft
Lufthansa is implementing even more drastic measures to combat the impact of the coronavirus epidemic. The Group is reducing short-haul capacity by up to 25 per cent and is decommissioning further aircraft.
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Lufthansa Group has already had to ground 13 aircraft. But it doesn't stop there. On Friday (February, 28), the Group posted a video on their intranet in which CEO Carsten Spohr addresses his employees. Shortly afterwards, an official press release was sent out.
Spohr's message is a tough one. In addition to the recently announced cost-cutting measures, the Lufthansa Executive Board has decided on further steps, the manager said. «We will have to reduce capacity on short-haul routes by up to 25 per cent in the coming weeks following initial cuts». The extent of the cuts will depend on «further developments in the spread of the coronavirus».
Less planes, less work
Lufthansa is also further cutting down on long-haul flights. The 13 aircraft already on the ground will be joined by up to ten more. This means that 23 long-haul aircraft could be grounded because flights to China had to be cancelled after the outbreak of the epidemic and demand to and from Asia has collapsed.
Further measure on the staff level are also being examined. These include the possibility of working from home, if the job allows, said Spohr. The possibility of introducing short-time work «in various areas» is also being examined. The entire management has been committed to strict cost discipline. «Only expenditures that are absolutely necessary for our business operations may be approved at present», he said.
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