Lufthansa to shut down Germanwings & de-commission over 40 aircrafts
Category: #headlines  By Mateen Dalal  Date: 2020-04-09
  • share
  • Twitter
  • Facebook
  • LinkedIn

Lufthansa to shut down Germanwings & de-commission over 40 aircrafts

Lufthansa, the flag carrier and largest German airline, is reportedly shutting down its Germanwings, a low-cost airline, due to the rising impact of coronavirus on the business. The airline is also planning to de-commission over 40 aircrafts due to the decline in travel and possibility that the demand may not return to normal for years. Additionally, the airline is also cutting down the number of fleets in other businesses such as Swiss, Austrian Airlines, and Eurowings.

Richard Aboulafia, Teal Group’s aviation analyst, has emphasized on how the coronavirus pandemic is currently wreaking havoc on the aviation industry worldwide. He also highlighted the possibility of other airlines following the Lufthansa’s lead due to the rising health risks. He also alluded to an increased number of aircraft retirements, parked aircrafts, as well as utilization reductions over the next few years. For instance, reports from IATA suggest a decline in revenue by nearly 40% in 2020, which poses greater risks to more than 25 million job in the aviation and other industries.

Mr. Aboulafia also stated that the current coronavirus crisis can allow Lufthansa to discard old and less fuel-efficient aircrafts, many of which were already scheduled to be sold. He further added that reducing the number of fleets has provided an opportunity for the airline to develop and rebuild more efficient aircrafts to operate when the demand rises in the future.

Lufthansa has already dismissed the operation of nearly 90% of its fleet and requested the German government to aid on the current business downfall. It also reportedly stated that lifting the global travel restrictions will take several months, with several years for the airline demand to return to that of the pre-crisis level. Based on this assessment, the Executive Board of the airline has decided to take extensive measures to reduce the flight operations capacity and administration for long-term.

The airline is also planning to get in touch with unions and work council to discuss the new employment models, aiming to safeguard as many jobs as possible.

Source credit:

https://www.bbc.com/news/business-52209591

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More

More News By Mateen Dalal

Alphabet’s Google to face lawsuit from NLRB for violating labor laws
Alphabet’s Google to face lawsuit from NLRB for violating labor laws
By Mateen Dalal

In a recent turn of events, U.S. government body National Labor Relations Board (NLRB) has reportedly issued a complaint against American multinational technology company, Google LLC for unlawfully monitoring as well as questioning its workers and su...

Britain’s CMA to levy tougher competition rules on Google and Facebook
Britain’s CMA to levy tougher competition rules on Google and Facebook
By Mateen Dalal

Facebook and Google accounted for around 80% of the total 14 billion pounds spent on digital advertising in 2019. MOW has reportedly accused Google of modifying its Chromium developer tools and Chrome browser to get greater control over advertiser...

Amazon, U.S. Government team up to prevent sale of counterfeit goods
Amazon, U.S. Government team up to prevent sale of counterfeit goods
By Mateen Dalal

According to reliable sources, Washington-headquartered American multinational technology company, Amazon.com Inc has reportedly initiated a joint venture with the U.S. government’s counterfeit agency, the IPR Center (National Intellectual Prop...