Categories: World News

Pandemic-hit Lufthansa Says 22,000 Jobs Will Be Lost

(FILES) This file photo taken on April 28, 2020 shows a technician of the German airline Lufthansa working at a parked plane at the “Franz-Josef-Strauss” airport in Munich, southern Germany. German airline Lufthansa is to cut 22,000 jobs due to the effects of the coronavirus pandemic, a spokesman said on June 11, 2020.

 

German airline Lufthansa said Thursday that it would have to slash 22,000 full-time jobs as it predicts a muted recovery in demand for travel following the coronavirus pandemic.

“The recovery in demand in the air transport sector will be slow in the foreseeable future,” the airline said.

The group will operate about 100 less aircraft after the crisis, leading to “a total of 22,000 fewer full-time positions in the Lufthansa Group, half of them in Germany”.

The posts make up 16 percent of the Lufthansa Group’s total workforce of 135,000.

The airline said however that it would look at how it could use schemes for shorter work hours and other crisis arrangements to avoid outright redundancies.

Lufthansa, like its peers, has been brought to its knees by restrictions introduced to curb the spread of the coronavirus.

Around 700 of the group’s 763 aircraft were grounded at the peak of the lockdowns and it was forced to place 87,000 workers on government-backed shorter hours schemes.

Lufthansa’s supervisory board last week approved a nine-billion-euro bailout deal from the German government after the company posted a first-quarter net loss of 2.1 billion euros ($2.3 billion).

The bailout will see the German government take a 20-percent stake in the group, with an option on a further five percent plus one share to block hostile takeovers.

The airline has also lost its place on Frankfurt’s Dax 30 index after its share price collapsed.

“Without a significant reduction in personnel costs during the crisis, we will miss the opportunity of a better restart from the crisis and risk the Lufthansa Group emerging from the crisis significantly weakened,” said Michael Niggemann, who heads the airline’s human resources and legal affairs departments.

AFP

Emmanuel Egobiambu

Disqus Comments Loading...
Share
Published by
Emmanuel Egobiambu
Tags: Lufthansa Lufthansa Airline Lufthansa news

Recent Posts

  • Local

Fraud: Wike Sacks Microfinance Agency Boss, Orders Officials’ Arrest

    Rivers State Governor, Nyesom Wike, has approved the dismissal of the Managing Director of the Rivers State Microfinance…

7 mins ago
  • Coronavirus
  • World News

New Zealand Reports Fresh COVID-19 Cases After 25 Days

    New Zealand reported its first new cases of coronavirus in almost a month on Tuesday when two recent…

30 mins ago
  • Business
  • Coronavirus
  • World News

Bank Of Japan Boosts Aid For Virus-Hit Firms

    Japan's central bank Tuesday ramped up aid for businesses struggling with the fallout from the coronavirus pandemic, as…

1 hour ago
  • World News

North Korea Blows Up Liaison Office With South

    North Korea blew up an inter-Korean liaison office on its side of the border on Tuesday, the South's…

3 hours ago
  • Coronavirus

Oyo Reviews Curfew, Orders Worship Places To Operate At 25 Per Cent Capacity

  The Oyo State COVID-19 Task Force announced on Monday that it has relaxed the curfew imposed on the state…

8 hours ago
  • Politics

Oshiomhole Leads APC’s NWC Members To Meet With Chief Of Staff, Gambari

  The National Chairman of the All Progressive Congress (APC), Comrade Adams Oshiomhole on Monday led some members of the…

9 hours ago