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21 Sep, 2020 15:00

Struggling Lufthansa to slash MORE jobs on top of previously announced 22,000 cuts

Struggling Lufthansa to slash MORE jobs on top of previously announced 22,000 cuts

German flagship carrier Lufthansa announced on Monday that it will cut more jobs amid projections of a bleak future for the global airline industry in the wake of the Covid-19 crisis.

“The previously announced personnel surplus amounting to 22,000 full-time positions will increase as a result of the decisions taken in regards to the third package within the restructuring program,” the company said.

“The change in permanent staffing levels within flight operations will be further adjusted in regards to market development,” it added. The compensation and reduction of surplus personnel will be discussed with the responsible employee representatives.

Lufthansa also said it would put more planes out of service with current losses running at some €500 million ($590 million) a month. “With demand set to be lower than expected through winter as the coronavirus pandemic continues to severely curtail travel,” the airline said it now plans to reduce its fleet by 150 planes by 2025. Lufthansa had previously estimated that it would have to scrap 100 aircraft in response to the unprecedented crisis in the aviation sector.

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“After six Airbus A380s were finally taken out of service in the spring, the remaining eight A380s and 10 A340-600s, which were previously intended for flight service, will be transferred to long-term storage and removed from planning. These aircraft will only be reactivated in the event of an unexpectedly rapid market recovery,” the company said. “In addition, the remaining seven Airbus A340-600s will be permanently decommissioned.”

Lufthansa, which received a government bailout worth almost €10 billion ($11.7 billion) in June, said it would have to book €1.1 billion ($1.3 billion) in impairment over its fleet decision.

“The continuing high level of uncertainty in global air traffic makes short-term adjustments to the current market situation unavoidable for the foreseeable future,” it said.

For more stories on economy & finance visit RT's business section

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