Germany’s largest airline, Lufthansa, has announced plans to cut 22,000 jobs as COVID-19 pandemic continues to take a toll on the aviation industry.
The airline says that almost half of the job cuts will be in Germany. Lufthansa hopes to reach an agreement with workers’ unions by 22nd June 2020.
Around 700 of the group’s 763 aircraft were grounded at the peak of the lockdowns. As a result, up to 87,000 workers were placed on a government-funded scheme. Even after the crisis is over, the group says it will permanently cut 100 aircraft from its fleet.
Last month, the airline received a $10.8 billion bailout from the German government. The bailout gave the government a 24% stake in the airline, which could rise to 25% plus one share in the event of a takeover attempt. Additionally, it gives the government two seats on its supervisory board and influences the block strategic decisions.
Lufthansa is the flag carrier and largest German airline, which, when combined with its subsidiaries, is the second-largest airline in Europe in terms of passengers carried. Its subsidiary passenger airlines include Austrian Airlines, Swiss International Air Lines, Brussels Airlines, and Eurowings.
In total, the group has over 700 aircraft, making it one of the largest airline fleets in the world.
In the first quarter of 2020, the airline posted a net loss of $2.4 billion, “significantly impacted” by the COVID-19 pandemic. This compares to a net loss of $384 million over the same period last year.
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