Aviation
Commercial /
Europe
Drastic measures
Lufthansa Group makes bitter decisions to contain pandemic losses and try to recover
Airbus A340
Lufthansa
Tiefflieger, CC BY-SA 3.0. via Wikimedia Commons
Rafael Ramos
6/16/2021
The pandemic strongly affected the aviation sector, however, at least in Europe and the United States, where vaccination is advancing a lot and the lockdown measures were quite efficient, the demand for flights is returning to more favorable levels for the sector.
Airlines are changing some of their policies for a post-pandemic world, such as the Lufthansa Group, which is taking drastic measures to reduce the negative economic effects and to overcome the crisis that has lasted almost two years.
The group already shows timid improvements in the search for travel. Regarding operating capacity, June is expected to be 30%, while July and August will be 45% and 55%, respectively.
The company's aggressive restructuring program is expected to save up to €3.5 billion by 2024, with half of the cost savings coming this year. The company presented three pillars for this: staff reduction, simplification of operations and fleet modernization.
The reduction in personnel so far has been no less than 26,000 employees who lost their jobs due to the pandemic, but the reduction will be even greater, with another 10,000 employees losing their jobs. All this reduction will represent 1.8 billion euros in the company's savings.
The company understands operations simplification as the closure of SunExpress Deutschland, discontinuing Germanwings operations, as well as the reduction of operating bases and other measures, such as optimizing systems and contracts.
In fleet modernization, the company will retire 150 of its aircraft by 2023 and will increase its fleet with more modern aircraft as of 2024. 6 aircraft will concentrate operations: Boeing 747-8, 777-9, 777-300, 787 -9 and Airbus A330-300 and A350-900.
Changes include Lufthansa cargo, which will switch to the Boeing 777F instead of the MD-11F.
The holding will have innovative products so that the recovery can be faster.
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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