The German airline Lufthansa has stated that it wants to negotiate with employee representatives by June 22, where it will cut the announced 22,000 jobs. Three days after this date, shareholders are to vote at an extraordinary general meeting on a rescue package worth nine billion euros (SKK 240 billion), which will be provided to airlines by the new German WSF Economic Stabilization Fund due to the effects of the pandemic.
An airline spokeswoman said at a union meeting on Wednesday last week that the company had around 26,000 full-time employees due to the situation, equivalent to 22,000 full-time jobs. This represents about 16 per cent of its workforce.
The restructuring to which the rescue package was conditional will affect almost all companies in the group. For example, the low-cost airline Germanwings will not resume operations. Lufthansa will cancel 5,000 seats in air traffic. Among other things, 600 pilots, 2,600 flight attendants and 1,500 ground crew members will lose their jobs, the largest European airline said in a statement today.
Lufthansa, which, like the entire air transport industry, is being affected by the effects of the coronavirus crisis, estimated at the end of April that it would lose about 10,000 jobs.
Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.