(TAN): Lufthansa has approved a second set of measures as part of its overall restructuring program in the wake of the coronavirus crisis, the German airline said in a statement.
Earlier in April, the airline had decided, among other things, to reduce the fleet by 100 aircraft and not to resume the flight operations of Germanwings. The group’s financing is currently secure following the approval by Lufthansa shareholders of the stabilization measures of the German federal government and the commitments made by the governments of Austria and Switzerland.
[ALSO READ: Kempinski Hotels Sustainable Plan- Recycle Discarded Soaps, Donate Them]
However, the complete repayment of government loans and investments, including interest payments, will place an additional burden on the company in the coming years, making sustainable cost reductions inevitable for this reason.
As part of the new set of measures, the Lufthansa group will, the number of board members has been reduced by one position each at Lufthansa Cargo AG, LSG Group, and Lufthansa Aviation Training. The group plans to reduce government loans and equity participations at the earliest to avoid a further increase in interest charges. The number of leadership positions throughout the Group will be reduced by 20% and the administration of Deutsche Lufthansa will be reduced by 1,000 positions.
[ALSO READ: Oneworld Promises Best Safety Measures For Travellers]
At Lufthansa alone, 22 aircraft have already been phased out ahead of schedule, including six Airbus A380, eleven Airbus A320 and five Boeing 747-400 aircraft.
The financial planning up to 2023 provides for the acceptance of a maximum of 80 new aircraft into the Lufthansa Group carriers’ fleets. This will reduce the investment volume for new aircraft by half.
