Saturday, 11 July 2020

More restructuring details from Lufthansa

This week the board of Lufthansa approved and released details of more restructuring at the German firm as it battles losses in the wake of the coronavirus COVID-19 pandemic. Despite the record bailout by the German government, the airline group has already confirmed it will be reducing the fleet by 100 aircraft and closing down its Germanwings operation.

The firm is now blaming further restructuring on the amount of money it will have to pay back following a series of rescue loans from European governments. The programme is called “ReNew” and is expected to run until December 2023 and is headed by Dr Detlef Kayser, a Member of the Lufthansa Group Executive Board and responsible for Airline Resources & Operations Standards -  Lufthansa has so far refused to give details of the total remuneration package Kayser will be getting for the role. 

The latest restructuring details released include:

Executive boards to be slimmed by one person at Deutsche Lufthansa AG, Lufthansa Cargo AG, LSG Group, and Lufthansa Aviation Training.
Government loans and equity participation are to be reduced as quickly as possible to avoid a further increase in interest charges.
Leadership positions throughout the Group to be reduced by 20 percent.
The administration of Deutsche Lufthansa AG will be reduced by 1,000 positions.
Transform Lufthansa Airline into a separate corporate entity is being accelerated to avoid tax and repayment responsibilities.
Reduction of sub-fleets and the bundling of flight operations will be implemented.
 - At Lufthansa alone, 22 aircraft have already been phased out, 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 - half the previously expected amount.
Reduction by 22,000 full-time positions in the companies of Lufthansa Group.

Recommended for you...

No comments: