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Lufthansa decides on austerity package because of Coronavirus

In order to compensate for loss of revenue due to the novel coronavirus, Lufthansa has decided on a savings package.

Coronavirus, Lufthansa Germany.
Coronavirus, Lufthansa Germany.

  • The Lufthansa Group has launched a programme to reduce costs. 
  • Planned new hires are currently being reviewed, suspended or postponed to a later date, the company announced in Frankfurt on Wednesday. 

In addition, employees are to be encouraged to take unpaid leave and reduce the volume of part-time work.

Planned new hires would be "re-examined, suspended or postponed to a later date", the company announced in Frankfurt am Main on Wednesday. In addition, employees could take unpaid leave immediately. 

🔹 An expansion of collectively agreed upon part-time offers is also being examined. 

"All planned station and flight attendant training courses starting in April 2020 will not be carried out", the announcement went on to say. 

For the time being, the participants of the courses already running would not be taken on in an employment relationship. 

"However, the aim remains to be able to offer a long-term employment contract," the company announced. 

In the administrative areas, the Lufthansa core brand is cutting the project volume by ten percent and the material cost budget by 20 percent. 

However, the airline does not intend to announce exact figures on the expected revenue losses until its annual press conference on 19 March. It was said that this could not yet be estimated. 

Because of the coronavirus, Lufthansa has already cancelled all flights to and from China until the end of the winter timetable on 28 March. 

🔹 The supply of flights to Hong Kong has also been reduced due to lower demand. 

"In purely mathematical terms, 13 long-haul aircraft of the Lufthansa Group are currently on the ground," the company announced.