Lufthansa reluctant to accept state aid with conditions attached
Lufthansa Group is holding "intensive talks" with governments in Germany, Austria and Belgium about the provision of state aid to help its airlines survive the coronavirus crisis, but the company appears reluctant to accept any support that comes with conditions attached.
In a speech to shareholders at Lufthansa's annual general meeting on 5 May, chief executive Carsten Spohr said "intensive talks" on liquidity support for the German flag carrier were taking place with the government in Berlin. Similar negotiations are under way in Austria for Austrian Airlines and in Belgium for Brussels Airlines, while the group has "received assurances" from Switzerland's government over state-guaranteed loans for Swiss and Edelweiss.
"At the moment we are not only discussing the levels of the necessary amounts, but are also negotiating the conditions and timelines as to when this help can be made available," says Spohr. However, he stresses that while Lufthansa Group needs government support, "we do not need government management".
Spohr's comments follow the European Commission's approval on 4 May of the French government's €7 billion ($7.6 billion) Air France-KLM bailout, which is conditional upon Air France agreeing to slash domestic flights and make dramatic cuts to its carbon-dioxide emissions.
"Lufthansa was successfully privatised in 1997," says Sphor. "During the last three years, we have consistently generated an operating result of over €2 billion… We have proven that we can do it, and that is why it is important to us to preserve the entrepreneurial freedom of decision and action of the Lufthansa Group."
Shareholders are also showing signs of reluctance to accept government support that comes with strings attached. German investment fund and Lufthansa shareholder Union Investment has argued that state aid could lead to "interference" at the airline group.
In a statement issued ahead of the annual general meeting, Union Investment portfolio manager Michael Gierse warns: "If politics interferes in business, we see the risk of an oversized infrastructure that is not sufficiently adapted to the new normal."
He adds: "The state is not the better entrepreneur."
Union Investment is calling on Lufthansa management to concentrate on premium traffic in a post-coronavirus world, with a smaller operation than in the past.
In Gierse's view, the pandemic represents an "opportunity" for the group to rejuvenate its business and cut emissions with a reduced fleet, gaining green credentials which are set to become more relevant. "A well-capitalised and lean Lufthansa may be able to get off to a stronger start after the crisis," he says.
As a state-backed restructuring effort will "massively" increase debt in the short term, Gierse deems it "all the more important that management focuses on profitability and sensible cuts", adding:"This includes a clear focus on the premium product, not on low-cost subsidiaries."
Gierse says Lufthansa "must not perish due to its own complexity" and suggests that the crisis provides a chance to simplify the group's structure. "Mind games about purchasing difficult renovation cases like Alitalia forbid themselves after the crisis," he asserts.
Spohr in April outlined plans to make 10,000 of the group's approximately 130,000 employees redundant and to retire 100 of its 760 aircraft, as Lufthansa expects that travel demand will not return to a pre-coronavirus level for several years.
Cirium
Dalla BBC: Virgin taglia 1/3 della forza lavoro e chiude a LGW.
E ritira con effetto immediato 7 B744
https://simpleflying.com/virgin-atl...ement/?utm_source=dlvr.it&utm_medium=facebook
Dalla BBC: Virgin taglia 1/3 della forza lavoro e chiude a LGW.
Sia BA che VS vogliono chiudere a LGW, se sarà confermato sarà un mazzata notevole per il secondo scalo londinese che rimarrebbe utilizzato dalla sola Easyjet e poco altro visto che anche Norwegian ha chiuso le operazioni da LGW.
[h=2]Response to Virgin Atlantic's plans to leave Gatwick Airport[/h]05/05/2020A Gatwick spokesperson said: “We are very saddened to hear the news today about Virgin Atlantic’s plans. We have had a long, close and successful relationship with the airline since it made its maiden flight from Gatwick back in 1984. Virgin Atlantic will always be welcome at Gatwick and we will continue our efforts to explore ways to restart the airline’s operations as soon as possible, in the knowledge that they intend to retain their slot portfolio at Gatwick for when demand returns. This news will be devastating for its staff and the many local businesses that supply and support the airline at the airport and its HQ in Crawley, however we will continue to work with Virgin Atlantic to get them flying again from Gatwick.“The COVID-19 pandemic has had a severe impact on the aviation sector but we remain confident that the industry will recover as air travel demand returns. We remain very optimistic about the long-term prospects of Gatwick Airport and our resilience as a business, and having remained open throughout this pandemic we are in a strong position to extend our current operations quickly to meet demand. We will continue to work closely with our other airline partners, including easyJet, the IAG Group, Wizz, TUI and Ryanair to strengthen our business for the future. We also welcome the recent news that another of our major airline partners – Norwegian Airways – has taken important steps forward to secure its future at Gatwick. “We look forward to all our airlines flying again soon.”
Sia BA che VS vogliono chiudere a LGW, se sarà confermato sarà un mazzata notevole per il secondo scalo londinese che rimarrebbe utilizzato dalla sola Easyjet e poco altro visto che anche Norwegian ha chiuso le operazioni da LGW.
Parlando d'altro, mi dicono degli amici in loco anche di licenziamenti in QR (in aggiunta ad alcuni già fatti a marzo).
"You were a vital part of the continuous operations, for which our passengers from all over the world applaud you," Al Baker writes. "Now, we have to face a new reality." He continues, "The truth is, we simply cannot sustain the current staff numbers, and we will need to make a substantial number of jobs redundant."
In March, Qatar Airways laid off without notice about 200 Filipino staff, many coming from the airline's technical and engineering departments.
Many staff that will be let go over the coming weeks will not be able to return to their home countries due to travel bans. While these people will have lost employment pay, the airline did highlight it will be providing housing and "a special living allowance" until such staff can repatriate to their home country