Lufthansa Mulls Taking A380 Fleet Out of Service Temporarily
March 06 2020 - 12:16PM
Dow Jones News
By Sarah Sloat
Deutsche Lufthansa AG said Friday it was considering taking its
Airbus A380 fleet out of service temporarily in Frankfurt and
Munich as part of deep capacity cuts resulting from the slump in
demand.
Earlier Friday, the German airline said it would cut capacity by
up to 50% in the coming weeks.
"Due to the exceptional circumstances caused by the spread of
Covid-19 and the resulting drastic decline in bookings as well as
numerous flight cancellations, Lufthansa Group decided to reduce
the flight capacity on offer even more than previously planned,"
the company said.
The capacity adjustments apply to all Lufthansa's passenger
airlines, which include Swiss and Austrian Airlines. The Lufthansa
group's fleet of A380s consists of 14 aircraft, it said.
The measure is aimed at cushioning the financial impact of the
slump in demand, Lufthansa said, and comes on top of planned
savings in personnel, material costs and project budgets. In
addition to an immediate hiring freeze, Lufthansa has offered
employees the use of voluntary measures in recent weeks, including
unpaid leave. Lufthansa is in talks with its operating partners and
unions to avoid dismissals, it said.
The airline said it isn't possible at this point to estimate the
burden on earnings from current developments.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
March 06, 2020 12:01 ET (17:01 GMT)
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