Lufthansa to cut costs in wake of coronavirus epidemic

13 aircraft are currently not used within Lufthansa Group. The reason for this is the cancellation of flights to mainland China due to the coronavirus. But depending on how the epidemic continues to spread in the world, the effects could be even more drastic for the aviation group.

Lufthansa is already feeling the financial consequences of the epidemic. As Harry Hohmeister, member of the board of executives, told German Handelsblatt newspaper, cost-cutting measures are therefore being taken in the group. For example, new positions won’t be filled or hiring will be postponed. Unpaid leave or part-time work as offers to employees are also part of the cost-cutting measures, the executive said.

Contracts with Condor expire

Hohmeister has bad news not only for its own employees, but also for Condor, which is being taken over by Polish PGL which owns LOT. When the intention to buy was announced, there was speculation that Lufthansa would not want to continue working as feeder for Condor. Now that is officially confirmed.

«We will not immediately terminate all contracts with Condor. After all, these are also our customers, whom we cannot and do not want to leave alone», said Hohmeister. But he added: «But when the contracts expire, they expire.» Without Lufthansa’s feeder flights, it will not be easy for Condor to fill its long-haul jets.

Complaint to EU Commission?

It had also been in the air that Lufthansa wants to have the Condor-PGL deal examined by the EU Commission. Hohmeister does not say much about this. But he hints that it could come to that. «In any case, we will look into it very carefully. I’m curious what Brussels will say.»