On Wednesday, the German aviation industry Goliath Lufthansa said the airline’s fiscal condition had reached such rancorous condition that it could slash up to 26,000 employees by the year-end, mirroring a menacing outlook on the global aviation industry which had been the hardest hit in the global-scale pandemic outbreak.
Concomitantly, followed by an emergency meet with the trade unions, a spokeswoman for the German airline which had recently bagged a $9 billion bailout package from the German Government in exchange of a 20 per cent company stakes which the Government had planned to sell by end-2023, said that the bloc’s second-largest airline’s fiscal condition had reached such threshold amid a sharp decline demand that it was witnessing a surplus of 26,000 employees or 22,000 full-time equivalent position.
In point of fact, latest statement from Lufthansa came forth days after the German airline had unveiled its plans to slash as many as 10,000 jobs as a part of its move to cut expenses, while last week the Dubai-based Emirates Airlines had laid off tens of thousands of full-time employees amid an en masse decline in occupancy which had compounded further due to the pandemic-led curb in international and domestic flights almost all over the world.
Lufthansa job cuts would be significantly higher than the 10,000-figure estimated earlier
Only days after pledging to a wide-ranging revamp to trim costs alongside up to 10,000 job cuts, the German planemaker said that the job cuts would be “significantly higher” that the 10,000-figure it had estimated earlier.
Besides, the Lufthansa flight attendant union UFO had demanded that the German airline must commit to avoid involuntary layoffs, though had admitted that the union had still been working hard to reach a decipherable deal, while the pilots’ union was quoted saying that it had made an offer of up to 45 per cent cut in pay offs, which could amount to a total of €350 million, in exchange of rebuffing as many job cuts as possible.