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German airline Lufthansa plans to cut 22,000 jobs

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German airline Lufthansa has said it will cut 22,000 jobs as it struggles to deal with the slump in air travel caused by the coronavirus pandemic. The carrier predicted a slow recovery in demand and expected to have about 100 fewer aircraft after the crisis. (www.bbc.com) עוד...

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watkinssusan
mary susan watkins 5
any large company or corporation,be it an airline or a manufacturing company or an internet giant,no matter what part of the world they maintain headquarters,have it as policy and procedure,to cut jobs and production,and thus payroll and expenses,when the need for that product or service drops..in the case of the airline industry,across the world it literally dropped to zero due to the pandemic..ceo's of these companies have contracts that protect them financially in their positions,which regular employees doe not have..yes,governments do lose tax revenues when a company is forced to shut down or lay off massive amounts of employees,but that is not "socialism"..it is the way almost all governments worldwide receive revenue..from working employees and the businesses that employ them,be it germany or the united states...this is sad because lufthansa has long been the proud "mainstay" carrier of germany..as far as "shaming"and airline for not having emergency reserves,that is ridiculous..airlines keep flying as long as they can and keep employees on as long as they can under most conditions,but the corona virus is and extremely contagious enemy that cannot be seen unless someone becomes ill,and you can rest assured there are no companies of any size that set aside emergency reserves for such an unexpected enemy..
GeorgeHall
George Hall 6
I agree that this pandemic has caused a great deal of hardship to the world's airline industry. In the case of Lufthansa in Germany there is another source of hardship that adds to their struggles. High taxes imposed on them from their socialist's government. Result ? Profits shrink. Massive layoffs. Individual un employed people no longer paying tax withholding for the government's tax revenue. This causes the government funding to shrink. That, my friends, is how socialism works. It doesn't work.

ssobol
Stefan Sobol 6
- " Profits shrink. Massive layoffs. Individual un employed people no longer paying tax withholding for the government's tax revenue. This causes the government funding to shrink. "

Pretty much the exact same thing is happening in America right now where "socialism" is a very dirty word.
Jackx9
Don Quixote -1
Yeah well look at all the failed socialist/communist countries over the past 100 years. Not one of them is America.
mikeosmers
Michael Osmers 2
Yes! Like Germany, the Netherlands, France, UK, Denmark, Sweden, Norway... You DO understand that there is a big difference between socialism and communism don’t you? You DO understand that there is no such thing as a purely communist OR capitalist country in the world don’t you? Which makes most systems, including the US as in the spectrum of socialism...
ADXbear
ADXbear -7
Shame on all airlines that dont emergency reserves for such shut downs like 9 11 etc.. many people will not return ever..
mikeosmers
Michael Osmers 6
Well, I’ve thought about that and would agree ... except. Let’s consider the financial structure of business, at least in the US as it pertains to airlines. There is this perfectly legal business strategy called a “hostile takeover”whereby the aggressor is able to wrest control of the company against the wishes of the current management. This strategy was used successfully on several different airlines in the 80’s and 90’s. Ultimately the aggressor upon gaining control can transfer value away from the airline and into their own pockets, leaving the airline financially distressed and perhaps non viable. Eastern experienced this with the transfer of assets (Airframes) literally over night to Continental, resulting in increasing seat mile costs as fixed costs had to be spread over fewer revenue producing units. Perhaps more illustrative is the Northwest story. Taken over by an “investment” group, Northwest in the day famously had no debt. However, after the ultra financially conservative management was shown the door, the assets (Aircraft again) were mortgaged and the proceeds siphoned off to their “investment group”. Eventually Northwest went bankrupt under the debt load, the investment group parted ways and the remains of Northwest was purchased by Delta. Others who have clearer recollections of these events will perhaps add clarity but I think that’s pretty much how it goes. So to answer your question ADX and to be just a bit snarky to Mr. Hall (in a friendly way!) in the US airlines don’t carry excess capital because to do so is to invite an unwanted takeover and eventual demise of the airline, which to my knowledge is not possible in a Socialist country like Germany because that society gives a higher value to the public utility nature of the industry. And BTW, LH prior to COVID was quite profitable, even with an employee count of some 135,000 and less than 400 airframes.
azuresc
Lanny Word 7
Thank God, some people actually think before they speak. There are some people on here that seem to think in tiny boxes where someone else has written what to spew out like Pavlovian Dogs. Thanks for giving a thoughtful, well versed explanation.
OfficialTron117
Arturo Caldera 1
even more shame that most if not all of the airlines werent prepared. but the execs keep on execing while the normal worker suffers.

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