Connect with us

Airline News

BREAKING: Lufthansa to Ground 700 of 763 Planes

Published

on

Lufthansa has grounded 700 of it’s 763 aircraft and says post pandemic, it’ll be a much “smaller business. ”

“The Lufthansa Group after the crisis won’t return to the old normal status and just continue flying as usual,” said chief executive Carsten Spohr. “We react twice as strongly to changes in the world economy,” he added. “Lufthansa Group as a result will shrink.” The airline has grounded 700 of its 763 planes and is set to reduce its capacity by 95 per cent as of next week. Subsidiaries Air Dolomiti, Austrian Airlines and Brussels Airlines have stopped all regular flights, while Swiss will offer just three weekly flights to the US and a much reduced short-haul schedule.”

He went on to add that the airline hardly has any new incoming bookings although their cargo business is booming. They may use passenger aircraft to transport goods and trade.

Comments & Discussion

Advertisement

Airline News

New United CEO Scott Kirby Comes Out Firing

Published

on

United Airlines’ Scott Kirby, who took over as CEO last week in the wake of Oscar Munoz’s retirement, is wasting no time establishing his authority.

Kirby cut 13 high-level executives in a cash-saving move on Friday as the coronavirus pandemic has throttled the industry financially. A day earlier, he told an online investor conference that the airline absolutely would not declare bankruptcy, and that he thought flying was safe enough to not block the middle seats on planes from being sold.

Well, he did build a reputation as an open – some might say abrasive – executive while at American Airlines.

Kirby is eliminating 13 of United’s 67 officer positions, all effective on Oct. 1. That’s the day after the restrictions on firing employees runs out per the federal government’s rules for airlines accepting billions of dollars in stimulus package grants and loans.

“While there are glimmers of good news in our July schedule — we expect to be down about 75% versus 90% right now — travel demand is still a very long way from where it was at the end of last year and the financial impact on our business remains severe,” United said in a written statement as reported by CNBC.

The cuts are in response to the loss of nearly 90 percent of business for United and all airlines, as the demand for travel has dropped dramatically compared to last year and beyond.

But Kirby defiantly said during the investor conference a day before that he has no plans for the airline to go bankrupt.

“Zero percent, no chance,” Kirby said. “It’s worse for shareholders. It’s worse for creditors. It’s worse for employees. It’s worse for every constituent that we have.”

To that end, Kirby also said he won’t sacrifice potential sales by blocking middle seats, as some airlines have done. As the blog The Points Guy noted, Kirby said the airline’s cleaning process, air circulation and a requirement for passengers and crew to wear face masks make it a safe experience.

“Airplanes don’t have social distancing — we’re not going to be six feet apart,” he said. “But an airplane environment is incredibly safe.”

This post was published by our news partner: TravelPulse.com | Article Source

Comments & Discussion

Continue Reading

latest episode


Advertisement
Advertisement

Jet Set on TheGo!

Travel News & Exclusive Deals delivered right to your inbox weekly!
* indicates required

Trending