Lufthansa to discuss permanently grounding Germanwings: sources

[webfact]

Lufthansa to discuss permanently grounding Germanwings: sources

 

FILE PHOTO: Aircrafts of Germanwings are parked on the tarmac of the Cologne-Bonn airport during a 24-hour strike over pay and working conditions for the employees of Lufthansa's low budget airlines Eurowings and Germanwings in Cologne, Germany October 27, 2016. REUTERS/Wolfgang Rattay

 

FRANKFURT (Reuters) - Lufthansa will discuss permanently grounding its Germanwings low-cost airline unit at a management board meeting on Tuesday, two sources familiar with the matter told Reuters.

 

It remains unclear whether a decision will be reached about closing down Germanwings, the sources said.

 

A Lufthansa spokesman said no decisions had been taken and reiterated that all options were being considered as it reviews its business and ways to cut costs to mitigate the loss of business caused by the coronavirus crisis.

 

German unions appealed on Monday for the airline's management to support Germanwings after Lufthansa last week rejected a union proposal to implement shortened work hours, also known as Kurzarbeit, which would have saved jobs in the short term.

 

Trade unions and associations VC, UFO, Verdi, IGL/TGL and ACA made a joint appeal on Monday to help safeguard Germanwings jobs.

 

Markus Wahl, president of Vereinigung Cockpit, said: "Great efforts will be necessary to overcome this crisis. We as trade unions in the Lufthansa Group offer our support for solutions that can be supported by all employees."

 

(Reporting by Alexander Ratz in Berlin, Edward Taylor and Ilona Wissenbach in Frankfurt; Editing by Sabine Wollrab and Peter Cooney)

 

-- © Copyright Reuters 2020-04-07

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[sprq]

Permanent grounding? "Closing down" is the correct term.

[Stargeezr]

I think that many of the low cost airlines will be gone by the end of Summer 2020.

Geezer

[Bluespunk]

5 hours ago, webfact said:

Lufthansa will discuss permanently grounding its Germanwings low-cost airline unit

Tick tick tick...low cost airlines, worldwide, are going to find it hard to survive the current situation. 

[terryw]

Ryanair and Easyjet will survive. The rest have a bleak future.

[bristolboy]

18 minutes ago, Bluespunk said:

Tick tick tick...low cost airlines, worldwide, are going to find it hard to survive the current situation. 

Doesn't that go for high cost airlines as well?  And even if low cost airlines unduly suffer, why wouldn't new ones emerge to take their place? Will pandemic measures impose huge ongoing costs on airlines? Will those costs be different for low cost airlines?

[bristolboy]

20 minutes ago, terryw said:

Ryanair and Easyjet will survive. The rest have a bleak future.

It seems to me that low cost adjunct airlines are in trouble for now because the upper end portion of the business has to shed costs. But why should independent low cost airlines be at greater risk? 

[Bluespunk]

9 minutes ago, bristolboy said:

Doesn't that go for high cost airlines as well?  And even if low cost airlines unduly suffer, why wouldn't new ones emerge to take their place? Will pandemic measures impose huge ongoing costs on airlines? Will those costs be different for low cost airlines?

I’m no big fan of the airline industry, but I suspect the big boys will be bailed out by governments. 
 

Could be wrong, almost hope I am. 

[bristolboy]

2 minutes ago, Bluespunk said:

I’m no big fan of the airline industry, but I suspect the big boys will be bailed out by governments. 
 

Could be wrong, almost hope I am. 

I suspect you're right. But once this is over, even if they all go bust. low cost airlines will arise again.

[Logosone]

10 minutes ago, bristolboy said:

I suspect you're right. But once this is over, even if they all go bust. low cost airlines will arise again.

Would be nice.

 

Wouldn't they have to put reserves in place though to cover emergency situations like this?

 

That would probably be reflected in ticket prices.

[natway09]

It was a terrible advert for Germany anyway.

Absolute rubbish airline.

This is the airline that demanded 10 Euros for a blanket for a cold baby & another 5

to heat up the milk

Good riddance

[bristolboy]

1 hour ago, Logosone said:

Would be nice.

 

Wouldn't they have to put reserves in place though to cover emergency situations like this?

 

That would probably be reflected in ticket prices.

Won't all the airlines have to put reserves in place?

[natway09]

Air NZ has come out publicly & said that after this is over we will be 40% smaller & leaner.

I noticed their flight from LA on flight radar wending its way across the Pacific earlier

 

[bristolboy]

1 minute ago, natway09 said:

Air NZ has come out publicly & said that after this is over we will be 40% smaller & leaner.

I noticed their flight from LA on flight radar wending its way across the Pacific earlier

 

But it's not a low cost carrier. Still, now that I think of it, if someone wants to get into the airline business, they may be required to have substantial cash or highly liquid reserves.

[Basil B]

5 hours ago, Stargrazer9889 said:

I think that many of the low cost airlines will be gone by the end of Summer 2020.

Geezer

But most of the planes will not be scrapped, just sold on to the highest bidder and with so many going to be up for sale they will be fire salvage, and there will still be qualified pilots and cabin crews...

 

Phoenix rising from the ashes.

[thaibeachlovers]

17 hours ago, terryw said:

Ryanair and Easyjet will survive. The rest have a bleak future.

I flew with the first once- never again. If it vanishes I'll rejoice.

[Crazy Alex]

17 hours ago, bristolboy said:

Doesn't that go for high cost airlines as well?  And even if low cost airlines unduly suffer, why wouldn't new ones emerge to take their place? Will pandemic measures impose huge ongoing costs on airlines? Will those costs be different for low cost airlines?

It would seem to me many costs are fixed (or very similar) across the airline world. An aircraft lease costs x. Parts cost y. A gate at an airport costs z and so on. While the smaller, "low cost" airlines may appear more nimble, it also seems to me working on lower margins gives less wiggle room for bad situations.

 

On the other hand, the large legacy carriers are notorious for going bankrupt.

 

But regardless, it seems there are always companies to step in to the airline business. I've never understood it myself. HUGE overhead, massive regulations, things like weather and fuel costs that you can't control. Obviously the payoff must be high, or why else would the industry be so crowded?

[Stargeezr]

I have seen many low cost airlines go bankrupt, and for sure, the aircraft are

sold off or the lease company leases them to another company.  These airlines pop up

when times are good, die quickly when demand lessens.

Geezer