ZURICH, Might 6 (Reuters) – Lufthansa LHAG.DE subsidiary Swiss is chopping its fleet by 15% and its workforce by as much as 780 extra individuals, the airline stated on Thursday, because it responds to the collapse in passenger numbers attributable to the coronavirus pandemic.
The airline, which acquired mortgage ensures from the Swiss authorities price 1.275 billion Swiss francs ($1.40 billion) final 12 months, stated it expects a 20% lower in demand over the medium time period, making restructuring unavoidable.
It noticed its passenger numbers plunge 90% within the first quarter of 2021, pushing it right into a working lack of 201 million Swiss francs.
Beneath the restructuring, Swiss will cut back its fleet of 90 planes which it operates below its personal title and the Helvetic model by 15% from 2019 ranges, it stated.
Its short- and medium-haul fleet is being minimize to 59 from 69 plane by the withdrawal of Airbus A320-family jets and a discount in leasing, whereas long-haul plane might be minimize to 26 from 31 by withdrawing 5 Airbus planes. Providers and flight frequencies might be diminished as nicely.
Swiss had already deliberate to cut back its workforce of 9,500 by 1,000 by the tip of 2021 by voluntary redundancies and pure employees turnover.
However now additional cuts of as much as 780 staff – in each floor and flying crews – may very well be mandatory, it stated.
“It has grown more and more clear that our market is present process structural change, and that regardless of the actions which we have been swift to absorb response, a restructuring of our firm now sadly appears unavoidable,” Chief Govt Dieter Vranckx stated.
Cabin crew union Kapers stated it “deeply regretted” the transfer, and requested administration to maintain job cuts to a minimal.
Mum or dad firm Lufthansa final month lowered its forecast for flights this 12 months, saying it anticipated to fly at solely 40% of its pre-pandemic capability.
($1 = 0.9089 Swiss francs)
(Reporting by John Revill; enhancing by Jason Neely)
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