Germanwings

History

2020: Closing of low-cost airline

On April 8, 2020 Lufthansa announced what the airline forever closes the Germanwings low-cost airline. The reason — a pandemic of a coronavirus of COVID-19 because of which the international passenger air flights were reduced to a minimum, as well as internal runs in the countries.

The Board of Directors of Lufthansa does not expect that the aviation industry will be able quickly to return to levels prior to koronavirusny crisis. According to its assessment, months for complete removal of global restrictions for trips and years will be required until global demand for air transportation returns to pre-crisis level — reported the German airline, announcing closing of Germanwings.

Lufthansa announced what the airline forever closes the Germanwings low-cost airline

The company emphasized that flights of Germanwings stop, and all transactions connected with it will be discussed with labor unions.

Lufthansa carries out because of a coronavirus large-scale restructuring within which the company also reduces number of transactions at the airports of Munich and Frankfurt am Main.

Besides, six Airbus A380 airliners, seven A340-600, five Boeings 747-400, 11 Airbus A320 are completely taken out of service. The Airbus A380 airplanes were going to be sold in 2022 to Airbus producer. A340-600 and Boeing 747-400 was going to be taken gradually out of service on economic and to ecological reasons. Decrease in fleet affected about 40 units of aviation equipment and all "subsidiaries" of Lufthansa, including Eurowings, Austrian Airlines, Brussels Airlines, Swiss International Air Lines.

Because of crisis of Lufthansa dismissed nearly 90 thousand employees and reduced dividend payouts. According to the company, month before global limits for flights are completely lifted, and years — on return of the industry to pre-crisis level can leave.

On April 8, 2020, when Lufthansa told about restructuring measures, securities of carrier rose in price for 0.7%, and its market capitalization for the last year fell more than half.^[1]

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