taken from http://biz.yahoo.com/news/airlines.html
Lufthansa Freezes Plans to Buy Jets
Lufthansa Says It Will Stop Hiring New Workers and Freezes Plans to Buy New Jumbo Jets
Lufthansa on Wednesday froze plans to buy new jumbo jets and said it would stop hiring new workers -- cost-cutting measures aimed at coping with an expected air travel slump in the wake of the U.S. terror attacks.
Europe's No. 2 airline after British Airways also announced higher ticket prices, saying they would be needed to cover the costs of insurance and increased security measures.
In a statement after a board meeting in Frankfurt, the German flag carrier said it would put a hold on the purchase of up to 15 Airbus A380 super-jumbo jets as well as four Boeing 747s. The measures would "align the company with changed circumstances in world air traffic,'' it said in a statement.
While it wouldn't lay anyone off, the company said it would impose a hiring freeze.
The attacks last week have added to the gloom surrounding the airline industry, already suffering from the global economic slowdown. Major U.S. and European carriers have announced cutbacks in flights and workers.
Earlier this month, Lufthansa said it would seek approval from its supervisory board to buy the A380s, which are designed to carry up to 555 passengers in three classes on two seating decks. The plane is scheduled to enter service in 2005.
Lufthansa also said it was "inevitable"' that there will be a "marked rise in ticket prices due to the dramatic increase in insurance premiums and the cost of necessary, increased security."'
Revising its timetable, it announced it would drop five European routes, on top of the three daily flights to the United States that it already announced it will cut. The latest routes axed are Frankfurt-Paris/Orly, Frankfurt-Valencia, Hamburg-London/Stansted, Duesseldorf-Moscow and Dortmund-Copenhagen.
Analyst Chris Tarry of Commerzbank in London said all major European carriers faced a tough outlook, pointing out that a slowdown in U.S. travel could hit Lufthansa hard.
The airline sells roughly $920 million a year in tickets from the U.S. to Germany, and another $550 million in follow-on tickets to other destinations in Europe, he said.
The company acknowledged Wednesday that it won't reach its target set in August for profit of $644 million and $690 million this year. It didn't offer a new forecast.
well, i think no one is really surprised that LH has postponed its decision on the A380s and the additional 744s...
however, LH has repeatedly stated that LH could already use the A380 on routes from FRA to DEL, JFK, SIN and NRT so obviously there is demand, and it will be there in 5 years time.
although airlines and the aviation industry is currently facing a very, very bad time, i´m convinced in the not too distant future, it will pick up again and resume where it stopped...
Lufthansa hasn´t got an A340-600 simulator, yet, and i´m pretty sure about that. they made so much fuss about the new CRJ 700 simulator which they received this spring, and that was only a few months before the CRJ 700 went into service, so there would certainly have been anything to hear about if they had taken one for the a346s already. they´re gonna receive the first a346 in July of 2003, bearing the registration D-AIHA, so it is way too early for any training...
If only pure sweetness was offered, why's this bitter taste left in my mouth.