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LTU - Rescue Ahead!

Thu Nov 08, 2001 7:00 pm

Tonight, after 12 hours of non-stop negotiation, LTU's pilots did sign an agreement with management to reduce their wages by 10%, no bonus payments for Christmas until 2003. Cabin crews agreed last week to reduce their wages by 5%. These agreements were crucial for the government of Nordrhein-Westfalen (home state of LTU) to give a guarantee to banks in an amount of € 300 mln. The resulting credit lines should help LTU to carry on through the winter and next spring, and grants management a bit more time to find a solution on the equity side (somebody has to buy Swissair's shares, nearly 50%, and also REWE, 40% shareholder, must make commitments in order to put LTU back on track.

So finally one crisis in European aviation did take a good turn, at least in the short term. A big thumbs-up to all 12,000 employees, unions, management, who made it happen, sometimes people start thinking in time.
 Big thumbs up
Regards from a very stormy and wet Frankfurt (the sun obviously shines on DUS this morning)
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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 7:07 pm

Any news, who will buy the 49% currently held by Swissair?

dominguez(dash)online(dot)ch ... Pushing the limits of my equipment
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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 7:09 pm

That would be really good news for us here in DUS!!!

The aviation community has been hit by so many downturns and crisis so let´s hope that at least a few airlines (not only LTU but also Air Canada, United and Aer Lingus) can be saved.

It would be real good too that at least one airline struggling and suffering from Phillippe Brugisser and his Swissair would survive as neither SR itself nor Sabena nor Air Liberté did!

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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 7:34 pm

Well, let's wait with celebrating until the government and the banks have agreed, but the banks are waiting for the guarantee and the government said explicitly, it wants cost-cutting agreements beforehand, and that happened last night / this morning. So, yes, it looks rather sunny for LTU.
As for the shares of Swissair, that Mr. Worst-European-Airline-Manager-Brugiesser bought, I haven't heard anything though I think finding an investor was not top priority in the last few days. It will be top priority, as soon as all credit lines are secured.
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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 7:38 pm

Air Liberté survived Brugisser & his cronies - at least for now.
Seems with a new management and under a new name (Airlib), they are pursuing a new strategy of cooperation with Air France on some routes (mainly to "outre mer" destinations.

But back to LTU - I sincerely hope they can manage a turn-around. That carrier used to be Germany's number one holiday airline until a sequence of management blunders (not all are SR-related) almost ran it into the ground. My first flight was on a LTU L1011 back in 1981 to AGP, so I always had a soft spot for our red-white-red airline.

P.S.: Andreas, you're right. Weather in FRA really sucks right now.  Wink/being sarcastic
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TriStar: It Gets Brighter Over Taunus

Thu Nov 08, 2001 7:53 pm

I sincerely hope that as many airlines as possible do manage to survive Mr. B.
btw: In 1982 I flew to Mombasa on a LTU Tristar, very nice service for a charter carrier, good entertainment even in those days.

Personally I believe finding an investor should be hard for LTU but not as hard as for a schedule Carrier, as European Tourism business is still booming, and there was definitely no significant downturn after Sept. 11, just look at the Q3/2001 results from Preussag (TUI).
To all LTU employees: Don't let it get on your nerves during Christmas season, heads and thumbs up, your future does not look as bleak as that of other Airlines' employees.
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Good News!

Thu Nov 08, 2001 8:50 pm

I truly hope LTU survives. I have a softspot for it too. It's not a fashion that German airlines go bankrupted soo easily. Good news anyway and I hope many airlines have now learned from the debacles of Swissair and Sabena, hope it is not too late.

P.s. I read that Sabena made only 2 years of profit since its establishment in 1923! A-ma-zing!!
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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 9:41 pm

At least there is some airline staff (and some unions)that are acting reasonably and trying to save what can be saved.
I have missed that attitude during the last months of SABENA quite often. It should not be underestimated that the foolish behaviour of the BeCA-members was one of the major factors that would have detrred any airline looking for profit to invest a single € into SABENA.
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RE: LTU - Rescue Ahead!

Thu Nov 08, 2001 9:49 pm

This is what every airline employee whose company is in financial difficulties should consider.

Rather 10% less money and probably a job or no money cuts and soon NO job and no employer!

That´s what LTU´s pilots and ground staff thought and did!

German Quality Always Good!

Thu Nov 08, 2001 11:34 pm

That's what you call German dignity. Tol!
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RE: LTU - Rescue Ahead!

Fri Nov 09, 2001 12:37 am

Thats really good news... if only SN crew could have done the same last week they may have jobs to go to today.

Three cheers for LTU staff and management.
You are 100 times more likely to catch a cold on a flight than an average person!
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Air Orange

Fri Nov 09, 2001 1:34 am

I am not sure about what to do with your second posting (serious or joke?). Hopefully I do not sound like a nationalist, that was never my intention.
I do think, 12,000 people deserve to keep their jobs, because quite obviously they at least learned something from the Sabena Desaster and decided not to play hardball. I like that, maybe a few other carriers, that are currently endangered, learn that lesson as well.
Besides the LTU crisis is not over: Just a few hours ago negotiation with another (anonymous) investors about those shares in the hands of the Swissair lawyers were reported to be cancelled.
There is no imminent danger, but it still does not sound encouraging.
btw: Hopefully KLM survives, too. It would be a shame to see those blue birds grounded in the Mojave desert forever!
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