Deutsche Lufthansa AG plans to eliminate its biggest passenger jets as it deepens fleet cuts, creating a knock-on in additional job losses, people with knowledge of the proposals said.
Lufthansa is looking at retiring remaining Airbus SE A380 double-deckers, the bulk of smaller A340s, and all of its older Boeing Co. 747-400 jumbos, according to the people, who asked not to be named discussing a confidential matter. There would also be a cull of narrow-body planes that feed longer routes, they said.
Lots of sizzle but not much bacon, IMO.
Of course they are looking at it, isn't that obvious? Planning departments make plans, isn't that also obvious? Proposals remain proposals till they are accepted.
The fleet plans could be made public around the time the company’s supervisory board signs off on them, with the next meeting scheduled in about 10 days.
So we'll have a board meeting in 10 days, but they're not even willing to say that the plans will be signed off by then.
This feels like a trial balloon, a controlled leak of info to gauge reaction, rather than a statement of intent. Note I say this as someone who has predicted the demise of the A380 sooner rather than later. This report just suggests it's a proposal rather than a committed plan of action, but IMO it should be obvious that LH is considering killing off the A380, 744 and most of the A340s too.
I did find it interesting that some A340-600s may survive because LH doesn't want to take the financial hit all at once and they want to hedge their bets a bit. Presumably the younger ones still have a lot of book value unlike the older A340s and 744s so they're harder to write off. Presumably the A380s still have a lot of book value too, but it's more of a challenge to project that they may some day become profitable again.
Last edited by Revelation
on Fri Sep 11, 2020 6:12 pm, edited 1 time in total.