Lufthansa and KLM Reacthttps://www.cnn.com/asia/live-news/coro ... index.html
These two European airlines are cutting costs to counter coronavirus impact
From CNN’s Chris Liakos and Eoin McSweeney
German airline Lufthansa and Dutch carrier KLM announced a series of cost-saving measures today to counter the impact coronavirus will have on their business, including budget cuts and hiring freezes.
Here's how Lufthansa described its measures in a statement:
“In order to counteract the economic impact of the coronavirus at an early stage, Lufthansa is implementing several measures to lower costs: among other things, all new hires planned for the airline with the crane will be reassessed, suspended or deferred to a later date. Lufthansa is also offering employees unpaid leave effective immediately. An expansion of part-time work options in the context of collective bargaining agreements is currently being examined,” the company said in a statement.
Meanwhile, KLM announced precautionary measures saying the impact on its operations will be “very significant”.
In a letter to employees, KLM Chief Financial Officer Erik Swelheim said the impact on KLM’s revenues "will be very significant."
Measures announced in the letter include cutting back on external hiring in non-operational departments and hiring of consultants and other advisors as well as delaying IT and “real estate” projects.
“Given the external challenges, there is a serious risk that the operating margin for 2020 will be again under pressure,” the CFO said.