Blerg wrote:RvA wrote:Blerg wrote:But why exactly do they need €9 billion? What do they plan on spending it on? I mean they have a lot of cash reserves left so it's not like they are on the brink of bankruptcy?
They’re asking for up to 9B, not outright 9B.
I think that amount is needed to calmly weather the storm without large amounts of lay offs and with the flexibility to reactivate aircraft and staff sooner if given the chance. Lufthansa Group is bigger in terms of employees (they don’t just fly plans but also do a lot of behind the scenes systems and consulting that is used by airlines the world over) than the US airlines. This amount of people means without a larger cash injection it’ll mean larger amounts of layoffs which they are trying to avoid.
This is my own interpretation anyway.
So then is it safe to assume that the 22.000 people they want to fire is the small amount of layoffs? From that article I posted half of them are in Germany.
26.000 if I am not mistaken and I believe it is a total over a period of time not immediately. But yes that’s the small amount. The group has over 130K employees in total look at the numbers BA is talking about (I believe 12k out of 45k) and the 30% being mentioned in the US to get an idea of what could happen at a minimum if they can’t secure the funds they say they need.
I also believe the Austrian and Swiss deals depend on what happens with LH in Germany so those are also not yet guaranteed. Very important week for LH and for many thousands (plus the 3-5x extra indirectly affected) of people. Tragic things happening in this industry all over and no one small to large is spared.