Corona has basically unveiled many things which went wrong in the LH Group. When the times were good many things could be overlooked. However now we are seeing what a mass their whole structure is and how much extra fat there is. Germanwings is already gone and so is Sunexpress. Eurowings keeps on being a bottomless mess whose future remains uncertain. LH Group was in charge of SN and OS, two airlines that struggled to find their place in European aviation landscape.
It's easy to say that in such an unrepresented crisis. Have you posted about the "extra fat" in the recent years when they made 2 to 3 billion net profit?
Of course you can debate about OS, SN or Eurowings since they did not perform as good as LH and LX. However those are strategic investments and Austria and Belgium are not the smallest markets in Europe.
But I am sure you can give me some examples of airlines/airline groups which did a better job in the decade before Covid.
EW, SN and OS struggled even before corona and they were kept on life support because other branches of the group made enough money. Corona has merely uncovered many things that were hidden until recently.
well, you are right that these entities struggled before corona; however, you also have to see the context and put it into reference with figures.
OS: in 2019 they were able to offer more flights, increase passenger figures and also sell the ASK compared to 2018. their revenues were less, primarily driven by the blood-bath of VIE after AB collapse and the massive amount of LCC capacity in the market. despite all those challenges, they did well and realized early enough that costs have to go down even further thus the implementation of cost-cutting programs and new strategy (that was by the end of 2019).
SN: at first, it doesn't really help to be squeezed in between two megahubs (CDG and AMS) with convenient train connections as well as the fact to have FR around the corner at CRL. also mid-2019 it was decided to delink SN from EW and moving it closer to the network airlines such as LH, LX and OS with a EBIT target of 8%. Operating expenses came down quite siginificantly, but Corona messed up the whole strategy. Now it's up to the management to reduce the SN fleet by 30% and workforce by 25% in order to develop a rightsized airline for BRU with the focus on key markets.
Both OS and SN are benefiting from synergies, which on one side brings down costs, but on the other also widens the horizont in terms of oportunities, flexibility and market presence.
Also, a factual correction to your post: it is Sunexpress Germany (XG) which will be liquidated, not the entire airline (XQ).