Reacting to the European Commission’s approval on June 25, 2020 of the German Government’s €9 billion bailout of Lufthansa, Ryanair’s Michael O’Leary said:
“This is a spectacular case of a rich EU Member State ignoring the EU Treaties to the benefit of its national industry and the detriment of poorer countries. Under the pretext of COVID-19, the German Government is giving Lufthansa a bank-breaking bailout of €9 billion which even the airline’s own CEO admits it does not need.
In clear breach of European competition rules, Berlin is wasting vast amounts of taxpayers’ money to prop up an uncompetitive airline that should be putting its own house in order instead of once again running to the Government for help. This and other bailouts will have a more devastating long-term effect on the future of European aviation than the pandemic itself.
This bailout money will be used to bully smaller rivals out of the market, in line with Lufthansa’s grim record of anti-competitive behavior. Only last week, Italian press reported that Lufthansa’s Air Dolomiti was “teaming up against low-cost” with three other airlines, to introduce minimum prices. This follows reports that Austrian Airlines, also owned by Lufthansa, is gearing up to set a minimum airfare of €40.
In addition to coordinating a State-sponsored price-setting cartel, Lufthansa is threatening to shut down smaller national airlines within the Lufthansa group, as if they were its Belgian, Austrian and Swiss hostages, unless the respective governments pay a ransom.
The contrast between Lufthansa and Ryanair could not be starker. Instead of touring Europe’s capitals for taxpayer-funded hand-outs, Ryanair is innovating its way out of the crisis by giving consumers lower fares and connectivity at a time when Europe’s regions and cities desperately need the revival of tourism and their local economies.
We urge the European Commission to stand by its principles and keep the skies open, fair and competitive. If not, the single aviation market the EU has successfully built will crumble, with European consumers and taxpayers paying the price. The Commission’s approval of the Lufthansa bailout today is a betrayal of the core principles of EU law, which we have no alternative but to refer to the EU General Court.”
On June 25, the shareholders of Deutsche Lufthansa AG voted in favor of accepting the capital measures and the participation of the Economic Stabilization Fund (WSF) of the Federal Republic of Germany in Deutsche Lufthansa AG. The corresponding proposal received the necessary majority at today’s Extraordinary General Meeting of the company.
The package provides for stabilization measures and loans of up to 9 billion euros. The WSF will make silent capital contributions of up to 5.7 billion euros to the assets of Deutsche Lufthansa AG. It will also establish a 20 percent stake in the share capital of Deutsche Lufthansa AG by way of a capital increase. This capital increase was approved at today’s Extraordinary General Meeting. The shareholders also voted in favor of granting two conversion rights for parts of the silent capital contributions. These conversion rights are intended, on the one hand, to safeguard the Federal Government in case of a takeover of Lufthansa and, on the other hand, to secure the interest payments for the silent capital contribution. Both conversion rights can be transformed into a further five percent of the company’s share capital should these conditions be met. The package will be supplemented by a loan of up to 3 billion euros with the participation of KfW and private banks.
Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG says: “The decision of our shareholders provides Lufthansa with a perspective for a successful future. On behalf of our 138,000 employees, I would like to thank the German federal government and the governments of our other home countries for their willingness to stabilize us. We at Lufthansa are aware of our responsibility to pay back the up to 9 billion euros to the taxpayers as quickly as possible.”
As a result of the resolution of the Extraordinary General Meeting, the company’s liquidity is secured on a sustained basis. The companies of Lufthansa Group are working at full speed to get their operations up and running again. The airlines’ flight schedules will therefore be consistently expanded in the coming weeks. The flight schedule for the next few weeks will be published at the beginning of next week. The plan is to include 90 percent of all originally planned short-haul destinations and 70 percent of all long-haul destinations in the flight schedule again by September.
Around 30,000 shareholders attended the Extraordinary General Meeting. A total of 39.0 percent of the share capital was represented. Of these, 98 percent of the capital present voted to accept the company’s proposed resolution. This means that far more than the necessary two-thirds majority voted in favor of adoption.
The European Commission had already approved the stabilization package before the start of the Extraordinary General Meeting.
A decision on the approval of the stabilization measures in the other home markets of Lufthansa Group will be made in the near future.
In other news, Lufthansa and the Independent Flight Attendants’ Union (UFO) have agreed on June 24, on a package of measures amounting to more than half a billion euros to counter the economic effects of the crisis.
The package of measures includes the suspension of pay increases, a reduction in flying hours with a corresponding reduction in pay and temporary reductions in contributions to the company pension scheme.
Additionally, both parties have agreed on a package of voluntary measures and severance programs. These include unpaid leave, voluntary measures to further reduce working hours, and the subsidized, early transfer to a company pension scenario.
“This agreement is an important signal to our employees, our shareholders and today’s Extraordinary General Meeting. In this way, we want to avoid redundancies in Lufthansa cabins,” said Michael Niggemann, Executive Board Member Human Resources and Legal Affairs of Deutsche Lufthansa AG. “We also see this deal as a sign of a regained and constructive social partnership with the UFO.”
Nicoley Baublies, UFO chief negotiator, sums up: “The agreement that has now been reached for Lufthansa cabin staff provides the urgently needed job security. In the current crisis, such contributions, which imply security but also cuts for every cabin employee, will hopefully lead to a clear approval of the rescue package of the German government at today’s Annual General Meeting. The coming months will be very challenging for us as social partners. With this package and the other solutions that we have found together, we are finally placing our social partnership on a new and visible foundation.”
With the crisis package that has now been agreed upon, the company will be able to avoid layoffs for the 22,000 cabin staff of Deutsche Lufthansa AG during the crisis. The agreements reached still require the approval of the UFO members.
90 percent of short and medium-haul routes back on offer by September
70 percent of long-haul destinations back on offer by September
Further expansion of leisure destinations
The airlines in the Lufthansa Group are significantly expanding their services in the coming weeks and months. This applies to both short-haul and long-haul flights. The focus in expanding flight schedules is to again offer as many destinations as possible.
In September, for example, 90 percent of all originally planned short- and medium-haul destinations and 70 percent of long-haul destinations will be served again. Customers planning their autumn and winter holidays now have access to a comprehensive global network of connections via all hubs of the Group.
The core brand Lufthansa alone will be flying more than 100 times a week to destinations in North America via its hubs in Frankfurt and Munich in autumn. Around 90 flights a week are planned to Asia, over 20 to the Middle East and over 25 to Africa. In Africa, for example, there will again be flights to Windhoek and Nairobi, in the Middle East to Beirut and Riyadh, in North America to Houston, Boston and Vancouver, in Asia to Hong Kong and Singapore.
On short- and medium-haul routes, Lufthansa will offer a total of 1,800 weekly connections from September onwards. There will be 102 destinations from Frankfurt and 88 from Munich, including Malaga, Alicante, Valencia, Naples, Rhodes, Palermo, Faro, Madeira, Olbia, Dubrovnik, Reykjavik and many other summer destinations from Frankfurt.
Lufthansa expanded its service concept on June 1, 2020. Customers receive a disinfecting wipe before every flight. On short- and medium-haul flights in Business Class, the beverage service and the normal meal service will be reactivated. On long-haul flights, guests in all classes will again be offered the usual range of beverages. In First and Business Class, customers will once again be able to choose from a range of dishes. In Economy Class, customers will also continue to receive a meal. Strict hygiene regulations continue to be adhered to during the service adjustments.
From July onwards, Austrian Airlines aircraft will take off on regular long-haul flights for the first time since mid-March. Bangkok, Chicago, New York (Newark) and Washington will then be available with up to three weekly flights. The European network offer will also be expanded to include various routes from July onwards – including flights to Greece.
Swiss plans to return to about 85% of the destinations it served before the Coronavirus crisis in autumn, with about one-third of its capacity on these routes. As Switzerland’s airline, Swiss is committed to offering the widest possible range of services in the build-up phase. The initial focus here will be on European services from Zurich and Geneva. Further intercontinental destinations will also be reintroduced into the route network.
Eurowings is also significantly expanding its flight program for both business and leisure travelers and plans to fly to 80 per cent of its destinations again in the course of the summer. Following the lifting of the travel warning, interest in holiday destinations such as Italy, Spain, Greece and Croatia in particular is growing by leaps and bounds. This is why Eurowings will be putting 30 to 40 percent of its flight capacity back into the air in July – with the main focus on flights from Düsseldorf, Hamburg, Stuttgart and Cologne/Bonn.
When planning their trip, customers should take the current entry and quarantine regulations of the respective destinations into account. Throughout the entire trip, restrictions may be imposed due to stricter hygiene and safety regulations, for example, due to longer waiting times at airport security checkpoints.
From June 8 onwards, guests on all Lufthansa and Eurowings flights are obliged to wear a mouth and nose cover on board throughout the entire journey. This serves the safety of all passengers on board. The General Conditions of Carriage (GTC) will be amended accordingly. Lufthansa also recommends that passengers wear a mouth-nose cover during the entire journey, i.e. also before or after the flight at the airport, whenever the required minimum distance cannot be guaranteed without restriction.
Lufthansa Group concludes first quarter with adjusted EBIT of minus 1.2 billion euros
Fixed cost development in line with target of a reduction by one third given in March
Restructuring necessary to repay loans and deposits as quickly as possible
Capacity will increase from 3 percent of original planning in May to up to 40 percent in September
“Global air traffic has come to a virtual standstill in recent months. This has impacted our quarterly results to an unprecedented extent. In view of the very slow recovery in demand, we must now take far-reaching restructuring measures to counteract this,” said Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG.
First quarter 2020
The company is reporting today on the results for the first quarter of 2020, the publication of which was originally scheduled for April 30 and had been postponed due to the effects of the corona crisis. The most important key figures have already been reported in an ad hoc release on April 23.
The travel restrictions imposed due to the global spread of the coronavirus have significantly impacted the Lufthansa Group’s earnings development in the first quarter of 2020. Group revenue in the first quarter fell by 18 per cent to 6.4 billion euros (previous year: 7.8 billion euros). Cost reductions could only partially offset the revenue decline in the quarter. Adjusted EBIT amounted to minus 1.2 billion euros in the first quarter of 2020 (prior year: minus EUR 336 million). Net profit amounted to minus 2.1 billion euros.
Crisis-related asset impairments and the negative development of the value of fuel hedges had a significant negative impact on net profit in the quarter. The Group recorded impairment charges of 266 million euros on decommissioned aircraft and 157 million euros on the goodwill of LSG North America (minus 100 million) and Eurowings (minus 57 million). The negative market value development of fuel cost hedges had a negative impact of 950 million euros on the financial result in the first three months of the year. 60 million related to hedges that expired in the first quarter and had a corresponding cash relevant negative impact on earnings. The remainder reflects the valuation of hedges expiring in the future as of March 31. Adjusted free cash flow amounted to 620 million euros. Compared with the end of 2019, the equity ratio fell by 6.7 percentage points to 17.3 percent and net debt by 5 percent to 6.4 billion euros. Pension provisions amounted to 7.0 billion euros. They were thus 5 percent higher than at the end of the year.
In total, the airlines in the Lufthansa Group carried 21.8 million passengers in the first three months, around a quarter less than in the same quarter last year (- 26.1 percent). The seat load factor fell by 4.7 percentage points to 73.3 per cent during this period. Freight capacity on offer fell by 15 percent and freight kilometers sold by 15.5 percent. This results in a cargo load factor of 62.5 percent, which is 0.4 percentage points lower.
In April, the Lufthansa Group airlines recorded a 98.1 percent year-on-year decline in passenger numbers to 241,000. Supply fell by 96.0 percent. The seat load factor fell by 35.8 percentage points to 47.5 percent. Freight supply was 60.7 percent lower than in April 2019, in particular due to a lack of capacity on passenger flights. By contrast, freight kilometers sold declined by only 53.1 percent, so that the cargo load factor rose by 11.5 percentage points to 71.5 percent. Passenger and freight volumes in May were again significantly lower than in the previous year.
The state support measures secure the solvency of the company until it is able to generate sufficient funds from its own resources. On 31 March 2020, the Lufthansa Group’s liquidity amounted to around 4.3 billion euros.
“We have succeeded in reducing fixed costs by one third within a short period of time. Nevertheless, in our operating business we are currently consuming around 800 million euros of our liquidity reserve per month. In addition, the reimbursement of cancelled airline tickets and the repayment of financial liabilities that have fallen due will have a foreseeable negative impact on our liquidity development,” said Thorsten Dirks, Member of the Executive Board Digital and Finance at Deutsche Lufthansa AG.
Lufthansa Group initiates comprehensive restructuring
“In order to repay the loans and coupons quickly, we will have to significantly increase our annual free cash flow compared to pre-crisis levels – even though global demand for flights will remain below pre-crisis levels for years to come. This will only succeed if we implement restructuring programs in all areas of the Group and agree on innovative solutions with the unions and working councils,” says Thorsten Dirks.
The Lufthansa Group plans to significantly reduce unit costs compared with pre-crisis levels. Among other things, fixed costs have been reduced by short-time working for around 87,000 employees, the postponement or cancellation of planned projects and the postponement of maintenance events. In addition, ongoing restructuring programs at Austrian Airlines and Brussels Airlines are being further intensified. Brussels Airlines plans to reduce its fleet by 30 percent and its workforce by 25 percent. Austrian Airlines has decided to reduce its capacity in the long term by downsizing its fleet by 20 percent, and has agreed with the working councils to cut personnel costs by around 20 percent. Restructuring and cost-cutting programs will also be launched in other Lufthansa Group companies. Negotiations with aircraft manufacturers on extensive postponements of planned aircraft takeovers are continuing. In addition, the sale of individual non-core business units is being examined in the medium term.
The reduction in traffic performance by over 95 percent in the months of April and May resulted in the Group initially parking 700 of its 763 aircraft.
From mid-June, however, the Lufthansa Group’s airlines will be significantly expanding their schedules to around 2,000 weekly connections to more than 130 destinations worldwide. The aim is to make as many destinations accessible again for holidaymakers and business travellers. Yesterday the Executive Board decided to increase the offered capacity in September by up to 40 percent of the original schedule. At the same time, the number of destinations will increase to 70 percent of the original plan for long-haul flights and 90 percent for short-haul flights in order to offer customers the widest possible choice of destinations. To this end, a step-by-step expansion of the flight schedule is now being worked out over the next three months. In doing so, the company will accelerate the course it has already embarked on to expand its tourist offering.
The company is planning on only gradually increasing demand. It still expects 300 aircraft parked in 2021, and 200 in 2022. Even after the end of the crisis, which is expected to end in 2023, the Group expects its fleet to remain 100 aircraft smaller. A considerable decline in demand is also initially expected for the service companies’ third-party business.
The airlines in the Lufthansa Group have prepared themselves for rising demand with extensive hygiene measures and the introduction of mandatory masks on board. To give their customers maximum flexibility in the corona crisis, the Lufthansa Group airlines continue to offer their customers numerous rebooking options. In addition, capacities in the call centres are being continually expanded so that customers who cancel their flight can be reimbursed as quickly as possible. This should enable ticket refunds in the three-digit million range per month. Due to the high number of refund requests, waiting times may still occur.
The uncertain further development of the corona pandemic continues to make it impossible to make a precise forecast of the earnings trend for 2020. The Lufthansa Group continues to expect a significant decline in Adjusted EBIT.
“Even in this unique crisis we are working hard to defend our leading position in Europe,” said Carsten Spohr.
At its meeting on May 30, the Lufthansa Executive Board decided to accept the commitments offered by Germany to the EU Commission for the stabilization package negotiated with the Economic Stabilization Fund (WSF) of the Federal Republic of Germany.
The scope of the conditions required in the EU Commission’s view has been reduced in comparison with initial indications. Lufthansa will therefore be obliged to transfer to one competitor each at the Frankfurt and Munich airports up to 24 take-off and landing rights (slots), i.e. three take-off and three landing rights per aircraft and day, for the stationing of up to four aircraft. For one and a half years, this option is only available to new competitors at the Frankfurt and Munich airports. If no new competitor makes use of this option, it will be extended to existing competitors at the respective airports.
The slots will be allocated in a bidding process. The slots can only be taken over by a European competitor that has not itself received any substantial state recapitalization as a result of the corona pandemic.
The Supervisory Board must approve the stabilization package negotiated with the WSF, including the commitments to the EU Commission. Subsequent to the Supervisory Board’s decision, the company intends to convene an Extraordinary General Meeting in the near future to obtain shareholder approval for the WSF stabilization measures.
Over 2,000 weekly frequencies to connections to more than 130 destinations worldwide
Lufthansa: 34 additional destinations from Munich, 20 from Frankfurt in the flight program
Austrian Airlines, Brussels Airlines and Air Dolomiti resume flight operations
The airlines in the Lufthansa Group are significantly expanding their services in the second half of June compared with the previous weeks. As in the first half of June, the focus will be on summer tourist destinations. The aim is to make as many destinations as possible accessible for holidaymakers and business travelers and thus expand the European and intercontinental network for holidaymakers and business travelers.
Starting from June15, 2020 Lufthansa alone will be resuming around 20 German and European destinations from Frankfurt and as many as 34 from Munich, thus supplementing the airline’s flight schedule, which has been growing steadily for a few weeks. These include attractive holiday destinations as Dubrovnik, Faro, Venice, Ibiza and Malaga from Frankfurt. Additionally, Porto, Split, Cyprus, Biarritz and Agadir and many more from Munich. Furthermore the weekly accessibility of already existing and highly demanded destinations, such as Mallorca or Sylt, will be increased. As a result, Lufthansa’s flight schedule will grow from around 500 to almost 900 weekly connections at the Frankfurt and Munich hubs during the course of June.
The Lufthansa Group airlines are thus responding to the growing interest of customers in air travel as travel restrictions and entry rules in various countries have gradually ben relaxed. This includes the German government’s planned lifting of travel advisories and restrictions for more than 31 European countries.
With 2,000 weekly connections to more than 130 destinations worldwide, the variety of travel opportunities available to all Lufthansa Group travelers will be greatly extended with immediate effect, subject to any travel restrictions. The additional flights for the second half of June will be implemented in the booking systems today, 28 May, and are thus bookable. All destinations can be booked on lufthansa.com or on the websites of the respective Group carriers.
In addition, 34 long-haul destinations are now also available again in the Lufthansa Group airlines’ flight schedules. In total the airlines now offer around 112 weekly connections to destinations outside Europe.
Lufthansa’s additional long-haul return flights from Frankfurt in detail: Cairo (Egypt), Beijing, Shanghai (both in China) and San Jose (Costa Rica).
Lufthansa’s additional long-haul return flights from Munich in detail: San Francisco (USA), Delhi (India), Montreal (Canada) and Seoul (South Korea).
The flight schedules of the Lufthansa Group’s airlines are closely coordinated, enabling reliable connectivity to European and intercontinental destinations via the hubs.
On June 15, 2020, Austrian Airlines aircraft will resume regular flights after a break of almost 90 days. Subject to new official restrictions, the airline will thus take off to 37 destinations in the first two weeks of the new start.
Swiss plans to increase its services to Italy, and will resume services from Zurich to Brindisi, Florence, Naples, Palermo, Rome and other destinations in the second half of the month. From Geneva, Swiss passengers will again be able to fly to Faro and Nice, among other destinations. Swiss will continue to serve some ten long-haul destinations.
Eurowings will be substantially expanding its timetable from June onwards, adding 40 new European destinations to its schedule. The fleet will be doubled to up to 20 Airbus aircraft by the end of June. One focus of the expansion of the flight schedule is on connections to Europe’s most popular sunny islands Palma de Mallorca, Sylt and Heringsdorf as well as holiday destinations such as Greece and Croatia.
From June 15, 2020, Brussels Airlines will resume flight operations and offer a route network of 59 destinations between June and August.
In accordance with the entry regulations of the respective countries, Edelweiss will continuously expand its flight offerings in the coming weeks. By the end of June, it is currently planned to operate 171 flights to 36 holiday destinations. It is also planned to operate the first long-haul flights on a regular basis again.
Air Dolomiti has already announced the resumption of flight operations with new domestic connections. The Group airline will be operating its first flights from Florence to Catania and Palermo from 5 June and from June 19 to Bari and Cagliari.
Important note: When planning their trip, customers should observe the current entry and quarantine regulations of the respective destinations. Throughout the entire journey, restrictions may apply due to stricter hygiene and security regulations, for example, longer waiting times at airport security checkpoints. The catering services on board will also remain restricted until further notice.
Furthermore, passengers are still requested to have a mouth-nose-to-mouth to wear the cover on board during the entire voyage.
At its meeting on May 27, the Supervisory Board of Deutsche Lufthansa AG discussed the acceptance of the stabilization package offered by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany, including the necessary convocation of a General Meeting.
The Supervisory Board has taken note of the conditions currently indicated by the EU Commission. They would lead to a weakening of the hub function at Lufthansa’s home airports in Frankfurt and Munich. The resulting economic impact on the company and on the planned repayment of the stabilization measures, as well as possible alternative scenarios, must be analyzed intensively.
Against this background, the Supervisory Board was unable to approve the stabilization package in connection with the EU conditions. However, the Supervisory Board continues to regard WSF stabilization measures as the only viable alternative for maintaining solvency.
Deutsche Lufthansa AG will not convene an Extraordinary General Meeting for the implementation of the stabilization measures for the time being.
Infographic: Ryanair Can Survive Ten Times Longer than Lufthansa Without State Aid
Ryanair can remain solvent for 99 weeks without state aid
Lufthansa’s liquidity will only cover 10 weeks
Ryanair market value 194% higher
Higher demand for Lufthansa stocks
While Ryanair’s liquidity is sufficient to cover costs for another 99 weeks, Lufthansa is facing insolvency in 10 weeks without state subsidies. This is shown in a new infographic from Kryptoszene.de.
In March this year, Ryanair reduced its flight schedule by 97%. The Lufthansa Group in turn cut 94% of its flights. Despite similar conditions in dealing with the corona crisis, there remains a huge gap between the two largest European airlines, as can be seen in the infographics.
In terms of market capitalization, Ryanair’s market value of 12.1 billion euros exceeds that of Lufthansa by 194%. The German airline’s shareholders have recently been left hanging. In review, the price of Lufthansa shares fell by 50.4% this year, while Ryanair’s market capitalisation climbed by 12.1% over the same period.
Nevertheless, shares in the Lufthansa Group are enjoying greater popularity these days. This is illustrated in the analysis of Google search queries. The Google trend score in the last week of May was 74, while the score for Ryanair shares wallowed at 37. A value of 100 stands for the largest possible relative search volume.
“The evidence seems to suggest that Ryanair is far more likely to survive the corona crisis relatively unscathed,” according to cryptoscene analyst Raphael Lulay. “The fact that Lufthansa investments are more attractive to the majority of German investors may seem surprising in light of this. However, it may also be that political tailwind is giving shareholders, and thus also the crane, a boost”.
The full story with the infographic, facts and more statistics:
Deutsche Lufthansa AG has been informed by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany that the WSF has approved the stabilization package for the company. The Executive Board also supports the package.
The package provides for stabilization measures and loans of up to EUR 9 billion.
The WSF will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG. Of this amount, approximately EUR 4.7 billion is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part. In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.
Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.
In addition, in the event of non-payment of remuneration by the Company, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. The second conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection. Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the WSF undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.
Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.
The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, two seats on the Supervisory Board are to be filled in agreement with the German government, one of which is to become a member of the Audit Committee. Except in the event of a takeover, the WSF undertakes not to exercise its voting rights at the Annual General Meeting in connection with the usual resolutions of ordinary Annual General Meetings.
The stabilization package still requires the final approval of the Management Board and the Supervisory Board of the company. Both bodies will come together shortly to adopt resolutions on the stabilization package. The capital measures are subject to the approval of an extraordinary general meeting.
Finally, the stabilization package is subject to the approval of the European Commission and any competition-related conditions.
Above Copyright Photo: Marcelo F. De Biasi. Lufthansa aircraft in storage at the Frankfurt hub.
Large wide body airliners (like the Airbus A380 and Boeing 747) have been hard to fill for airlines since the COVID-19 pandemic exploded around the world this spring. Many airlines have parked their Jumbos and some have moved up the planned retirement dates of the Boeing 747-400.
If you want to fly on the passenger type you better hurry. Other than governments and cargo operators, finding a passenger Boeing 747-400 flight is a challenge right now.
Some aircraft in storage will probably become active again when the passenger demand dictates the use of large wide body aircraft again. If the demand does not come back quickly it will probably mean the end of those aircraft in storage.
Above Photos: Boeing.
Below is the current situation based on the latest information for passenger airlines (corrections and additions are always welcome) (subject to change depending on returning traffic):
Air Atlanta Icelandic – The charter and ACMI specialist airline has five passenger 747-400s. Three are currently stored and two are operating on ACMI assignments.
Above Copyright Photo: Air Atlanta Icelandic Boeing 747-412 TF-AMI (msn 27066) LGW (Antony J. Best). Image: 928104.
Air China – Two 747-400s are operational (B-2445 and B-2447) but they stay mostly in China these days. Another aircraft (B-2472) is operated for the government. Air China also continues to operate the newer 747-800.
Above Copyright Photo: Air China Boeing 747-4J6 B-2445 (msn 25882) JFK (Ken Petersen). Image: 902765.
Asiana Airlines – Only one 747-400 passenger aircraft (HL7428) is active these days so the type is probably ready to be retired this year.
Above Copyright Photo: Asiana Airlines Boeing 747-48E HL7428 (msn 28552) LAX (Michael B. Ing). Image: 910887.
Atlas Air – The charter and ACMI specialist airline currently has three active passenger 747-400s (N464MC, N465MC and N480MC). Assuming charter demand continues this airline could be one of the last passenger operators.
Above Copyright Photo: Atlas Air Boeing 747-446 N465MC (msn 24784) LAX (Michael B. Ing). Image: 921869.
British Airways – The former largest 747-400 passenger operator has stored all 28 aircraft pending a return of passenger demand. For now, G-CIVO operated the last revenue flight (BA9116 LOS-LHR) on May 11, 2020.
Above Copyright Photo: British Airways Boeing 747-436 (Tails) LHR (Dave Glendinning). Image: 908409.
KLM Royal Dutch Airlines – As previously reported, PH-BFT operated the last regular revenue flight (KL686 MEX-AMS) on March 29, 2020. However the Jumbo was brought out of retirement to operate special medical cargo flights (along with PH-BFV and PH-BFW) during the pandemic. All 3 are expected to be re-retired again this year.
Above Copyright Photo: KLM Royal Dutch Airlines Boeing 747-406 PH-BFT (msn 28459) (100 Years) AMS (Ton Jochems). Image: 949485.
Lufthansa – The company was originally planning to retire the 747-400 fleet in 2025. That all changed with the pandemic. All 8 that remain operational are now in storage pending a return of passenger demand. D-ABVX operated the last 747-400 passenger revenue flight (LH637 RUH-FRA) on May 8, 2020.
Air India – Four 747-400s are parked and not likely to return. VT-ESO operated the last revenue flight (AI966 HYD-BOM) on March 15, 2020.
China Airlines – Four passenger 747-400s are in storage and are not likely to return. B-18215 operated the last revenue flight (CI916 HKG-TPE) on March 15, 2020.
Corsair International – The French carrier parked its three passenger Boeing 747-400s in March and they are not likely to return. F-GTUI operated the last revenue flight (S5 927 PTP-ORY) on March 26, 2020,
El Al Israel Airlines – 4X-ELC operated the last passenger 747-400 revenue flight (LY1747 FCO-TLV) on November 3, 2019.
Iraqi Airways – The last passenger Boeing 747-400 (YI-ASA) operated the last revenue flight (IA3114, MED-BGW) on February 2, 2020.
Korean Air – HL7402 operated the last 747-400 passenger revenue flight (KE630 DPS-ICN) on February 29, 2020. Korean Air continues to operate the newer 747-800.
Mahan Air – The Iranian airline was recently again operating EP-MNB (February 2020) but it appears to be no longer flying, probably due to the embargo.
QANTAS Airways – The flag carrier decided to early retire the type due to a much lower demand. VH-OEE operated the last revenue flight (QF28 SCL-SYD) on March 29, 2020.
Thai Airways International – The flag carrier is in reorganization and is cutting costs and reducing aircraft types. HS-TGA operated the last 747-400 revenue flight (TG476 SYD-BKK) on March 26, 2020.
Virgin Atlantic Airways – G-VROS operated the last revenue flight (VS608 LAX-LHR) on March 31, 2020.
Poll. Who do you think will be the last Boeing 747-400 passenger airline operator?
Over 106 German and European destinations and over 20 long-haul destinations soon to be available again
Airlines’ flight schedules are closely coordinated
With the June flight schedule, the airlines of the Lufthansa Group are significantly expanding their services compared with the previous weeks operation.
Lufthansa, Swiss and Eurowings are again adding numerous leisure and summer destinations to their flight schedules in June, as well as more long-haul destinations.
With over 106 destinations in Germany and Europe and more than 20 intercontinental destinations, the range of flights on offer for all travellers will be greatly expanded by the end of June.The first batch of flights will be available for reservation in the booking systems from May 14.
By the end of June, the Lufthansa Group airlines plan to offer around 1,800 weekly roundtrips to more than 130 destinations worldwide.
Lufthansa’s additional flights that are resuming in the first half of June, in Germany and Europe, are from Frankfurt, Hanover, Majorca, Sofia, Prague, Billund, Nice, Manchester, Budapest, Dublin, Riga, Krakow, Bucharest and Kiev. From Munich, it is Münster/Osnabrück, Sylt, Rostock, Vienna, Zurich, Brussels and Majorca.
In the first half of June, the flight schedule also includes 19 long-haul destinations, fourteen more than in May. In total, Lufthansa, Swiss and Eurowings will thus be offering more than 70 weekly frequencies overseas until mid-June, almost four times as many as in May. Further resumption of Lufthansa long-haul flights is planned for the second half of June.
Lufthansa’s long-haul resumption of flights from Frankfurt in detail (subject to possible travel restrictions):
Toronto, Mexico City, Abuja, Port Harcourt, Tel Aviv, Riyadh, Bahrain, Johannesburg, Dubai and Mumbai. The destinations Newark/New York, Chicago, Sao Paulo, Tokyo and Bangkok will continue to be offered.
Lufthansa’s long-haul return flights from Munich in detail (subject to possible travel restrictions): Chicago, Los Angeles, Tel Aviv.
The flight schedules of the Lufthansa Group airlines are closely coordinated, thus enabling reliable connectivity to European and intercontinental destinations once again.
Austrian Airlines has decided to extend the suspension of regular flight operations for a further week, from May 31 to June 7, 2020. A resumption of service in June is being considered.
Swiss is planning to resume services to various destinations in the Mediterranean region, and other major European centres such as Paris, Brussels and Moscow will also be added to the programme.
In its long-haul operations, SWISS will again offer its passengers new intercontinental direct services in June, in addition to its three weekly services to New York / Newark (USA). The Swiss carrier plans to offer flights from Zurich to New York JFK, Chicago, Singapore, Bangkok, Tokyo, Mumbai, Hong Kong and Johannesburg.
Eurowings had already announced last week that it would be expanding its basic program at the airports of Düsseldorf, Cologne/Bonn, Hamburg and Stuttgart and gradually adding 15 further destinations within Europe from May onwards. With flights to Spain, Greece, Portugal and Croatia, the focus is on destinations in the Mediterranean region. Furthermore the island of Mallorca will again be offered from several German Eurowings gateways
Brussels Airlines plans to resume its flight operations with a reduced network offer as from June 15
When planning their trip, customers should consider the current entry and quarantine regulations of the respective destinations. Throughout the entire trip, restrictions may be imposed due to stricter hygiene and security regulations, for example due to longer waiting times at airport security checkpoints. The catering services on board will also remain restricted until further notice.
In addition, passengers will continue to be asked to wear a nose-and-mouth cover on board during the entire journey.