Germany's Lufthansa said Tuesday it is idling 15 planes on intercontinental routes and cutting working hours for ground staff in an effort to cope with the impact of the SARS virus, the war in Iraq and a slow economy
Published:
1 May 2003 y., Thursday
The decision was "the direct consequence of undiminished difficult economic burdens," the airline said in a statement. "Aside from the continuing slow economy and the effect of the Iraq war, the great insecurity among passengers to Asia due to SARS is responsible for the increased fall in passenger demand."
Lufthansa said demand had slumped by up to 85 percent on some Asian routes due to SARS, and said it had cut the number of flights to Hong Kong from 13 per week to three. The airline, which anticipated a 20 percent year-on-year fall in passenger revenue for April, said it was using smaller airplanes on many international flights.
Hours for ground personnel, which already were cut by 1 1/2 hours per week to 36 hours earlier this month, will be cut to 35 hours with a corresponding pay reduction by mid-May.
The forecast revenue drop triggered provisions in Lufthansa's collective bargaining agreement with labor unions that are aimed at cutting costs without laying off workers.
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