Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Lufthansa staff call for an end to cost-cutting amid airport chaos

Published 07/06/2022, 12:41 PM
Updated 07/07/2022, 05:47 AM
© Reuters. FILE PHOTO: Planes of German air carrier Lufthansa are parked at Frankfurt airport in Frankfurt, Germany, June 2, 2020.  REUTERS/Kai Pfaffenbach/File Photo

BERLIN (Reuters) - Lufthansa staff have called on the German flag carrier to end its "cost-cutting craziness", accusing the airline of mismanagement and contributing to the recent chaos at airports by laying off too many workers.

In a letter to the supervisory board seen by Reuters on Wednesday, staff representatives said there are too few employees to handle booming summer demand and they need to be given the right conditions to perform at their best.

Chairman Karl-Ludwig Kley said in a message to employees that he was aware of employees' reports of aggression and in some cases even physical attacks by customers, "of despair and tears, of helplessness while remaining loyal to Lufthansa."

"I have not seen such an accumulation of problems in my career," he said in the message published on the Lufthansa intranet and seen by Reuters later on Wednesday.

Airspace closures and spare parts shortages due to the chip crisis are making the situation even worse, Kley said, adding he expects flight cancellations, staff recruitment and other measures introduced by Lufthansa to gradually bear fruit.

Lufthansa had slashed jobs and other costs during the coronavirus pandemic, which grounded most flights, and found itself understaffed just as it was trying to capitalize on the returning summer travel demand.

Lufthansa staff had warned "a service company that is run against its own staff has no future."

Lufthansa Chief Executive Carsten Spohr apologised to employees and customers in late June, saying the airline "did go too far in cutting costs here and there."

© Reuters. FILE PHOTO: Planes of German air carrier Lufthansa are parked at Frankfurt airport in Frankfurt, Germany, June 2, 2020.  REUTERS/Kai Pfaffenbach/File Photo

Lufthansa is not the only struggling European airline as the whole aviation industry faces a summer of travel disruption amid looming walkouts.

Pilots of Scandinavian airline SAS went on strike, British Airways staff at London's Heathrow airport in June voted to strike over pay, and Spanish-based cabin crew at Ryanair and easyJet (LON:EZJ) plan to strike this month to demand better working conditions. Workers at Paris' Charles de Gaulle airport stopped work at the weekend to demand a pay rise.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.