The airline announced sweeping plans to store a large number of its A320 family of aircraft and the loss of some 4,500 jobs, almost a 30% reduction.
Without the aircraft there are no routes and no need for airport and cabin crew or pilots.
It’s just one more set of bad news for airlines but somewhat inevitable. It’s hard to see when numbers will return to 2019 levels.
Etihad said it is at least for now, not fully terminating it’s A380 fleet. indeed it sort of said that it was likely to keep them, but subject to review.
It was also looking to continue – albeit at a reduced rate, taking its A350 deliveries. Quite when it plans on using them is hard to fathom, but there seems to be some kind of aim to get back up and running faster than its neighbours to steal back some market share.
Rather bizarrely the airline board is baulking at accepting the WSF bailout and didn’t actually sign of on it.
The issue seems to be that the EU wants Lufthansa to give up some of its routes and slots at Frankfurt and Munich to sign off on the rescue plan. Lufthansa doesn’t want to to that, feeling it makes it less viable.
In the end the airline needs the money from the bailout, so somebody has to give in.
They’ve agreed a very much reduced delivery schedule for Airbus A350 deliveries. It will take two that are complete this year, but a new schedule is being arranged for the rest of the order.
A few weeks ago Boeing’s CEO quipped that at least one airline in the US would have to go bankrupt. That upset a lot of people, especially the airlines.
Yesterday American CEO Doug Parker said he thought it extremely unlikely that anything that bad would happen to any of the airlines in the US.
Yet rumours percolate constantly that at least two of them are having a hard time – rumblings over United and Alaskan keep surfacing. But as long as they stay rumours…
Boeing has started to lay off 6,770 posts, all of which it hopes to achieve through voluntary means.
The company has already cut 777 and 787 production, but has slowly, restarted 737MAX builds.
The company said that it was far from out of trouble and a lot of work needed to be done to match likely demand over the next few years.