Source: Lufthansa
Lufthansa is applying for 31,000 employees to switch to short-time work until the end of August, the carrier said on Friday. Lufthansa has grounded near 700 of its 760 airplanes due to the plunge in air traffic from the coronavirus.
“The coronavirus has placed the entire global economy and our company in an unprecedented state of emergency,” Carsten Spohr, Chairman of the Executive Board and Chief Executive Officer for Deutsche Lufthansa AG, told Bloomberg. ‘No one can foresee the consequences. We have to counter this extraordinary situation with drastic and sometimes painful measures.”
Short-time work is a form of state aid that allows employers to switch employees to shorter working hours during an economic downturn to keep them on the payroll. Volkswagen AG recently announced plans for about 80,000 employees to work short-time.
Additionally, multiple outlets are reporting Lufthansa is expected to seek a loan from the government.
_____
Source: Equities News
Read Next
