Lufthansa grounds Germanwings subsidiary, retires some A380s and 747s in coronavirus restructuring
Another airline has seen the end of its days as a result of the coronavirus crisis. On Tuesday, Lufthansa Group announced that Germanwings, its low-cost subsidiary, would cease operations.
In the group's first restructuring package unveiled on Tuesday, it said that it would ground Germanwings operations as part of a broader overhaul that would also see operations cut across other parts of the business. The group said that the decision was part of its evaluation that the post-coronavirus recovery would take years.
"The Executive Board of Deutsche Lufthansa AG does not expect the aviation industry to return to pre-coronavirus crisis levels very quickly," Lufthansa Group said in a statement. "According to its assessment, it will take months until the global travel restrictions are completely lifted and years until the worldwide demand for air travel returns to pre-crisis levels."
To stay up to date on news like this, sign up for our daily newsletter.
Germanwings had a fleet of 15 A319 aircraft, according to Planespotters.net. Most recently, Germanwings operated under the Eurowings umbrella on some of its short-haul flights.
In addition to grounding Germanwings operations, Lufthansa Group said 18 Lufthansa aircraft would be permanently retired. That group of aircraft includes six Airbus A380s, which it had already planned to sell back to Airbus, seven A340-600s and five 747-400s. In addition, it's taking 11 of its short-haul A320s out of operation.
With that decision, Lufthansa also will be reducing capacity at its hubs in Frankfurt and Munich.
Lufthansa CityLine is withdrawing three A340-300s from service, and Eurowings is phasing out 10 of its A320s.
"Germanwings flight operations will be discontinued. All options resulting from this are to be discussed with the respective unions," the company said in a statement.
Airlines around the world have struggled to cope with the ongoing effects of the coronavirus crisis. In early March, regional U.K. airline Flybe ceased all operations and United affiliate Trans States Airlines ended service in April.More: Some airlines have completely suspended service during coronavirus pandemic
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.