Lufthansa CEO Says Airline Has Raised Liquidity, While Pursuing Industry Concessions

With the corona-virus spreading rapidly around the world, it has reached Germany. The economic impact of the virus has begun to affect the German based airline, Lufthansa. Lufthansa is facing low demand, has created 50% cuts, it will set big airplanes aside until stability is reached and more customers fly. Lufthansa plans on creating part time opportunities for employees so that they are not completely laid off. The airline is not only been affected due to the impact of the virus in Asia and Europe, but also because the virus is reaching one of its most important international travel destinations, the United States, says CEO Carsten Spohr. The airline is currently in negotiations with the German government and with the European Union due to financial burdens.

As we all know, the virus is having huge economic impacts around the world, and it is rapidly spreading. I chose this article not only because of the economic impact, but because of a comment Lufthansa’s CEO Mr.Spohr made, he said: “I remain confident and convinced that with good teamwork we will also overcome this crisis better than our competitors.”

Mr.Spohr has showed that in the business and marketing world, competitors remain competitors and are never allies, even in times of crisis. Lufthansa has many strong competitors in the airline industry, and after the situation with the corona-virus has become more stable, Lufthansa needs to do a general SWOT analysis to analyze areas where they need to work on to bring confidence to its customers, that they have taken proper measures and thoroughly cleaned their airplanes for a safe travel. 

https://www.wsj.com/articles/lufthansa-ceo-says-airline-has-raised-liquidity-and-is-talking-to-government-on-industry-concessions-11583536183