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Brussels Airline announced to close down unprofitable routes, reduce number of aircraft and cut its workforce.
“..the carrier needs to structurally reduce its costs to a competitive level. In addition, to overcome the present unprecedented crisis, the company asks for support from both, its shareholder Lufthansa and the Belgian government…” says the airline
Within its turnaround plan, Brussels Airlines cutting marginally profitable and unprofitable routes, resulting in a fleet reduction of 30%. The overall size of the company, and as a consequence of its workforce, will be 25% smaller.
“The company is confident that with its turnaround plan it will be able to safeguard 75% of its employment and grow again in a profitable way as soon as the demand for air travel has recovered to a new normal, which is expected as of 2023.”…says the airline
Across the world, the Coronavirus crisis is putting unprecedented pressure on airlines with a total revenue impact expected to exceed €240 billion. Incoming bookings dropped by more than 60% and cancellations reached record heights. As a consequence, many airlines across Europe and beyond are obliged to go for massive job cuts.