Airlines

IndiGo Close To Make Historic 500 Airbus A320 Aircraft Order

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A possible record contract to sell 500 of the A320 family’s narrow-body aircraft to low-cost carrier IndiGo is being approached by European aircraft manufacturer Airbus. Airbus has become the front-runner for this order following Air India’s record preliminary purchase of 470 Airbus aircraft in February of this year, according to Reuters, which cited industry sources speaking on the sidelines of an industry.

According to aviation experts, the transaction might potentially be worth more than $50 billion at the most recent Airbus list pricing, but after accounting for concessions offered by the airline industry for bulk purchases, it would only be worth around half that much. One of Airbus’ biggest clients, IndiGo has placed orders for 830 Airbus A320-family aircraft, of which over 500 are currently awaiting delivery.

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According to the report, “Airbus and Boeing are also competing in separate talks to sell 25 A330neo or Boeing 787 wide-body jets to the same airline.” In India, IndiGo holds a 56% market share.

IndiGo Chief Executive Pieter Elbers had previously stated to analysts during an earnings call last month that IndiGo intends to increase its capacity by the end of the decade and extend its network, particularly in overseas markets.

As airlines secure supplies far in advance due to impending shortages, Airbus and Boeing have been racking up new contracts worth billions of dollars that extend through 2030.

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.