Financial and business news from Bulgaria

Bad: Lufthansa closes charters with German tourists to Bulgaria

Lufthansa will close the German charter division of SunexPress, a joint venture with Turkish Airlines, as it expands cost-cutting measures amid falling demand, Bloomberg reports, quoted by
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sunexpress Land, which carries German tourists to destinations such as Bulgaria and Egypt with a fleet of 20 planes, will close and shorten 1,200 jobs, according to an announcement Tuesday.

Lufthansa will take over the seven Airbus A330 aircraft, while 11 smaller Boeing 737 aircraft will be transferred to the Turkish division of SunExPress, which will continue to fly under the certificate of a separate air operator.

Europe's largest airline is cutting its own fleet by around 100 aircraft amid predictions the coronavirus crisis will reduce demand for years to come.

It has already closed its low-cost Germanwings division and warned that weakening operations could lead to the loss of 22,000 jobs across the group.

Lufthansa shares ownership of SunExPress with Turkish Airlines. The surviving part of the joint venture will focus on holiday flights from Germany, Austria and Switzerland to Turkey, plus Turkish domestic services using a fleet of about 60 aircraft, including the transferred Boeing 737, Bloomberg TV Bulgaria reports.

Lufthansa faces a crucial vote on Thursday, when shareholders will be asked to back issuing new shares for the German government as part of a rescue package worth 9 billion euros ($10 billion).

Majority investor Heinz Herman Teal opposes the terms of the rescue package and may seek to block it.


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