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vaccine before travelling. UK travellers showed one of


the lowest rates of intention to change their travel behaviour, with 37% saying they would be likely to change their choice of destination compared with 40% in Germany, 56% in the US and 77% in Italy. Almost half (48%) of UK


travellers said they would be comfortable staying at a hotel and almost as many (43%) flying. However, 37% of UK travellers said they would be uncomfortable taking a flight. More than half (54%) would


be uncomfortable using public transport or (56%) a taxi. Only one in five (19%) said they would be comfortable attending a trade show or convention. Half of respondents (51%)


across all markets and 49% in the UK said they expect to cruise less and 54% across all markets and 49% in the UK expect to use tour buses less. Four out of five UK


respondents (80%) identified airport health and cleaning as “significant” to their decision to fly, but 83% cited “attractive prices”. Michael Khan, Oliver


Wyman partner, noted the disparity in intention to travel between UK business and leisure travellers and said: “Leisure travellers are thinking about a holiday in July or August and it’s shrouded by uncertainty. It’s easier to think about business travel later this year or next.” He told Travel Weekly:


“Better-established brands are in a strong position. The policies big brands are able to put in place give more comfort. We would not expect demand to return asymmetrically.”


Lufthansa is currently operating only about 60 of its 763 aircraft


Lufthansa to park 100s of aircraft until 2022


Ian Taylor


Lufthansa expects air passenger demand to return so slowly that it plans to have 300 of the group’s aircraft still parked in 2021 and 200 in 2022. Europe’s largest airline group,


Lufthansa currently has 700 of its 763 aircraft grounded. It reported last week: “Even after the end of the crisis, expected in 2023, the group expects its fleet to remain 100 aircraft smaller.” Lufthansa secured €9 billion in


German state aid after agreeing to EC demands to surrender slots at


Frankfurt and Munich, but it plans to downsize sharply. The group revealed customer


refunds are adding to the pressure to slash jobs, with hundreds of millions of euros being paid out each month. Thorsten Dirks, finance and


digital chief officer, reported: “Our [operating] cash burns runs at around €800 million a month. We expect cash consumption to run at a similar level for months.” But in addition, he said: “Cancellations mean customers can claim up to €2.5 billion in refunds.” Group chief executive Carsten Spohr warned: “We have to make


cashflow our focus and this has to be tough. We will carry an annual additional burden of €1 billion in interest and repayments.” He insisted: “We want to avoid


lay-offs as much as we can, but the business will become much smaller. We have to share by everybody working less and making less money.” Spohr added: “The impact of


the crisis will stay for some time, but at least the complete grounding is behind us. Countries have begun to relax travel restrictions. Our aim is to serve many destinations, using smaller aircraft and fewer frequencies.” Lufthansa plans to operate up


to 40% of its original schedule by September, with services to 90% of its previous short-haul destinations and 70% of long-haul. The state-aid package will see the


German government take a 20% stake in Lufthansa. Spohr said: “Before the coronavirus, a 20% government stake was nowhere in our plans.”


Virgin in talks with potential investors as it seeks £750m


Virgin Atlantic was hoping to confirm plans to secure its survival this week. A source confirmed talks were “progressing” with up to four potential investors. Virgin Group’s sale of shares in


Virgin Galactic last month raised $366 million, some of which will go to support the airline. The carrier has also asked


30 11 JUNE 2020


to defer payments it owes 49% shareholder Delta Air Lines under the pair’s transatlantic joint venture. Virgin Atlantic requires about


£750 million and has a ‘five-pronged plan’ to achieve it, comprising new investment, the Virgin Galactic sale, a potential government credit guarantee, deferred payments to Delta and release of payments held by card companies. Restructuring specialist Alvarez


& Marsal continues to work on a so-called pre-pack administration should Virgin fail to secure support. A Virgin Atlantic spokesperson said: “We’re exploring all available


Virgin is in a ‘stable position’


options to obtain additional external funding. Meanwhile, the airline remains in a stable position.” Virgin Atlantic has confirmed


plans to restart flights to the US, Hong Kong and Shanghai from July 20, but it plans to axe 3,150 jobs and shut its Gatwick operation.


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