Lufthansa closes German charter carrier with loss of 1,200 jobs

Deutsche Lufthansa AG will close the German charter arm of its SunExpress venture with Turkish Airlines as it extends measures to cut costs and trim the network amid slumping demand.

SunExpress Deutschland, which carried German tourists to destinations including Egypt and Bulgaria with a fleet of 20 planes, will shut down at a cost of 1,200 jobs, according to a statement Tuesday.

Lufthansa will take over the unit’s seven Airbus SE A330 wide-body aircraft, while 11 smaller Boeing Co. 737 jets will be transfered to SunExpress’s Turkish arm, which will continue flying under a separate air operator’s certificate.

Europe’s biggest airline is cutting its own fleet by about 100 aircraft amid forecasts that the coronavirus crisis will depress demand for years to come. It has already closed its Germanwings discount division and has warned that slimming down operations could lead to 22,000 job losses across the group.

Lufthansa shares ownership of SunExpress with Turkish Airlines, as Turk Hava Yollari AO is known. The surviving part of the venture will focus on holiday flights from Germany, Austria and Switzerland to Turkey, plus Turkish domestic services, using a fleet of about 60 planes, including the transferred 737s.

Lufthansa faces a crucial vote Thursday, when shareholders will be asked to back the issuing of new stock to the German government as part of a 9-billion-euro ($10 billion) rescue package. Majority investor Heinz Hermann Thiele opposes the terms of the bailout and may seek to block it.