Fears for over 300 jobs in Shannon have been raised as the future for Lufthansa in Co Clare comes under threat.
Lufthansa Technik are carrying out a strategic review of its Shannon operations which is examining three options for its future in the Mid-West. The first option is to restructure its Irish operation, the second is to close down the plant entirely and the third is to sell the business.
Of the three options on the table, The Business Post reports that a sale is the most likely outcome. Management of the aircraft and repair business are keen to cut costs at the Shannon plant. The paper reported that senior political figures including Tanáiste Leo Varadkar (FG), Minister for Finance Pascal Donohoe (FG) and Minister for Public Expenditure Michael McGrath (FF) have been notified of the company’s current position.
A spokesperson for Lufthansa Technik confirmed requests with public representatives to extend COVID-19 supports such as the wage subsidy scheme and rates waivers were made. “COVID-19 has had a devastating impact on the aviation industry and the effects on our business will be felt long beyond 2021. We are therefore looking at what changes, if any, need to be implemented to allow us to navigate one of the most difficult periods in our trading history”.
Prior to COVID-19, over 500 persons were employed by Lufthansa Technik in Shannon. However the onset of the pandemic resulted in this figure dropping to in or around the 300 mark.
The Clare Echo understands that potential buyers have visited the site but this remains at a commercially sensitive stage. A decision on Lufthansa Technik’s future is to be made known in the first half of July.
An operating loss of €318m was recorded by Lufthansa last year, this compares with a €403m operating profit from 2019.
Combined sales of €65m in 2020 were recorded by the German firm’s Shannon business, this was a 28 percent drop on the €90m in sales a year previously.