Airlines crisis: Cityjet reports bankruptcy again – what happens next?

Airlines crisis: Cityjet reports bankruptcy again – what happens next?

The aviation market is facing turbulent times, especially after the renewed bankruptcy filing of Cityjet, a major player in the industry. airliners.de reports that the reason for this bankruptcy is, among other things, an expiring contract with the Lufthansa Group. Cityjet reported the application to the High Court in Dublin and recorded a net deficit of 38.5 million euros.

There is unrest in the aviation industry not only regarding corporate finances, but also at the political level. In view of the ongoing trade conflicts, the EU is preparing possible counter-tariffs on US aviation products. Specifically, the proposals could include tariffs worth up to 95 billion euros if negotiations with the USA do not go as desired. The EU is also already facing a 25% tariff on steel, aluminum and cars, putting additional pressure on the industry.

Fears of Lufthansa shareholders

Meanwhile, Lufthansa's shareholders are pushing for a speedy restructuring. They advocate more cost-effective flight operations as part of the comprehensive restructuring program, which includes 700 measures to reduce costs and stabilize operations. At the last general meeting, CEO Carsten Spohr defended the austerity measures and the establishment of new airline operations, while unions sharply criticized the strategy. In particular, the accusation is made that additional flight operations, some of which are not covered by tariffs, are further worsening the situation of employees.

In addition, Deka Investment and DWS expressed dissatisfaction with the slow progress of the restructuring. Collective bargaining is also on the table, with the Cockpit Association calling for negotiations on retirement and transitional pensions for pilots. These developments point to a complex structure in which economic stability and social responsibility must be balanced.

Competition and market changes

The political and business challenges are not the only ones affecting the aviation industry. The federal states are calling for new measures to combat the exodus of airlines, while Norse Atlantic Airways has announced that it will withdraw from the German market and focus more on leasing transactions. At the same time, Emirates reports record profits, highlighting the strength of individual airlines.

MTU is preparing for the impending tariffs, so the entire industry must closely monitor how the political decisions will impact the competitive landscape. The arms race in the aviation sector therefore remains exciting and developments are being followed closely at both national and European levels.