Dodging legal obligations and stealing customer money would not be on my list.
Originally Posted by
Andriyko
I would tap those credit facilities that the airlines have, or turn to the shareholders or the government, but I would not steal other people's money.
And, what should you, as a passenger, do if you paid money for the service that you did not receive and you are forced to accept a voucher you have no use for because you have no plans to travel with this airline again? Many many trips were planned as a one-off. I am sure many restaurants, bars, cinemas, theatres etc. would love to be in the lucky position that the airlines found themselves in because they took our money in advance. Those other businesses also want to stay afloat and pay their staff, and yet they are forced to survive resorting to other measures. Some passengers may have lost their jobs or have been furloughed and would want to get their money back to get by. It sucks for everyone now, but the money belongs to the passenger. No tearful story will change that fact. Passengers should not try to 'understand' the situation the airlines are in. Many other businesses are in the same situation but without the free loans that we have given to the airlines.
Originally Posted by
dcmike
I would argue this is a short sighted view. I have had several tickets canceled due to the crisis. Some airlines, like BA, processed my refund when I called in and the credit showed up within a week. Others, like OS, told me to fill out a web form and I still haven't seen a credit.
Sure you want to survive, but if you do survive you need customers. Treating them badly isn't going to make them want to fly you again.
Look - I agree with all of you and am equally appalled by this behaviour (which is also applied by other European airlines !).
I just try to look on the other side. There was a chart which said that LH has about 23 days of cash on hand, and this extends to about 100 days if you include the money for future tickets. However, as per C. Spohr's message, he doesn't expect that this starts up vertically again once the lockdown is over. So the cash flow situation will still be strained - especially if you consider that there is no cash coming in if people switch their flights they had already paid - but the expense will be there. He needs to support the x months of lockdown (no revenue, just expense), and then have a cash flow negative period (since cash came in already, but expense for flying will come in), before cash flow could become positive again. Always remember: even a profitable business can become insolvent if you don't manage cash flow.
Credit lines ok, state aid ok, but all depends on negotiation - i.e. takes time and is uncertain. So he prioritizes liquidity over customer impact currently. Same as the politicians priroritize health over economic impact currently.