German aircraft engine manufacturer MTU Aero Engines said Monday it is planning to cut at least 1,000 jobs as the impact of the coronavirus continues to hammer the aviation industry.
“By the end of 2021, the company aims to reduce capacity at its German and international locations by a total of around 10 to 15 percent,” the company said in a statement.
Headquartered in Munich, MTU Aero Engines employs more than 10,000 people worldwide and provides maintenance services as well as engines for military and commercial planes.
“As a result of the pandemic, the aviation industry will remain under pressure for some time to come,” CEO Reiner Winkler was cited as saying.
“It will be years before air traffic – which is the foundation on which our activities in series production and our maintenance business rest – returns to pre-crisis levels,” he added.
The company hopes however to avoid compulsory redundancies, making the savings instead through partial retirement, early retirement and other arrangements.
Travel restrictions introduced to slow the spread of the coronavirus since March have put a stranglehold on the aviation industry around the world.
European aircraft maker Airbus said last week it is planning to cut around 15,000 jobs worldwide, 11 percent of its total workforce, in response to the “gravest crisis” the industry has ever seen.
Germany’s Lufthansa, Europe’s biggest airline group, has been granted a nine billion euro ($10 billion) bailout from the German government, saving it from bankruptcy as a result of crushed travel demand.