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Air Berlin announces dramatic cuts

airplaneGermany’s second largest airline, Air Berlin, is to undergo a major restructuring which will reduce its fleet by almost half and axe 1,200 jobs.

Losses have been piling up for the carrier which announced its plans on Wednesday.

The statement Air Berlin released said it will concentrate on core operations from its two key hubs in Berlin and Dusseldorf.

Beginning in the middle of next year, it will operate a fleet of 75 aircraft from these two bases concentrating specifically on its profitable long-haul flights, particularly to the US.

This is down from the 153 operated last year, 40 of which are to be provided to its rival Lufthansa Group.

Lufthansa will pay at least €1.2 billion in total to lease these 40 for a period of six years. Its low-cost brand Eurowings is expected to benefit from the rental of 35 of these.

"Fewer staff will be required, with up to 1,200 positions becoming redundant," the Air Berlin statement read.

Air Berlin also plans to turn its tourism business, i.e., its charter operation, into an independent business unit.

Last year the company suffered a record loss of €447 million and €271 million in the first half of this year. Its survival has been due to regular cash injections from the Abu Dhabi-based airline Etihad which holds 29% of Air Berlin shares.

Air Berlin boss Stefan Pichler said the restructuring plan had to be undertaken because "significant external market pressures dictate a change to our current complicated business model."

"We have to make reductions but we will aim to do so in a supportive manner, offering new opportunities to employees where possible," he added in the statement.

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Comments  

-3 #1 Margaridaana 2016-10-01 13:43
Air Berlin is a joy to fly with, compared with the UK charters and low cost. Hope they don't go under, I love flying with them, a touch of class compared with EJ, Mon and O'Learys outfit.

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