Cost-cutting program to save €400 million a year
Air Berlin will slash its workforce by almost 10% and cut its fleet size as part of a restructuring program beginning this week, designed to stop years of losses. The airline has not posted a full-year operating profit since 2007. The job cuts are deeper than those published in the newspaper Die Welt in December.
Germany’s second-biggest carrier, which is part-owned by Etihad, will cut 900 jobs out of a total of 9,300. The company says it will also cut its fleet during 2013 from 158 aircraft (as at September 2012) to 142. The new cost-cutting initiative, initially announced in October, is designed to save €400 million a year from and including 2015. The aim is to concentrate strictly on profitable routes, for example with more flights to Majorca.
Following the resignation as chief executive of the airline’s founder, Joachim Hunold, in 2011, an interim CEO was brought in, Hartmut Mehdorn. But he stepped down last week, handing the controls to the airline’s strategy chief Wolfgang Prock-Schauer.