Turbine 2013 will further significantly reduce costs
Germany’s second-biggest airline, now part-owned by Etihad Airways, is launching a new round of cost cuts as it struggles to return to profit. Air Berlin says its new cost-slashing program, Turbine 2013, will significantly reduce costs, but is not being more specific. It is not clear whether job cuts will be involved.
A savings program already underway, called Shape & Size, aims at boosting earnings by €230 million by the end of 2012. But Air Berlin managers have already told the German press that this may not be sufficient. The airline has also cut capacity and unprofitable routes and postponed aircraft orders.
“The company is reacting to a further worsening of the economic environment, the weak euro and consumer behaviour that is marked by growing uncertainty,” the carrier said in a statement. It added that a German air travel tax and high fuel prices are also causing problems.