Air Berlin Airlines to cut 1,200 jobs
Frankfurt/Berlin · Due to financial struggles, Air Berlin announced it will lay off 1,200 employees. Part of its fleet will be leased to Lufthansa subsidiary Eurowings.
A struggling Air Berlin announced on Wednesday that it will let go of 1,200 employees and reduce its fleet of 144 planes. It is Germany’s second largest airlines. Air Berlin said Lufthansa would lease up to 40 of their aircraft for six years, including the crews.
The non-profitable airlines said it intended to concentrate on its core fleet of 75 aircraft based in Berlin and Düsseldorf. A tourist business segment with 35 aircraft is expected to be transformed into a separate unit with the goal of proofing strategic options. Industry insiders say this could mean a deal with German vacation airlines Tuifly.
In a dire financial situation, Air Berlin is nearly a billion euros in debt. It has only survived until now because of cash injections from Etihad, a Gulf carrier and major share owner.
Chief Executive of Air Berlin, Stefan Pichler said he found it difficult to make the job cuts in a dynamic German market. "We have to make reductions but we will aim to do so in a supportive manner, offering new opportunities to employees where possible," he said.
With the Air Berlin agreement, Lufthansa is strengthening the position for Eurowings, its low cost airlines against the competition Ryanair. The 35 aircraft that Lufthansa will lease from Air Berlin will be added to the current Eurowings fleet of 90. The other five aircraft will be rented to Austrian Airlines. (Orig. text: dpa)
