Lufthansa to shed 2,000 more jobs

24th November 2003, Comments 0 comments

24 November 2003, FRANKFURT - German airline Lufthansa is to cut a further 2,000 jobs as it seeks to make savings to cope with the crisis affecting the aviation industry. The airline's personnel director, Stefan Lauer, told Die Welt newspaper in an interview Monday the airline would try to avoid redundancies. Most of the jobs are to go in the group's catering division LSG Sky Chefs. The airline will also be looking to reduce salary levels in the catering division and its Lufthansa Cargo subsidiary. "We nee

24 November 2003

FRANKFURT - German airline Lufthansa is to cut a further 2,000 jobs as it seeks to make savings to cope with the crisis affecting the aviation industry.

The airline's personnel director, Stefan Lauer, told Die Welt newspaper in an interview Monday the airline would try to avoid redundancies.

Most of the jobs are to go in the group's catering division LSG Sky Chefs. The airline will also be looking to reduce salary levels in the catering division and its Lufthansa Cargo subsidiary.

"We need lower labour costs and a higher productivity to remain competitive," Lauer told the newspaper.

Lauer said the company would also be seeking negotiations on separate wage structures in all its divisions. This would mean its existing wage agreement would not automatically apply across the group.

Lufthansa had already announced plans to cut about 2,000 jobs in Germany and reduce routes as part of a cost-saving move.

Chairman and chief executive Wolfgang Mayrhuber said earlier this month the company would have to look further to reduce costs.

"We must save EUR1.2 billion over the next two years so as to create the foundations for future growth and reactivate our 66 grounded aircraft," he said.

Like other airlines, Lufthansa has been hit by a drop in passenger numbers as a result of the sluggish economy and factors such as the Iraq war and the SARS respiratory illness.

DPA
Subject: German news

 



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