The FINANCIAL — Lufthansa, the major German airline group, aims to eliminate 15 per cent of the jobs at its parent company by the year 2012, a spokesman confirmed on September 21. The Cologne-based company wants to reduce its costs for personnel at the department in Cologne by 5%.
After implementing a billion-euro savings program in the passenger and cargo divisions, Europe's largest airline has switched the focus to its central administration, DW World reported.
A Lufthansa spokesman emphasized that the cost-cutting measures would not necessarily mean job losses, according to the same source.
The spokesman declined to specify the number of jobs to be cut, but said personnel costs will be reduced by around 5% annually to 2012, The Wall Street Journal gives information. He was confirming a report in Monday's edition of the daily Handelsblatt newspaper. The newspaper added that the reductions are expected to be carried out through attrition, rather than forced layoffs.
Noting that Lufthansa, like other airlines worldwide, has been at the receiving end of the blows from lower demand for air travel and rising fuel prices, the spokesman said that the savings planned this time round are distinct from the July-announced proposals which included the elimination of nearly 400 Lufthansa administrative jobs applicable to the passenger division, Top News reported.
The plan comes in addition to a program aimed at cutting €1 billion ($1.47 billion) in costs from the carrier's passenger segment, and savings programs in other divisions, according to The Wall Street Journal.
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