In view of the persisting serious crisis and further reductions in demand, Lufthansa`s Executive Board has decided on…
In view of the persisting serious crisis and further reductions in demand, Lufthansa`s Executive Board has decided on additional comprehensive measures aimed at improving the result. On the basis of the provisional analyses, Lufthansa is anticipating an unexpectedly high operating loss in the first quarter of 2003. The current figures have even deteriorated considerably in comparison with the same period of the previous year, which was primarily marked by the consequences of the terrorist attacks of 11 September 2001.
This negative trend has been caused by considerable reductions in demand, in particular, in the passenger business. The persisting depressed economic situation, the effects of the Iraq war and also the consequences of the lung disease SARS which, at this time, cannot be precisely calculated, continue to represent a permanent burden on the business trend. In order to limit the economic effects of this crisis, Lufthansa`s Executive Board today initiated further measures aimed at reducing personnel costs as well as making adjustments to the timetable.
Today`s decision by the Executive Board provides that, together with the operating partners, a state of crisis be declared as soon as possible and that as of 15 April, the weekly working hours of all Lufthansa German Airlines ground personnel in Germany shall be reduced by 1.5 hours to 36 hours with no wage compensation. The line functions in the group administration are also effected by these measures. Thus, the flexibilization rule agreed in the last round of pay negotiations, will be applied for the first time. In addition, the Executive Board has decided to introduce short-time working for cabin personnel of Lufthansa German Airlines. Discussions with the tariff partners are already in progress. For cockpit personnel, negotiations about mastering the crisis are scheduled to begin as soon as possible.
The measures decided by the Executive Board are intended to lead in an initial step to cutting costs without the need for redundancies. `We want both, cost relief and the securing of jobs`, said Lufthansa Executive Board member Stefan Lauer. In view of the dramatic situation the implementation of these measures is urgently necessary. Further measures cannot, however, be ruled out if the difficult situation continues.
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