Major Restructuring

Lufthansa Rescues Air Berlin

resized Lufthansa Air Berlin air planes airport Duesseldorf source Oliver Berg DPA 66929865
Lufthansa is helping its rival Air Berlin, Picture Source: DPA
  • Why it matters

    Why it matters

    The collapse of Air Berlin would leave Germany with just one major carrier and open the country to even greater competition from low-cost rivals Easyjet and Ryanair.

  • Facts

    Facts

    • Air Berlin, Germany’s second-largest carrier after Lufthansa, will cut 1,200 jobs from its workforce of nearly 8,900.
    • The restructuring will reduce Air Berlin’s fleet to 75 by the summer of 2017 from 153 operated last year and focus its operations on the airport hubs of Berlin and Düsseldorf.
    • Lufthansa will pay Air Berlin at least €1.2 billion ($1.3 billion) in total to lease 40 of the Berlin-based airliner for a period of six years, starting next March.
  • Audio

    Audio

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Air Berlin, Germany’s second-largest carrier, will lease 40 planes to bigger rival Lufthansa and cut up to 1,200 jobs, or 13.5 percent of its total staff, in its latest bid to return to profitability, the loss-making and indebted company has confirmed.

The troubled airliner, in which Gulf carrier Etihad owns 29.2 percent, will also separate its touristic flying operations into a separate business unit for which “strategic options are being evaluated,” Air Berlin said in a statement late Wednesday, confirming media reports from earlier this week.

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