September 09, 2013
The three big European airline groups have been in restructuring mode for years. While International Airlines Group (IAG) has seen some improvement in the turnaround of Iberia, Air France-KLM and Lufthansa are discovering that they need to do more to reach sustainable cost levels.
Lufthansa has been working through a list of hundreds of previously identified cost-saving items as part of its Score restructuring program, which is meant to improve operating results by €1.5 billion ($1.97 billion) in 2015. Two core company aspects it has been reluctant to touch are pensions and bridge financing for pilots, many of whom opt to retire before the mandatory retirement age.