Lufthansa Terminates Pension Agreements

By Jens Flottau
Source: Aviation Week & Space Technology
September 09, 2013
Credit: Joepriesaviation.net

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.

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