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21-Aug-2014 10:27 AM

airberlin announces first elements of restructuring, to focus on 'Europe, touristic and long-haul'

airberlin announced (20-Aug-2014) the first elements of its planned restructuring programme, with the carrier to focus on the "three core segments, namely Europe, touristic and long-haul":

  • Network: Focus to be on the "largest travel markets" in Germany, Austria and Switzerland as well as Palma de Mallorca "and connect these high volume routes with high frequencies in point-to-point traffic." The new network design will lead to a more stable operation throughout the year, reducing the effects of traditional high seasonality, and "could equate to a capacity reduction in the region of 10%";
  • Partnerships: airberlin and Etihad Airways are in "a process of exploiting synergy potentials in all areas in a win-win-situation for both airlines and other network partners. As a next important step airberlin is in a process of putting together a framework for a close bilateral cooperation with Alitalia, subject to regulatory approvals";
  • Narrowbody fleet: In order to "achieve a more efficient operation airberlin will strive for narrowbody jet fleet harmonisation in its entire network";
  • Streamlining operating platforms: The carrier is in "a process of streamlining and restructuring the operational platforms it uses (AOCs)." airberlin "intends" to reduce its fleet by "approximately ten aircraft", in line with network adjustments.
  • Closure of crew stations: airberlin has decided and agreed after negotiations to close down five of its smaller crew bases, which will result in higher efficiency and productivity of crew resources, affecting the work location of pilots;
  • Commercial: The carrier will drive "commercial effectiveness with state-of-the-art commercial capabilities by optimising our overall market approach." Measures include a "dedicated distribution approach in the segments we serve including our tour operator business. We will also introduce tailored products and services to our guests."

airberlin CEO Wolfgang Prock-Schauer said: "We are determined to restructure airberlin to ensure the airline moves back to a sustainable profitability within three years. Over the last few months we have been intensively working on the restructuring program. After diligently weighing and validating all of our options in the past months, we decided that airberlin will continue to serve the three core segments, namely Europe, touristic and long haul. We substantially change the way we do business and the way we serve our market." Mr Prock-Schauer added: "We will announce further details and the complete range of measures at the end of September. The entire program is aiming to move us into sustainable profitability. Our guests and partners can rely on the fact, that airberlin will continue to have a competitive offer in Europe, and remain a prime partner for tourism and long haul travel." [more - original PR - English/German]

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