Air Berlin said it would increase its cost-cutting efforts, with CEO Wolfgang Prock-Schauer in the airline's company magazine, stating it now plans to reduce EUR450 million by the end of 2014 (compared to EUR400 million) as part of its "Turbine" programme, according to aero.de. "We want to achieve 85 percent of the savings by negotiating with suppliers, airports, etc and by making improvements in the way we operate," he said.
Air Berlin tightens austerity measures, seeks to reduce costs by a further EUR50m
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airberlin: another record loss, but "Jack of all trades" may have a chance to escape Groundhog Day
The German airline airberlin made another record loss in 2016 and has reported net losses in eight of the past nine years. It has lost a cumulative EUR1.9 billion in the five years since Etihad became a shareholder. The only small net profit, in 2012, was because Etihad bought its loyalty scheme. The first results for this year show that losses worsened in 1Q2017.
The better news is that, with shareholder Etihad's support, airberlin has sufficient liquidity to continue, and it has a restructuring plan with a new CEO. If the story of losses, Etihad support, restructuring and a new CEO sounds familiar, it is because it is. Airberlin has been through this almost as many times as Bill Murray in Ground Hog Day.
Crucially, though, the latest restructuring does seem genuinely radical. As new CEO Thomas Winkelmann has said, airberlin used to be a "Jack of all trades", but master of none. Past restructurings made it a Jack of fewer trades, but never fully resolved this lack of focus. The current plan brings it focus as a network airline – scaling down, and largely exiting from leisure. There is still much execution to be done, and competitive conditions are unlikely to ameliorate, but Mr Winkelmann may have a better chance than his predecessors.
SunExpress: "Lufthansa's biggest strategic project"
The Turkish leisure airline SunExpress and its German subsidiary SunExpress Germany have historically had a fairly low profile, certainly among European air travellers. Nevertheless, their combined total of 7.9 million passengers puts SunExpress in the top 20 European airline groups in 2016, ahead of Brussels Airlines.
Jointly owned by Turkish Airlines and Lufthansa, SunExpress and its German counterpart brought about a consolidated result that fell into loss in 2016 as passenger numbers and revenue both declined. When the observer scratches beneath the surface of the headline figures, a picture of significant strategic change at SunExpress Germany starts to emerge.
The larger Turkish SunExpress has maintained its focus on Turkey-Germany routes, whereas SunExpress Germany has abandoned this country pair. It has instead developed leisure routes from Germany to elsewhere in Europe and in North Africa, in spite of not having an obvious competitive advantage in those markets. Within these new market areas, SunExpress Germany has undergone substantial changes in its route portfolio. Lufthansa wetleases capacity from SunExpress Germany for its Eurowings low cost operation and this may help to make some sense of these outwardly random network changes.