Lufthansa to freeze all non-essential investment for the next six months
Lufthansa stated it will freeze all non-essential investment for the next six months (dpa/FOCUS, 24-Nov-2011). The carrier, however, noted "investments essential for the business and fleet investments are unaffected by this move". Lufthansa CEO Christoph Franz stated rising fuel costs and weak economic conditions are behind the decision, noting "we have to act now to prevent a further reduction of our financial flexibility, significantly higher financing costs and a possible loss of our investment grade rating". Mr Franz added employment will be halted and existing staff have been requested to support the carrier through longer working hours. The carrier also announced new negotiations with suppliers and airports.