Lufthansa plans to reduce long-haul unit costs by 10% in the past three years compared to 2011 levels, according to reports in employee magazine Lufthanseat (airliners.de/dpa-AFX, 03-Dec-2012). Unit costs are expected to reduce by 20% by 2025 from these levels. The project, called SPRINT, is part of the airline’s plans to improve annual profitability by USD1.5 billion by the end of 2014. Key to achieving this objective is a fuel-management system to optimise fuel usage, the introduction of more fuel efficient aircraft, increased aircraft utilisation rates, and the removal of first class on underutilised sectors. The airline is also renegotiating contracts with suppliers and service providers. The carrier is seeking to reduce expenses to offset rising fuel prices and competition from Gulf carriers.
4-Dec-2012 4:37 PM