Money and business

Lufthansa reduces its operations and stops “City Line” under pressure from fuel and strikes

Lufthansa, the largest airline group in Europe, announced the cessation of operations of its subsidiary City Line, due to the rise in aviation fuel prices as a result of the war in the Middle East, in addition to the costs it incurred in light of union movements.
The decision comes in the middle of a week of strikes within the group, called by pilots as well as cabin crews, to demand better wages and pensions.
According to Agence France-Presse, this announcement falls within a broader 3-stage plan aimed at reducing the services of the group, which owns a large number of subsidiaries.
The group said in a statement that starting Saturday, “the 27 Lufthansa Cityline aircraft operating will be permanently withdrawn from the program, in order to avoid further losses for this company, which is suffering from a financial deficit.”
By the end of the summer, Lufthansa intends to reduce “long-haul flights” within the group, as part of the restructuring of its operational network.
In a subsequent step during next winter, the group will reduce the number of aircraft in its program for short and medium-range flights.
Lufthansa also announced additional plans to reduce its administrative costs, by achieving savings in the areas of “recruitment, internal events and external consulting services”, in continuation of the previously announced plan to eliminate 4,000 administrative jobs within the group by 2030.

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