As part
of a €1.5 billion savings program, Lufthansa is freezing fleet expansion for
two years, scrapping first class on a large part of its long-haul network and
pondering further route withdrawals. A widely leaked letter to staff last week
from board member Carsten Spohr said the measures are necessary to combat
competition from low-cost carriers and Middle Eastern airlines, and to provide investment
for more fuel-efficient aircraft. The airline by 2016 intends to phase out its
55-strong Boeing 737 fleet and 70-seat commuter aircraft.
Lufthansa
recently axed unprofitable services to Hyderabad, Kolkata and Guangzhou. Spohr
said services to Nanking, Madras and Bangkok now are under review.
The
airline will also remove first class from its remaining Airbus A340-300s and 13
B747-300s. However, it is looking at introducing a premium-economy cabin, which
has proved profitable for rivals such as British Airways.
Spohr added
that the airline would not rule out redundancies to achieve its savings
targets.