Executives at Lufthansa said they will “knock down and rebuild” Germany’s largest airline via a cost reduction initiative to secure investments of EUR€9 billion (USD$12 billion) over the next three years.
Lufthansa earlier this week started the SCORE programme to improve operating profit by at least EUR€1.5 billion by 2014.
In an employee newsletter published Friday, chief executive Christoph Franz said the programme was necessary so that Lufthansa could deal with competition from low-cost airlines and fast-expanding Gulf airlines.
“We no longer have a tailwind,” he was quoted as saying in the newsletter, with board member Stefan Lauer adding the programme would cause friction.
Lufthansa said it will reduce overhead, bundle purchasing activities and streamline administrative processes at the company, which has 120,000 staff.