Lufthansa Technik Switzerland announces restructuring plans Substantial restructuring
By algevis - Thu Mar 29, 10:04 am
Lufthansa Technik Switzerland (LTSW) announced with regret that substantial restructuring was likely to be necessary. The company´s very difficult market situation has been exacerbated by the continuing exchange rate strength of the Swiss franc. As a result, LTSW is being forced to consider extensive restructuring measures across every part of the company.
The decline in demand for services, the ongoing fierce competition in the MRO industry and the problematic exchange rate development of the Swiss franc have resulted in insufficient utilization of the company´s available capacities, particularly in the areas of overhaul and maintenance of regional aircraft and engine overhauls for AVRO aircraft. A sustained revitalization of this segment is currently not foreseeable.
The company´s newly established business in the technical care of VIP and executive jets is currently unable to compensate for the disproportionately high loss of capacity utilization in its other business field.
For this reason, LTSW has initiated a consultation procedure with the Staff Commission, the trade unions and personnel associations. During the coming weeks, alternative courses of action will be considered for those job cuts in the administration and production areas that seem – at least currently – to be possible.
Rainer Lindau, CEO of Lufthansa Technik Switzerland, commented on the restructuring plan: “It is with great regret that we must consider drastic personnel reductions. It is very important to us to find as many socially responsible solutions as possible for our employees.”