EMCC European Monitoring Centre on Change

Air Berlin

Company/Organisation:
Air Berlin

Geographic Location

Country: Germany
Location of affected unit(s): Frankfurt, Hamburg, Cologne/Bonn,Paderborn,Leipzig, Nuremberg

Company

Sector: Transportation / storage
Transportation and storage
51.10 - Passenger air transport
Number Employed: 8600
Group: Air Berlin Group

Employment Effects

Announcement Date: 28-09-2016
Planned Job Reductions min: 1200
Planned Job Reductions max: 1200
Type of Restructuring: Internal restructuring
Employment Effect Start: 28-09-2016

Additional Information

On 28 September 2016, German airline Air Berlin announced to cut up to 1,200 jobs. The airline plans a complete overhaul of its business. The job reduction will mainly affect administrative and technical staff. Over the last 3 years the company accumulated losses of around €1.2 billion

The restructuring foresees to retain 75 out of 144 airplanes and lease 40 airplanes together including crews to Eurowings, a subsidiary of Lufthansa. According to sources, the lease is negotiated for the next six years starting in March 2017 and Air Berlin calculates to cash in €1.2 billion of lease income. Furthermore, 35 more airplanes will be outsourced to a new strategic unit.  

Currently, the management is negotiating with the works council and the United Services Union and is expecting a socially acceptable solution by February 2017. For the latest restructuring see (Air Berlin, 2014).