Lufthansa Technik Switzerland (LTSW) announced Wednesday it had found that “extensive restructuring measures” would likely be necessary across the company, citing a difficult market position exacerbated by the continuing exchange rate strength of the Swiss franc.
“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,” the company said in a statement. “A sustained revitalization of this segment is currently not foreseeable.”
LTSW has initiated a consultation procedure with its staff commission, trade unions and personnel associations. The company said it will seek “alternative courses of action” relating to job cuts in the administration and production area, which “seem…to be possible.”
"It is with great regret that we must consider drastic personnel reductions,” Lufthansa Technik Switzerland CEO Rainer Lindau said. “It is very important to us to find as many socially responsible solutions as possible for our employees."
The former Swiss International Air Lines technical division, Swiss Technik, was relaunched as Lufthansa Technik Switzerland in October 2008.
Article Source : ATW Daily News
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