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Lufthansa orders new jets amid job cuts

Lufthansa, Germany's biggest airline, said on Wednesday it plans to order new aircraft worth €9 billion despite a cost-cutting drive involving job losses and the closure of at least two sites.

Published: 20 February 2013 12:03 CET
Lufthansa orders new jets amid job cuts
Photo: DPA

Lufthansa announced it would buy eight long-haul aircraft and 100 short- and medium-haul aircraft from Airbus and Boeing. The purchases still have to be approved by the supervisory board, while delivery is scheduled for between 2015 and 2025, the airline said in a statement.

That brings the total number of new aircraft that Lufthansa has ordered until the end of 2025, to 239 for a total price of €23 billion, which the carrier will pay for in cash and via loans.

Given the magnitude of the investments, Lufthansa announced it would eliminate a shareholder dividend payment for 2012 and fully retain its net profit.

“Our aim is to allow our shareholders to participate sustainably in the group’s future success. It is now all the more important to invest all available resources in the group in order to drive the future (investment) programme forward,” said chief executive Christoph Franz.

“The group net profit will consequently be retained in full for the purpose of strengthening equity capital,” he added.

In order to achieve this, Lufthansa has embarked on a massive cost-cutting and earnings improvement programme in order to lift operating profit by €1.5 billion by 2015.

As part of the scheme, the airline is planning to shut down a number of its administrative sites, including its head office in Cologne, it said. An accounting unit in Norderstedt near Hamburg will also close. Some 700 jobs will be cut in Germany and moved abroad.

Lufthansa said it flew back into the black last year, turning in net profit of €990 million compared with a loss of €13 million a year before.

But airline noted that its bottom line had been inflated by windfall gains from the sale of a number of investments.

Underlying or operating profit – which included €160 million in restructuring costs – fell by 36.1 percent to €524 million. Revenues, on the other hand, grew by 4.9 percent to €30.1 billion, Lufthansa said.

“Profitability for an airline is not simply a given in the present industry environment, it is a good performance,” Franz insisted. But he insisted Lufthansa “needs to perform even better.”

AFP/DPA/The Local/mry

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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