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Air Berlin Chief Executive Officer Wolfgang Prock-Schauer is stepping up efforts to return the German carrier to profitability as he reports on his last quarter at the helm of the troubled airline.
A fresh efficiency push aims to lift net income by 400 million euros ($497 million) by 2016 with a plan to lower costs, increase efficiency and revenue and improve the network, the airline said today. Air Berlin will cut another 200 jobs, bringing the total to 1,050 reductions. It will also streamline its fleet, introduce a new revenue-management system and intensify cooperation with Alitalia SpA.
Prock-Schauer will return to his previous role as strategy chief from February, with Fiji Airways’ Stefan Pichler, a former manager at Deutsche Lufthansa AG, taking over. The 58 year-old Austrian failed to turn Air Berlin around, and shareholder Etihad Airways has bailed out the company by providing cash and credit lines. Etihad is also acquiring a stake in Alitalia.
The German carrier had earlier said that it was reducing capacity by 5 percent, phasing out Boeing Co. models on continental services and reducing crew bases by one-third to 10.
Third-quarter sales fell 2.6 percent to 1.31 billion euros, with earnings before interest and taxes declining 35 percent to 74.9 million euros. Net income fell 51 percent to 49.9 million euros. Restructuring efforts will cost a further “high double- digit euro millions” amount this year, it said.
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