Lufthansa Technik to cut 700 jobs in engine overhaul operations

FRANKFURT: German airline Lufthansa's maintenance business will cut 700 of the 2,000 jobs at its engine overhaul operations as its customers shift to newer types of engines that require less revamping, Lufthansa Technik said on Friday.

The jobs are to be cut over the next five to eight years, mainly by workers taking early retirement, Lufthansa has agreed with labour union Verdi. Lufthansa Technik said it did not plan forced redundancies.

Thanks to advances in technology, the new generation of aircraft engines needs to be overhauled only twice during a lifetime of 20 years, compared with three times for previous types of engines.

Also, manufacturers like Rolls-Royce, Pratt & Whitney and General Electric are increasingly offering customers long-term service contracts with their new engines, competing with maintenance firms like Lufthansa Technik. Lufthansa Technik and union Verdi agreed that engine overhaul staff would start working around the clock in three shifts at the company's site in Hamburg, where 1,100 of the remaining 1,300 staff are based, to improve utilisation of equipment.

In return, Lufthansa will invest 80 million euros ($88.09 million) in new machines and training.