Lufthansa Says Cost Cutting Program is on Course

New reports now show that Lufthansa and its cost cutting program are on course to meeting their goal. This information was provided by the CEO of Lufthansa Airlines, Wolfgang Mayrhuber. The German national carrier plans on being able to cut €1 billion in its annual spending by the time 2011 rolls around.

The cost cutting method will be split up into many different areas. This includes aircraft orders being delayed and the cutting of several hundred jobs. The airline did note that not cutting costs was not an option for the airline. If no costs are cut, then the airline will be posting a loss on its passenger business.

It has not been made clear yet just how many jobs will be cut in this money saving plan. At the same time, it is also unclear on just how long new aircrafts for the carrier will be delayed. However, Lufthansa says that all of the options have been weighted, and they have done what is best for the company and its passengers.

Of course, Lufthansa is not the only company that is doing what it can to cut costs. Right now other airlines, like Japan Airlines, are doing what they can to stay afloat as well.

However, Japan Airlines’ situation did take a turn for the worst when the Japanese government refused to bail the carrier out of its debut. The government did note, though, that they would not let the airline just go under. They have launched a team that is set to go over Japan Airlines’ cost cutting measurements, which the government has claimed is insufficient.