Eurowings considering cuts to counter high kerosene costs

Lufthansa subsidiary Eurowings is considering putting staff on reduced hours in the upcoming winter months because of high kerosene costs, a spokesman confirmed on Friday, reported dpa.

The airline is in talks with the German Employment Agency and has cancelled some flights from its current schedule, the spokesman said. The company informed its staff in writing this week.

The rising costs are initially impacting recently launched connections from Cologne and Stuttgart to Dubai, with the higher fuel prices affecting these long routes especially. The Gulf hub is still to be served from Berlin, however.

Further cuts are expected to affect the frequency of flights rather than entire routes. Overall, the company wants to cut 5% of its planned schedule, according to the letter from management.

Eurowings gave no details on the possible extent of any reduction in working hours, which is possible under a German government scheme that provides employees with continued income.

The company also plans to cut on administration costs, and the planned Christmas party is to be dropped.

The Verdi union wants a say in how the reduction in hours is designed, insisting that compensation payments from the Employment Agency be topped up if necessary.

"Lufthansa is also making current profits overall," Verdi secretary Marvin Reschinsky said of the Eurowings owner.

The pilots' union Vereinigung Cockpit (VC) had previously criticized the Lufthansa group for what it considered an overly expensive takeover of a minority stake in Portugal's TAP.

"Anyone who boasts with financial strength in Lisbon and is prepared to pay a substantial premium for a minority stake cannot, at the same time, pretend to their own employees that there is no alternative to harsh cuts," said VC deputy chief Oliver Löwe.