Lufthansa Technik Switzerland (LTSW) in Basel will undergo extensive restructuring. In the future, the company will concentrate exclusively on line maintenance, light base maintenance and logistics services for its customers at EuroAirport Basel. The company’s focus on just one core product will entail personnel reductions from 304 to 82 employees. It is likely that 22 employees will be able to retain their jobs in the engine shop in Basel, though not as employees of LTSW.
“The job cuts associated with the restructuring decision are naturally extremely painful for us,” said Rainer Lindau, CEO of Lufthansa Technik Switzerland. “But only a rigorous focus on one core product will create conditions that ensure the continued existence of Lufthansa Technik Switzerland in Basel.” The labor-intensive technical maintenance of VIP aircraft and the Component Services and Engine Services business will all be discontinued.
As early as the initiation of the consultation procedure at the end of March, the company announced that the exchange rate development of the Swiss franc and the very difficult market situation would necessitate extensive restructuring measures. The demand for maintenance of regional aircraft and their engines had declined dramatically, and the company was unable to compensate for these disproportionate losses in capacity utilization through its business in the maintenance of VIP and executive jets.
According to LTSW, the existing underutilization of capacity means that the majority of the job cuts will be need to be initiated before the end of the month. A support plan will be available for the affected employees. As regards the Engine Services business, LTSW was able to reach agreement with SWISS that the fleet’s engines will continue to be maintained at the engine shop in Basel, although not under the name LTSW. This measure is likely to result in the retention of 22 current LTSW employees.
LTSW is establishing a job center in Basel to provide information on job openings at other Lufthansa Technik facilities and at external companies as well as individual assistance for employees.