German airline Lufthansa has announced the termination of its regional brand, CityLine, as part of a larger restructuring strategy. This decision, while planned for the long term, has been expedited due to ongoing labour disputes and surging oil prices linked to geopolitical tensions in the Middle East.
Lufthansa’s recent statement indicated that CityLine has been consistently unprofitable. By withdrawing the regional subsidiary’s aircraft, particularly those nearing retirement, the airline aims to mitigate further financial losses. Employees affected by this transition will be offered positions within the broader Lufthansa Group.
The closure of CityLine marks the end of an era dating back to 1958, when its predecessor, Ostfriesische Lufttaxi, was established. Lufthansa noted that CityLine’s CRJ aircraft are approaching the limits of their operational capacity and incur high operating costs. Chief Financial Officer Till Streichert described the decision as “painful,” emphasising the necessity of securing alternative employment for affected personnel.
While the discontinuation of the CityLine brand was anticipated, the timeline has shifted due to intensified external pressures, including ongoing conflicts and internal labour challenges. Streichert confirmed that the plan had always been part of Lufthansa’s strategic vision, yet the current climate has prompted immediate action.
In light of these changes, Lufthansa has been proactively assisting CityLine staff in transitioning to new roles within the group. For example, former ground personnel have been integrated into a new division, Lufthansa Aviation GmbH. Meanwhile, flight crews have been offered opportunities with Lufthansa’s City Airlines.
This restructuring is not limited to CityLine; the Lufthansa Group will also phase out its Airbus A340-600 aircraft and two Boeing 747-400 jets by the end of the summer flight schedule. Future capacity reductions will see additional aircraft removed from its operations in the upcoming winter season.
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