Germany's Air Berlin ups cost-cutting goal

Air Berlin, Germany's second largest airline after Lufthansa, said on Monday it was increasing its cost-cutting drive as it battles fierce headwinds in the European aviation sector. The firm, which has been in the red since 2008, now plans to cut 450 million euros ($609 million) by the end of 2014 as part of its "Turbine" programme, chief executive Wolfgang Prock-Schauer said in the airline's company magazine. "We want to achieve 85 percent of the savings by negotiating with suppliers, airports, etc and by making improvements in the way we operate," Prock-Schauer was quoted as saying. Last month, Air Berlin said it would slash some 900 jobs or nearly 10 percent of its workforce as part of the cost-cutting drive. At that point, the "Turbine" programme aimed to save 400 million euros. Prock-Schauer, who was previously chief strategy manager at the airline and held chief executive positions at Jet Airways in India and British Midland International, took over in January from Hartmut Mehdorn. According to the latest financial figures, Air Berlin suffered a net loss of 102 million euros in the first nine months of last year. However, the third quarter showed a moderate turnaround, with a net profit of 66.6 million euros on turnover of 1.39 billion euros, which the firm put down to results from its belt-tightening and a tie-up with Etihad Airways.