€1bn costs to go by 2011
Lufthansa cost cutting programme in on course, Wolfgang Mayrhuber, its ceo, said today (October 12).
The German national carrier plans to lop €1bn off its annual spending by 2011.
The cuts will include several hundred jobs while aircraft orders could be delayed.
Mr Mayrhuber, speaking at the re-launch of his airline's on board internet service in Frankfurt, said: "We are on track in all areas," Reuters reported.
The airline has warned that if its costs are not cut, it could post a loss on its passenger business.
The re-launch of FlyNet comes after its first efforts were scrapped six year ago when its then partner Boeing withdrew its service.
Lufthansa is now partnered by Panasonic in the re-launch which will provide travellers with onboard internet access on long haul flights.
FlyNet is expected to be available next year in 50 aircraft and in all of the long haul fleet in the next two years.
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