Lufthansa backs major Airbus, Boeing jet order

FRANKFURT - Reuters

Lufthansa says the order for 34 Boeing 777-9X and 25 Airbus A350-900 jets would help it cut fuel consumption and shrink unit costs by about 20 percent compared with old aircraft models. REUTERS Photo

Deutsche Lufthansa announced on Sept. 19 its largest ever order for 59 Airbus and Boeing wide-body jets in a deal worth 14 billion euros at list prices that will see it launch a new version of Boeing’s 777 jet.

Lufthansa said the order for 34 Boeing 777-9X and 25 Airbus A350-900 jets, which the supervisory board had approved on Wednesday, would help it cut fuel consumption and shrink unit costs by about 20 percent compared with old aircraft models.

Lufthansa, in the middle of a deep revamp that includes 3,500 job cuts, is investing in modern jets to cut its fuel bill and catch up with Middle East rivals particularly in the hotly contested stretch between Europe and Asia. Lufthansa did not give a breakdown of how many of the planes would be firm orders and how many would be options. It said the first of the new planes would be delivered as early as 2016.

“Less fuel consumption, less CO2 emissions and less noise: The aircraft on order will enable us to make a quantum leap in efficiency and to enter the 2-litre class”, commented the company head Christoph Franz. No other aircraft type will fly as economically as the A350-900 and the Boeing 777-9X in terms of kerosene consumption per passenger and 100 kilometres flown, he added.

Fewer oil consumption

The 59 new aircraft will consume an average of just 2.9 litres of kerosene per passenger and 100 kilometres flown. That is around 25 per cent less than aircraft available today and it will have a positive impact on the Group’s carbon footprint, the company said.

The investment amount for the Lufthansa group’s latest order is the largest single private-sector investment in the history of Germany industry, according to Lufthansa, adding it would safeguard about 13,000 jobs at Lufthansa alone.

Lufthansa has a mixed fleet dominated by Airbus and Boeing jets. Its core German brand does not yet
fly passenger 777s.

Under Franz, Lufthansa has pushed through a cost-cutting program now in its second year to boost operating profit to 2.3 billion euros in 2015 from 524 million euros in 2011, and partly fund investments in modern planes and new cabin products.

The latest move to reduce fuel costs by updating Lufthansa’s fleet came as rival Air France provided further evidence of the malaise gripping former state-owned European airlines by announcing 2,800 fresh job cuts.