Boeing and Airbus Fly High from Lufthansa’s Big Order
Detusche Lufthansa announced a huge jet order Thursday that benefits the likes of both Boeing (NYSE:BA) and Airbus as well as the airline itself as it works to save fuel and operate profitably on longer routes with fewer passengers.
According to Reuters, the $19 billion deal constitutes the order of 59 new jets split between Boeing and Airbus, two rivals that compete fiercely to roll out the largest yet most fuel efficient products. Lufthansa ordered 34 Boeing 777-9X and 25 Airbus A350-900 jets, and expects the order to shrink its fuel consumption by 25 percent and cut its costs by 20 percent while also helping the company insure up to 13,000 jobs.
Though Lufthansa CEO Christoph Franz has already announced his departure from the company in May to join Roche, a Swiss drug making company, the executive has been especially vocal about Lufthansa’s need to cut costs and and ensure it has the necessary funds to maintain its status as Europe’s largest airline. According to Reuters, the German airline is in the middle of a significant restructuring effort launched by Franz, called “SCORE,” and the program has already resulted in the loss of 3,500 jobs, much to the dismay of labor leaders.