An improvement in our earnings in the order of €25 million is needed to guarantee the Airline activity’s future. The Management believes this can be achieved without an employment plan or redundancies and has announced bold ambitions for the future.

To lend a new impetus to its Airline activity and to be capable of achieving its ambitions for the future, LuxairGroup commissioned the Roland Berger consultancy to analyse the strategic model of Luxair Luxembourg Airlines as well as its cost and income structure.

The ambition of LuxairGroup is to have a modern and competitive Airline activity come 2020, with a cutting-edge fleet and exemplary service quality – the leading regional airline in Europe. However, because of the structural losses at Luxair Luxembourg Airlines, the investments that are needed to achieve cannot be countenanced at present. Worse, the extent of these losses is threatening the economic and financial balance of LuxairGroup as a whole.

The success of this project is therefore vital for the survival of Luxair Luxembourg Airlines and LuxairGroup itself.

In his report, Roland Berger begins by endorsing the current strategic model of the Airline activity, but recommends that the earnings of Luxair Luxembourg Airlines be raised by €25 million per year come 2015. The measures proposed to achieve this involve mainly altering the Airline’s cost structure and are essential to guarantee the survival of the Airline activity and of the Group.

The Management of LuxairGroup agrees with the analysis of Roland Berger and is committed to ensuring that the measures are thoroughly discussed on the basis of the “Luxembourg model”, as part of the renegotiation of the collective bargaining agreements.

The Management of LuxairGroup also considers that all the efforts to be made come 2015 can be implemented without any mass redundancies or employment plan, provided that the negotiations with the bodies in charge of representing the workforce culminate in the agreements required to improve the earnings of Luxair Luxembourg Airlines by €25 million per year from 2015.

LuxairGroup is aware of its responsibility as an employer and as a major player in the economy of Luxembourg and of the Greater Luxembourg region, that is why LuxairGroup is committed to the future of its Airline activity. Thanks to the dedication, the professionalism and the solidarity of all its personnel, LuxairGroup is confident in the success of this project.