POLITICS & INSTITUTIONS - ECONOMY

Luxair to cut Dublin & Prague



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 Luxair

Aviation: Luxembourg’s national airline suffered an operational loss of 11.1 million euros in 2010. As a consequence, the carrier is cancelling its Dublin and Prague connections.

Despite Luxair Group’s turnover rising to 408,825,327 euros in 2010 from 382,778,520 euros in 2009 (resulting in a positive operational result of 1.8 million euros) the airline's loss of 11.1 million euros has forced management to rethink several strategies and take a number of decisions regarding its network. The cancellation of the Dublin and Prague routes, both of which continued to fail to break even, is perhaps the most impacting. Spokesman Yves Hoffmann told Delano that both routes will be cancelled when the airline switches to its winter schedule at the end of October.

The airline will also remove its Embraer ERJ 135 from Saarbrücken in the face of competition for the Munich route – although flights to Hamburg and Munich will continue to touch down in the Saarland’s airport. As a consequence, two Embraer ERJ 135 aircraft will be put up for sale by Luxair.

The group did experience positive results in several areas, with Luxair Tours recording an increase in sales of package holidays of some six percent, and the airline experiencing a growth of 6.4 percent in passenger numbers. However, per unit income continued to decline, as did the sale of business tickets, with just 22 percent of passengers flying business class (compared to 30 percent in 2008).

Luxair says that none of the cost-cutting measures will lead to redundancies. “One of the priorities of the LuxairGroup management from the beginning of the crisis on having always been to secure jobs,” the airline said in a press statement.