German maintenance provider Lufthansa Technik (LHT) plans "drastic" job cuts as part of "substantial restructuring" at its Swiss facility at Basle/Mulhouse airport.
The site is suffering from a decline in its speciality, MRO provision for BAE Systems regional aircraft. It had attempted to take up the slack through offering support and completions for business jets, however, the soft private aviation market put paid to these plans.
The high value of the Swiss franc and "fierce" competition in the MRO industry have "exacerbated the company's very difficult market situation", says LHT.
Rainer Lindau, chief executive of LHT Switzerland, says that a "sustained revitalization" of MRO business for BAE Systems types was "currently not foreseeable".
Given that, it is "with great regret that we must consider drastic personnel reductions" in the production and administrative areas, Lindau adds.