LUFTHANSA CHAIRMAN Jurgen Weber has hit out at government subsidies, saying that European governments are "still ploughing DM10 million [$7.1 million] of taxpayers' money daily into their ailing airlines".
Weber says that subsidised airlines are "...either expanding with more capacity than they can sell, or are too sluggish in adapting capacities downwards to match declining sales".
He adds that subsidies serve only to maintain inflated organisations, prop up high wage structures and unleash disastrous price wars.
Air France, Aer Lingus, Sabena, Iberia and TAP have all been recipients of large-scale subsidies in recent years.
Lufthansa has announced pre-tax profits of DM135 million in the first half of 1995, with a double-digit improvement in sales and a 4% increase in turnover on the previous year.
Source: Flight International
