Lufthansa expects to finalise a contract to restructure its short-haul fleet with a deal for either Airbus A320 family aircraft or Boeing 737-700/800s.

The airline wants to harmonise its short-haul operations, which are served by a mix of A300-600 and A310-300 widebodies, narrowbody A320 family aircraft and Boeing 737-300/500s. The A320 is seen as the frontrunner, but chief executive Wolfgang Mayrhuber says a decision has not been made and is expected in the next few months.

The airline also plans to cut costs on its domestic and European network by speeding up turnaround times and simplifying routes, aiming to save €1.2 billion ($1.4 billion) by the end of 2005. The airline will operate back-and-forth flights between non-hub European destinations to avoid delays due to congestion at its Frankfurt and Munich hubs. The effort will increase utilisation by 10% in its summer 2004 schedule, says Mayrhuber.

Source: Flight International