LUFTHANSA TO CUT COSTS AND RESTRUCTURE BMI AND AUSTRIAN AIRLINES

In light of the difficult operating environment, Deutsche Lufthansa is stepping up cost cutting and restructuring at both Austrian Airlines and British Midland Airways (BMI). The move is an attempt to ensure the group achieves its full-year earnings target of a positive operating result. Austrian Airlines posted an operating loss of €64 million in the first half of the year, compared to a €70 million loss a year earlier. Bmi, meanwhile, widened its operating loss to €120 million in the first half compared with a EUR93 million loss in the period last year. The unrest in Middle East and Africa