Every silver lining has a cloud at Lufthansa Cargo

Lufthansa Cargo is the sixth airline to be awarded IATA’s Center of Excellence for Independent Validators (CEIV) certification for pharmaceuticals, the carrier announced. Of course, every silver lining has its cloud, and in Lufthansa’s case, it comes in the form of impending layoffs early next year.

According to IATA, Lufthansa’s Cool/td Active and Cool/td Passive products, along with its 4,500-square-meter facility at Frankfurt International Airport, meet the CEIV shipping standards for cold-chain handling of temperature-sensitive materials.  “Pharmaceutical shipments are extremely challenging and demand maximum reliability from airlines. Adhering to the required temperature is crucial to ensure medication can be used as planned following shipping,” said Alexis von Hoensbroech, board member, product and sales, at Lufthansa Cargo.

The CEIV news, however, was tempered by Lufthansa Cargo’s plans to shed up to 800 jobs worldwide in order to cut costs, the carrier announced. “The introduction of a new, leaner and more efficient organization structure, effective 1 January 2017, is a key element of this,” said a spokesman for the carrier. “Among other things, this will reduce the number of management levels, thereby speeding up our internal decision-making processes.”

Lufthansa Cargo employs roughly 4,600 people worldwide. The current cost-cutting strategy will eliminate 450 to 500 positions in Germany in the near future, with 250 to 300 positions abroad headed to the chopping block in coming years. The carrier hopes to reduce costs by €80 million, a spokesman explained.

Join us for networking and discussion of logistics innovation at Air Cargo World’s new ELEVATE 2016 Conference, Oct. 10, in Miami.