Air Berlin is to cut 900 jobs or 10% of its workforce in a cost-cutting drive.

The airline said the possibility of redundancies “cannot be excluded”.

The ‘Turbine’ turnaround plan aims to make savings of €400 million by the end of 2014.

“Meetings with staff representatives to discuss the turnaround programme and the planned personnel measures have already begun,” the carrier said.

“Air Berlin’s management will be implementing ‘Turbine’ in conjunction with employees and on the basis of a constructive dialogue with the employee representatives, and will be giving these discussions top priority over the next few months.”

The programme covers all areas of operation and relationships with business partners as well, the company added.

Air Berlin also aims to trim its fleet of aircraft to 142 this year, from 158 at the end of September 2012.

Long-haul services from Berlin and Duesseldorf are to be expanded. Airports in Vienna, Hamburg, Munich, Zurich and Stuttgart will remain primary bases with a concentration on profitable routes such as Palma in Majorca which will be expanded.

Years of losses at the airline cost founder Joachim Hunold his job as chief executive in 2011. Interim chief executive Hartmut Mehdorn stepped down last week, handing over the controls to the airline’s strategy chief Wolfgang Prock-Schauer.

Etihad Airways owns almost 30% of Air Berlin, and has granted loans to the German carrier and bought a majority of its frequent-flyer programme for €184.4 million.