Lufthansa Group announces major restructuring plan
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Lufthansa Group has confirmed it will adopt a new organisational structure with effect from 1 January, in a move it claims will add around €500 million in annual earnings once fully implemented.
The airline claimed the structure would enable the Group’s member airlines and service companies to align structures and processes “even more consistently to the needs of their customer groups. The new alignment will also raise the Lufthansa Group’s overall efficiency, reduce complexity and increase decision-making speeds”, the airline said in a statement.
At the same time, the new alignment will lay “vital foundations on which to establish and develop the new Eurowings as a secondary European brand and position it as a market-leading point-to-point airline in the Group’s home markets”.
“We are making good progress in all seven fields of action of our ‘7 to 1: Our Way Forward’ programme,” said Carsten Spohr, CEO and chairman of the Executive Board of Deutsche Lufthansa AG. “The new alignment of the Lufthansa Group that we have today resolved to adopt will strengthen our airlines and our service companies. And our customers will feel the tangible benefits of this, because a process-oriented organisation will be focused even more closely than before on their specific needs. Our new group organisation should make us more efficient and more responsive, too; and this in turn should sustainably strengthen the position of the Lufthansa Group in its various markets and business segments.”
The team of board members that consists of Carsten Spohr, Karl Ulrich Garnadt, Harry Hohmeister, Simone Menne and Dr. Bettina Volkens will remain unchanged.
The airline confirmed its programme to install the new Premium Economy Class – which has proved extremely popular with customers – will also be completed on all 106 Lufthansa long-haul aircraft by this autumn. Elsewhere, SWISS, Austrian Airlines and Brussels Airlines have also been investing substantially in advanced aircraft and cabin interiors.
“The modernisation of our aircraft fleets and their cabins is being well received by our customers,” said Carsten Spohr. “We have seen record load factors and record results for July and August. The unit revenues continue to be above the level of the second quarter. We are hence optimistic to compensate the strike costs of the first three quarters and still achieve our full year guidance of more than EUR 1.5 billion comfortably.”
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