Air Maneuver

Lufthansa’s Triple Play

lufthansa imago bloomberg, DPA, pr
With its new structure, Lufthansa aims to fly above the competition. Sources: Lufthansa, Imago, Bloomberg, DPA
  • Why it matters

    Why it matters

    If Lufthansa does not find a way to deal with growing competition from low-cost carriers in Europe and with Gulf airlines on long-distance flights, it will not survive.

  • Facts

    Facts

    • The low-fare platform Eurowings is to be rapidly expanded.
    • Fifteen percent of management positions are being eliminated.
    • The airline will slim down from five to three divisions.
  • Audio

    Audio

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Lufthansa aims to fly with a lighter, less complex structrue to navigate through increasingly turbulent competition.

In a restructuring move approved by the supervisory board on Wednesday, Lufthansa will go from five to three divisions: premium flights out of hubs like Frankfurt and Munich; cut-rate carrier Eurowings; and the airline’s service business, consisting of the catering subsidiary LSG SkyChefs, maintenance specialists Lufthansa Technik and freight company Lufthansa Cargo.

“With the new structure, we are orienting ourselves even more directly to the needs of customers,” said Chief Executive Carsten Spohr after the supervisory board met and approved his plans.

The restructuring is intended to simplify airline business and give top management more opportunities to have a direct impact. “We have reduced our managerial levels and decisions will be made more quickly,” said Mr. Spohr.

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