Lufthansa Group Streamlines Operations with Closer Airline Integration
The Lufthansa Group is undergoing a significant reorganization aimed at fostering closer collaboration among its airlines. These changes will impact organizational structure, processes, financial management, and cross-group cooperation, ultimately leading to a more integrated operational model. The focus is on strengthening the market position of key hub airlines, including Lufthansa, SWISS, Austrian Airlines, and Brussels Airlines, while enhancing efficiency and profitability.
Customer Experience and Operational Control
While integration is a primary goal, the Lufthansa Group emphasizes that individual airlines will retain autonomy over customer-facing aspects of their operations. This includes the in-flight product, catering, lounge offerings in their respective home markets, and overall passenger service. Similarly, the hub airlines will maintain responsibility for managing their flight operations and related services, ensuring a consistent brand experience for their customers.
Enhanced Integration in Key Areas
Cooperation will be significantly strengthened in areas less visible to passengers, building on existing successful models like the "Miles and More" loyalty program and the centralized development of the customer app, which is then tailored to each airline. The integration is designed to optimize resource allocation and decision making.
Group-Wide Network Management
The network management for short- and medium-haul flights across all hub airlines will be centrally managed, mirroring the successful model already in place for long-haul flights for the past decade. This centralization will bundle the management of the entire commercial offering, leading to a better coordinated range of services for customers who utilize multiple Lufthansa Group airlines. The benefits include increased efficiency and faster decision-making processes.
"Group Function Boards" for Collaborative Management
Future cooperation will be managed through "Group Function Boards," comprising representatives from both the airlines and group functions. These boards, chaired by the relevant Group Executive Board member, will facilitate transparent discussion, evaluation, and decision-making on key topics. The boards will cover areas such as Hub Steering, Technology, HR, and Finance, ensuring a collaborative approach to strategic initiatives.
Digitalization and Innovation Focus
To bolster digitalization and innovation, IT functions will be consolidated under CTO Grazia Vittadini. Furthermore, the digital units from the ‘Digital Hangar’ will be combined with the ‘Innovation & Tech Factory’ into a new, central role to accelerate the Lufthansa Group's technological advancement. This restructuring will establish central digital expertise across operations, customer relations, commercial activities, and corporate functions.
Implementation Target Date
The targeted implementation date for these significant operational and structural changes within the Lufthansa Group is January 1, 2026.