As part of their ongoing ‘7:1: Our Way Forward’ campaign, Lufthansa has announced plans to streamline its operation, eliminate redundancies among the group’ airlines and reorganize into 3 operating units.
Plans call for Lufthansa Group to organize itself into 3 operating divisions:
Lufthansa Group Mainline: This unit will be comprised of the airline’s mainline carriers including SWISS, Austrian and Lufthansa.
Eurowings Group: This unit will focus on all of LH Group’s low cost carrier (LCC) operations including JUMP, Germanwings and Eurowings.
Aviation Companies: This unit will include Lufthansa Technik, Lufthansa Cargo and Skychefs and other subsidiaries.
The objective with this reorganization is to better align business units so that they can benefit from mutual operating efficiencies and to provide their respect customers with a simplified way in working with Lufthansa.
As it stands now, each of the mainline carriers has their own policies and procedures, fare structures, etc. With the revamped units, we’ll see a better consistency across the airlines which should help improve the passenger experience.
With the change in structure, we should see a much more efficient and responsive airline. For example, LH currently has over ‘700 decision making units’ and 47 Human Resources units. Overlap and excess such as this are the key focus of the initiative.
As far as the bottom line is concerned, Lufthansa expects a savings of over 500 million Euros annually once the transition is complete in 2019.