Lufthansa today announced plans to spin off its Frequent Flyer program and have it operate as an individual entity within the Lufthansa Group.   Currently the program is part of Deutsche Lufthansa AG and has 25 million members.  The proposal comes from the Supervisory Board of Lufthansa Group.

After move, the program will be known within the Lufthansa Group  as Miles & More International GmbH.   As part of this internal restructuuring, Lufthansa’s WorldShop will also be merged into the new Miles & More company.

According to Lufthansa, the expectation is that additional program partners will be added to further increase the value proposition to current Miles & More members as a result of this move.

Shareholders will need to approve this restructuring proposal.   The vote will take place at the Annual General Meeting scheduled for April 29, 2014 at the Congress Center in Hamburg, Germany.

There has been no mention of any changes to the actual program itself as far as frequent flyer benefits are concerned and I don’t expect there to be significant changes to the program as a result of this restructure.


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