Jan. 23 (Bloomberg) -- Deutsche Lufthansa AG will centralize subsidiaries’ information technology, purchasing, auditing and human-resources departments in a 1.5 billion-euro ($1.93 billion) cost-saving plan, WirtschaftsWoche reported, citing unidentified people at the carrier.
Chief Executive Officer Christoph Franz will present details of the profit-improvement program, which will also eliminate superfluous routes, to management on Feb. 6, the magazine said.
The greatest effect will be on the purchasing abilities of the Austrian Airlines, Swiss, Germanwings, Lufthansa Technik and Lufthansa Cargo units, WirtschaftsWoche said.
Andreas Bartels, a spokesman for Cologne, Germany-based Lufthansa, declined to comment on the report, saying the savings program is still being evaluated.
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