Lufthansa Launches New Non-Stop Service from Frankfurt to Tampa
Sep 30 15
Lufthansa has launched its new non-stop service from Frankfurt, Germany to Tampa, Florida. New Florida destination becomes 18th point served in the US; flights to operate with three-class Airbus A340-300s specially configured for the leisure travel market. Lufthansa will be offering five weekly flights on its new Frankfurt-Tampa route until October under the present summer schedules. This will change to four weekly services with the start of the 2015/16 winter schedules on 25 October. Tampa is the Lufthansa's third Florida destination, joining Miami and Orlando. With the addition of its new service, Lufthansa now serves a total of 18 US destinations. These will include Nairobi (Kenya) at the end of October, Cancun (Mexico), Male (the Maldives) and Mauritius in early December and Panama City (Panama) in March of 2016.
Lufthansa Group to be Reorganized to Enhance Synergies and Strengthen Customer Focus, Effective January 1, 2016; Announces Executive Changes; Develops Eurowings Group and Announces Executive Changes for the Eurowings Group
Sep 16 15
Lufthansa Group is to adopt a new organizational structure with effect from January 1, 2016 to strengthen its position as a leading aviation group. The new organization will enable the group’s member airlines and service companies to align structures and processes even more consistently to the needs of their customer groups. The new alignment will also raise the Lufthansa Group’s overall efficiency, reduce complexity and increase decision-making speeds. The restructuring will further give the group organization a more functional alignment and thrust and more closely intermesh the group’s commercial, operational and administrative functions throughout all its business segments. This will include managing the group’s network carriers using aligned processes, to offer customers a consistent and integrated travel experience throughout all its premium airlines and their operating hubs. At the same time, the new alignment of the Lufthansa Group will lay vital foundations on which to establish and develop the new Eurowings as a secondary European brand and position it as a market-leading point-to-point airline in the Group’s home markets. The group is also strengthening its service companies, which are leading in their respective global markets, by enabling them to actively exploit further growth opportunities in the cargo, catering and financial services fields. The present four management levels below the Group Executive Board will be reduced to three in the new group organization. This will enable decisions to be taken more quickly, while simultaneously expanding the decision-making scope of individual management members. The adoption of the new group organization is expected to reduce the overall number of management positions by around 15 %. The new organization will gradually be adopted from January 1, 2016 onwards. The business goal of the realignment of the Lufthansa Group is to add some EUR 500 million a year to the Group’s earnings results, through the cost and revenue synergies that the new organization should provide once it is fully adopted.
This further refinement of the group’s organizational structure will entail changes in the division of duties on the Executive Board. The team of board members with Carsten Spohr, Karl Ulrich Garnadt, Harry Hohmeister, Simone Menne and Dr. Bettina Volkens will remain unchanged. But its members will have the following duties from January 1, 2016 onwards: Hub Management: Harry Hohmeister - The commercial management of the Lufthansa Group’s hubs and premium airlines Lufthansa, SWISS and Austrian Airlines will be entrusted to Harry Hohmeister, who was also reappointed to the Executive Board for a further five years by the Supervisory Board; Eurowings and Aviation Services: Karl Ulrich Garnadt - The group’s point-to-point air services, along with overall responsibility for the Eurowings Group, will be in the hands of a new Group Executive Board position which will be assumed by Karl Ulrich Garnadt. Mr. Garnadt will also be responsible for the development of further airlines and service companies; Finance: Simone Menne - group finances will continue to be entrusted to Simone Menne. Ms. Menne also assumes responsibility for the group’s IT in the new organization. Human Resources & Legal: Dr. Bettina Volkens - The group’s HR and legal affairs remain the responsibility of Dr. Bettina Volkens, who was also reappointed to the Group Executive Board for a further five years by the Supervisory Board. The Lufthansa German Airlines Board which currently serves as the overall management of Lufthansa German Airlines will not be retained in the new group structure. The office of Group Chairman & CEO Carsten Spohr will also be supplemented by Dr. Detlef Kayser, currently a partner at management consultants McKinsey, with effect from January 1, 2016. Dr. Kayser will serve as Executive Vice President Strategy & Fleet, in which capacity he will also bear overall responsibility for the ‘7 to 1: Way Forward’ program. Within Hub Management, Jens Bischof will take over as Chief Commercial Officer (CCO) and assume commercial responsibility for Lufthansa’s home Frankfurt hub. Mr. Bischof will also bear global responsibility for the worldwide distribution of all three network carrier. Steffen Harbarth will assume commercial responsibility and CCO for Lufthansa’s Munich hub, along with process responsibility for the marketing of all three network airlines, in which capacity he will also be responsible for further developing the Lufthansa brand. Mr. Harbarth is currently Head of Sales for Lufthansa Group Airlines in the Asia-Pacific region. Dr. Andreas Otto, CCO at Austrian Airlines, will assume commercial responsibility for the Vienna Hub and take over the process responsibility for the product management of Lufthansa’s Hub Carrier. Markus Binkert, CCO of Swiss International Airlines, will be in charge of the commercial steering in Zurich and the process ”Distribution and Revenue Management” – also for all network Airlines of the Lufthansa Group.
The Eurowings Group will be developed as independently as possible, to ensure its strategic and operational flexibility in the particular markets it serves.
A new Executive Board will also be established to provide overall management of the Eurowings Group. This body, which will assume its new duties on 1 November, will feature the divisions of ‘Commercial’, ‘Operations’ and ‘Finance’, which Oliver Wagner, Michael Knitter and Dr. Jörg Beissel are being respectively proposed to head to the relevant supervisory Board. The Eurowings Group will also be joined by Dr. Max Kownatzki, former Chief Strategist of the Australia-based Jetstar Group, who will be in charge of Business Development for the Eurowings Group’s point-to-point services.
German Court Rules against Lufthansa Pilot Strike
Sep 9 15
A German court has issued an injunction ordering a halt to a strike by pilots at Lufthansa. The pilots' union, Vereinigung Cockpit, began its strike on long-haul flights Tuesday, forcing the cancellation of 90 flights, and extended the walk-out to medium-and short-haul flights. some 140,000 travelers were affected but that about 500 of the airline's flights would still operate.