Just When Lufthansa Was Gaining Altitude...

More competition and overexpansion rob it of hard-won gains

Jurgen Weber wasted no time tackling Lufthansa's problems after taking over as chief executive of the loss-plagued airline in 1991. His strategy of freezing pay, dumping unprofitable routes, and cutting staff soon had analysts rushing to put Lufthansa high on their buy lists. Last year the carrier had record profits of nearly $500 million on sales of $13 billion.

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