The Lufthansa Group, currently comprising Lufthansa, SWISS, Austrian Airlines, Eurowings and Germanwings will be split into two groups which will independently focus on either premium passengers or those on a budget. The new structure will come into effect on January 1, 2016.
Under the new structure, the Group’s premium airlines Lufthansa SWISS and Austrian Airlines will form a hub group and carry on the Lufthansa Group name, while Germanwings will be rebranded to Eurowings and form the Eurowings Group as a secondary brand.
“The business goal of the realignment of the Lufthansa Group is to add some EUR500m (R7.5bn) 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,” the Group said in a statement.
