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Lufthansa CEO Defends Cost-Saving Shift to Low-Cost Subsidiaries at AGM

Carsten Spohr emphasizes the strategic necessity of new carriers as unions demand negotiations and government fee reductions to address financial challenges.

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Overview

  • Lufthansa CEO Carsten Spohr, at the Frankfurt AGM, justified the creation of low-cost affiliates like Discover, Edelweiß, Eurowings, and City Airlines to mitigate high domestic costs and expand destinations.
  • The core Lufthansa airline remains the only loss-making unit in the group, attributed to delayed aircraft deliveries and elevated operational and labor costs in Germany.
  • The Vereinigung Cockpit union demands immediate negotiations on pilot benefits and warns of potential strikes if talks fail by the end of May.
  • Unions criticize the strategy of shifting short-haul routes to non-unionized subsidiaries, calling it internal destructive competition.
  • Spohr urged the German government to lower state fees for security and air traffic control, arguing that current costs hinder domestic growth and push expansion abroad.