Lufthansa Tightens Grip on Airlines, Centralizes Operations

Lufthansa Group has revealed plans to overhaul its organizational structure and processes starting January 1, 2026. The goal is to increase profitability and strengthen the group’s competitive positioning.

The restructuring will centralize financial management, network planning, and cross-group collaboration across Lufthansa, SWISS, Austrian, and Brussels Airlines.

Lufthansa Group will establish “Group Function Boards” responsible for centralized control in finance, human resources, technology, and hub operations.

Network management for short- and medium-haul flights will be centralized for all hub airlines, as a result of the existing long-haul network coordination that has proven effective for more than ten years.

The restructuring is expected to enhance the digitalization and coordination between airlines, such as optimizing schedules and product offerings.

Lufthansa Group has affirmed that airlines will retain control of flight operations and customer-facing elements such as in-flight amenities, catering services, and lounge management in their domestic markets.

However, some highly profitable and independent airlines, such as SWISS, may face strategic and operational challenges adapting to the new autonomy constraints.

A few days ago, Lufthansa Group started early-stage discussions to increase its ownership in Italy’s ITA Airways to 90 percent. This would give Lufthansa much greater control of ITA Airways, enabling deeper integration into Lufthansa’s network.

Photo by Gabriel Herter on Unsplash