Lufthansa's Executive Board has addressed harsh criticism from Klaus-Michael Kühne, a key shareholder owning 20% of the airline. In a November interview with the Frankfurter Allgemeine Sonntagszeitung, Kühne expressed frustration with Lufthansa's sprawling structure, claiming the airline had become ‘bogged down' with an incredible number of by-products and airlines under completely different names. He argued that a more focused business strategy would boost the share price.
In response, Lufthansa is taking steps to review its operations. Board Member Dieter Vranckx is leading the “Target Operation Model” (TOM), a project aimed at fostering better collaboration among Lufthansa's eleven passenger airlines to unlock unused synergies. According to Handelsblatt, despite Kühne's criticisms, the company plans to retain its diverse brand portfolio while implementing significant reforms.
Grazia Vittadini, who joined the board in July, described the current efforts as a “stress test for our strategy.” A significant part of these reforms includes tackling IT inefficiencies within the Group, which Vittadini highlighted as a critical challenge, Handelsblatt reported. Standardising IT systems has become the top priority for Lufthansa's technology team. Additionally, Vranckx has instructed the termination of all external consultancy contracts by the start of 2024.
Financial challenges have also come under scrutiny, particularly regarding the Lufthansa premium brand, which recorded an operating loss of €36 million in the first nine months of 2023. Jens Ritter, head of the core brand, plans to address this by reallocating some routes to other Group airlines and increasing capacity through wet leasing arrangements during peak summer demand.
However, Kühne remains sceptical about whether such measures align with the airline's premium positioning. The ongoing reforms reflect Lufthansa's effort to balance shareholder expectations with operational realities, as it seeks to solidify its strategy for sustainable growth.
