Lufthansa's new long-haul low-cost plans show new CEO Carsten Spohr's eagerness to move forward
Presenting a strategy update to analysts in London after 70 days in the job, Lufthansa Group CEO Carsten Spohr said that he could not wait the 100 days usually afforded to a new CEO before their first progress report. This sense of urgency should serve him well in the rapidly changing airline industry. After all, he has worked for Lufthansa his entire career and had been running its largest business unit, the passenger airline, since 2011. He does not need time to settle into the job.
In addition to lots of analysis of the airline industry backdrop and the changes affecting it, Mr Spohr's presentation included one significant new plan. Lufthansa is to launch a new low(er) cost long-haul airline, possibly as a joint venture with Turkish Airlines.
The low-cost long-haul concept is well established in Asia and is being pioneered in Europe by Norwegian Air Shuttle. It would be Lufthansa's most radical attempt so far to combat competition from hubs in the Middle East. But bolder steps are probably needed to catch up to the fast moving game, even if its unions feel more comfortable with the status quo.
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