Lufthansa aims to save EUR1.5bn p/a through bundling of subsidiary functions

Lufthansa reportedly plans to save EUR1.5 billion in costs p/a by bundling the purchasing, personnel management, controlling and IT functions of its subsidiary airlines at its Frankfurt headquarters. According to reports in Wirtschaftswoche, purchasing at the company's Austrian Airlines, Swiss, Germanwings, Lufthansa Technik and Lufthansa Cargo units would be most immediately impacted. Lufthansa CEO Christoph Franz plans to present the carrier's profit improvement plan on 06-Feb-2012.