I am not a specialist in the cost structure of airlines. But i would assume that it is no much difference between LH and some of the larger Asian carriers. Salaries in Singapore, Japan, Korea and Hong Kong are today at the same or almost the same level as in Europe. Most of the cost should be very similar - airplanes are not cheaper in Asia, fuel prices, landing fees, catering cost etc should not differ between airlines.

At the end of the day LH management will be judged by profits and share price. No shareholder cares if we like the seats or the food or not. They need to make money. But for making money they need to have a good enough product at a good enough price to attract enough customers willing to pay.
CX saw this painfully when they installed their first generation herringbone business class seats and people deflected in huge amounts to other airlines. Now their second generation herringbone seats are one the best out in the market. Even US airlines like AA and US start to understand that cost cutting alone does not make a company profitable and they seem to change course.

I have seen management in other industries falling into the same trap: instead of finding ways to attract more customers with innovative products customers really want to buy they go into the nickel and dime / cost cutting mode.
It is difficult for an outsider to tell what management is really thinking, and it very well could be that they have a plan different from just cutting cost. But if they don't then the airline is on the same path as most of the American airlines have been the last 15 years.

Looks like time to short some LH stock.