Foundation of a new flight operations platform initiated within the Lufthansa Group

Project to be implemented jointly with Lufthansa CityLine

At the beginning of March, the establishment of a new short-haul flight operations platform in the Lufthansa Group was already announced. The establishment of this short-haul flight operation in a new company is intended to contribute to the further development of the Lufthansa hub system at the Munich and Frankfurt am Main hubs. It also offers employment perspectives for Germanwings pilots and future prospects for Lufthansa CityLine, thus securing jobs in Germany. The formation of the new company was initiated at the beginning of April. In addition to the entry in the commercial register, the process for operating approval at the German Federal Aviation Authority (LBA) was officially started. The schedule envisages approval and commencement of flight operations with an A320 fleet in spring 2023. Lufthansa CityLine is responsible for the project.

The Executive Board has decided that Lufthansa Group will establish another airline. In an interview with One, Harry Hohmeister, Chief Commercial Passenger Airlines Officer, and Michael Niggemann, Chief Human Resources and Legal Officer, provide insight into why a new airline is necessary.

What will the new flight operation look like?

Harry Hohmeister: The concept envisages the establishment of an airline with its own German AOC (air operator’s certificate). This new airline is to provide domestic and European services for the Frankfurt and Munich hubs in the same way as Lufthansa CityLine. It will therefore serve short and medium-haul routes.

Why is this decision to launch a new flight operation coming now?

Michael Niggemann: We are working flat out to offer Germanwings pilots employment in other Lufthansa Group flight operations. This is because pilots there are directly threatened with dismissal. Since we have not yet reached a collective bargaining solution with the pilots union, Vereinigung Cockpit, and time is pressing, we must find another way to create employment prospects for the Germanwings pilots. In our responsibility for all employees, we also want to and will offer a solution that also creates a perspective for the colleagues at CityLine.

Why do CityLine pilots also need a perspective?

Michael Niggemann: Because we have not yet been able to conclude a follow-up agreement with the Vereinigung Cockpit for the perspective agreement (PPV), CityLine also lacks perspective employment opportunities. This is because we would revert to the old Group collective bargaining agreement (KTV), and then the so-called “scope clause” would apply to CityLine. This would mean that it would no longer be allowed for CityLine to operate A320s in passenger traffic.

When will the airline be established? When will the first aircraft fly?

Harry Hohmeister: The Board of Directors made a final decision on the establishment this week. The details are currently being worked out. The airline is to be set up as leanly and flexibly as possible and worked out in cooperation with CityLine. It will take some time to set up this airline; for example, it will take until all licensing issues have been clarified. Accordingly, the first aircraft could probably take off in 2023.

What ideas are there for managing the cabin?

Michael Niggemann: Cabin management still has to be defined. We will start talks with the social partners on this. One thing is clear: the change will not happen overnight. Of course, we are also taking into account the personnel situation in the cabin at Lufthansa Airlines.

Why is the Lufthansa Group founding a new airline when, in parallel, the Lufthansa Group is discontinuing an airline with Germanwings that already had more favorable cost structures?

Harry Hohmeister: Even before the Corona pandemic, Germanwings flight operations were not profitable. That is why passenger flight operations were discontinued. The new airline must have a cost base that can compete.