Lufthansa to integrate its European short-haul operations with low-cost unit Germanwings

Now, Europe’s second-biggest airline Lufthansa flights will see its European short-haul operations outside its main Frankfurt and Munich hubs combined with its low-cost unit Germanwings. This decision being taken by the airline is part of its cost cutting exercise.

Lufthansa recently said in a statement that its new low-cost unit Germanwings will start its flight services in January next year. The new airline is expected to carry 18 million passengers annually.

Lufthansa stated that it has outlined a companywide goal of saving $1.96 billion (1.5 billion Euros) through 2014. The goal of saving such a huge amount would take place under a reorganization program called Score.
The company has already started the cost cutting exercise and is curtailing 3,500 administrative jobs as well as plans to eliminate at least 1,000 catering jobs.

The airline said that it is already benefiting from this cost cutting program and have significantly improved its earnings. Lufthansa reported an increase in its second-quarter operating profit this year, which is up 28 percent and has exceeded analyst estimates.