Lufthansa Group to Limit Subsidiary Airline Autonomy Starting 2026
Lufthansa Group has shared plans to streamline its operations starting in 2026, which will see its subsidiary airlines losing some decision-making authority. This shift aims to centralize various processes across the group.
On September 12, 2025, the Lufthansa Group disclosed its intentions to revise its organizational framework, financial management, and collaboration processes across the airlines. This new structure will primarily involve Lufthansa, SWISS, Austrian Airlines, and Brussels Airlines.
According to the group, these alterations are designed to foster greater efficiency and bolster profitability. However, Lufthansa reassured that each airline would still retain the ability to make decisions regarding the guest experience.
This includes aspects like in-flight services, catering, lounges in their home countries, and overall passenger service. The hub airlines will continue to oversee their flight operations and related services.
Lufthansa Group emphasized that the increased cooperation would occur in areas less noticeable to travelers, similar to its current loyalty programs. A spokesperson stated that network management for short- and medium-haul flights will now be coordinated on a group-wide basis, a model successfully employed for long-haul services over the past decade.
The spokesperson added, “This approach means that the management of the entire commercial offering will be centralized under collective airline functions.”
How Will the New Process and Structure Work?
Going forward, group collaboration will primarily occur via newly established ‘Group Function Boards,’ which will include representatives from both airlines and group functions.
These boards will be chaired by the Group Executive Board members in charge, facilitating discussions and decisions transparently and collaboratively. There will be four main Group Function Boards that focus on Hub Steering, Technology, HR, and Finance.
IT operations will be centralized in a division known as Technology, IT & Innovation, led by Chief Technology Officer Grazia Vittadini. Additionally, digital units from Lufthansa Group’s ‘Digital Hangar’ will be integrated into an ‘Innovation & Tech Factory’ with a new central role.
The spokesperson confirmed that these advancements will establish a cohesive digital expertise across operations, customer relations, commercial activities, and corporate functions. The company aims to implement these changes by January 1, 2026.
What do you think about Lufthansa Group’s new strategy to centralize operations?
