Lufthansa Leadership Takes New Hands-On Role To Fix Service Decline At Munich & Frankfurt Hubs

Lufthansa will deploy two C-level executives to its hubs in Frankfurt and Munich in a bid to improve the quality of services and on-time performance at the two airports, especially during the peak summer months.

Improving flight operations

From January 1, 2025, Jens Ritter, the chief executive officer (CEO) of Lufthansa, the airline, and Klaus Froese, the chief operations officer (COO) and accountable manager of the carrier, will assume additional responsibilities for operations at Munich Airport (MUC) and Frankfurt Airport (FRA), respectively.

“In view of the major operational challenges at the hubs in Frankfurt and Munich, which have led to a decline in quality, particularly during the peak periods of recent summers, Lufthansa Airlines is setting up new responsibilities.”

Lufthansa said that the new structure, which will now include hub managers, should improve the flight operations processes at the two German airports. The responsibilities will include station and cabin management and the coordination and further development of ground processes.

The move should result in a stable, reliable, and punctual flight operation, even during the peak summer periods, in cooperation between Lufthansa and local partners.

In 2023, Lufthansa Group averaged a departure punctuality of 65.3%, compared to 65.9% a year prior. In October, Lufthansa, the airline, had an on-time performance (OTP) rating of 70.77%, according to data from OAG.

In comparison, Delta Air Lines had an OTP of 89.93%, while United Airlines, Lufthansa’s partner in Star Alliance, operated 87.46% of its flights on time.

Austrian Airlines, Brussels Airlines, and Swiss International Air Lines (SWISS), the other network carriers within the Lufthansa Group, had an OTP of 85.68%, 80.96%, and 70.39%, respectively. ITA Airways, in which the German group has taken an initial 41% stake, averaged an OTP of 75.06% during the month.

OAG detailed that a flight is considered on time if it arrives within 15 minutes of the scheduled arrival time.

Punctuality is essential

Lufthansa added that smooth and punctual flight operations were essential to increase customer satisfaction. As a result, the establishment of new hub responsibilities should positively influence punctuality and, consequently, the travel experience of Lufthansa’s passengers.

Ritter took over as the chief executive of Lufthansa on April 1, 2021, replacing Froese in the role that he had held for more than six years. At the time, the Germany-based airline group detailed that Froese would be flying for Lufthansa as a Boeing 787 captain as soon as the carrier would take delivery of its first aircraft of the type.

Ch-aviation data showed that Boeing delivered the first 787 to Lufthansa on August 27, 2022, with the airline welcoming an additional four 787-9s between August 2022 and March 2023.

The German airline group concluded that the new management structure should also generate further synergies through cross-divisional collaboration within the Germany-based carrier.

Struggling in Germany

When Lufthansa Group announced its Q2 results, the company warned that it has become “increasingly challenging” to achieve a breakeven full-year result for its flagship airline. As a result, the group has launched a turnaround program at Lufthansa to turn around the carrier’s misfortunes.

“Lufthansa Airlines is particularly confronted with challenges resulting from the negative market development in the key Asia-Pacific traffic region, but also faces inefficiencies in its Lufthansa and CityLine flight operations.”

The company also highlighted significant aircraft delivery delays, disproportionately high operating costs in Germany, and new, costly labor agreements with its unions.

Lufthansa estimated that six measures, including a more premium customer offer, retail and ancillary revenue improvements, improved operational stability, increased productivity, ground efficiency and automation, and cost management, should provide a positive impact of around €1.5 billion ($1.58 billion) by 2026.