flag-carrier Lufthansa is tightening its grip on Team Lufthansa franchise
partner Augsburg Airways in a shake-up which will see its staff and fleet
airline, owned by parent company Haindl Papier, has released only some details of
the rationalisation but people familiar with the situation say the fleet will
be cut from the current 18 to only 12 aircraft and more than 20% of the staff
will go - including managing director Olaf Dlugi, who has already been
Alliance member Lufthansa is set to take over all of Augsburg’s sales and
marketing activities and all flights will now carry the ‘LH’ flight code.
Augsburg’s ‘IQ’ code is being dropped and, from the beginning of next month,
Augsburg will see its on-board service harmonised with that of Lufthansa.
– the first Team Lufthansa franchise partner – will now operate entirely under
a wet-lease arrangement for Team Lufthansa, reducing its fleet by about
one-third to four Bombardier Q400 and eight Q300 turboprops.
the changes are still subject to regulatory approval by the German competition
120 of the 540 personnel are being axed during the restructuring exercise;
managing director Olaf Dlugi has been succeeded by Manfred Scholz, the former
CEO of Haindl Papier.
says that the closer integration with Lufthansa will allow Augsburg to reduce
its costs, pointing out that this is an “absolutely necessary step” to secure
the long-term existence of the carrier.
airline carried 891,000 passengers last year of which 80% were on Lufthansa
routes. But these services have suffered badly from the economic crisis, with
traffic falling by around 10%.
which currently serves more than 20 cities inside Germany and Europe, will
continue to operate services from its home base as well as its hubs at Munich
and Hamburg. Scholz says: “The decision to move into a new structure – taken in
light of 11 September and a change in market conditions – gives us a solid base
for development of our company in the future.”
week Lufthansa’s Star Alliance neighbour Austrian Airlines announced that it
will consolidate its two regional subsidiaries – Rheintalflug, which also flies
as Team Lufthansa, and Tyrolean Airways – into a single operation from 1 January