Lufthansa set to spin out loyalty programme

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Star Alliance carrier Lufthansa looks set to spin-out its frequent flyer programme Miles&More into a separate unit as it bids to further develop its loyalty business.

German paper Frankfurter Allgemeine Zeitung reports the airline is looking at spinning off the company into a standalone unit and will take a decision on the move early next year with view to the new organisation beginning in the second half of the year.

"What we are doing is to develop our loyalty program further and thus reorganise all Miles&More-related processes into one department, with the underlying goal to streamline processes and facilitate profitable growth," says a Lufthansa spokesman.

While he would not be drawn on specific details, he stresses the airline has no plans to sell the programme. "Our loyalty programme and the proximity to our best customers is of paramount importance for us," he says.

A number of carriers have spun off their loyalty programme into a standalone business as a way of giving it control to grow the programme and attract new partners to further develop reward and redemption opportunities for members of the scheme.