Lufthansa to change group structure, names key executives

Lufthansa plans to significantly change the group structure in a move that analysts hope will make it more attractive for investors. The company confirmed Dec. 11 that it will legally separate the main airline brand from the holding structure. As a first step, the airline named Patrick Staudacher as CFO, effective May 1, 2020. Staudacher joins from Boston Consulting where he was senior partner with responsibility for airlines, aerospace and post-merger integration. The process is expected to take many months, if not years, but could be highly rewarding according to Bernstein Research analyst Daniel Roeska. “Following last week’s supervisory board meeting and the appointment of Michael Niggemann, formerly chief council for the Lufthansa arm, to the group board, it would appear that the group is willing to embark on this challenging process,” Roeska wrote in a note to clients. “A holdco structure will focus union negotiations on the performance of the airline vs. being obscured by the amalgamation of the group [and the] airline, will more clearly enable capital allocation decisions, and will enable more portfolio decisions as the contour of individual businesses sharpens like the relationship between Lufthansa airline and Lufthansa Technik."<br/>