Lufthansa CEO Defends Cost-Cutting Drive, Cites Efficiency and Market Shifts
Economy / Finance

Lufthansa CEO Defends Cost-Cutting Drive, Cites Efficiency and Market Shifts

Lufthansa CEO Carsten Spohr defended the company’s strategy of optimizing costs, insisting that this pursuit of savings will continue. In response to a recent trial where Lufthansa tested at around 20 European routes how much cleaning passengers could tolerate in Economy class, Spohr told the newspaper “Spiegel” that they have made “specific improvements” and remain “above the industry standard.” According to the CEO, increasing efficiency is “part of the business model; anything else would be dishonest. When you earn ten euros profit per passenger, the drive to become more efficient never stops.”

Regarding domestic German air travel, Spohr views it as having little future. “There is no longer an airline that could develop a viable business model based solely on domestic connections,” he stated. He noted that cities such as Friedrichshafen and Paderborn are now “disconnected from international air traffic.” He added that this trend is not unique to export nations like Germany, and the overall importance of the domestic market is diminishing, with the German share of sales now accounting for “only 20 percent,” according to the Lufthansa Chief.

Spohr also highlighted the role of the German Chancellor in boosting the Portuguese airline TAP. Commenting on the support received, he remarked, “The Chancellor has supported us very much at TAP. Without his calls in Lisbon, it would have been significantly harder against the French, as their government was similarly behind them.”

When questioned about his personal presentation-remaining in suit and tie, despite being one of Germany’s top managers-Spohr justified his attire by referring to his vast workforce. He noted, “I am the supervisor of tens of thousands of people who wear uniforms. Our pilots and flight attendants do not loosen their ties even at three in the morning when they are on duty.” He concluded that removing his own tie simply because it would be more comfortable would be “out of the question.”