Lufthansa Restructures IT with New Subsidiary to Consolidate Systems and Boost Efficiency
Economy / Finance

Lufthansa Restructures IT with New Subsidiary to Consolidate Systems and Boost Efficiency

The Lufthansa Group is currently undergoing a major overhaul of its corporate IT landscape. This restructuring officially began on July 1st with the launch of a new company, “Lufthansa Group IO” (LHG.IO). This newly formed entity operates under European law as a public limited company (SE).

According to internal company correspondence cited by the “Handelsblatt”, LGH.IO initially serves to consolidate the internal services previously provided by Lufthansa Industry Solutions and Lufthansa Systems. The primary goal of this move is to improve the visibility and usability of the group’s existing IT knowledge.

This IT reorganization forms part of a broader, multi-month effort by Europe’s largest aviation conglomerate to restructure its internal organization. The aim is to transition from several individual airlines into a unified “One Group.” This consolidation is intended to unlock untapped synergies, thereby assisting the group in achieving a medium-term target of an 8 to 10 percent profit margin.

A crucial component of this internal transformation is the “One IT” project, which is focused on consolidating the widely scattered IT infrastructure, addressing areas where responsibilities were previously unclear or overlapped. It is important to note that Lufthansa Industry Solutions and Lufthansa Systems are expected to continue operating as independent companies. Furthermore, the group confirmed that the external business these firms conduct within the aviation sector, serving external clients, will remain completely unaffected by these changes.