Lufthansa Rearranges Senior Management

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Lufthansa is making significant changes to its management structure following the appointment of Carsten Spohr as new CEO of the passenger airline division. Spohr named Michael Kraus, currently managing director of Lufthansa’s Italian regional affiliate, Air Dolomiti, as head of the entire Italian business, including the unprofitable Lufthansa Italia operation. The airline’s previous managing director, Heike Birlenbach, was named head of Lufthansa’s Munich-based cabin crew.

Kraus is tasked with trying to turn around Lufthansa Italia. If he fails to do so, the unit may face shutdown in the medium term. The affiliate started operating in early 2009 but has suffered from the economic downturn and fierce competition from EasyJet at its Milan Malpensa Airport base.

Among other changes, Armin Herzwurm has been named to lead the passenger airline’s business development unit. He was previously chief strategist for the entire group.

An important change is also made in the sales division in Germany, which for many years was headed by Josef Bogdanski. It is now led by Uwe Mueller. Bogdanski will be in charge of the “Future Berlin” project, which aims to identify ways to compete more effectively with Air Berlin when the capital’s new airport opens in 2012.