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Showing posts with the label will combine short-haul operations outside its main Frankfurt and Munich hubs with the Germanwings low-cost unit as part of a cost-reduction effort.

Europe’s second-biggest airline, will combine short-haul operations outside its main Frankfurt and Munich hubs with the Germanwings low-cost unit as part of a cost-reduction effort.

Deutsche Lufthansa AG (LHA), Europe’s second-biggest airline, will combine short-haul operations outside its main Frankfurt and Munich hubs with the Germanwings low-cost unit as part of a cost-reduction effort. The new unit will begin operations in January and fly 18 million passengers annually, Cologne, Germany-based Lufthansa said yesterday. Former Chief Executive Officer Wolfgang Mayrhuber and former Chief Financial Officer Karl-Ludwig Kley have been nominated to join Lufthansa’s supervisory board in 2013, with Mayrhuber becoming chairman, the airline also said. Lufthansa has a companywide goal of saving 1.5 billion euros ($1.96 billion) through 2014 under a reorganization program dubbed Score. The company is cutting 3,500 jobs in administration and as many as 1,000 catering posts may be eliminated. The program has already helped improve earnings, with second-quarter operating profit increasing 28 percent to 361 million euros and exceeding analyst estimates. “Combining our