Hopefully new brooms do indeed sweep better
Lufthansa is currently working on several major construction sites. On the one hand, there are the wage disputes that have paralysed the company for months. Secondly, there are problems with the aircraft manufacturers, who have sold high-maintenance aircraft or are delivering new aircraft too late – which jeopardises the airlines' growth targets. And then there is the issue of sustainability, where the industry has been committed to ambitious climate targets by politicians.
In the midst of the construction work, Lufthansa is now parting ways with four of its six board members. At first glance, this seems chaotic, but in the end, it could prove to be a salutary all-round move. Above all, the reorganisation in the technology department makes sense. Former Airbus executive Grazia Vittadini has excellent connections in the industry and brings the necessary technical expertise with her. For good reason, she will also be responsible for the topic of sustainability, as the opportunities for a better eco-balance at airlines are driven by technology. Previously, sustainability was assigned to the "Brand Management" department, where it tended to take a back seat to product issues. Now, the topic is moving more into focus.
Departure of Remco Steenbergen as CFO comes as a surprise
Lower emissions of climate-damaging gases can only be achieved through the use of sustainable aviation fuel and more fuel-efficient engines. However, airlines will find it challenging to fly in a more climate-friendly way as long as far too little sustainable aviation fuel (SAF) is produced. Vittadini will not be able to change much about this bottleneck – because this is primarily a political issue, as the ramp-up of production can only succeed with the help of state subsidies.
The departure of Detlef Kayser and Harry Hohmeister from the Executive Board is hardly surprising due to their age. On the other hand, the departure of Remco Steenbergen as CFO comes as a surprise; according to reports, he has a new job. Entrusting Chief Human Resources Officer Michael Niggemann, of all people, with CFO duties on an interim basis is questionable, if only because he is probably already fully utilised in view of the various ongoing wage disputes within the group. Not only if Lufthansa actually returns to the Dax in the near future, but a full-time contact person for the capital markets will, therefore, be needed again in the near future.