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Major Structural Changes at Lufthansa

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A new division responsible for Lufthansa Passenger Airlines is to be instituted on the Lufthansa Executive Board, with effect from 1 June 2009.

 It will be headed by Christoph Franz, currently CEO Swiss International Air Lines AG, who has been appointed to the Lufthansa Executive Board and, simultaneously, named its Deputy Chairman. He will also take over as Chairman of the Lufthansa Passenger Airlines Board.

In the course of reorganisation, the Aviation Services und Human Resources division, headed by Stefan Lauer, will evolve into the new division Group Airlines and Corporate Human Resources. This will be responsible for the group airlines not included in Lufthansa Passenger Airlines and for furthering overall inter-airline cooperation between the subsidiary carriers (SWISS and in future Brussels Airlines, Austrian Airlines, bmi as well as Germanwings, SunExpress and JetBlue).

Stefan Lauer remains responsible for group-wide human resources. He will also retain the function of Labour Director. The Supervisory Board additionally agreed to reappoint Stefan Lauer for a further term on the Executive Board at the earliest possible date.

The Finance division, headed by Stephan Gemkow, will be expanded to include responsibility for the logistics, MRO, catering and IT Services business units and be renamed Finance and Aviation Services.

Commenting on the decisions taken by the Supervisory Board of Deutsche Lufthansa AG, its Chairman, Jürgen Weber, said, “With Christoph Franz, we are appointing an experienced expert in the aviation business to the Lufthansa Executive Board. He knows the industry thoroughly and has demonstrated his leadership and management qualities in a variety of positions. Most impressively at Swiss latterly, he has shown that he can steer a company in difficult times and lead it back to a growth path.”

 At Swiss International Air Lines AG, Harry Hohmeister will succeed Christoph Franz as CEO, with effect from 1 July 2009. Harry Hohmeister was previously Chief Network and Distribution Officer on the SWISS Board of Directors.

Wolfgang Mayrhuber, Chairman and CEO Deutsche Lufthansa AG, said, “By taking this step, we are strengthening the foundations, on which our autonomous companies can develop in proximity to customers in their individual markets. Those business segments can benefit by utilising synergies from the airline network and Aviation Group. Customer focus, transparency, quality and sustainability remain, simultaneously, organisational and management principles in all business areas.”

Ensuing from the ongoing development of Lufthansa’s corporate organisational structure, changes will also be implemented in Lufthansa Passenger Airlines. Responsibilities and functions on the Lufthansa Passenger Airlines Board are to be re-aligned in order to strengthen the independence and autonomy of the Lufthansa Passenger Airlines within the group airline network.

The previous Strategy, IT and Procurement division on the Lufthansa Passenger Airlines Board will be expanded into the new Finance and Human Resources division. With this realignment, the human resources functions and industrial relations in the passenger business will be transferred from the Executive Board to the Finance and Human Resources division on the Lufthansa Passenger Airlines Board. The new division will be headed by Roland Busch, who is joining from the Board of Directors of Lufthansa Cargo AG, where he is responsible for Finance and Human Resources.

The previous Services and Human Resources division at Lufthansa Passenger Airlines will be renamed Passenger Services and Hub Management. Responsibility for this remit on the Lufthansa Passenger Airlines Board will be retained by Karl Ulrich Garnadt. Also in future, he will be in charge of service functions on the ground and in flight operations as well as hub management in Frankfurt and Munich, and the point-to-point connections which Lufthansa offers its customers.

Thierry Antinori will continue to oversee Marketing and Sales on the Lufthansa Passenger Airlines Board. Jürgen Raps remains responsible for Operations.

These organisational changes will be implemented with effect from 1 June 2009.

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