Lufthansa Technik's restructuring plans for its administration take on concrete form

Lufthansa Technik AG intends an extensive reorganization of its
administrative structures and processes. The planned changes are part
of the Lufthansa Group’s program for the future, SCORE.

“We have already implemented many innovations in Production and
optimized processes there, and now we intend similar improvements in
administration,” said August Wilhelm Henningsen, Chairman of the
Executive Board of Lufthansa Technik. “Modern, efficient
administration is an important condition for the future international
growth of Lufthansa Technik AG.”

Since the spring of 2012, nearly 200 experts from all areas of
Lufthansa Technik have been involved in a SCORE project called
NETwork in which all structures and processes were critically
assessed. Numerous proposals for improving processes were tested for
feasibility. The result is an extensive package of more than 200
individual measures, each with the goal of organizing administration
more efficiently and responding more effectively to customer needs.
Business administration functions will be centralized, purchasing
activities will be bundled in competence centers, shared services
will be implemented more strongly in the personnel area, and stronger
regionalization in sales will aim for better proximity to the
customer.

The changes in administration in Germany will be effected by the year
2015. 650 positions will likely be eliminated. This reorganization
will be implemented in a socially responsible manner.
Semi-retirement, early retirement and severance agreements are being
offered on a voluntary basis. In addition, positions that become
vacant through natural attrition will not be filled.

Hamburg-based Lufthansa Technik AG, a world market leader in the
international aircraft maintenance, repair & overhaul (MRO) market,
has already trimmed its production processes very successfully and
developed innovative products in the past years. These measures have
allowed the company to tap new market potential. For example, within
the SCORE program the costs of engine overhaul are been reduced by
about 20 percent.

Together with its subsidiaries Lufthansa Technik Logistik Services,
Lufthansa Technical Training, Lufthansa Technik Maintenance
International and Lufthansa LEOS, Lufthansa Technik employs a total
of 13,070 people at its German sites in Hamburg, Frankfurt, Munich
and Berlin.