Berlin: Deutsche Lufthansa AG will start another short-haul airline next year, a strategic move intended to cut labour costs by reducing the bargaining power of the company’s powerful unions.
City Airlines will take to the skies in summer 2024 and offer feeder flights to more profitable long-haul operations at Lufthansa’s Frankfurt and Munich hubs. The airline will hire staff on new contracts, reducing the relatively high cost structure of the airline’s existing short-haul operations.