Augsburg Restructuring Costs 150 Workers, Dlugi Their Jobs

 - May 6, 2008, 6:44 AM

Lufthansa Airlines absorbed the sales, marketing and ticketing functions of Team Lufthansa partner Augsburg Airways last month, completing a restructuring exercise that saw Olaf Dlugi replaced by new CEO Manfred Scholz and 144 employees lose their jobs at the Bavarian regional airline. The changes came at the behest of new investors from German paper company Haindl GmbH, the airline’s controlling shareholder. Scholz formerly served as head of finance and personnel at Haindl.

Under the new arrangement, Augsburg now flies exclusively under the LH identifier code, having phased out all scheduled services not part of the Lufthansa network. In an effort to shave costs, the airline has dropped its smallest destinations, such as Friedrichshafen, Sylt and the Italian island of Elba, and removed six of its 18 de Havilland Dash 8s from service. Augsburg became the first Team Lufthansa member in 1996, 10 years after it opened for business as Interot Airways.