Lufthansa CEO Carsten Spohr faces tough test after Germanwings crash

After an already troubled first year as CEO of Lufthansa, Carsten Spohr must now deal with the aftermath of the Germanwings disaster while making the airline group fit to compete for the future.

The crash in the French Alps, believed to have been deliberately caused by co-pilot Andreas Lubitz, happened while Lufthansa is trying to reduce declining ticket prices, expand low-cost operations, cut staff costs and bring an end to a series of strikes by pilots.

Spohr, a qualified pilot, has been trying to follow the example of rival IAG, the parent company of British Airways, Iberia and Vueling, by cutting staff costs to improve competitiveness.

But the resulting strikes since April had already cost the airline over €200 million (HK$1.7 billion) in lost profit.

Lufthansa says it needs to bring its costs tocompete with short-haul rivals Ryanair and easyJet , as well as the likes of Emirates and Turkish Airlines on lucrative long-haul routes.

But Spohr has said it is too soon to discuss strategy after last week's crash, which killed all 150 people on board a flight of Lufthansa's budget subsidiary, stressing that the airline's focus is on taking care of the victims' families and friends. Safety will continue to be paramount.