Lufthansa is planning to transfer some 1,500 ground staff at German airports to separate companies this year as part of cost-cutting measures.
Lufthansa is trying to improve its profits by EUR€1.5 billion (USD$2 billion) in 2015, compared with 2011, under its SCORE restructuring.
Measures range from expanding its low-cost unit Germanwings and shortening aircraft turnaround times, to cutting 3,500 back office jobs and even auctioning off business class seats.
A spokesman said on Tuesday that Lufthansa planned to transfer employees working at check-in desks and ticket sales counters in airports such as Berlin, Hamburg and Dusseldorf into separate companies.
The new companies would then have to compete with third-party providers for Lufthansa contracts. That could help Lufthansa to reduce its costs at medium-sized airports and better fend off increasing competition from low-cost rivals such as Ryanair and easyJet.
Lufthansa's ground services can cost it up to €5 per passenger, compared with around €2 for low-cost rivals.
The Verdi union criticised the plans, saying a similar plan at Lufthansa catering unit LSG Germany had resulted in lower pay and worse conditions for staff.
The union said it would be calling meetings with Lufthansa staff and would fight to stop the airline reducing pay or closing sites.
Lufthansa's main hubs in Frankfurt and Munich are not affected by the plans.
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