Lufthansa will name Deputy CEO Christoph Franz the company’s CEO at the next meeting of the board of directors, scheduled on Sept. 22, industry sources tell The DAILY.

While no formal decision has been made, no alternatives are being discussed, the sources say. The board will also appoint Carsten Spohr CEO of the airline division and a group executive board member.

Franz joined Lufthansa last year after a successful reign at subsidiary Swiss International Air Lines, during which he turned around the once unprofitable carrier and made it into the most profitable among the group’s several airlines today. When Franz joined, the executive board was expanded to four members, a set-up that will continue. Franz today runs the passenger airline and is known to be pushing for in-depth reforms at the carrier. In a letter to employees after only a few weeks on the job, he pointed out that Lufthansa needed to change significantly in order to survive. He stressed that the airline had to significantly reduce unit costs, particularly in the short-haul arena, to regain competitiveness. In a major shift of thinking, he pointed out that Lufthansa should consider Ryanair, EasyJet and Emirates its new competitors, not British Airways or Air France.

Franz’s strategy markedly differs from the one followed by current CEO Wolfgang Mayrhuber. Industry sources say his contract could be extended by a few months through next year’s annual general assembly, but this, too, has not been formally decided. Mayrhuber’s contract ends Dec. 31, and some insiders say they would prefer he left earlier.

Spohr is currently CEO of Lufthansa Cargo. He was seen as a potential rival for Franz, but at age 43 he will be the most likely candidate to succeed Franz once Franz, who is 50, choses to retire. Spohr, an Airbus A320-rated captain, is highly regarded in the company and has been credited with the fast turnaround of Lufthansa Cargo in recent months. He also enjoys strong support from Lufthansa Chairman Juergen Weber.

Several names are circulating as to who will run Lufthansa Cargo in the future. Spohr could be replaced by Andreas Otto, the unit’s executive board member for marketing and sales. Karl-Ulrich Garnadt, member of the executive board at the passenger airline division, is also cited as a possible new CEO, along with Lufthansa Cargo’s current CFO, Peter Gerber.