German carrier Lufthansa is on track to achieve EUR1 billion (US$1.44 billion) of cost cuts in its passenger business by the end of 2011, board member Stefan Lauer said.

The Climb 2011 cost-cutting programme was one of the first big projects initiated by chief executive Christoph Franz when he joined the board.

Lauer also said at an event in Frankfurt on Wednesday that naming industry veteran Jaan Albrecht to steer Austrian Airlines was a clear sign Lufthansa was committed to the loss-making airline.

Lufthansa named Star Alliance head Albrecht, who began his career as a pilot in 1973, to lead Austrian on Wednesday. It had been looking for a new CEO for the airline since Thierry Antinori left in March, days before he was due to take up the post.

"He has perfect experience in integrating companies and this is a clear indication that our target is unchanged for full integration of Austrian Airlines," Lauer said.

His comment come after Austrian last month backtracked on its target to achieve a positive operating result for 2011.

Lauer said bmi was a different case however, and that seeking a partner was one option being explored.