Lufthansa's German regional partner Eurowings is likely to launch a low-cost carrier in the fourth quarter as competition grows in the segment. Eurowings' supervisory board is expected to approve the launch of an internet sales-based, no-frills service later this month, after reviewing several ways to expand its business model.
Eurowings is Germany's largest regional airline and operates ATR turboprops, BAe 146s and Bombardier CRJs on high-yield routes between secondary business centres in Europe. The airline's charter arm operates five Airbus A319s and one A320, which are expected to be adopted by the as-yet unnamed new low-cost arm from October. The airline is negotiating with Cologne-Bonn and Dortmund airports to become the operation's hub. No decision has been made on destinations to be served, but it is understood that shareholders, including 24.9%-owner Lufthansa Group, have rejected plans to offer German internal routes in favour of Mediterranean and European city routes. Lufthansa has been approved by the German competition authorities to increase its stake in Eurowings to 49%.
The German flag carrier is coming under increasing pressure at home from low-cost operators such as Ryanair, Germania, tour operator TUI (parent of Hapag-Lloyd) and the recently revamped DBA. It has rejected the possibility of launching its own low-cost carrier, but subsidiary Eurowings could provide the means for it to enter the market.
Lufthansa has confirmed its acquisition of Airbus A330-300s, signing a memorandum of understanding with Airbus to purchase 10 A330-300s for delivery from 2004 (Flight International, 30 July-5 August).Source: Flight International
