Andrzej Jeziorski/MUNICH
A Lufthansa study has confirmed the feasibility of forming a new low cost, short haul airline in the Lufthansa group, says the German carrier.
The concept, known informally as "Lufthansa Light", envisages an autonomous carrier serving short haul second city pairs in Germany and other parts of Europe, operating under its own brand, with its own management and personnel.
Studies so far recommend an initial fleet of between six and 14 aircraft, with a route network initially focused on domestic routes which do not link into the Lufthansa hubs at Frankfurt and Munich.
The concept was discussed by the airline's executive board for the first time at a meeting on 17 February. Lufthansa says, however, that the board feels that the plans do not yet offer "-adequate, attainable business improvements, and further investigations are required to settle outstanding issues such as automation and charges". Further results should be ready to present to the board "within the next few weeks".
The concept, intended to reduce heavy losses on Lufthansa's domestic network, was cleared by the management board of the passenger airline before being presented to the executive board. Most of Lufthansa's domestic losses are attributed to routes which do not fly into the airline's hubs, and feed no passengers into Lufthansa's long haul network.
The airline has felt threatened in this sector by low cost start-up carriers, and fears increasing losses if it does not react. Company officials feel that it would be unacceptable to drop routes and lose market share, and would prefer not to contract the services out to other carriers.
A decision on aircraft types to be used - and whether they will be acquired externally or taken from the existing Lufthansa fleet - is to be made later, based on anticipated traffic levels.
The study also covers a subsequent fleet expansion with a further 16 aircraft being added to serve decentralised European routes, such as Paris-Leipzig. This would give Lufthansa Light a fleet of 33 aircraft, compared with the 150 aircraft that the parent airline now flies on European routes.
To keep costs low, the aircraft would have extra seating, cabin services would be cut and lower salaried personnel could be hired. Maintenance and repair would be contracted out. The low cost carrier could offer ticket prices 20% below current Lufthansa levels.
Source: Flight International
