April 27, 2012 / 8:11 AM / 5 years ago

Lufthansa mulls options in Europe's low-cost battle

2 Min Read

FRANKFURT, April 27 (Reuters) - German airline Deutsche Lufthansa said a project to bring together its Germanwings unit and point-to-point services in Europe was one option being considered under plans to cope better with low-cost competition.

"It is just a business case at the moment," a spokesman for Germany's largest airline said on Friday, after Bild Zeitung reported Lufthansa was planning a new low-cost airline called Direct 4 You.

"No decision has yet been taken on implementation or any brand name," the spokesman said, adding Direct 4 You was the project name.

While Lufthansa is strong in intercontinental and hub traffic, it has suffered in Europe from the rise of low-cost carriers such as easyJet and Ryanair.

It is not the only European legacy carrier trying to find an answer to the low-cost challenge. The French arm of Franco-Dutch airline Air France-KLM is also overhauling its European passenger network, with plans to develop low-cost unit Transavia.

Carsten Spohr, head of Lufthansa's German airline division, said in a letter to employees last week the group planned to merge its Lufthansa direct services within Europe and Germanwings.

"As part of this business we will create a uniform shared fleet of A319/A320/A321 aircraft ... in order to finally cap the losses being made in decentralised traffic," Spohr said. (Reporting by Victoria Bryan; Editing by Dan Lalor)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below