Lufthansa considers low-cost long-haul arm: report

This story is sourced from Pro
See more Pro news »

Lufthansa is evaluating the formation of a low-cost subsidiary for long-haul routes, Germany’s Handelsblatt reports.

Citing an unnamed senior Lufthansa executive, the business newspaper says that the airline has developed a concept to operate selected long-haul routes with a budget-airline subsidiary. This is among three proposals being evaluated after group chief executive Carsten Spohr took over the helm from Christoph Franz on 1 May.

Lufthansa says it is considering “different options” to improve its competitiveness, but has not reached a decision.

The carrier declined to confirm that a budget long-haul arm is among the models under discussion.

Spohr is to reveal his plan to investors and media by 10 July.

Lufthansa is reportedly also considering the establishment of a second low-cost short-haul subsidiary – based on regional arm Eurowings – to join the group’s European point-to-point operation Germanwings.