German tour operator TUI and German charter airline Germania will launch a low-cost carrier, Hapag-Lloyd Express, serving European and domestic routes from Cologne-Bonn Airport in December.
TUI will handle the sales and operations of Hapag-Lloyd Express, which will launch operations with eight 148-seat Boeing 737-700s wet-leased from Germania. The airline will be the "launch pad" for the two companies' future participation in the low-cost aviation segment, says TUI chairman Michael Frenzel (Flight International, 2-8 July). Germania's existing fares-only operations from Berlin Schönefeld will be integrated within Hapag-Lloyd Express.
The carrier will initially serve 10 international destinations, including Barcelona, Milan, Paris and Rome, plus domestic routes to Berlin, Dresden and Munich.
Tickets for the new airline will also be available through almost 4,000 TUI-affiliated travel agents, who had raised concerns about the move. "We are currently developing viable solutions to achieve travel agent sales," says Frenzel.
TUI says that it expects Hapag-Lloyd Express to carry 5 million passengers by its third year of operation, adding that its studies point to sufficient demand in the German market to support three low-cost carriers.
The move comes as Lufthansa responds to competition from low-cost carriers, with the introduction of a simplified fare structure. Lufthansa is facing competition in its home market from Frankfurt Hahn-based Ryanair and DBA, the latter which is set to be bought by EasyJet. Lufthansa is to adopt a simplified fare structure on short-haul routes starting with Turkey and the UK from October.
Source: Flight International
