Loading profile info

Germanwings has preserved Lufthansa's market share, but still has too many legacy issues for a LCC

Analysis

Last month, Lufthansa confirmed plans to extend its low-cost operations under what it terms its 'Wings concept'. Short haul LCC subsidiary Germanwings will continue to expand, with a renewed emphasis on using group company Eurowings to provide it with capacity. Eurowings' pilots are under a separate (more flexible) contract from those of Lufthansa and Germanwings and its 23 Bombardier CRJ900s are to be replaced with an equivalent number of A320ceo aircraft.

Perhaps referring to this, and to Lufthansa's low cost long haul plans, Ryanair CEO Michael O'Leary* said that Lufthansa "has some bizarre plan about establishing a new low-fare airline." He added: "Unfortunately they started with a high-fare airline called Germanwings and they'll need to do a lot more than call it that and paint it yellow to make it a low-cost carrier."

Lufthansa began transferring all its European point to point routes that do not serve its Frankfurt and Munich hubs to Germanwings in Jul-2013. Just over 15 months on, we review its capacity growth and the impact on the market share of Lufthansa/Germanwings in this segment.

Read More

This CAPA Analysis Report is 2,265 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More