Lufthansa weighs future in Asia Part 2: Amassing scale for partnership/new airline will be critical

With Lufthansa looking to revamp services to India and Southeast Asia, which can be unprofitable, CAPA in part 1 of this report looked at Lufthansa's disadvantaged cost base to European, Asian and Middle Eastern peers as well as the carrier's challenge in maintaining an effective presence in Asia.

Part 2 considers the necessity of amassing scale for whatever Lufthansa does: whether that is to launch its own long-haul low-cost carrier or enter a partnership with an existing LCC. Lufthansa may be worried about the number of destinations Middle East network carriers serve, but a local LCC will have a far wider network.

This presents a partnership opportunity for Lufthansa - and any airline - but also a threat in that Lufthansa's competitors have realised the strength and opportunity of Asia's LCCs.