Lufthansa announces plans for LCC brand

22 Jul 2014 by Clement Huang

Lufthansa has announced plans to launch a new long-haul, low-cost carrier (LCC) airline under a separate brand.

The German flag carrier has been facing increasingly stiff competition from the growing presence of the Gulf carriers and no-frills airlines in Europe. By delivering a low-cost product, Lufthansa is hoping to attract new customers and capitalise on the strong global market for air travel.

As reported by Reuters, it appears that the German carrier is looking to set up a joint venture for the LCC with fellow Star Alliance member Turkish Airlines. However, Lufthansa chief executive Carsten Spohr has indicated that his airline could also pursue the project alone.

Assuming that the airline’s board approves the plan, Lufthansa will be looking to start its low-cost operations by the end of 2015. No details have been confirmed about which hub the LCC will operate from, though we speculate that it won’t be out of congested Frankfurt.

While Lufthansa has expressed excitement about its plans, other no-frills airlines have expressed scepticism. AirAsia chief executive Tony Fernandes was quoted by Reuters as saying: “I know why they want to do it but it's dangerous to have a low-cost and a full-service carrier in the same group because invariably you compete with each other”.

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Clement Huang

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