Lufthansa Eyes Eurowings As Platform For Consolidation

Lufthansa wants to use its expanded low-cost unit Eurowings as a platform for European consolidation, and it could potentially take in other Lufthansa units or part-owned stakes such as Brussels Airlines and Air Dolomiti.

The first plane with the new Eurowings branding, aimed at price-sensitive leisure tourists, will take off from Cologne to the Dominican Republic in November. From January 1, it will replace the Germanwings brand.

Lufthansa chief executive Carsten Spohr said Europe's airlines needed to consolidate. Lufthansa wants to be a part of that process and sees Eurowings as the ideal platform, he said.

Eurowings is Lufthansa's answer to low-cost carriers such as Ryanair and easyJet. It will have an Austrian operating license and is not bound by the group collective labour agreements at its Lufthansa and Germanwings brands.

Lufthansa owns a 45 percent stake in Brussels Airlines and had agreed that this would only be a first step towards a full takeover. Spohr said however it was not yet clear if and when a complete takeover would happen.

The airline also added it will keep its investment budget to EUR€2.5 billion (USD$2.8 billion) a year until 2020.