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Germanwings

More flights for Lufthansa

Germanwings is gearing up to cooperate more and compete less with parent Lufthansa in future as the German airline seeks to reduce its losses on regional routes.

Lufthansa can no longer operate many domestic and European routes profitably, and has also underestimated how quickly Air Berlin has been able to win business travellers in recent months. As part of the programme to reduce €1 billion in operating costs by end-2011, Lufthansa is reviewing its route network and considering which non-hub routes its low-cost subsidiary Germanwings might be able to take over.

Germanwings betreibt derzeit 25 Airbus A-319.
 
 
This would effectively end the ‘Mayrhuber Doctrine’ of CEO Wolfgang Mayrhuber that the Lufthansa Group airlines should compete independently with each other. In future, Germanwings could operate many regional routes at a lower cost level, leaving Lufthansa to concentrate on high-demand trunk routes and feeder flights to its main hubs at Frankfurt and Munich. The airline is also reorganising its European subsidiaries and it thus makes sense to re-position Germanwings at the same time.

Germanwings is currently upgrading its IT system to be able to operate code-share flights and handle checked-through passengers, and is in talks to join Lufthansa’s Miles & More frequent flyer programme as a full member. Moreover, it is linking to the Phoenix booking system of Rewe’s business travel unit FCM which would enable its flights to be booked directly as part of business travel bookings.

Its forthcoming large-scale launch of flights from Hanover is seen as a test for future large-scale operations from regional airports. Germanwings will station three jets at the northern German airport and fly to 15 destinations. In parallel, it will withdraw from the important Hamburg-Cologne route in March, leaving Lufthansa to compete with Air Berlin.

The low-cost airline is expected to be fully ready for its new role at the end of 2010.