Lufthansa Group Announces Refined Strategy

At its Capital Markets Day on Monday, June 24th, the Lufthansa Group presented a revised strategy designed to energize two of its struggling subsidiaries: Eurowings and Brussels Airlines.

The Group will bring Brussels Airlines into alignment with its three Network Airlines—Austrian, Lufthansa, and Swiss—rather than continuing its previous plan to integrate Brussels into Eurowings. The Group will release more details about that turnaround plan in the third quarter of the year. At present, the Brussels fleet comprises 60 aircraft, per mba’s REDBOOK.

Eurowings, the Group’s low-cost brand, will shed its long-haul operation in order to focus on shorter point-to-point routes. Also, it targets a 15% reduction in unit costs by 2022, defined by Costs per Available Seat-Kilometer. To reduce complexity and cut costs, it will standardize its fleet around its Airbus A320 family aircraft. According to REDBOOK, the German and Austrian legal entities which operate as Eurowings collectively fly 105 planes of that variety.

Sources: Aviation 24; Lufthansa Group