Lufthansa has unveiled a turnaround plan for its troubled Eurowings subsidiary.
In a crowded low-cost marketplace, the hybrid airline has failed to find a sustainable role.
In an attempt to revive its fortunes, Lufthansa said today Eurowings will be given be a clear focus on short-haul, point-to-point operations.
The carrier will be standardised with a fleet of Airbus A320 planes, while it will also be simplified with a reduction to one air operators’ certificate, located in Germany.
“With the airlines in our group we are excellently positioned in our home markets, which are among the strongest in the world,” said Carsten Spohr, chairman of Deutsche Lufthansa AG.
“Our group’s service companies are also world leaders in their fields.
“We want to translate this market strength even more consistently into sustainable profitability and value creation.
“And it is to this end that we are presenting concrete actions today which will enhance our efficiency and generate value for our shareholders.”
Lufthansa hopes the change will see Eurowings cut costs measured by available seat kilometres by 15 per cent by 2022.
However, there will be no integration between Brussels Airlines and Eurowings.
A separate turnaround plan is expected for the Belgian-based carrier in the third quarter of the year.
Lufthansa last week issued a surprise profit warning.
Poor margins at Eurowings compared with sector rivals were cited by the German giant as a major reason for the move.
Eurowings’ revenue was also forecast to fall sharply in the second quarter.