For a while, transatlantic ultra low cost airlines were all the rage.
However, with the funding for airlines getting tougher to come by, we have seen a reversal of this. WOW Air A321 post-liquidation
WOW Air A321 post-liquidation
It is interesting to see the strategies of the big European "WOW Air and Primera Air have gone out of business, network "airlines are taking. For example, Air France launched low cost carrier Joon, though they are discontinuing the airline this year.
Meanwhile the Lufthansa Group had Eurowings, and it looks like they're now shifting strategy on that as well. The Lufthansa Group Group is a member of the Lufthansa Group, which is headquartered in Lufthansa, Switzerland, Austrian, and Brussels. Airlines, and Eurowings. Earlier last year The Lufthansa Group had a surprising strategy for Brussels Airlines ̵
In other words, they wanted to turn Brussels Airlines into a full-fledged low cost carrier, not to mention they were
You would think some people feel national pride in Brussels Airlines, so take away the national identity of the airline and instead integrate it into the same airline that operates ultra low cost leisure routes
Brussels Airlines A330
Lufthansa group backtracks on Brussels Airlines plans
Lufthansa has just made 180 when it comes to their Eurowings strategy.
. Not only that, but they plan to completely eliminate Eurowings on long haul flights, and instead exclusively operate Eurowings as a short haul brand .
- Lufthansa Group has changed their minds, and now it is now in the middle of the Eurowings. plans to keep around the Brussels Airlines brand
With this new strategy:
- Eurowings will exclusively operate A320s on short haul point-to-point flights
- All long haul flights will be transferred to the network airlines (Austrian, Brussels, Lufthansa and Swiss)
- Eurowings will achieve a 15% reduction in unit costs by 2022; (19659014) Brussels Airlines will be more closely aligned with other Lufthansa Group's airlines, meaning we could see them becoming more premium
One interesting adding wrinkle here is that there has been recently talk of Lufthansa possibly acquiring Condor, so I wonder how it fits into all of this
We are seeing a very real shift in the industry away from long haul low cost carriers in Europe. That's simply because there's too much capacity, and it has had a huge downward pressure on prices.
I've been thinking all along that Lufthansa's attempt to integrate Brussels Airlines into Eurowings was poorly thought out, so I'm happy to see they reversed their decision.
But it's interesting to see Lufthansa take it a step further and completely eliminate their long haul low cost carrier. (19659002) LEVEL A330
What do you make of Lufthansa's Eurowings decision