New German budget airline set for take off
Published: 23 Aug, 2008 CET.
Updated: Sat 23 Aug 2008 11:48 CET
A new budget airline for Germany is on the way, according to a report in Der Spiegel on Saturday, with Lufthansa, TUI and Arcandor working to fuse their low-cost airlines into a giant to challenge Air Berlin.
The new alliance between TUIfly, Condor, Germanwings and Eurowings could take off before the end of the year if all goes according to plan.
Against a background of rising fuel prices and a global economic slowdown which has put a brake on airline profits, the three companies have been hammering out the possible fusion for the last few weeks, the magazine says.
Under the model they have developed, Lufthansa, Arcandor/Thomas Cook and TUI would each hold a third of the shares. Eurowings, which would bring crucial routes and airport spaces to the deal, would be spared financial risk, which would instead be carried by Lufthansa.
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The new alliance between TUIfly, Condor, Germanwings and Eurowings could take off before the end of the year if all goes according to plan.
Against a background of rising fuel prices and a global economic slowdown which has put a brake on airline profits, the three companies have been hammering out the possible fusion for the last few weeks, the magazine says.
Under the model they have developed, Lufthansa, Arcandor/Thomas Cook and TUI would each hold a third of the shares. Eurowings, which would bring crucial routes and airport spaces to the deal, would be spared financial risk, which would instead be carried by Lufthansa.
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