Deutsche Lufthansa AG said it's looking at establishing a long-haul, low-cost venture to help sustain its market share on routes to Asia, as rival operators syphon more and more traffic through hubs in the Gulf.
Lufthansa may form an intercontinental subsidiary similar to its Germanwings short-haul unit, Chief Financial Officer Simone Menne said at a briefing in New York. Other options include an alliance with a Middle Eastern or Asian airline.
Europe's second-largest carrier won't be able to keep pace with rivals such as Dubai-based Emirates and Etihad Airways PJSC of Abu Dhabi without a change in strategy, Menne said, adding that the Cologne-based company ended services to Hyderabad and Calcutta in India last year because the routes were uneconomic.
"The threat from Gulf carriers, for us, is Southeast Asia and it's India," Menne said. "That is a concern for investors, and the answer is we look at all strategic options. That can be partnerships, it can be joint ventures, it can be our own platform or it can be a retreat from this market."
27/03/13 Bloomberg/Business Standard
