Low cost carriers began to establish successful pan European operations in the mid 1990s. Nevertheless, and in spite of owning its low cost subsidiary Germanwings for many years, Lufthansa did not start to use its own LCC aggressively until 2013.
Germanwings is not even the right vehicle, since its cost base is too high to be classed as a true LCC
Moreover, Germanwings is not even the right vehicle, since its cost base is too high to be classed as a true LCC. Lufthansa's more recent decision to transfer a large number of Germanwings routes to Eurowings, which it will also use to expand its budget offer into Austria and Switzerland in addition to long haul markets, highlights this point.
Moreover, it has owned Eurowings for as long as it has owned Germanwings, but has apparently only recently woken up to its potential for improving cost efficiency.
Low cost carriers began to establish successful pan European operations in the mid 1990s. Nevertheless, and in spite of owning its low cost subsidiary Germanwings for many years, Lufthansa did not start to use its own LCC aggressively until 2013.Germanwings is not even the right vehicle, since its cost base is too high to be classed as a true LCCMoreover, Germanwings is not even the right vehicle, since its cost base is too high to be classed as a true LCC. Lufthansa's more recent decision to transfer a large number of Germanwings routes to Eurowings, which it will also use to expand its budget offer into Austria and Switzerland in addition to long haul markets, highlights this point.Moreover, it has owned Eurowings for as long as it has owned Germanwings, but has apparently only recently woken up to its potential for improving cost efficiency.
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