Brussels Airlines won’t be integrated into Eurowings anymore but positioned as a network airline.
Confronted to the heavy loss of its subsidiary, Lufthansa reconsiders Eurowings’ strategy. Lufthansa has announced its intention to limit the low cost company to medium-haul flights with a fleet only composed of A320. No more long-haul flights, now transferred to network airlines or to a new structure. Eurowings will also need to obtain a 15% reduction of its unit costs (seat-kilometer) by 2022.
Unexpected consequences for Belgium: Brussel Airlines leaves Eurowings’ perimeter. Indeed, the Belgian company offers a model hardly compatible with low cost by operating long-haul flights (Africa, North America) as well as medium-haul flights and charter (for the tour operator Thomas Cook). Furthermore, Brussels Airlines offers point-to-point and connecting flights with the help of a fleet composed of A320s and A330s.
The airline, which will keep its identity, will become a network airline again, same as Lufthansa, Swiss International Air Lines and Australian Airlines with which it will, besides, strengthen its cooperation. The Belgian airline which currently benefits from the lowest costs of Lufthansa Group and which is by the way in the green since 2018, won’t be excused to produce new efforts. The goal for the group’s network airlines was raised up to 3 percent more of the unit revenue by 2022 and to a cost reduction of 1 to 2 percent by year in the same period. The Belgian company has three months to come up with a plan for this purpose.