TUI, Lufthansa in LCC deal
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German travel and transport group TUI and Lufthansa are planning to set up a low-cost carrier.
The Economic Times quoted saying that a letter of intent for a merger of TUI Travel, Hapag-Lloyd and Hapag-Lloyd Express with Lufthansa units Germanwings and Eurowings, has been signed.
Albrecht Knauf, who is a partner with Lufthansa in Germanwings and Eurowings, is to hold a significant stake in the new entity, it added.
If it goes ahead, the combined carrier would transport about 30 million passengers a year, behind Lufthansa’s 56.4 million and competing with another low-cost airline, Air Berlin.
The report said Lufthansa wants to prevent Air Berlin from becoming the dominant German player in the niche market, which includes foreign rivals Ryanair and EasyJet, as well as the rail operator Deutsche Bahn on domestic routes.
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