Eurowings’ costs compared with the competition

By Bjorn Fehrm

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Introduction

August 31, 2017, © Leeham Co.: We presented Lufthansa Group's LCC, Eurowings, yesterday. It's an amalgamation of different companies; some started out as LCCs (Germanwings), others, the remains of defunct Legacies (Brussels Airlines).

The mix is spiced with leased-in parts of the non-Legacy, non-LCC  Air  Berlin. Can such a cocktail compete with the LCC specialists?We look at operational and financial data for Eurowings and its competition. How far from the competition is the costs today and will the outlined improvements close the gap?

Summary:

  • Eurowings of today is not competitive on costs with equivalent LCCs.
  • The announced changes up to 2020 will narrow the gap but not close it.

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