German airline Lufthansa has today reiterated that it has no plans to enter the budget airline sector following a report it would use a stake in a regional carrier to create its own no-frills airline.
German magazine Focusreported the German flag carrier wanted to use its 24.9 per cent in Eurowings to build a low-cost carrier that would initially operate European routes out of North Rhine-Westphalia, the magazine said.
But Lufthansa spokesman Mr Thomas Ellerbeck said there was no change in the airline's strategy.
"Lufthansa doesn't plan its own entry into the discount segment," he said. He added, however, he could not speak about Eurowings' plans.
Even if Lufthansa exercised its option to raise by the end of 2003 its Eurowings stake to 49 per cent, it would still remain a minority shareholder, he said.
Officials at the Dortmund-based Eurowings were not immediately available for comment.
Lufthansa has played down the threat to its business from the planned moves of low-cost carriers, such as Ryanair and Easyjet, into the German domestic market, arguing that domestic traffic made up only just above 10 percent of its sales.