Eurowings’ parent company, Lufthansa, has released a turnaround strategy for the low-cost carrier in an attempt to return it to profitability and generate value for shareholders.
The carrier will be standardised with a fleet of Airbus A320 aircraft, and will be simplified with a reduction to one air operator’s certificate, located in Germany.
Eurowings will establish a clear focus on short-haul point-to-point operations, and will aim to reduce unit costs by 15% by 2022. The low-cost carrier will not integrate into Brussels Airlines, whose own turnaround strategy will be released later in the year.
To enable shareholders to participate more substantially in the Group’s results, the current dividend policy will be changed so that 20% to 40% of the Group’s nett income will be regularly distributed to shareholders.
