Summary
- Strategic acquisitions in the 1990s-2000s aimed to broaden Lufthansa’s sphere of operations and power.
- Lufthansa has over 10 airlines under the group, expanding globally through alliances and codeshares.
- The Lufthansa Group’s multi-brand approach provides various services, from regional flights to low-cost carriers.
The history of the Lufthansa Group is somewhat convoluted because its formation is tied to the history of ‘Lufthansa’ itself. Despite there being no special date to define the birth of the Lufthansa Group
, it has grown over time through acquisitions and mergers. The idea of the German group as a set of airlines united under the same name appeared after the re-establishment of Lufthansa after WWII and was developed mainly in the 1990s and 2000s.
Nowadays, the Lufthansa Group, one of the largest in the international marketplace, includes more than 10 airlines. But what are these airlines? The complete list is in the table below.
Lufthansa Group Airline Brands (alphabetical order) – According to the CAPA Centre for Aviation |
||
---|---|---|
Airline |
Description |
Lufthansa Group stake |
AeroLogic |
A joint venture between DHL and Lufthansa Cargo |
50% since June 2009 |
Air Dolomiti |
Italian airline specializing in regional flights between Italy and Southern Germany |
100% since July 2003 |
Austrian Airlines |
Flag carrier of Austria |
100% since September 2009 |
Brussels Airlines |
Flag carrier of Belgium |
Since January 2017, Deutsche Lufthansa fully owns the airline |
Deutsche Lufthansa (or Lufthansa German Airlines) |
Flag carrier of Germany |
100% since 1954 |
Discover Airlines |
Formerly known as Eurowings Discover |
Established in July 2021 by Eurowings, within the Lufthansa Group |
Edelweiss Air |
Swiss leisure airline and part of the SWISS group |
100% since November 2008 |
Eurowings |
Low-cost airline with its hub in Düsseldorf |
100% since April 2004 |
Eurowings Europe |
Eurowings operations based in Austria, focusing on regional flights across Europe |
Established in June 2016 by Eurowings, within the Lufthansa Group |
ITA Airways* |
Italy’s flag carrier is set to become part of the Lufthansa Group starting in early 2025 |
Lufthansa is set to increase its ownership to 100% in the near future. |
Lufthansa Cargo |
Specialized in worldwide air freight and logistics services |
Established in November 1994, as a separate legal entity under the Lufthansa Group |
Lufthansa City Airlines |
The group’s new airline based in Munich, for short- and medium-haul flights |
Established in June 2024 within the Lufthansa Group |
Lufthansa CityLine |
Lufthansa announced in June 2024 that Lufthansa CityLine would close, transferring operations to Lufthansa City Airlines |
100% since March 1992 |
SunExpress |
Joint venture between Turkish Airlines and Lufthansa |
50% since 1989 |
Swiss International Air Lines (SWISS) |
Flag carrier of Switzerland |
100% since July 2007 |
*The Lufthansa Group has until January 15th, 2025, to subscribe to the increase in order to acquire a 41% stake in ITA Airways.
Strategic acquisitions of the 1990s-2000s and Star Alliance
During the last years of the 20th century and the first years of the 21th century, Lufthansa began a series of acquisitions that aimed to increase its sphere of operations and power. In 1990, with German reunification, Lufthansa was able to regain the status of the national airline and opened up new Eastern European markets. This period also saw Lufthansa start on the acquisition trail in an attempt to become a major player in the industry.
Photo: Carlos Yudica | Shutterstock
The first big deal was the 25% ownership in Austrian Airlines, purchased in 1997. This action brought a strong position for Lufthansa in Central Europe and opened opportunities to find new routes and markets. Later, Lufthansa bought Swiss International Air Lines in 2005, which made Lufthansa’s position even stronger in Europe. However, the German group’s growth plan was not just restricted to Europe.
Indeed, the Lufthansa Group expanded its network around the globe through codeshare partnerships and other arrangements with other members of the Star Alliance, a global airline alliance launched in 1997.
All these strategic acquisitions have been instrumental in putting together the Lufthansa Group, the aviation giant it is today. In this way, the group has broadened its scope of operations, strengthened its brand, and continuously developed a portfolio of airlines that are considered one of the most prestigious groups in the world. The history of strategic M&A as the primary method of expansion remains an essential part of the Lufthansa Group’s development plan.
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The Lufthansa Group’s regional and short-haul fleet
Lufthansa Group uses multiple brands in the short-haul business in Europe, where different airlines operate in different market niches. This approach enables the group to provide a wide range of services, including high-quality regional links and low-cost, pure-play point-to-point services.
Lufthansa CityLine dates back (via various other names) to 1958, and is a regional airline operating out of Lufthansa’s main airports in Frankfurt and Munich. Mainly using the Bombardier CRJ900, CityLine operates feeder flights for passengers from less populated airports in Germany and other countries to the major Lufthansa hubs for long-haul connections.
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Lufthansa said it would shut down CityLine and integrate operations into
Lufthansa City Airlines, which was established in June 2024
. The new airline is meant to assume some of Lufthansa’s mainline short-haul routes, especially those that are less popular or expensive to operate. In October, Lufthansa Group also transferred CityLine’s Airbus A321-200/P2F fleet to Lufthansa Cargo, prompting a union lawsuit over the closure.
Photo: Bjoern Wylezich | Shutterstock
However, in November 2024, Lufthansa CityLine staff representatives decided to sue Lufthansa Group, claiming that the newly founded Lufthansa City Airlines threatened to compete with it and to lower wages. They asserted that CityLine is a crucial part of Lufthansa, and the plan to shut it down should be disregarded.
Then we have Air Dolomiti, an Italian airline founded in 1991. It was bought by Lufthansa in 2003 and mainly operates between Northern Italy and Germany, especially Munich, linking small Italian cities to the rest of Europe and serving as Lufthansa’s Italian branch. As of today, it flies 550 weekly flights to Munich and Frankfurt. This company has a young fleet of 17 Embraer 195s and 4 Embraer 190s.
Lastly, we have Eurowings, an LCC (Low-Cost Carrier). This carrier was a former independent airline gradually absorbed into the Lufthansa Group. It currently maintains a large fleet of Airbus A320 family aircraft. Launched in 2015, Eurowings Europe is a subsidiary of the Eurowings brand but has its own operating permits and hubs outside Germany. Thus, it extends the group’s LCC footprint in Europe.
Photo: Markus Mainka | Shutterstock
Medium and long-haul operations
The airline known today simply as ‘Lufthansa’ (also called Deutsche Lufthansa or Lufthansa German Airlines) was established in 1926 as Deutsche Luft Hansa and was the German flag carrier before the Second World War. Post-war, a new airline called Aktiengesellschaft für Luftverkehrsbedarf (Luftag) was launched in 1953. It adopted the name and emblem of Deutsche Lufthansa in 1954 and began operations in the following year.
Lufthansa German Airlines was privatized in 1997, and subsidiaries were formed at this time. Nowadays, it operates over 12,000 weekly flights and offers access to over 300 global locations.
Photo: Tamme Wichmann | Shutterstock
SWISS International Air Lines was
established on March 31, 2002, after Swissair’s bankruptcy
. It has its corporate headquarters in Basel, Switzerland and operates mainly from its hub airports in Zurich and Geneva. The current fleet has more than 110 aircraft, which includes the Airbus A220, A320, and Boeing 777 models.
It operates in more than 100 locations globally with 23 international and 47 domestic routes across Europe. SWISS has approximately 7,500 employees, and has been a member of the Lufthansa Group since 2007.
Photo: Kevin Hackert | Shutterstock
Austrian Airlines was founded on April 4, 1957,
due to the merger between Air Austria and Austrian Airways
. The head office of the company is located at Vienna International Airport in Austria. The airline has a network of over 120 destinations, and the company has a workforce of about 6,000 employees. Austrian Airlines became a member of the Star Alliance on March 26th, 2000.
Photo: mal23 | Shutterstock
Today’s Brussels Airlines was created in 2006 as a result of the
merger between SN Brussels Airlines and Virgin Express
. It has approximately 3,500 employees, provides three travel classes, and has a special cooperation with the Belgian Star Chefs for meals. The airline currently has a fleet of over fifty aircraft ranging from the Airbus A319, Airbus A320, and Airbus A330.
It operates in more than 100 locations worldwide with a primary interest in Africa and Europe. Its headquarters are situated at Brussels Airport in Zaventem, Belgium. The IATA code ‘SN’ was inherited from its predecessor, Sabena. Brussels Airlines has been in full ownership of the Lufthansa Group since 2017, and has been a member of the Star Alliance since October 26th, 2008.
Photo: Wenjie Zheng | Shutterstock
Edelweiss Air
began operations on October 19, 1995
, and its operational hub is at Zurich Airport in Switzerland. It currently operates 19 aircraft (Airbus A320s and A340s). It has a network of operations in more than 90 cities across over 30 countries, and has been a subsidiary of the Lufthansa Group since November 1st, 2008.
As of December 31, 2023, Edelweiss Air had about 1,217 employees and carried 2.74 million passengers the same year, and the seat load factor was 83%.
Photo: Michael Derrer Fuchs | Shutterstock
Eurowings Discover was established on July 24, 2021, but its name was changed to Discover Airlines on September 5, 2023. They provide services to over fifty destinations in Europe, Africa, North America, and the Caribbean.
Discover Airlines’ main hubs are at Frankfurt and Munich airports. The company employs approximately 2,000 staff members. Its base is at Frankfurt airport in Germany and the airline currently has a fleet of 27 aircraft, of which 14 are Airbus A320s and 13 are Airbus A330s.
Photo: Markus Mainka | Shutterstock
Joint ventures, cargo, and future expansions
The Lufthansa Group does not only consist of airlines over which it has complete control. SunExpress is a Turkish-German joint venture leisure airline (Lufthansa Group owns 50%). It was established in Antalya in 1989 and has Frankfurt as its secondary hub.
SunExpress has a fleet of 75 Boeing 737s and flies to 68 cities in 35 countries, primarily on corridors to tourist destinations, and operates direct flights between Europe and Turkey, with 12 million passengers per year.
Photo: Minh K Tran | Shutterstock
The German group is also active in the cargo sector. The two airlines that are active in this field are Lufthansa Cargo and AeroLogic. Lufthansa Cargo was officially created on November 30th, 1994, as a separate legal entity of the Lufthansa Group, but it had been operating since 1977 as German Cargo.
Photo: Jakub Rutkiewicz | Shutterstock
AeroLogic was created on September 12, 2007, as a joint venture of DHL International GmbH and Lufthansa Cargo AG (Lufthansa Group owns 50%). The airline began operating on June 29, 2009.
Finally, the latest airline to join the German group will be ITA Airways.
Lufthansa is buying 41% of the Italian carrier for €325 million ($338 million)
, and aims to utilize ITA as part of its multi-brand strategy and expand in Italy, especially in transatlantic markets. The European Union has endorsed the deal, which is expected to be completed in early 2025, with options for more shares beginning the same year.
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