The supervisory board of German airline Lufthansa is set to meet Wednesday to consider letting its low-cost subsidiary Eurowings rent about 40 aircraft currently operating under the banner of loss-making carrier Air Berlin.
The move would allow Lufthansa to bolster its low-cost offering, while letting Air Berlin reduce its fleet after failing to return profits amid increased competition in the budget aviation industry.
Air Berlin's plan to downsize was first reported in the Sueddeutsche Zeitung newspaper, which said the airline plans to reduce its fleet to 70 aircraft and cut 1,000 of its 8,600 jobs.
Air Berlin shareholder Etihad Airways is talking with travel company TUI about a possible combination of airline TUIfly and Air Berlin's Austrian subsidiary Niki. That plan would allow Air Berlin to dispose of over a dozen aircraft.