...Europe and the Middle East are the regions where the airline continues to have a strong presence. Lufthansa, however, remains weak in other emerging markets like Latin America and Asia Pacific. Indeed, the company is almost entirely reliant on Western Europe, where it commands more than an 11% market share.
Trade sources reveal that Lufthansa is considering two major options to facilitate its penetration in Asia Pacific - the establishment of a long-haul budget airline, similar to the move made by Norwegian Air Shuttle (NAS), or entering into a joint venture with another player which can boost its market share in the region. Company sources point out that Turkish Airlines could be an interesting partner to work with in that part of the world, especially as it is already partnering the carrier in Europe through SunExpress.
A long-haul budget airline in Asia Pacific is certainly a very interesting idea, although the fact that it would be an unexplored niche could mean more financial hurdles for Lufthansa to overcome. As such, code sharing with some of the major low-cost players in the region, such as AirAsia, could prove to be a more feasible option."