Lufthansa continues with plans to launch regional carrier City Airlines

Lufthansa is moving ahead with plans to launch an airline connecting smaller regions to major hubs, Marco Zenger, CEO of the new carrier, said Tuesday in an internal memo to employees seen by Reuters.

The basic framework of City Airlines, founded last year, has had an operating license since June, Zenger stated in the document.

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“We remain on track and on the path towards the operative start of City Airlines,” he wrote.

Staff recruitment is planned for the end of the year, and Lufthansa is already in talks or pursuing talks with unions representing various groups in the air travel sector, according to the memo.

With the new airline, Lufthansa is looking to reduce the cost of its existing feeder flight services connecting long-haul services from its Munich and Frankfurt hubs.

The memo said that Lufthansa wants to negotiate employee transfers from its current Cityline business to the new City Airlines.