Lufthansa has no plans to set up own no-frills airline

COLOGNE, Germany - German flag carrier Lufthansa has no plans to set up its own low-price airline, chairman Wolfgang Mayrhuber told shareholders at the group's annual meeting here Wednesday.
Lufthansa would respond to increased competition from budget rivals such as easyjet or Ryanair by cutting costs and negotiating lower airport fees, Mayrhuber said.
"We are not afraid of competition," but Lufthansa would not transform itself into a cut-price operator, the chairman said.

05/25/2005 12:30 GMT