NEW YORK (TheStreet) -- Shares of Deutsche Lufthansa (DLAKY) have dropped -4.18% to $19.92 as CEO Carsten Spohrhief defended the airline's plans to expand its low-cost services under new brands, after some analysts questioned the wisdom of the move, Reuters reports.
Spohr presented plans yesterday that include expanding low-cost services in Europe and possibly on intercontinental flights, as well as grounding eight planes this winter, to fight off competition from Middle Eastern and low-cost carriers.
But some analysts said that plans to extend Lufthansa's little-known Eurowings regional carrier could create additional complexity at the group and highlighted how saturated the low-cost market in Europe already was, Reuters said.
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