New Lufthansa CEO to unveil plans to win back investors

[BERLIN] With state-owned Gulf airlines and low-cost rivals poaching more of its customers, Germany's biggest airline Lufthansa may have decided it has little choice but to join them.

New chief executive Carsten Spohr will say this week how he aims to win back investors after a profit warning knocked US$2 billion off Lufthansa's market value. A new round of cost cuts, a deeper push into cheaper no-frills services or a possible alliance with a Middle Eastern airline could be on the menu.

All would mark a shift for a company that has its own low-cost division but still prides itself on being a full-service airline distinct from the likes of Ryanair and easyJet and has accused the state-owned Gulf airlines of distorting the market.