German Wings

1. Germanwings should not restrict its bases within the German market for the following reasons:

- Germany is becoming intensively competitive with many low cost players wanting a share (70% of the market

is shared almost equivalently between Air Berlin, Germanwings,

Ryanair and easyJet).

- It already has five bases in important cities that are strategically

located to attract maximum number of travelers. More bases could lead to overlapping of routes and doubling

of costs.

- Long term goal for any big player is to be able to expand internationally which will ensure its survival and success.

2. The continuance of the current strategic relationship between Lufthansa and Germanwings is very critical for the progress of the �daughter’ for achieving its stated objectives.

But history has been a witness to breaking up of many such relationships profitably or otherwise. This occurs due to several incompatibilities that arise in course of the journey such as: