Lufthansa said it wants to use its expanded low-cost brand Eurowings as a platform for European consolidation, and it could potentially take in other Lufthansa units or part-owned stakes such as Brussels Airlines and Air Dolomiti.
The first plane with the new Eurowings branding, aimed at price-sensitive leisure tourists, will take off from Cologne to the Dominican Republic in November. It will replace the Germanwings brand.
Lufthansa chief executive Carsten Spohr said Europe's airlines needed to consolidate.
Lufthansa wants to be a part of that process and it sees Eurowings as the ideal platform, he said.
Eurowings is Lufthansa's answer to Ryanair. It will have an Austrian operating licence and is not bound by the group's collective labour agreements.