Lufthansa is one of a number of airlines which have transformed some of their internal departments into separate specialist companies. The German flag-carrier has hived off passenger services, cargo operations, aircraft maintenance and overhaul, catering, informatics and leisure travel into seven separate subsidiaries. Each was tasked with becoming one of the top three providers in its particular business arena and by 2001 most were actually achieving this. Lufthansa Cargo Boeing 747-230F(SCD) D-ABZF, in a special 'Service Revolution' scheme, is seen here departing Sharjah on May 11, 1999, while operating scheduled cargo flight ‘DLH8487’. Sharjah is a major cargo hub for the carrier - its second largest after Frankfurt. Lufthansa commenced a new joint cargo service, dubbed WOW, on April 1, 2002, in conjunction with its Star Alliance partners Singapore Airlines Cargo

The franchising of some services is becoming increasing common amongst Europe's major carriers, two typical examples seen here at Berlin/Tegel on June 7, 2000. In the foreground, BAe Jetstream 31 OY-MUE wears full British Airways colours but is operated by Billund, Denmark-based Sun-Air of Scandinavia, which operates all of its four Jetstream 31s, two Jetstream 41s and three ATPs in BA colours on scheduled services, using BA flight numbers. Sun-Air commenced operations on the Billund-Berlin route on March 27, 2000, but recently discontinued the service due to poor passenger load factors and will redeploy the aircraft elsewhere. Behind is Canadair Regional Jet 100ER F-GPTH of Montpellier, France-based Air Littoral, wearing Team Lufthansa colours for franchise operations. Air Littoral also operates similar flights on behalf of Air France. Previously 49%-owned by Swissair, Air Littoral head Marc Dufour bought this stake in June 2001, relieving Swissair of the burden and enabling the French carrier to streamline its own operations.

The advent of low-fare carriers, led by Ireland’s Ryanair, has been the most visible development since European liberalisation. Until recently, Ryanair's fleet comprised only second-hand 737-200s, such as 737-2T5A EI-CKS seen here departing Leeds/Bradford Airport, but over the last two years these have been supplemented by growing numbers of 737-800s straight off the production line. The current fleet includes 21 737-200s and 20 of the 128 737-800s it has on order. High utilisation of a single aircraft type has become one of the hallmarks of the low-cost airlines.

Although Crossair, as such, has effectively ceased to exist, with the demise of national flag carrier Swissair it has been reborn as Swiss International Airlines and has added the majority of the former Swissair fleet to its own under the new name. Seen here at Dublin on May 16, 1998, is Saab 2000 Concordino HB-IZO, one of 34 in the Crossair fleet which have now transferred into the new operation.

KLMuk subsidiary buzz and its associated low-cost operation in the Netherlands, KLM's Basiq Air, are to be merged under a single brand name in the near future under KLM's cost-cutting strategy. Full details of KLM’s plans for these two subsidiaries have yet to be revealed, but they are expected to include replacement of the eight BAe 146-300s currently operated by buzz.

One that fell by the wayside - London/Luton-based Debonair began operations on June 19, 1996, its early fleet comprising seven BAe 146-200s leased from US Airways, which had previously stored the aircraft for six years at Mojave. A further three Srs 200s, two Srs 100s and latterly a pair of Boeing 737-300s joined the fleet, but the carrier consistently failed to make a profit and finally succumbed to the inevitable on October 1, 1999, when it entered receivership. At that time it was operating eight of its fleet under franchise agreements for Lufthansa Cityline and Swissair Express, but its refusal to drop fares to compete with its rivals, and its use of the 146s rather than larger 737s to maximise revenues, probably contributed to its downfall. Seen here is one of the first two aircraft to join the fleet, BAe 146-200 G-DEBC, which remains active today with BMI Commuter as G-CLHA, as one of four operating Lufthansa flights under a wet-lease agreement.

British Airways is one of only a handful of European flag carriers to transition to a full commercial basis, although some of the changes made in recent years have not always gone down well with the airline’s employees. Recent cost-cutting measures led to the airline announcing better than expected results for the fourth quarter on May 20, 2002, reducing its pre-tax loss to £200 million for the full year to March 31, 2002, well ahead of market expectations. The company's 'Future Size and Shape' review, announced in February 2002, will be realised over the next two years and is aimed at driving costs down to protect the airline over the long term. Airbus A319-131 G-EUPA is one of 33 currently in service out of a total of 39 on order.

Aer Lingus, one of a growing number of European flag carriers struggling to survive, announced a large number of job losses, withdrawal of seven aircraft from the fleet and implementation of an immediate cut in 25% of its operations only seven days after the US terrorist attacks. It is now working to a survival plan which includes the widespread availability of low fares and maximum reduction of costs in various areas, plus greater asset utilisation through opening of new routes within existing resources and reduced staff numbers. Karl-Heinz Neumeister, secretary-general of the Association of European Airlines, has suggested that one solution may be for the Irish government to allow another EU airline to control Aer Lingus or designate British Airways to fly the carrier’s Dublin to New York route. Seen here is Boeing 737-548 EI-CDG, one of eight in the Irish carrier's fleet, about to touch down at Dublin on May 16, 1998.

One of the most prominent entrants into the European low-cost market has been easyJet, set up in 1995 by colourful Greek entrepreneur Stelios Haji-Ioannou. Initially operating second-hand 737-300s, easyJet ordered a dozen brand-new 737-300s on September 17, 1997, the last of these being delivered on November 9, 1999. After taking delivery of an initial two new 737-700s on lease from GECAS, the airline has also ordered 32 737- 700s direct from the manufacturer, 13 of these having been delivered to date. Seen here is easyJet Switzerland Boeing 737-33V HB-IIK on approach to Barcelona. This offshoot of the parent company emerged following the take-over and renaming of TEA Switzerland in 1998, which proved the most expedient way for Stelios Haji-Ioannou to set up a hub in Geneva.

Launched in 1998 as a subsidiary of British Airways, like most of the other successful low-fare operators Go operates a single type in its fleet, in this case the 737-300, used by many similar airlines. The recent purchase of Go by easyJet will make the combined airline larger than Ryanair when the merger is completed and may signify the beginning of a rationalisation in this area of the market. Go’s Boeing 737-3Y0 G-IGOA, seen at Madrid in May 2000, was one of the first aircraft to join the airline, which now operates a fleet of 22 of the type, all on lease.

LOT Polish Airlines Boeing 737-45D SP-LLC on approach to London/Heathrow in May 2000. Over the last ten years, airlines in Eastern Europe have seen some of the most radical fleet changes of any carriers, disposing of elderly Soviet-built types in favour of modern Western-built aircraft. LOT is a typical example - although the decision was made in 1986 to acquire new Tu-154Ms, whilst withdrawing the Il-18s and Tu-134s then in service, LOT decided to acquire new US-built aircraft the following year. On November 4, 1988, the airline ordered two 767-200ERS and one 767-300ERs, marking the first order for US-built airliners from a Central or Eastern European country. Since then the fleet has built up to include two 767-200ERs, three 767-300ERs, ten 737-500s, two 737-300s, seven 737-400s and 14 ERJ-145s, together with five ATR 42-300s and eight ATR 72-200s with subsidiary EuroLOT.