Lufthansa mulls creating new budget carrier platform -magazine

FRANKFURT, June 15 (Reuters) - Germany's Lufthansa is considering creating a new low-cost platform within its Eurowings regional carrier to compete against budget rivals like Ryanair and Easyjet (Other OTC: ESYJY - news) , a German magazine reported.

Lufthansa's new chief executive Carsten Spohr plans to build out the Eurowings fleet by adding Airbus A320 jets to serve destinations throughout Europe from Germany, Der Spiegel magazine reported, without citing sources.

In the medium term, the new platform could offer service between London and Rome, for example, placing it in direct competition with Ryanair and Easyjet, the magazine said.

Shares in Lufthansa, Europe's biggest-selling airline, plunged last week after it slashed its profit targets for the next two years, citing competition from Middle East and low-cost rivals.

Der Spiegel said German financial watchdog Bafin had started a routine review of trading in Lufthansa shares in the aftermath of the profit warning.

Lufthansa already operates a budget carrier called Germanwings that flies to more than 100 destinations, mainly in Europe.

A Lufthansa spokesman said the airline was looking at all options. "No decision has been taken," he said.

Der Spiegel also reported that Spohr is looking for low-cost alternatives to and from Asia but said it was not clear if this would entail finding a foreign partner or founding a joint venture. (Reporting by Jonathan Gould and Ralf Banser; Editing by Stephen Powell)