Lufthansa and Germanwings seem to be operating successfully as separate companies, while (low-cost) Germanwings is 100% owned by Lufthansa. Can anyone explain why Germanwings can operate successfully without undercutting Lufthansa's routes and preventing Lufthansa from growing further? Anyone knows what agreements the German Pilot Union have with Lufthansa and Germanwings?
Maybe there's something to be learnt from their situation in case a BA-express is created..