The cut price brand GW that's killing it?
The recieved wisdom is AB has been going down the tubes for a while.
They've been energetically code sharing with BA (in profit but losing money on that lamer Iberia) & S7 (in profit), (eg) so you get the nonsense where BA land you at DME, while AB wants to land you at VKO.
Is this really "one world"?
It's difficult to alter the perception it's just another uncompetitive lo-cost airline out of its depth, with the other big LH shipper GW, fighting RA & EJ head on in an aggressive German market that's sinking under falling GDP and increasing taxes.
What you will get is more bankrupcies, more shake-outs, mergers & illegal subsidies. (look at the train wrecks of AF, SAS and EA!)
Lufthansa Annual Report 2011 - Germanwings
Lufthansa expands Germanwings to counter no-frills rivals | Reuters
LH reply by eliminating business class and getting a 20% lower pilot costing on GW.
Which until recently was still losing 1m euro a week(!)
Not sure the unions are going to accept this long term, but the service quality is there, and that matters a lot nowadays.
More job losses at AB?
Looking in the crystal ball YEP 100% certain.