Lufthansa – Germany’s biggest airline may be setting up a new budget airline “Direct 4 You” to take over the company’s European flights for as low as €49 one way.

Lufthansa Budget Airline

The new airline would be up and running by the beginning of 2013 and by 2015, another of Lufthansa’s subsidiaries, Eurowings, could be merged into the new fleet.

Lufthansa’s financial woes have been in the media recently, with reports suggesting that it plans on making cuts of up to €1.5 billion as it faces increasing competition.

According to the news, the new company has not been given the final go-ahead from the Lufthansa board, and the airline is yet to release any official information about the venture.

Lufthansa now offers promotional fares from Singapore to over 25 of the world’s favourite European tourist destinations. Airfares to France, Italy, Spain, Germany, Denmark and other famous European travel destinations are now on sale until 31 December 2010 from Sin$1,410.

Travelers departing Singapore can purchase tickets to a wide variety of European destinations including Amsterdam, Barcelona, Berlin, Bremen, Brussels, Cologne, Copenhagen, Dresden, Dusseldorf, Frankfurt, Geneva, Graz, Hamburg, Hanover, London, Marseille, Milan, Munich, Nice, Nuremberg, Paris, Prague, Stuttgart, Vienna and Zurich.

Travel must be completed by 31 December 2010. Terms and conditions apply.