Rivals Are Buzzing All Around Lufthansa

European deregulation makes it vulnerable

When Frederick Reid takes the controls at Lufthansa on Apr. 1, he had better strap in for a rough ride. Reid, the first American ever to head a non-U.S. air carrier, will fly straight into the final phase of Europe-wide airline deregulation, due to kick off the same day. For the first time in its 72-year history, Germany's flagship carrier will have to compete on even terms with rivals from upstart discounters to huge foreign airlines. At the same time, Reid may face strikes by Lufthansa pilots unhappy with the airline's cost-cutting plans.

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