Lufthansa may launch low-cost, long-haul flights under a new brand as part of plans by the company’s new boss to battle competition from Middle East carriers and no-frills airlines.

The long-haul plan would mark a big shift for the company that prides itself on still being a full-service airline, and also represents a high-risk route that few others have taken.

The challenges facing Lufthansa, which warned on profits last month, are numerous: Middle East carriers are expanding aggressively on long-haul travel, low-cost carriers are gaining customers in short-haul, and cargo markets are in the doldrums.

The options for CEO Carsten Spohr, who took the reins of Europe’s largest airline by revenue in May, were expected to include a bigger push into the low-cost arena or a possible alliance with a rival. Under his plans, unveiled on Wednesday, Lufthansa will join a low-cost rush to attract leisure travellers with cheaper tickets and no-frills services, while still keeping its premium namesake brand.

In some markets costsensitivities are so high,we don’t need a full-service brand

“There are markets where we believe that the Lufthansa brand is important. In other markets we believe that cost sensitivities are so high, we don’t need a full-service brand,” he said, explaining that the market for leisure travel was growing faster than business travel via hubs.

Spohr’s plan is for Lufthansa to expand its European low-cost service and possibly add a new one for long-haul flights.

It could consider offering long-haul flights from Munich or the western German cities of Cologne and Duesseldorf, with a premium section for higher-paying passengers, using used Boeing 767s or Airbus A330s readily available on the market.

The carrier is in advanced talks to set up a joint operation with Turkish Airlines, Spohr said, although Lufthansa could end up going it alone as well.

If Lufthansa’s board approves the plans, such flights could start by the end of 2015.