Luxair (LG, Luxembourg) is to undergo a two-phased fleet renewal programme aimed at increasing capacity while cutting unitary costs. The plan, crafted by the airline's management, was approved by the LuxairGroup Board of Directors during a board meeting held on February 6.

“Luxair is a regional airline which has to face strong competition. For its development, it needs planes with the best available seat cost per passenger in order to regain its financial balance whilst continuing to grow," Paul Helminger, Chairman of LuxairGroup’s Board of Directors, said. "The two-phase strategy which we have adopted is part of a clear vision for the company’s development.”

The first step of the plan entails the replacement of Luxair's existing fleet of six E145s with up to five additional Dash 8-400s. The Luxembourg-based carrier plans to place a firm order with Bombardier Aerospace (BBA, Montréal Trudeau) for three of the props while the other two will be options.

Once the Q400s begin to arrive in 2016, Luxair's fleet will consist of at least ten Bombardier Q400s, two B737-700s, and three B737-800s. One B737-700 will operate for Luxair Luxembourg Airlines while the three B737-800s and the other B737-700 will operate for LuxairTours.

The second phase of the plan will involve unspecified Next Generation aircraft still under development with their manufacturers. These larger capacity jets should be introduced between 2018 and 2020.

In addition to scheduled flights to destinations throughout Europe, North Africa, the Mediterranean and the Middle East, Luxair also operates seasonal summer charters as well as cargo and passenger handling services.