Germanwings was founded in 2002 as a low-cost airline to meet the challenge of domestic rivals such as Air Berlin, and Ryanair (RYAOF)and EasyJet (ESYJY) on regional routes.
It became a wholly-owned Lufthansa (DLAKF) subsidiary in 2009.
Lufthansa said it did not yet know what had happened to Germanwings flight 9525, which left Barcelona airport at 5:01 a.m. ET.
Shares in the Lufthansa declined by nearly 5% in European trading on news of the crash.
Lufthansa had gradually been transferring all its short haul operations to Germanwings, with the exception of flights from its Frankfurt and Munich hubs.
According to Lufthansa, Germanwings operates 110 routes with about 90 aircraft. By the end of 2014, its fleet was entirely made up of Airbus planes, although some of its flights are operated by Lufthansa's regional carrier Eurowings on Bombardier jets.
Germanwings serves 17 airports in Germany, nine in the U.K. and Ireland and popular tourist destinations in Italy, Spain, France and central Europe.
It offers a three-tiered fare structure designed to attract tourists on a budget as well as price-savvy business travelers.
The basic package -- from 33 euros a flight -- offers little more than a seat, but passengers can opt for packages starting at 53 euros, or 149 euros, that offer more traditional economy and business class levels of service.
CNNMoney (London) March 24, 2015: 8:16 AM ET
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