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* Eurowings announces 32 new routes from Munich next year
* Eurowings more complex with Air Berlin, Brussels deals
* Investors worry integration may distract from cost cuts
By Victoria Bryan
BERLIN, Dec 21 (Reuters) - Eurowings outlined plans for newroutes from Munich on Wednesday, maintaining its rapid expansionbut raising concerns that the budget airline owned by Germany'sLufthansa is not paying enough attention to cuttingcosts.
Lufthansa has made Eurowings its main focus in the battlewith market leaders Ryanair and easyJet forleisure passengers in Europe and a vehicle for consolidation.
And it is set to become Europe's third largest low-costcarrier after deals to rent 33 crewed planes from Air Berlin and to take over Brussels Airlines lifts its fleet to180 planes from 93 by 2018.
Eurowings said it would fly to 32 destinations from Munich,traditionally a Lufthansa hub, from summer 2017, includingtourist destinations in Italy, Greece, Portugal and Spain, aswell as London and Paris.
CEO Karl Ulrich Garnadt also said Eurowings plans long-haulroutes from Munich from 2018. The airline, which also spansGermanwings, already flies to destinations such as Cuba andThailand, but only from Cologne.
Experts are concerned the Eurowings structure is too complexand that the integration of various different airlines coulddistract it from bringing down its unit costs.
"They've made a big commitment to the Air Berlin wet leaseand the question is whether gaining that market share will be oftangible value," independent consultant John Strickland said.
Eurowings aims to reduce unit costs to easyJet levels andwants to bring them down to 5.8 euro cents by 2020, a 28 percentreduction over 2015 levels. But analysts say this is not enough,with easyJet at 4.39 cents in 2015 and Ryanair at 2.08 cents.
Lufthansa is also weighing up taking over the rest ofstruggling Air Berlin, a source told Reuters, confirming earlierGerman media reports.
Air Berlin is part-owned by Etihad, which last week signed acode share deal with Lufthansa and said it was exploring furtheroptions for cooperation.
Lufthansa could use the additional Air Berlin planes andslots to prevent Ryanair and easyJet from expanding too quicklyin Germany, Union Investment fund manager Michael Gierse said.
But he expressed concern that rapid expansion could makeEurowings fall behind on costs.
"They want to reach the level of easyJet, but it's a trickypath. There's airports in Europe, such as Brussels, whereRyanair has even ousted easyJet," said Gierse.
Eurowings said it wanted to be profitable in 2017 afterstart-up losses in 2016, and confirmed its cost targets, addingit had ensured "competitive" rates for the Air Berlin lease.
"Our hands are full. We don't have much capacity to handleanything else in 2017," Garnadt said when asked whetherEurowings could take on more of Air Berlin. (Reporting by Victoria Bryan and Peter Maushagen; Additionalreporting by Jens Hack in Munich; Editing by Alexander Smith)
