BERLIN (Reuters) - Lufthansa (>> Deutsche Lufthansa AG) named Thorsten Dirks, the chief executive of Telefonica Deutschland (>> Telefonica Deutschland Holding AG), to its management board to lead the expansion of budget unit Eurowings, which is rapidly building its presence in Europe thanks to recent deals.

Dirks replaces long-time Lufthansa manager Karl Ulrich Garnadt, who is retiring because he is turning 60 in January.

Eurowings is Lufthansa's answer to regain market share lost to low-cost rivals such as Ryanair (>> Ryanair Holdings plc) and easyJet (>> easyJet plc).

Its aim to become Europe's third largest point-to-point carrier will be reached ahead of time should it successfully complete planned deals to lease up to 40 planes and their crew from ailing rival Air Berlin and take over Brussels Airlines.

(Reporting by Victoria Bryan; Editing by Maria Sheahan)