by Lufthansa Flyer | May 7, 2017 | Air Berlin, Corporate, Featured, LCC, Lufthansa |
After comments made last week by Lufthansa’s CEO Carsten Spohr, it appears that Lufthansa is putting together a strategy that would allow it to absorb Air Berlin into Eurowings. After years of struggling, and failed subsidies/investments by Etihad, it appears that Air Berlin is on life support and without intervention, could simply fade away.
Spohr, speaking before the Lufthansa Group Annual Shareholder’s Meeting, stated 3 criteria would need to be met before Lufthansa would feel comfortable writing a check for Air Berlin. Specifically he addressed:
- Air Berlin’s debt level of 1 BILLION Euro and a debt ratio of 4.5:1 makes it a VERY EXPENSIVE acquisition if LH were to acquire the liability. Spohr suggested that if Lufthansa were to be interested in acquiring ‘AB’, the debt would have to be assumed by Etihad (Air Berlin stakeholder), or be disbursed by some other means before AB would be welcomed to the LH Group. LH simply would refuse any deal that would involve assuming any of the debt
- Anti-Trust Concerns from the EU would overshadow any thought of the acquisition. Not only on a continental EU level, but also intra-Germany, since an AB acquisition by Lufthansa would leave Lufthansa as the only major airline within Germany. Knowing the EU’s political leanings, it would be foolish to think that they would award a monopoly to Lufthansa. This issue would create an opportunity for RyanAir or EasyJet to swoop in with proposals for Air Berlin which could be disastrous for Lufthansa. After all, who wants RyanAir or EasyJet operating in their neighborhood. Air Berlin joining Lufthansa would also lead to Air Berlin’s exit from OneWorld.
- Before any deal would take place, Air Berlin would also be required to reign in their costs. Progress is being made, but Air Berlin is not near being profitable, and again, Lufthansa has indicated that it does not want to inherit any liabilities should they decided to bid for Air Berlin.
- Assurances would also need to be made for Air Berlin staff. Any merger would almost certainly guarantee a significant amount of staff overlap and with worker protection laws in Germany being the way they are, Lufthansa will not be able to simply layoff unnecessary workers. AB employs approximately 8500 people and accommodations would need to me made for those at risk of losing their jobs as a result of a merger.
Should LH find a way to navigate the regulatory gauntlet, and get others to take the liability left behind by Air Berlin, it would be an obvious coup for Lufthansa. Considering that LH’s main focus over the last 3 years has been to build an LCC product that can take on, and beat the likes of RyanAir and EasyJet at their own game, plugging Air Berlin into Eurowings would catapult LH to the forefront of LCC operations in Europe. The only problem is that Europe’s politics and Lufthansa’s competitors will do everything possible to keep Lufthansa from realizing that success.
by Lufthansa Flyer | May 6, 2017 | Austrian, Economy Class, Featured, Lufthansa, Miles & More, Swiss |
Miles & More is offering a promotion that will award members double miles for certain flights between Europe and the USA. The offer is valid for flights that are booked by May 15, 2017, for travel that is completed by September 15, 2017.
The eligible flights include Lufthansa, Austrian, and SWISS operated flights.
For Lufthansa operated flights the routes eligible for the mileage bonus include Frankfurt to New York JFK, New York Newark, Los Angeles, Boston, San Francisco, Orlando, Miami, Seattle, San Jose and Tampa, or from Munich to New York JFK, New York Newark, Boston, San Francisco and los Angeles.
For Austrian operated flights the routes eligible for the mileage bonus include Vienna to New York JFK, New York Newark, Los Angeles and Miami.
For SWISS operated flights the routes eligible for the mileage bonus include Zurich to New York JFK, New York Newark, Los Angeles, San Francisco, Boston and Miami.
According to the webpage that provides the details, it appears that bonus only applies to Economy Class bookings. Additionally, the bonus will only be credited to the aforementioned routes. Connecting to other flights that are on the same itinerary do no earn the extra miles.
To be eligible for the bonus miles, you need to register for the promo by visiting this site and entering your information, including your Miles & More number.
Please note that these miles are bonus miles and do not count towards status miles, and the bonus is calculated based on the miles that you fare class offers.
H/T: Oliver2002 & Flyertalk’s Miles&More Forum
by Lufthansa Flyer | Apr 28, 2017 | Air Canada, Brussels, Business Class, Fare Sale, Featured, Lufthansa, Swiss |
Between now and April 30, you can book roundtrip travel in Business Class aboard Lufthansa / SWISS / Austrian / Brussels to the USA for only $1400 (Roundtrip). The minor catch is that you have to begin your travels from Berlin. But for a $1400 Business Class ticket, that may be a very minor thing to worry about.
The fare sale covers travel between May 26 and September 4, 2017 and only requires a Saturday night stay. You must purchase your tickets 14 days ahead of your planned departure. This pricing is also available on flight operated by United and Air Canada, so you can get quite creative in how you route your travel from Berlin.
This special fare was published on the SkyTravelAgent.de website. Sky Travel specializes in finding and booking LH Group deals and promos that may not normally be published by the airlines. I’ve used them a few times in the past when I needed to build creative routings for mileage runs, or to get the best possible price for premium cabin tickets. If you’re looking to build a fun and creative itinerary, reach out to them and see what they can do for you. If you can’t find this fare deal on the airline websites, contact Sky Travel directly.
But Hurry, you only have 3 days to get this deal!
by Lufthansa Flyer | Apr 23, 2017 | Fare Sale, Featured, Lufthansa |
Today is the last day of Lufthansa’s 72-hour sale for flights originating out of the UK.
Fares from the UK to most European destination range in the £110-£130 range, however there are pockets of even better pricing such as London to Geneva for only £68 or Aberdeen to Frankfurt for £95.
The fare sale runs through Midnight tonight (April 23). The best fares are found for mid-week travel dates and require either a Saturday night stay, or a 5 night stay. Weekend surcharges apply if traveling Thursday – Sunday.
by Lufthansa Flyer | Apr 16, 2017 | Featured, Germany, Lufthansa, Voucher |
Lufthansa is offering the chance to get a voucher code good for €20 off of flight booked on Lufthansa.com that originate in Germany.
You’ll have to hurry, the Voucher can only be redeemed between April 16 and April 18, 2017.
Travel must take place between April 16 and June 21. Flights must be operated by Lufthansa or Lufthansa City Line and must be booked through Lufthansa.com.
***Please note that the link above was in an email I received from Lufthansa this morning. In some cases the link may be ‘targeted’ and only work if you received an email from Lufthansa advertising the Voucher. Check you inbox for an LH email if my link doesn’t work.
