by Lufthansa Flyer | May 3, 2016 | Featured, Fleet Update, Lufthansa |
Lufthansa has launched a bit of a promotion that will give 350 fans the opportunity to have their name added to the fuselage of Lufthansa’s ‘Fanhansa’ fan aircraft that will be used to take the team to France for the European Football Championships on June 7.
To enter for your chance to have your name on the plane, visit this link to apply. You can apply from now until May 12. Winners will be picked via random drawing.
Lufthansa will also be holding other contests and promotions as they ramp up to the tournament. Stay tuned.
by Lufthansa Flyer | May 1, 2016 | Featured, First Class, Lufthansa, Munich, On Board Experience |
A few days ago Lufthansa began adjusting their Winter 16/17 timetable and most noticeable was the removal of First Class service to several cities that are served from Munich. This comes as no surprise as LH has begun the process of converting some of their long-haul fleet from 4-cabin aircraft to 3-cabin aircraft (Biz / Prem Eco / Eco). The first to be affected is the Airbus A330 & A340 fleet based in Munich.
The list below shows the city pair and the date that First Class bookings will no longer be available for the route.
Munich – Boston: January 3
Munich – Charlotte: December 1
Munich – Chicago: January 3
Munich – Delhi: September 21
Munich – Denver: March 26
Munich – Miami: February 4
Munich – Montreal: December 1
Munich – Mumbai: December 1
Munich – New York (JFK): February 2
Munich – Riyadh: March 26
Munich – Tehran: December 1
Munich – Toronto: March 26
Munich – Vancouver: March 26
Munich – Washington DC: February 2
Those First Class Ducks just got a little bit more valuable…. 😉
by Lufthansa Flyer | Apr 27, 2016 | Airlines, Brussels, Featured, LCC, Lufthansa |
Lufthansa’s Executive Board was set to give their recommendation today on whether or not the Supervisory Board should vote to acquire the remaining stake of Brussels Airlines that LH does not already own. Over the last few weeks, momentum had been growing that the deal would be announced in April, but not we’ll need to wait til September at the very soonest to see what is decided. Currently, LH owns a 45% stake in the airline and has until 2017 to exercise its option to buy the remaining 55% from SN Airholding.
The reason given for this delay is to allow Brussels, and Belgium at large to recover after the recent bombings at the airport and metro stations. On the surface, it looks like a valid reason but in my opinion I think there may be other reasons that go beyond sympathy.
Since announcing the potential buy up of SN, Lufthansa has made it no secret that it is looking for other partners as it tries to boost its Eurowings LCC (Low Cost Carrier) division. In addition to the SN deal, which still seems most likely, LH has approached SAS as well as Thomas Cook’s ‘Condor’ to see if there is any desire from these airlines to join Lufthansa Group. Lufthansa has simply said that exploratory conversations had taken place but no decisions had been made.
In my opinion, I don’t think LH tapped the brakes on the SN deal because of the terrorist attacks. As tragic as the events were, it was not a direct strike on Brussels Airlines and thus would have changed the tenor of the deal with Lufthansa. In addition, the SN deal was nothing new. LH has obviously been aware all along what the timeline would be for the deal and since it is already a 45% stake holder, it would be a simple accounting transaction that would close the deal for the remaining 55%.
What I think is happening is that LH sees a very fragmented LCC market in Europe, with far too many players involved which leaves only a few successful LCC operators such as EasyJet and Ryanair. LH sees opportunities to bolster its line up with potentially larger market players such as SAS or Condor as compared to SN and they simply are going through their due diligence to confirm they don’t miss a better opportunity elsewhere. With the sovereign ownership group of SAS being motivated to sell the airline, and Thomas Cook wanting to get rid of Condor who is saddled with 800 million euro in debt, LH might be able to get a fantastic bargain and at the same time at something new to the group, while still maintaining the SN stake.
Ultimately however, I truly feel that LH will take the path of least resistance and bring the rest of Brussels Airlines into the fold.
Just my 2¢……
by Lufthansa Flyer | Apr 26, 2016 | Featured, Lufthansa, Strike |
As I mentioned a few days ago, one of Germany’s largest unions thought it would be wise to call a nationwide strike of public sector workers. To that end, airports will bear the brunt of the work stoppage as aircraft handlers, airport fire safety personnel and a myriad of other staff will strike for most of the day on Wednesday. As it stands now, the strike at Munich will cover the the entire day while Frankfurt will see a work stoppage only through 3p on the 27th. Other main German airports including Dusseldorf, Cologne, Dortmund, and Hannover will also see widespread disruptions. Bremen was selected to be the target of the strike on Tuesday, April 26.
To deal with the disruptions, Lufthansa has published a special timetable for April 26-27 that reflects the cancellation of a substantial number of flights. Passengers impacted by the strike have the option to rebook their flights, or use an alternative method of travel including bus and train (assuming they’re not on strike!). LH has set up a dedicated webpage that addresses the impact of the strike, along with a tool to check if your flight is affected. If you booked your travel through a travel agent, you should contact them directly to assist you.
by Lufthansa Flyer | Apr 25, 2016 | Brussels, Corporate, Eurowings, Featured, LCC, Lufthansa |
Over the past several days, you’ve seen my posts about Lufthansa looking to acquire or ‘tie up’ with a partner in an effort to execute a quantum leap in its Low Cost Carrier unit, Eurowings.
Up til now, Lufthansa has approached the ownership of SAS to discuss the potential of a tie up so that SAS could meld into the Eurowing unit and focus on the LCC business with its world-wide network. SAS ownership, primarily comprised of Sweden, Norway, and Denmark is keen on the idea since the sovereign ownership has been looking to unload their share of SAS back into private hands. The other option, and the one that seems most likely, is Lufthansa’s acquisition of the remaining stake of Brussels Airlines, of which LH already owns 45%. LH has until next year to exercise the option, but it appears as though the decision can be made in the coming weeks.
The newest option is the idea of acquiring Condor from the Thomas Cook Group. Condor, for you avgeeks, was originally founded by a group that included Lufthansa in 1955. LH originally was a 25% stake holder until 1959 when it acquired the entire airline. Lufthansa began selling shares of Condor to Thomas Cook in 2006, and was completely divested of Condor in 2009.
This recent develop has Lufthansa discussing the option of either a tie-up or a complete acquisition of Condor and their 46 aircraft. Predictably, LH and Thomas Cook have both declined comment on the topic.
However, a deal with Condor would not be without its of baggage. Condor is currently saddled with 800 million Euro of debt and reported a loss of over 10 million Euro for their most recent fiscal quarter. Should Lufthansa look to actually acquire Condor outright, it would probably simply take over the debt obligations and pay Thomas Cook next to nothing for the ‘privilege’. Thomas Cook would most likely be content to rid themselves of the liability.
So why is Lufthansa meeting with all of these potential partners?
My theory and opinion, is that Eurowings is not doing as well as expected and their planned growth trajectory has been revised downward. Certain routes launches have been delayed and it appears that the fleet is not growing as quickly as it needs to in order to gain market share. Though LH executives speak optimistically of Eurowings, I can’t help to think that they are doing this because they have to, but have their reservations about the prospects for it. With a tie up or acquisition, it would immediately add a substantial amount of aircraft and expand the Eurowings timetable dramatically, instantly making them a serious competitor for Euro LCC’s such as Ryanair and EasyJet.
What do I think happens?
I think LH is shopping around just to execute a bit of due diligence before it acquires the remaining stake of Brussels that it doesn’t already own. Brussels Airlines is profitable and is already well integrated into the LH Group, so it obviously offers the path of least resistance. What I’m wondering is what will the SN employees have to say should Lufthansa relegate them to the LCC market, offering low fares along with low frills. Brussels is known as a very solid airline because of their outstanding Business Class product on long haul flights and a very strong route network in Europe and Africa. I wonder how that changes should the Eurowings culture moves in.
