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lhuaaua
Topic Author
Posts: 44
Joined: Sat Sep 15, 2001 6:10 pm

LH To Launch Low Cost Airline

Tue Feb 05, 2002 6:02 pm

I just heard on CNN that LH will also launch a low cost carrier. Any confirmation, more details?

Thanks
 
Sabena332
Posts: 14938
Joined: Wed May 09, 2001 3:57 am

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 6:37 pm

That`s interesting. I just looked at CNN`s website but I didn`t found anything about that. Will LH`s new low-cost airline start from major German airports ?

Patrick
NZ1's mother is a disgusting crack-whore and his father is a worthless alcoholic!
 
carduelis
Posts: 1388
Joined: Wed Dec 05, 2001 8:24 pm

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 7:00 pm

Based at Hahn, no doubt!
Per Ardua ad Astra! ........ Honi Soit Qui Mal y Pense!
 
vfw614
Posts: 3852
Joined: Mon Dec 10, 2001 12:34 am

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 7:05 pm

LH top-executive Ralf Teckentrup said two weeks ago that Lufthansa might start a low-cost airline as a reaction to the growing Ryanair presence in Germany. Last week a LH spokeswoman, however, said that for the time being no such plans will be realized as Lufthansa believes that Ryanair is targeting another clientele and therefore there is not as much overlapping competiton-wise as most people believe. I guess this relates to Ryanair's international flights out of Hahn - it would be different if a low-cost airline would start low-cost flights on domestic routes, i.e. if Germania would expand into a fully-fledged low cost airline serving the main airports.
 
Udo
Posts: 4288
Joined: Tue May 18, 1999 5:16 pm

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 7:12 pm

Onboard service on domestic and short European routes is already no frills in Economy, so the only thing to do is offer lower prices...
Me & You & a Plane Named Blue...
 
Ndebele
Posts: 2850
Joined: Mon Apr 09, 2001 3:16 am

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 7:28 pm

They already started a low-cost product some years ago, called "Lufthansa Express"
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Photo © Konstantin Von Wedelstaedt


However, after about two years of operation, Lufthansa Express was re-integrated into Lufthansa, and as Uwe already mentioned, from that day on Lufthansa domestic/European short-haul became a "no frills" service.

I don't think they will operate out of Hahn or any similar "cheap" airports.
 
Guest

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 7:55 pm

I agree with the notion that FR & LH are *generally* targeting different segments of the airline market.

I guess the traditional airlines' role in Europe will be reduced to flying between major business centres (Frankfurt, Paris, London, Zurich, Milan etc. etc.)

Interesting to read about LH's no-frills Y class on Europe flights-what are the fares like on these flights?

I think BA might be introducing the same sort of strategy on routes where it still wants to give the no-frills carriers some competition.

Regards
 
racko
Posts: 4548
Joined: Tue Nov 06, 2001 12:06 am

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 9:14 pm

if you call the Lh service "no-frills", what do you call ryanair service then ?
 
Guest

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 9:27 pm


This is cool news. Hope they get it started soon.
And hope they actually offer cheaper fares than now. Especially from STR  Big thumbs up

 
Guest

RE: LH To Launch Low Cost Airline

Tue Feb 05, 2002 9:33 pm

FR service is to fly you from A-B safely, and within schedule. Nothing more.

If you would like smiling FA's, free drinks & food, and convenient airports (and plenty of people still do), then you generally have to pay more, and fly with the big boys.

Neither one is better than the other, just depends on what the individual needs-cheap prices, or convenience.

No-frills airlines are trying to offer convenient services whenever possible, but they have to draw the line somewhere....


Regards
 
Udo
Posts: 4288
Joined: Tue May 18, 1999 5:16 pm

RE: LH To Launch Low Cost Airline

Wed Feb 06, 2002 7:22 pm

Ok, LH is not absolutely no-frills, but I don't want to pay twice as much for a ticket just to get ONE drink and a mini croissant. That's almost no-frills. Drinks and snacks can be bought much cheaper at an airport supermarket...

And about convenient airports: FRA fpr example is not convenient for anyone. Many people drive for hours just to get to FRA, if you don't believe it, check the number plates on the cars in the parking lots. So I wouldn't call Hahn, Friedrichshafen or Rostock "unconvenient".

Regards
Udo
Me & You & a Plane Named Blue...
 
wodo
Posts: 115
Joined: Mon Jul 31, 2000 6:38 am

RE: LH To Launch Low Cost Airline

Wed Feb 06, 2002 7:33 pm

They just said that they do not exclude the possibility of an own no frills airline or an alliance with one of them.
 
Guest

RE: LH To Launch Low Cost Airline

Wed Feb 06, 2002 8:08 pm

An alliance with a no-frills airline------>wow! But would the likes of Germania, Ryanair and others accept this? Wouldn't it mean they would have to agree to fly to the main airports, and time their schedules to feed long-haul flights?

Mmmm, dunno.....

Regards

 
lhuaaua
Topic Author
Posts: 44
Joined: Sat Sep 15, 2001 6:10 pm

RE: LH To Launch Low Cost Airline

Wed Feb 06, 2002 10:30 pm

Heard it again on Biz International w/ Richard Quest. No info on the LH website though (of course, what do you expect?!)
 
Andreas
Posts: 5880
Joined: Tue Oct 09, 2001 7:56 pm

Gentlemen: For Your Information...

Thu Feb 07, 2002 12:53 am

on Reuters (not that new though). See last part for LCC ,before you restart speculations:

NEW YORK, Feb 2 (Reuters) - German flagship airline
Deutsche Lufthansa AG remains confident it
will breakeven for full-year 2001, but 2002 forecasts remain clouded by economic weakness and uncertainty over air traffic demand, its chief executive said.
Lufthansa Chairman and Chief Executive Jurgen Weber on Saturday reiterated the airline's financial outlook for 2001, but said he could not forecast when traffic would rebound or whether Lufthansa would post a profit in 2002. "I think the worst is over, but we still cannot see a real improvement," Weber said in an interview during a visit to the World Economic Forum in New York.
Lufthansa in November said it expected to avoid an
operating loss for 2001 after third-quarter results beat market forecasts. Despite an expected plunge in fourth-quarter sales and near 64 percent drop in nine-month operating profits, the airline said it would end the year at around breakeven on an operating basis.
"We are still confident we will achieve this," Weber said.
Most major carriers have seen revenues eroded as they
struggled with the lingering economic downturn and the travel slump that followed the Sept. 11 airplane attacks. Weber said certain Lufthansa markets, such as China, are doing well, and business traffic to the United States is recovering.
But tourist traffic in New York continues to be off, and
European markets feel the pinch from cutbacks in business spending by corporations.
"This will come, the question is when?" Weber said.
Lufthansa is steadily adding back capacity. In March it
will restart flights from Munich to New York and also start a new service from Munich to Shanghai. The carrier still has 43 aircraft grounded as part of its cutbacks.

CALL FOR STANDARDS
Amid fundamental shifts in aviation, Weber said Lufthansa is pushing for global standards in security, international operations and insurance.
New standards have become crucial as carriers face tougher competition for fewer travelers, higher security and insurance costs and passengers deal with more scrutiny at airports, the airline said.
Lufthansa is eyeing further cost-cutting to offset the
rising security costs.
Talks with unions have already provided about a 220 milion euro reduction in employee costs for 2002, Weber said. But new insurance costs could add at least $100 million annually, and security costs are still being determined.
"Our opinion is that public security should be paid by the public and not by the airlines and their customers," Weber
said.

LOW-COST CARRIER
Lufthansa is still considering starting a budget carrier,
but Weber brushed aside suggestions that it was threatened by smaller airlines, such as Irish start-up Ryanair. "It is a totally different business. How can they take Lufthansa market share? You cannot compare them with scheduled carriers such as Lufthansa," he said.
"We have done all the studies (for a budget carrier),
operationally we are ready to do it. We really just ask time to time if the business plan will be positive for us. When it is positive we will start, up until now it hasn't been," the chief executive said.
Ryanair, Europe's biggest budget airline, is trying
to extend its foothold in Germany and has said it has big expansion plans to make Frankfurt-Hahn its next hub airport.
Weber said a decision was also close in its talks with
Polish national airline PLL LOT on further cooperation
through codeshare flights and joint ventures.
"We were told that the Polish government would take a
decision by the end of February. It doesn't depend on
Lufthansa," he said.
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SunCEO
Posts: 356
Joined: Fri Oct 12, 2001 4:42 am

RE: LH To Launch Low Cost Airline

Thu Feb 07, 2002 5:57 am

The economist magazine seems to thing AF will have a low cost division aswell....

Rgds,
SunCEO.
 
Sabena332
Posts: 14938
Joined: Wed May 09, 2001 3:57 am

RE: LH To Launch Low Cost Airline

Thu Feb 07, 2002 6:52 am

What do you guys think, will the on board service on the "real airlines" improve when they launch a low cost subsidiary ?

Patrick
NZ1's mother is a disgusting crack-whore and his father is a worthless alcoholic!
 
Andreas
Posts: 5880
Joined: Tue Oct 09, 2001 7:56 pm

RE: LH To Launch Low Cost Airline

Thu Feb 07, 2002 7:32 am

I don't really see a connection between both carriers. LH would probably use LH-LCC apart from LH-real, as they cannot risk to make their business customers angry, if they pay, such as myself yesterday to and from MUC, 200 Euro one-way, while LCC-LH does the same thing for, say 55 Euro oneway, if it's the same route, therefore they will fly Hahn-MUC or something like that. If so, they won't change anything on the LH-real, except of course ongoing cost-cutting, that they must do (!!!!!) in order to stay financially at the top of Europes Big or real, if you like, carriers.
Besides: what do you want to do on a 35 minute flight Fra-Muc, except hand out a sandwich, some juice or coffee, sit down and "bye-bye everybody" (and they managed to serve everybody this time, which is not guaranteed on that service).
Regards
Andreas
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