marcogr12
Topic Author
Posts: 251
Joined: Sun Mar 04, 2018 2:36 pm

Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 7:08 am

Berlin is one of the most touristic cities in Europe, with LCC traffic mostly to SXF and legacies to TXL..I was surprised to see that Lufthansa's LCC subsidiary, EW, does not have a large presence in TXL, leaving the biggest chunk of traffic to its competitors. Apart from a few routes to DACH countries and seasonal routes to Croatia, Spain etc, there are no routes to core markets in countries like Italy, Spain, France,Portugal, Greece,Scandinavia,UK (with the exception of LH)..And not only that,but instead of expanding like they did in other bases, they left the field totally open to Easyjet and Ryanair to move into TXL and keep at the same time their SXF network, effectively covering both bases..That's on top of all the other euro-airlines already flying to TXL..So what caused such a retreat?Was it bad marketing strategy? Too slow to react to competition?Not interested in further development there? And what will become of them once all airlines move to BER,when it finally opens?
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LAX772LR
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Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 7:14 am

Airlines follow the money, not the other way around.

Berlin is an amazing and popular place, but it's generally NOT a high-yielding one, especially for longhaul... hence the patronage that it has.

Yes EW is a low(er) cost subsidiary, but it (1) has a limited fleet, and (2) is still subject to the concept of an opportunity-cost; thus if they can make more money basing their aircraft out of places like FRA and DUS, to the detriment of TXL, then they'll happily do that.
I myself, suspect a more prosaic motive... ~Thranduil
 
upperdeckfan
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Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 9:58 am

If you fly EW often you'd realize they are not what one would call a "true" LCC. Unlike FR, EZ, W6, WN they don't charge for things such as checked luggage, seat selection, priority boarding, etc.

Also their fares are far from being low cost, I'm a regular on a two-hour segment out of DUS and have never been able to get a roundtrip for less than 120 EUR, most of times in the range of 250 to 300 EUR even booking one to two months in advance.

Hubbing in DUS allows them to cover the Ruhr basin, which is much better yielding than the leisure-oriented Berlin.
748,744,742,741,772,773,762,763,
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Blerg
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Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 10:00 am

I fear Berlin might be getting overcrowded, even easyJet is scaling back their operations there this coming winter with some destinations like Warsaw being completely suspended.
 
Delta777Jet
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Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 10:02 am

uppderdeckfan , have you ever travelled with EW? You indeed pay for checked bags , priority boarding and seat reservation ! They offer packages like Ryanair ( Basic , smart ... etc ) ! They are just not really low cost because of a high cost structure 60% over easyjet costs and their fares are more classic airline like ! Pax in Berlin are really price sensitive, and EW/U2 doesn’t offer any better service and EZY or FR but charging higher prices !
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zkojq
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Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 11:17 am

upperdeckfan wrote:
If you fly EW often you'd realize they are not what one would call a "true" LCC. Unlike FR, EZ, W6, WN they don't charge for things such as checked luggage, seat selection, priority boarding, etc.


Eh? I flew with them a month ago and paid for both of those.
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upperdeckfan
Posts: 939
Joined: Fri Jun 08, 2007 1:59 am

Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 11:28 am

According to my experience, EW Smart fare is normally no more than 20-30 EUR when compared to the Basic fare. Smart fare gives you a 23 kg checked bag, seat selection and even a free snack.

OTOH, EW basic fare is normally more expensive than FR/EZ/W6 bottom fares when they compete on the same route. That's probably have to do with EW charging less to upgrade the basic fare than FR/EZ/W6.

My bottom line is that EW average fare is always higher than that of FR/EZ/W6 and therefore I don't rank EW in the same league as the others.
748,744,742,741,772,773,762,763,
764, 789, 732,733,735,737,738,739,
752, 722, 717,74M,DC10,DC9,M82,
M83, M87, M88,310,319,320,321,332,
333, 343, 346,359,388,L1011,CR2,
CR7, CR9,CRK, E175,E190,ATR42,
DSH8, CS1,CS3
 
cityshuttle
Posts: 92
Joined: Mon Jan 02, 2017 3:56 pm

Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 3:24 pm

Wasn’t the "agreement" between LH (EW) and U2, that EW wouldn’t expand at TXL in favor for U2 and therefore U2 wouldn’t expand in DUS in favor of EW ?
 
TR
Posts: 981
Joined: Thu May 03, 2001 1:28 am

Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 3:28 pm

cityshuttle wrote:
Wasn’t the "agreement" between LH (EW) and U2, that EW wouldn’t expand at TXL in favor for U2 and therefore U2 wouldn’t expand in DUS in favor of EW ?

I hope they did not put that to paper. Competition lawyers would love to dig deep into a thing like that. However I am sure there’s something to it anyway. I’ll see myself out now
 
DUSZRH
Posts: 153
Joined: Thu Jan 05, 2017 12:17 am

Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 3:45 pm

TXL is maxed out on Slots. EZY bought the AB Slots and FR the HG/OE Slots.

LH has historically a low presence in Berlin following the special Berlin status before reunification.

But the network (not frequency) was reduced quite a bit. CDG was dropped. Nowadays it’s basically domestic routes + Group hubs, LHR and a few holiday routes.
 
max999
Posts: 1130
Joined: Fri Dec 09, 2005 11:05 am

Re: Why hasn't EW been able to establish itself as a major player in TXL?

Tue Aug 20, 2019 3:59 pm

Delta777Jet wrote:
uppderdeckfan , have you ever travelled with EW? You indeed pay for checked bags , priority boarding and seat reservation ! They offer packages like Ryanair ( Basic , smart ... etc ) ! They are just not really low cost because of a high cost structure 60% over easyjet costs and their fares are more classic airline like ! Pax in Berlin are really price sensitive, and EW/U2 doesn’t offer any better service and EZY or FR but charging higher prices !


I agree with you. EW can't compete directly with easyJet or Ryanair. Passengers aren't going to pay EW more to get the same ULCC service. EW concentrates on flying from places with less ULCC competition.
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