Lufthansa needs to completely rethink their positioning. The single biggest cost driver is onboard seating density and cabin layout.
Such as example, LH
's 3 class A330-300 with 221 seats (vs. KL
at 292 and TK
at 289) exacerbates the cost differences with its competitors. The new C product, although a much needed improvement, is still a relatively mediocre product vs. AF
new 777 product / BA
Club World and any Gulf carrier product(s). From what I gather, LH
will be the first mover of a 4 class A330-300 with its new PY
class - further increasing seat costs. When I look at LH
going up on YUL
with 221 seats, competing with a departure to CDG
on an AF
3 class 77W with 472 seat airplane - the comparison isn't even fair.
Although massively subsidized, the ME3 + TK
(and even KLM) found out that there's a huge price driven market out there, and that the only way to make money is to make the best use of onboard density. Segmentation is key - no doubt this is part of the reason that LH
is looking to dense up some A340-300s to 300 seats (with a much smaller J cabin).