Lufthansa hopes to use the operational base of Sun Express, a company that it shares with Turkish Airlines. But it will absorb alone the marketing risks and eventual benefits - DR
Mystery still reigns around the development strategies of the future low-cost long-haul flights of the Lufthansa group.
The company, that hopes to start its activities by the end of the summer or beginning of the Fall 2015, still has not revealed its name, or destinations, and is only stating the large geographic areas it will serve such as Europe, Asia, and Africa.
However, we know that it will operate with seven aircrafts - B 767, A 330, that should take-off from the Munich, Düsseldorf and Cologne airports.
Lufthansa hopes to use the operational base of Sun Express, a company that it shares halfway with Turkish Airlines. But it will absorb alone the commercial risks and eventual benefits.
Because while Turkish stands as a Star Alliance partner, it remains, primarily, its major competitor, especially in terms of prices.
“We will not share the clients or benefits of this future low-cost company with Turkish Airlines”, declared Jens Bischof, Sales and Marketing Manager of Lufthansa, during the first flight of its Premium Economy class on Wednesday October 8th, 2014.
The company, that hopes to start its activities by the end of the summer or beginning of the Fall 2015, still has not revealed its name, or destinations, and is only stating the large geographic areas it will serve such as Europe, Asia, and Africa.
However, we know that it will operate with seven aircrafts - B 767, A 330, that should take-off from the Munich, Düsseldorf and Cologne airports.
Lufthansa hopes to use the operational base of Sun Express, a company that it shares halfway with Turkish Airlines. But it will absorb alone the commercial risks and eventual benefits.
Because while Turkish stands as a Star Alliance partner, it remains, primarily, its major competitor, especially in terms of prices.
“We will not share the clients or benefits of this future low-cost company with Turkish Airlines”, declared Jens Bischof, Sales and Marketing Manager of Lufthansa, during the first flight of its Premium Economy class on Wednesday October 8th, 2014.
Use low-costs as a potential for growth
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This new operator will join the “Wings” label currently made-up of Germanwings, and Eurowings, dedicated to leisure airlines in Europe.
“There is a large growth potential for the low-cost segment and we want to cut ourselves a piece of the cake through to these new companies, that will have production costs 30% below than those of Lufthansa” continues Jens Bischof.
The group also hopes to use its low-cost operators to take back lines that it had abandoned, due to lack of profitability, especially in Asia, such as Vietnam, the Indian Ocean, or even the Caribbean.
Jens Bischof believes that this multiplicity of brands will be the strength of the Lufthansa group.
“This way, we can cover all of our customers' needs, who could fly on the company of their choice depending on their expectations, destinations, and budgets.”
Yet let's see how pilots will behave, as they are currently on strike, against the terms of pre-retirement leave.
“The unions understand that the world has changed. We negotiated with them in order to find an agreement to advance on these projects that will create jobs within the group” hopes Jens Bischof.
And if negotiations were to fail, he won’t keep himself from continuing the development of the low-cost branch without the approval of pilots.
A decision that may have inspired Alexandre de Juniac who threatens to use forceful actions with Transavia Développement…
“There is a large growth potential for the low-cost segment and we want to cut ourselves a piece of the cake through to these new companies, that will have production costs 30% below than those of Lufthansa” continues Jens Bischof.
The group also hopes to use its low-cost operators to take back lines that it had abandoned, due to lack of profitability, especially in Asia, such as Vietnam, the Indian Ocean, or even the Caribbean.
Jens Bischof believes that this multiplicity of brands will be the strength of the Lufthansa group.
“This way, we can cover all of our customers' needs, who could fly on the company of their choice depending on their expectations, destinations, and budgets.”
Yet let's see how pilots will behave, as they are currently on strike, against the terms of pre-retirement leave.
“The unions understand that the world has changed. We negotiated with them in order to find an agreement to advance on these projects that will create jobs within the group” hopes Jens Bischof.
And if negotiations were to fail, he won’t keep himself from continuing the development of the low-cost branch without the approval of pilots.
A decision that may have inspired Alexandre de Juniac who threatens to use forceful actions with Transavia Développement…
