30 March 2009

Consolidation Comes Slowly To Germany

While LH continues its aggressive expansionism with a long list of acquisitions and mergers, the creation of a strong second force has struggled. Should there be 2 players or 3?

Effectively there can really only be 2. So there if there is to be 3 if would not be efficient. However some still hold on to the belief that 3 is possible in that scenario LH's GermanWings LCC would be required to join forces with another player.

One of those doors just shut. Air Berlin will take over TUIFly's scheduled operations. This has remained a separate legal entity for some time and represents the HLX.com (bright yellow taxi) product. As some background, the TUI Group in Germany owns nearly 50 aircraft, which makes it the third-largest German fleet after Lufthansa and Air Berlin, carrying more than 12.5 million passengers per annum. TUIFly Charter operations will remain separate. TUIFly's other businesses such as the former FirstChoice airlines, Britannia Airways, Corsair etc remain under TUIFly's charter operations and are unaffected by this move.

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