So not content with everything else they have acquired - they are now mopping up.
Only days after agreeing to acquire Austrian, German Wings (already partially owned) will become a wholly owned subsidiary of the German Barons of Frankfurt.
LH is definitely determined to be one of the top 5 no matter what.
Cheers
Showing posts with label German Wings. Show all posts
Showing posts with label German Wings. Show all posts
09 December 2008
07 November 2008
Euro LCCs: A Quantam of..?
The big 3 European Low Cost Carriers have reported their October traffic numbers. They make for interesting reading.
Here are the numbers.
Ryanair carried 5.35m passengers last month, 18% more than in October 2007, taking its rolling 12-month total to 56.8m. October load factor was flat at 85% and on a rolling 12-month basis averaged 81.5%. They have already announced significant cut backs for the Winter months that could see capacity fall by as much as 25%.
For easyJet, October passenger numbers grew by a similar 18.4% to 3.96m, taking its rolling 12-month total to 44.27m (+17.6%). October loads were 1.4 percentage points ahead at 83.9%, and on a rolling 12-month basis 0.5pp ahead at 84.2%. Thus continuing their LF trends higher than their Irish rival.
Alas on the mainland things don't look so good. Passenger numbers at Air Berlin declined by 4.4% year-on-year to 2.7m last month, due to a ‘targeted capacity reduction’ of about 80,000 seats. Load factor dropped 1.6% to 80.1%. Still pretty healthy Air Berlin seems to have stabilized at about half the traffic of Ryanair.
For other airlines in the LCC category things are not looking too good. XL Airways (UK) and Zoom both left the field followed by Sterling last month. But bright spots from the UK include traffic growth at Jet2, and Monarch Scheduled. There is continued uncertainty in Germany over the fate of the musical chairs game being played out with TUI/Thomas Cook/Euro Wings+German Wings and Lufthansa. Air Berlin's ability to play has been weakened by their need to absorb all the hodge podge of traffic they acquired with LTU, DBA etc. The latter of which is no longer an entity.
Cheers
Here are the numbers.
Ryanair carried 5.35m passengers last month, 18% more than in October 2007, taking its rolling 12-month total to 56.8m. October load factor was flat at 85% and on a rolling 12-month basis averaged 81.5%. They have already announced significant cut backs for the Winter months that could see capacity fall by as much as 25%.
For easyJet, October passenger numbers grew by a similar 18.4% to 3.96m, taking its rolling 12-month total to 44.27m (+17.6%). October loads were 1.4 percentage points ahead at 83.9%, and on a rolling 12-month basis 0.5pp ahead at 84.2%. Thus continuing their LF trends higher than their Irish rival.
Alas on the mainland things don't look so good. Passenger numbers at Air Berlin declined by 4.4% year-on-year to 2.7m last month, due to a ‘targeted capacity reduction’ of about 80,000 seats. Load factor dropped 1.6% to 80.1%. Still pretty healthy Air Berlin seems to have stabilized at about half the traffic of Ryanair.
For other airlines in the LCC category things are not looking too good. XL Airways (UK) and Zoom both left the field followed by Sterling last month. But bright spots from the UK include traffic growth at Jet2, and Monarch Scheduled. There is continued uncertainty in Germany over the fate of the musical chairs game being played out with TUI/Thomas Cook/Euro Wings+German Wings and Lufthansa. Air Berlin's ability to play has been weakened by their need to absorb all the hodge podge of traffic they acquired with LTU, DBA etc. The latter of which is no longer an entity.
Cheers
28 August 2008
The Germans Are Coming - Lock Up Your Beer
From the file called bizarre attempts at world domination. Lufthansa seems to be hell bent on putting its foot down as many places as possible. For now I think your daughters are safe.
At the risk of upsetting my German friends - the speed with which LH seems to be moving is almost frightening. The parallels of the 20th century are striking. Not content to acknowledge its bidding for Austrian, today LH is seen in talks with the parent of Brussels Airlines (what was once Belgium's national airline SABENA for whom this blog is so named) as reported by Bloomberg.
But not content with its international expansionist aspirations which seem to be insatiable (AirOne tie up, JetBlue investment and Swiss now a part of the group) at home it is making a play to mop up its domestic footprint.
It is buying out the rest of German Wings that it doesn't own and now this comes out:
Lufthansa said earlier today that it's in talks about a possible merger of its Germanwings discount affiliate with travel operator TUI AG's low-cost carrier TUIfly Germany and the Condor charter airline owned by TUI's largest competitor, Thomas Cook Group Plc. Lufthansa holds almost 25 percent of Condor.
Excuse me Sr Tajani (current EU Commissioner for Transportation) - are you paying attention or are you so consumed with rescuing your national airline that you don't care about the consolidation that is occurring.
At the risk of upsetting my German friends - the speed with which LH seems to be moving is almost frightening. The parallels of the 20th century are striking. Not content to acknowledge its bidding for Austrian, today LH is seen in talks with the parent of Brussels Airlines (what was once Belgium's national airline SABENA for whom this blog is so named) as reported by Bloomberg.
But not content with its international expansionist aspirations which seem to be insatiable (AirOne tie up, JetBlue investment and Swiss now a part of the group) at home it is making a play to mop up its domestic footprint.
It is buying out the rest of German Wings that it doesn't own and now this comes out:
Lufthansa said earlier today that it's in talks about a possible merger of its Germanwings discount affiliate with travel operator TUI AG's low-cost carrier TUIfly Germany and the Condor charter airline owned by TUI's largest competitor, Thomas Cook Group Plc. Lufthansa holds almost 25 percent of Condor.
Excuse me Sr Tajani (current EU Commissioner for Transportation) - are you paying attention or are you so consumed with rescuing your national airline that you don't care about the consolidation that is occurring.
14 July 2008
Germany - a Duopoly no longer, but not quite
The long awaited deal between Condor and Air Berlin has finally foundered on the rocks of the German competition authority. But in true German fashion (remember these are the guys who actually fined one company for LOWERING prices), the result is a strengthening of Lufthansa's hand.
A new third force company comprising GermanWings/Eurowings and TUI's air assets will emerge as an independent LCC group. Clearly not totally independent but independent in spirit anyway.
Frankly this still makes me scratch my head and wonder if Germany as a nation would ever pass the US RICO act.
Cheers
Timothy
A new third force company comprising GermanWings/Eurowings and TUI's air assets will emerge as an independent LCC group. Clearly not totally independent but independent in spirit anyway.
Frankly this still makes me scratch my head and wonder if Germany as a nation would ever pass the US RICO act.
Cheers
Timothy
07 November 2007
Its Official! EasyJet is not a Full Blown HVC
Throwing out the pure LCC (Low Cost Carrier) model in favor of the HVC (Hybrid Value Carrier) has been on the cards for some time for Stelios's Orange clad heros. Now they big step, they have agreed to go into the GDS - Amadeus and Galileo for sure. Given their reach these make sense. (Sorry Tex!)
Using the model developed for Norwegian Air Shuttle, the GDS will be charging out a fee for this "service" This fee will be listed in the final pricing.
Impact?
So GOOD for Easyjet - they needed to do this for the broader reach. This gives them what they want and at a model that makes sense
VERY RISKY for Amadeus and Travelport. I believe this is a short sighted decision and will ultimately result in many conventional carriers adopting the model. However so far Amadeus has proved adept at surfing over this issue. However the number of Masterpricer transactions will be a big sticking point. I would love to have listened to that conversation. I doubt that Easyjet had good advice on this subject.
SIGH OF RELIEF for the travel agents - they now have less competition but more work and more cost
NEUTRAL for corporations - not sure its a benefit though - its more paper/processing work
BAD for LCC scanning vendors. But not that bad since Ryanair is not going to follow suit.
GREAT for Ryanair.They wasted no time in crowing over this one. Read the great press release:
http://www.ryanair.com/site/EN/news.php?yr=07&month=nov&story=gen-en-051107
For the other competition, expect Air Berlin however and several others (eg German Wings) to follow suit.
Using the model developed for Norwegian Air Shuttle, the GDS will be charging out a fee for this "service" This fee will be listed in the final pricing.
Impact?
So GOOD for Easyjet - they needed to do this for the broader reach. This gives them what they want and at a model that makes sense
VERY RISKY for Amadeus and Travelport. I believe this is a short sighted decision and will ultimately result in many conventional carriers adopting the model. However so far Amadeus has proved adept at surfing over this issue. However the number of Masterpricer transactions will be a big sticking point. I would love to have listened to that conversation. I doubt that Easyjet had good advice on this subject.
SIGH OF RELIEF for the travel agents - they now have less competition but more work and more cost
NEUTRAL for corporations - not sure its a benefit though - its more paper/processing work
BAD for LCC scanning vendors. But not that bad since Ryanair is not going to follow suit.
GREAT for Ryanair.They wasted no time in crowing over this one. Read the great press release:
http://www.ryanair.com/site/EN/news.php?yr=07&month=nov&story=gen-en-051107
For the other competition, expect Air Berlin however and several others (eg German Wings) to follow suit.
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