Posts Tagged ‘Lufthansa’


[Business Traveller] Until now Europe’s traditional airlines such as Air France, British Airways, KLM and Lufthansa have prided themselves on not burdening passengers with ancillary charges as do the budget carriers.

Dutch carrier KLM is the first to break ranks & charge for checked baggage.

Dutch carrier KLM is the first to break ranks & charge for checked baggage. Photo: Wikipedia

But Dutch carrier KLM is the first to break ranks. Reports today in the Dutch media, now confirmed by KLM, state that starting in April KLM will charge short-haul passengers fees of either €15 (when paid in advance) or €30 (when paid at the airport) for pieces of checked baggage.

Hand luggage will remain free and the charges will not apply to passengers flying long-haul. All members of KLM’s Flying Blue loyalty scheme will also escape the new fees.

At the same time, it’s understood KLM will strictly enforce rules for hand baggage. According to the reports, any bag which doesn’t meet KLM’s 55x25x35 cm, 12 kilos allowance will be placed in the hold and the unlucky passenger will be charged €30 at the gate.

In its defence KLM says that 60 to 70 per cent of its short-haul passengers carry only hand luggage. The airline says that passengers would prefer to pay less for their flights and that is why it has decided to bring in the fee.

Most large airlines lose money flying within Europe yet cannot…..

Read the full story at Business Traveller…..


Report by Alex McWhirter,
Business Traveller
13th Feb, 2013



[London Evening Standard] Flooded with light under the sweeping arc of its huge roof, Heathrow’s new Terminal 2 begins to take shape. The £2.5 billion structure, which airport bosses hope will transform travellers’ experience, is expected to be completed next year, with the first passengers using it in 2014.

Construction work continues on the new terminal.  Picture: Glenn Copus /  Evening Standard

Construction work continues on the new terminal. Picture: Glenn Copus / Evening Standard

The four-storey glass building is designed to maximise daylight and smooth the movement of passengers, of whom some 20 million a year — at a rate of 3,000 per hour — will pass through.

A distinctive three-waved roof, 54,000 metres square, has been designed by Foster + Partners. It will act as an “intuitive way finder” marking out check-in, security and departures.

Some 28 planes will slot into stands around the terminal in a “toast rack” design that makes the most of Heathrow’s limited space. T2 will serve Star Alliance airlines, including Air Canada, Lufthansa and Thai Airways International, and take Airbus A380s and A320s.

The new terminal is part of a long-term overhaul of the airport that aims to improve customer experience, but will not remedy the problem of capacity, with the two runways already operating nearly at full stretch.

The 1,500-seat departure lounge is a planespotter’s treat, as the 15-metre-high windows look out onto the south runway. Some 3,000 square metres in departures with prime views are earmarked for first and business class. T2 travellers will also have more room to stretch out — project director Duncan Pickard said: “There’s less retail [space] per passenger than T5 but there’s a balance to be struck as retail helps fund a project which has no public money.”

Arrivals, on the first floor, will host 46 immigration desks, which in theory should cut out huge waits at passport control. “If the Border Force …..

Read the full story at the London Evening Standard…..


Matthew Beard – Evening Standard
7th November, 2012



[Herald Scotland] The future of Aberdeen based BMI Regional has been secured after British Airways’ parent company agreed to sell it to a consortium of local businessmen for £8 million, creating Scotland’s biggest indigenous airline.

IAG chief executive Willie Walsh said: "This deal provides a future for BMI Regional."

IAG chief executive Willie Walsh said: “This deal provides a future for BMI Regional.” Photo: Wikipedia

 The cash deal with Sector Aviation Holdings (SAH) safeguards flights from 14 destinations in the UK and Europe, together with around 330 jobs and is now awaiting approval by the Civil Aviation Authority.

It follows the recent sale of the loss-making BMI by Lufthansa to International Airlines Group (IAG) for £807m, a deal that left the future of smaller subsidiaries BMI Regional and BMI Baby in doubt.

The SAH consortium was led by Ian Woodley, who founded Business Air before it became BMI Regional after being sold to British Midland in 1996, and funded by Stephen and Peter Bond, part of the family behind Bond Offshore Helicopters who are also investors in Scottish airline Loganair.

Ownership is expected to transfer to SAH within two weeks.

IAG chief executive Willie Walsh said: “This deal provides a future for BMI Regional.”

A spokesman for SAH said it would initially operate under the BMI Regional banner but that further plans were yet to be announced. He said there were no plans for any job cuts.

BMI Regional operates a fleet of 18 Embraer jets, each with a seating capacity of between 40 and 50, and caters mostly to the business market. Rival Loganair also operates 18 aircraft but with a smaller capacity.

The Granite consortium, as they had been known, were said to be close to a deal with Lufthansa last year to purchase BMI Regional for between £20m and £25m, with plans to expand services offered to UK business passengers. But the deal faltered due to problems with……

Read the full story at Herald Scotland…..


Herald Scotland
Friday 11 May 2012



[Belfast Telegraph] Low fare carrier bmibaby is set to close later this year, threatening the loss of hundreds of jobs and the ending of its flights.

Low fare carrier bmibaby will close in September

Low fare carrier bmibaby will close in September: Photo Wikipedia

The carrier transferred to International Airlines Group, the owners of British Airways, last month, but consultations have now started with unions about its closure in September.

The GMB union said it was “devastating” news, especially for the East Midlands, where hundreds of jobs are now threatened with the axe.

With bmi Regional, bmibaby transferred to International Airlines Group ownership on completion of the purchase from Lufthansa. IAG has consistently said that bmibaby and bmi Regional are not part of its long-term plans.

A statement said: “Progress has been made with a potential buyer for bmi Regional, but so far this has not been possible for bmibaby, despite attempts over many months by both Lufthansa and IAG. Bmibaby has therefore started consultation to look at future options including……

Read the full story at The Belfast Telegraph…..


Belfast Telegraph Reporter
3rd May 2012



[Seattle PI] On Tuesday Boeing celebrated delivery of the first airline 747-8 Intercontinental, the last in a series of new airplanes. Now the new model has to prove itself in service to bring what Boeing hopes is a pile of new orders.

Lufthansa's first Boeing 747-8 Intercontinental leaves Paine Field yesterday bound for Frankfurt, Germany: Photo: Gail Hanusa / Copyright © 2012 Boeing. All Rights Reserved.

Lufthansa's first Boeing 747-8 Intercontinental leaves Paine Field yesterday bound for Frankfurt, Germany: Photo: Gail Hanusa / Copyright © 2012 Boeing. All Rights Reserved

“This was hard. This was six years of solving problems,” Pat Shanahan, vice president and general manager of Airplane Programs at Boeing Commercial Airplanes, said at the Future of Flight Aviation Center, beside Paine Field airport and Boeing’s Everett wide-body aircraft plant.

Lufthansa Chief Officer Carsten Spohr called the airplane a “new flagship,” adding: “The queen of the skies is the result of great teamwork, of two great companies working together.”

Lufthansa legally took delivery of the airplane April 25.

The airplane is scheduled to enter service June 1, after crew training and installation of some extras at Lufthansa’s base in Frankfurt, Germany, said Nico Buchholz, Lufthansa’s executive vice president, Group Fleet Management.

Lufthansa plans to start with service from Frankfurt to Washington, D.C., adding Los Angeles, Chicago and destinations in India soon after, and then switching routes from 747-400s to Intercontinentals as it gets more of the new airplanes…..

Read the full article  at Seattle PI…..


By AUBREY COHEN, SEATTLEPI.COM STAFF
Tuesday, May 1, 2012



[Bild / The Local – Germany Edition] Germany’s biggest airline Lufthansa may be setting up a new budget airline “Direct 4 You” to take over the company’s European flights for as little as €49 one way, national newspapers reported on Friday.

The new airline would, according to Bild daily newspaper, be up and running by the beginning of 2013.

The new airline would, according to Bild daily newspaper, be up and running by the beginning of 2013.

Its current sister airline – Germanwings – would be scrapped and some of the planes rebranded Direct 4 You. Staff would be given the option to move to the new company.
By 2015, another of Lufthansa’s subsidiaries, Eurowings, could be merged into the new fleet.
Many intra-European flights that Lufthansa currently operates could be adopted by Direct 4 You, which, according to Bild, should be offering flights from €49 on its fleet of 90 airbuses.
Lufthansa’s financial woes have been in the media recently, with reports suggesting that it plans on making cuts of up to €1.5 billion as it faces increasing competition.
As a result of the cuts, its fleet of planes would, according to Die Welt daily, mostly fly out of Frankfurt and Munich, two of Germany’s biggest….

Read the rest of this story at The Local….


Published: 27 Apr 12 08:02 CET
The Local/jcw



[Bild/Reuters]  (Reuters) – Deutsche Lufthansa said it was still evaluating how many jobs it would cut in a cost-reduction programme after a newspaper reported Germany’s biggest airline planned to slash about 3,000 administrative staff.

Bild earlier reported that Lufthansa planned to cut half of a total of 6,000 administrative jobs around the world

Bild earlier reported that Lufthansa planned to cut half of a total of 6,000 administrative jobs around the world

German mass-circulation paper Bild earlier reported that Lufthansa planned to cut half of a total of 6,000 administrative jobs around the world, with 1,500 jobs to go in Frankfurt.

The remaining administrative jobs are to be moved to a new business unit, with longer working hours and less pay, the paper said, citing an internal document.

“We always said that we do not explicitly rule out job cuts,” a spokesman for Lufthansa said.

Lufthansa has a total of about 116,000 employees around the world, more than half of which are based in Germany.

The report comes a day after Lufthansa unexpectedly announced its Chief Financial Officer Stephan Gemkow was quitting after 22 years of service at the airline and six years as CFO.

Lufthansa fared better in the global economic crisis than peers such as Air France-KLM and British Airways, but Chief Executive Christoph Franz, who took the job at the start of last year, has said the airline needs to radically cut costs to remain competitive.

It aims to improve results by 1.5 billion euros ($1.98 billion) by the end of 2014 to cope with high fuel prices, fierce competition from low-cost carriers and Middle East airlines and a weak European economy.

Silvia Quandt analyst Stefan Kick said the gloomy economic outlook would likely help Lufthansa push its point in negotiations with trade unions representing its workers.

The carrier said last week it could not rule out compulsory redundancies at its German passenger airline, which is to account for almost two thirds of cost cuts.

Services union Verdi said it had no…..

Read the remainder of the Bild story here at Reuters….


FRANKFURT | Thu Apr 26, 2012
Reporting by Peter Maushagen;
Writing by Maria Sheahan.
Editing by Jane Merriman and Victoria Bryan



Deutsche Lufthansa AG (LHA) Chief Financial Officer Stephan Gemkow will leave the airline to take over as chief executive officer of Franz Haniel & Cie GmbH, ending a 22-year career at Europe’s second-biggest airline.

The Executive Board of Deutsche Lufthansa AG in fiscal year 2010: (from left): Stefan Lauer, Wolfgang Mayrhuber, Christoph Franz, Stephan Gemkow

The Executive Board of Deutsche Lufthansa AG in fiscal year 2010: (from left): Stefan Lauer, Wolfgang Mayrhuber, Christoph Franz, Stephan Gemkow

Gemkow’s appointment at Haniel must still be approved by the company’s supervisory board, Haniel spokesman Dietmar Bochert said by telephone. Lufthansa’s supervisory board will meet May 7 to discuss Gemkow’s departure and consider potential replacements, the Cologne, Germany-based carrier said in a separate statement today.

Since becoming CFO in June 2006, Gemkow administered a cost-saving program between 2008 and 2011 that eliminated 1 billion euros ($1.3 billion) in expenses. Another 1.5 billion-euro profit improvement plan was announced in February.

“It’s clearly a loss, he’s a very good manager,” said Juergen Pieper, a Frankfurt-based Bankhaus Metzler analyst.“Conversely, the big theme at the moment is the restructuring program, and we all know that….

Read the rest of the story at Bloomberg…..


Alex Webb & Julie Cruz in Frankfurt
Bloomberg – 25th April, 2012



BERLIN: German airline Lufthansa AG says it has completed a 172.5 million pound ($276 million) deal selling its loss-making British Midland Ltd. subsidiary to the parent of rival British Airways. 

Lufthansa said today the sale to BA parent IAG took place after the close of business on yesterday

Lufthansa said today the sale to BA parent IAG took place after the close of business on yesterday

Lufthansa said in a statement on Friday the sale to BA parent International Airlines Group took place after the close of business on Thursday.Lufthansa says it expects to lose money on the deal, but that the costs will amortize within a year and that the deal will ultimately strengthen its financial position.

It says “price adjustments have been agreed as part of the transaction structure” and that the specific net purchase price will be determined at the end of the second quarter.

Lufthansa and IAG announced an agreement in principle on the sale in early November…..

Read the original story at The Economic times…. 


The Economic Times
20 APR, 2012



Deutsche Lufthansa AG (LHA) is struggling to offload discount airline BMIbaby, potentially reducing proceeds from the sale of its entire U.K. business to British Airways parent IAG.

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks

German turnaround specialist Intro Aviation GmbH, which had expressed an interest in BMIbaby, has ended talks, Managing Director Peter Oncken said in a e-mail. Charter carrier ACL has also dropped plans to make a bid, said a person familiar with the matter who declined to be identified discussing private talks.

IAG, or International Consolidated Airlines Group SA (IAG), agreed in December to pay 172.5 million pounds ($274 million) for BMI, while negotiating a “significant” discount should Lufthansa fail to find a home for the no-frills operation. The acquisition won European Union clearance on March 30, and London-based IAG is aiming to complete it by April 20.

“BMIbaby is not a very attractive asset,” said Joe Gill, an analyst at Bloxham Stockbrokers in Dublin, who follows low- cost carriers. “It’s getting flame-grilled at the moment because the market in northern England is incredibly competitive.”

BMI said March 5 that two parties were in the running to take over its discount arm, one of them an EU-based airline group operating in several countries, the other a U.K.-based company. Both parties aimed to keep BMI’s bases, it said, adding that a deal would be signed with one “in the next few weeks.”

“Lufthansa rejected a non-binding offer from us, rendering further discussions redundant,” Oncken, who founded Intro with German retail entrepreneur Hans Rudolf Wohrl, said in an e- emailed response to questions, adding that his company could resume talks with IAG after the takeover.

Like Intro, Dublin-based ACL signed an agreement allowing it to examine BMIbaby’s books, but isn’t currently considering an approach, according to the person familiar with its plans. Calls to the company weren’t returned.

BMI spokeswoman Katherine Hill said talks remain “ongoing” with potential buyers for BMIbaby, which has its main base at East Midlands airport between the English cities of Derby and Nottingham, reiterating comments from British Airways last week. Claudia Lange, a spokeswoman for the German company, referred all enquiries to BMI….

Read the full Bloomberg News story here….


By Steve Rothwell and Alex Webb
Apr 17, 2012