Mayrhuber: LH mainline responsible for cost cuts on European service
Monday December 14, 2009
Lufthansa Chairman and CEO Wolfgang Mayrhuber confirmed last week to ATWOnline that the company is targeting a 40% reduction in costs on its European network, with the LH mainline bearing the responsibility and no plans in place to use Germanwings aircraft instead.
LH Passenger Airlines CEO Christoph Franz made headlines last month when he told German media that the company was looking at "using some elements from the LCC business model" on continental flights. At last week's Star Alliance event in Brussels, Mayrhuber told this website that LH's effort to return its European operation to profitability will stop short of expanding Germanwings' role. "We demonstrated on earlier occasions that Lufthansa is a company that can develop a quality low-cost carrier. Similar projects elsewhere have failed, like Ted from United or Go from British Airways, but we have shown that we can do this," he said.
Meanwhile, Germanwings will remain responsible for its own business and growth within the group. Mayrhuber said LH is focused on "maintaining the relationship" between the company's full-service and low-cost entities.
One point of cost reduction will be elimination of 50-seat aircraft throughout the group. Last week, regional partner Contact Air said it was cutting 80 jobs as ATR 42-500 flying decreased. "For Lufthansa, the prime time for these type of aircraft has gone," Mayrhurber said, adding that it prefers to grow its regional operations with aircraft seating 70-100 passengers.
At the other end of the spectrum, LH expects to announce its first A380 destinations early next year. Its first aircraft is due in early summer. "A route to New York is a must, especially because it is ideal for pilot training [because of flight time]," he said.
Regarding the restructuring at Austrian Airlines, the group's newest member, Mayrhuber expressed confidence in the measures being implemented, but he expects a profit by 2011. "It is possible. AAG must maintain its service level. It has to adjust capacity and cut costs further," he said. "I will be satisfied with AAG when it makes a profit again."
by Kurt Hofmann
ATWOnline
Monday December 14, 2009
Lufthansa Chairman and CEO Wolfgang Mayrhuber confirmed last week to ATWOnline that the company is targeting a 40% reduction in costs on its European network, with the LH mainline bearing the responsibility and no plans in place to use Germanwings aircraft instead.
LH Passenger Airlines CEO Christoph Franz made headlines last month when he told German media that the company was looking at "using some elements from the LCC business model" on continental flights. At last week's Star Alliance event in Brussels, Mayrhuber told this website that LH's effort to return its European operation to profitability will stop short of expanding Germanwings' role. "We demonstrated on earlier occasions that Lufthansa is a company that can develop a quality low-cost carrier. Similar projects elsewhere have failed, like Ted from United or Go from British Airways, but we have shown that we can do this," he said.
Meanwhile, Germanwings will remain responsible for its own business and growth within the group. Mayrhuber said LH is focused on "maintaining the relationship" between the company's full-service and low-cost entities.
One point of cost reduction will be elimination of 50-seat aircraft throughout the group. Last week, regional partner Contact Air said it was cutting 80 jobs as ATR 42-500 flying decreased. "For Lufthansa, the prime time for these type of aircraft has gone," Mayrhurber said, adding that it prefers to grow its regional operations with aircraft seating 70-100 passengers.
At the other end of the spectrum, LH expects to announce its first A380 destinations early next year. Its first aircraft is due in early summer. "A route to New York is a must, especially because it is ideal for pilot training [because of flight time]," he said.
Regarding the restructuring at Austrian Airlines, the group's newest member, Mayrhuber expressed confidence in the measures being implemented, but he expects a profit by 2011. "It is possible. AAG must maintain its service level. It has to adjust capacity and cut costs further," he said. "I will be satisfied with AAG when it makes a profit again."
by Kurt Hofmann
ATWOnline
