Lufthansa (Lufthansa Group) (Frankfurt) has announced its on-going strategy for dealing with changing dynamic challenges in the marketplace. Key points include; Making Lufthansa a competitive five star airline (i.e. to compete against the Gulf carriers), Eurowings will operate up to 23 Airbus A320s with a new base at Basel, Germanwings‘ fleet will grow to 60 aircraft, a new lower cost long-haul option and how to reduce the cost of flying the Airbus A340s (above). Here is the full report:
Deutsche Lufthansa AG has set itself the objective of regaining its role as the benchmark of the aviation sector and, with it, the first choice for customers, employees, investors and partners.
The company has now unveiled an extensive range of actions to this end which will enable it to derive greater benefit from the continued growth of the global air transport market.
These include new platforms and products for both intercontinental and European air services, an intensified partnership with Air China, an even stronger focus on quality and innovation and a groupwide drive to create more efficient structures and processes.
“The global market for air transport continues to grow,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “But in the dynamic and highly price-sensitive market segments, our current platforms only enable us to exploit the growth potential to a limited extent, in view of their sometimes over-rigid cost structures. That’s why we are now seeking to tap new growth areas, by creatively and innovatively refining our products and services in both the airline sector and – especially – related markets. By 2020 we aim to have raised our revenues from our new businesses, our new platforms and our service companies from the present 30% to 40% of our total revenue flow.”
“We don’t want to be driven by change in the aviation sector: we want to be among the drivers of it,” Spohr continues. “But doing so demands bold steps forward: our market is no place for half-measures. The Lufthansa Group has often set our industry’s standards in the past. And I see no reason why we shouldn’t do so in the future. After all, we have the best of foundations for achieving this: we are a widely diversified aviation group with strong brands; we have a very loyal customer base; and we can count on highly qualified employees who are the envy of our competitors.”
“Our current SCORE program has also equipped us with an ability to change,” Spohr points out. “And we now aim to use this to forge our corporate future.” The work here has involved defining seven ‘action areas’ – not only in the marketplace but also in terms of its internal structures and processes – which should enable the Group to make fuller and more fruitful use of its combined strengths and resources. Priority is also being given within these action areas to the Group’s new growth concepts and to the key issues of innovation and quality, though improving its competitive credentials also remains high on the agenda.
“The fundamental SCORE notion of continuously reducing our unit costs must remain equally valid when the program ends as scheduled in 2015,” Carsten Spohr emphasizes. “And to that end, we will be making this a permanent groupwide concern. We must constantly generate new ideas to improve our profitability, sharpen our competitive edge and keep us the first choice for our customers.”
New growth concepts
The Lufthansa Group will be establishing new platforms with competitive cost structures to ensure that it derives maximum benefit from the further growth of the aviation sector. Thus, the Group’s present multi-brand system with its multiple hubs of Frankfurt, Munich, Zurich, Vienna and Brussels will now be consistently complemented by the new “WINGS” multi-platform concept in all the Group’s European home markets. The new WINGS family, which will build on the success of the Germanwings concept, will be specifically aligned to the high-growth market for private air travel. The Group will use the new WINGS master brand to bundle the various platforms for its point-to-point air travel business; and it is considering extending the concept to intercontinental services, too.
Amalgamating the European members of the WINGS family – a move which will also include Germanwings – will permit an aligned management of all these operations. With Germanwings, Lufthansa will also complete the planned transfer of all of its routes not serving its Frankfurt or Munich hubs by next spring. The Germanwings fleet will also be further enlarged to up to 60 aircraft.
With Eurowings as its starting platform, the Lufthansa Group will develop a competitive European air travel product for continental travel. Since the competitive cost structures required cannot be achieved with the present fleet of Bombardier CRJ aircraft, these will be replaced with Airbus A320 equipment. Eurowings will operate up to 23 A320s, and its services are set to be launched in spring 2015. The first Eurowings base outside Germany will be in Basel, Switzerland, and will have a fleet of an additional two to four A320s. It should commence operations early next year.
The Lufthansa Group also plans to create a competitive new long-haul platform under the WINGS banner for the price-sensitive segment of private travel. Studies are currently being conducted into whether this should be done alone or with a further partner: for the latter option, talks are already at an advanced stage with Turkish Airlines. In an initial phase, the new intercontinental platform is expected to operate with a fleet that will gradually be built up to seven Boeing 767 or Airbus A330 aircraft, with operations likely to commence in winter 2015.
In a further move, Lufthansa is considering to what extent up to nine of its Airbus A340s could be operated at substantially lower unit costs, either on new routes or on routes currently threatened with closure. Negotiations are under way with all the internal and external stakeholders involved to achieve the cost reductions required.
Ultimately, the extent to which these new platforms and formats can be developed in the longer term will depend on their profitability and their market success.
Elsewhere, Lufthansa is working intensively to further develop its bilateral partnerships with other air carriers. In this connection it has just concluded a new agreement with Star Alliance partner Air China for closer collaboration on the MRO and passenger services fronts and, ultimately, a joint-venture arrangement. It is Lufthansa’s declared objective to offer its customers in the four biggest markets and economies outside its home markets the best product available, in collaboration with its local partners.
As a unique aviation group, the Lufthansa Group will also be devoting sizeable resources to further developing its various service companies. World market leaders Lufthansa Technik and LSG Sky Chefs are also benefiting from the expansions of numerous Lufthansa competitors, especially the Gulf-based carriers, and thus serve as a natural “hedge” in the global competitive landscape.
Lufthansa Technik and LSG Sky Chefs will be investing in expanding their business, with a focus on Asia and the Americas. LSG Sky Chefs also aims to increase its involvement in related markets beyond the aviation sector, such as the rail catering segment. Miles & More, too, offers significant further growth potential; and the Lufthansa Group’s customer loyalty program will now be refined to enhance its appeal to “less frequent flyers”, and also to offer more mileage earning and redemption options.
Quality and innovation
Quality and innovation are priority concerns on the overall agenda of the Lufthansa Group. And Executive Board Chairman & CEO Carsten Spohr will bear direct responsibility for the Group’s planned innovation and quality drive. Lufthansa intends to invest a total of EUR 500 million in innovations groupwide between now and 2020. The plans here should see a new “innovation hub” established this year in Berlin, closer to the start-up and digital technology scene; and an “innovation fund” will also be set up to expedite the development of promising new ideas from both within and outside the Group.
Lufthansa not only wants to become the first “five-star carrier” in the Western Hemisphere; it also aims to achieve quality leadership in all its various markets. The quality drive here will include bringing greater personalization to its products and services, with the aim of tripling the present revenues from its additional services between now and 2020.
Despite the investments that the raft of actions announced will entail, the Lufthansa Group remains confident of its revised business projections for 2014 and 2015. The Executive Board expects to report an operating profit of around EUR 1 billion for the current year, or EUR 1.3 billion after adjustments for one-off effects.
A series of structural actions will need to be taken soon, however, if the financial goals for 2014 and 2015 are to be achieved. Thus, Lufthansa will reduce its 2014 available-seat-kilometer capacity growth by over 50% compared to original plans, and will be withdrawing five aircraft from its European network and three from its intercontinental routes in the 2014/15 winter timetable period.
Lufthansa Cargo’s capacity will also be reduced this winter through the withdrawal of two Boeing MD-11 freighters.
The Lufthansa Executive Board is confident that the raft of actions planned will go a long way towards securing the Lufthansa Group’s continued viability and further success.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. What to do with the Airbus A340s? Lufthansa is considering its options with the now aging fleet of Airbus A340s. Airbus A340-311 D-AIGC (msn 027) taxies at the Frankfurt base in the Star Alliance motif.
Lufthansa (Frankfurt) will assign the newer Boeing 747-800 Intercontinental on the Frankfurt-New York (JFK) route from July 15 through October 25. The 747-8I will replace an older 747-400 with daily service according to Airline Route.
Lufthansa received its first 747-830 (D-ABYA) on April 25, 2012 and introduced the new type on the Frankfurt-Washingon (Dulles) route on June 1, 2012 as we have previously reported.
Copyright Photo: Bernhard Ross/AirlinersGallery.com. Wearing the special Fanhansa titles in support for the current 2014 World Cup, Boeing 747-830 D-ABYO (msn 37841) awaits its next assignment at the Frankfurt hub.
Lufthansa (Frankfurt) has issued this statement:
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, and Song Zhiyong, President and Executive Director of Air China Limited (Beijing), signed a memorandum of understanding (MOU) to enhance the commercial partnership as part of a joint venture, during the Chancellor’s visit to China.
Both companies also signed a memorandum of understanding to expand collaboration in the area of maintenance, repair and overhaul services.
As members of the Star Alliance, Lufthansa and Air China have been connected for a number of years. The memorandum of understanding should pave the way for the creation of a commercial joint venture between the German airline and Air China.
This partnership will add to the existing joint ventures with United Airlines and with Air Canada between Europe and North America (since 1998) and with ANA (since 2012) on routes between Europe and Japan.
The agreement with Air China will allow the Lufthansa Group to provide its airlines with even better access to the world’s second largest aviation market after the USA.
The new partnership agreement should come into force as early as the start of the winter flight timetable in late October 2014.
Since 2007, Air China has been a member of the Star Alliance, the world’s largest airline alliance, and with almost 49 million passengers, as measured by intercontinental traffic, is China’s biggest airline.
Top Copyright Photo: TMK Photography/AirlinersGallery.com. Lufthansa’s Boeing 747-430 D-ABVW (msn 29493) climbs away from the runway at Toronto’s Pearson International Airport (YYZ).
Bottom Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 777-39L ER B-2043 (msn 41441) of Air China approaches the runway at New York’s John F. Kennedy International Airport (JFK).
Lufthansa (Frankfurt) is expanding its route network from its Frankfurt hub. On July 3 a Lufthansa aircraft took off from Frankfurt for its inaugural flight to Lublin in Poland. The trade and university city in eastern Poland is already the airline’s eighth destination in Poland. The Airbus A319 reached Lublin airport, which only opened in 2012, in just under two hours. This flight will operate twice a week on Thursdays and Sundays.
From this autumn, the culturally significant city of Marrakesh will be included by Lufthansa in Morocco on its flight plan. Starting on October 2, 2014, the airline will fly twice a week from Frankfurt to Marrakesh for the first time.
The cultural city lies inland, at the edge of the Atlas Mountains, and can now be reached conveniently and directly in just under four hours from Frankfurt on Thursdays and Sundays. Passengers will be able to travel to Marrakesh on the Airbus A320 in both Business Class and Economy Class.
Copyright photo: Arnd Wolf/AirlinersGallery.com. Airbus A319-114 D-AILU (msn 744) taxies at the Munich hub in the special Lulu Stork markings.
For exactly one year now, the “new Germanwings” has enhanced the range of flights on offer for customers throughout Europe. On July 1, 2013, it launched an entirely new product and brand concept, and over the space of twelve months it has developed to become the third largest airline in Germany. Since July 2013, Germanwings has carried more than 16 million passengers. The number of routes on offer has also risen from 182 to 296 today. Germanwings now serves 130 destinations, most of which are in Europe.
Lufthansa amalgamated its domestic German and European flights that were not operated through its Frankfurt and Munich hubs in the “new Germanwings”. The handover of flight routes is now well advanced. In Cologne, Stuttgart and Hanover it has been completed, while in Hamburg and Berlin a few routes are still being transferred. Lufthansa began transferring routes to Germanwings in Düsseldorf in March 2014. Once the hand-over has been completed, Düsseldorf will be the largest Germanwings base.
Germanwings passengers rate the airline highly positively. In all the passenger surveys, they attest to the airline’s high-quality service, and the vast majority is extremely satisfied with the new offer. Customers thus reinforce Germanwings’ claim to be a low-cost-carrier offering flights at low prices and a high-quality service.
The expansion of Germanwings has also been successful from a commercial point of view: in comparison to last year, when the airline contributed €93 million to the Lufthansa Group’s earnings improvement year-on-year, the contribution is expected to increase again this year. For 2015, for the first time in many years, the Group expects to achieve a balanced result on its non-hub routes in Europe.
The airline, which is based at Cologne-Bonn Airport, has also significantly expanded its fleet. While just one year ago 38 jets bore the Germanwings livery, 71 aircraft can now be seen sporting the logo of the youngest airline in the Lufthansa Group. A further ten aircraft will join the fleet by the end of the year. The workforce has also increased from 1,600 to just over 2,000, the bulk of new staff recruitment being in flight operations. The number of flight personnel has thus risen from 1,174 to 1,614. Germanwings crews currently complete a total of 3,312 flights each week, compared with 1,891 a mere twelve months ago. Since its launch a year ago, Germanwings with its highly motivated team has already completed around 171,000 safe take-offs and landings. Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG: “We have been on the offensive with the ‘new Germanwings’ in terms of point-to-point flights on European and German domestic routes that are not operated through our major hubs. We have combined our many years of experience in the low-cost segment and our high quality standards to develop a convincing concept that has been extremely well received by customers. With the ‘new Germanwings’, we have taken an important step and are now closer to achieving our goal of flying profitably beyond the major hubs within the short-haul traffic segment.”
Thomas Winkelmann, spokesman for the Germanwings Executive Board: “Germanwings is without a doubt one of the most creative airlines in Europe. Twelve months ago we entered new territory with Germanwings’ new product and brand promise. Since then, we have been combining the various requirements of different customer groups in one airline. Today we know that this bold decision was the right one: everyone feels at home on board of Germanwings. This is undoubtedly because we refuse to compromise on two points: safety and the friendly and expert way in which we deal with our customers.”
A unique feature of Germanwings is ‘à la carte flying’. When booking their tickets, passengers have a choice of three products in different price segments with different comfort add-ons: ‘BEST’ represents the high-end offer that primarily covers the needs of business passengers but that also appeals to certain leisure travelers. The ‘SMART’ fare product includes certain extra services, and ‘BASIC’ is a no-frills, low-cost fare.
Copyright Photo: Javier Rodriguez/AirlinersGallery.com. The Germanwings fleet has expanded from 38 to 71 Airbus aircraft in the past year. Formerly with Lufthansa, Airbus A320-211 D-AIQS (msn 401) now flies for lower-cost Germanwings.
Boeing (Chicago and Seattle) has delivered the 1,500th 747 to come off the production line to Lufthansa (Frankfurt). The milestone airplane is a 747-8 Intercontinental, the 14th one that Lufthansa will incorporate into its long-haul fleet.
“Reaching this milestone delivery is a testament to the capabilities of the airplane and our commitment to continuous innovation,” said Eric Lindblad, 747 vice president and general manager, Boeing Commercial Airplanes. “The new 747-8 is delivering on its promise to our customers, and we continue to look at ways to make it even more efficient in the future.”
The 747 is the first widebody airplane in history to reach the 1,500 milestone. Its iconic shape makes it instantly recognizable, and passengers have consistently voted it their favorite airplane to fly.
At a delivery ceremony yesterday (June 28), a special logo commemorating the 1,500th airplane was revealed for the first time on the pictured 747-830 D-ABYP (msn 37839).
“Lufthansa is honored that the 1,500th 747 will fly with the Lufthansa livery,” said Nico Buchholz, executive vice president, Lufthansa Group Fleet Management. “Lufthansa is an important partner and a valued advisor in developing new commercial airplanes with exceptional economical and ecological performance such as the 747-8. The commemorative logo will be a reminder of our relationship with Boeing, now and into the future.”
Lufthansa is the launch customer of the 747-8 Intercontinental and took delivery of its first airplane in April 2012. The airline has 19 747-8 Intercontinentals on order.
The first Boeing 747-100 entered revenue service on January 22, 1970 with Pan Am on the New York–London route.
Lufthansa German Airlines on March 10, 1970 became the first European airline to take delivery of the Boeing 747-100. The first LH 747, 747-130 D-ABYA (msn 19746), was accepted on this historic day. The Jumbo was introduced into revenue service between Frankfurt and New York (JFK) on April 26, 1970. LH has operated a variant of the 747 for over 44 years.
Lufthansa also issued this statement:
Lufthansa’s 14th Boeing 747-8 landed in Frankfurt on Sunday, June 29, at 9.17 a.m. as scheduled. As well as being the 76th Jumbo that Lufthansa has received from the American manufacturer Boeing in Seattle since the 1970s, the aircraft also represents a veritable milestone in aviation history. This aircraft, whose tail number is D-ABYP (“Yankee Papa”), is the 1,500th Jumbo to be built in the world.
‘It’s an honor for Lufthansa that the anniversary Jumbo will fly in the colors of the Lufthansa crane,’ said Nico Buchholz, Head of Group Fleet Management at Deutsche Lufthansa AG. ‘For decades, Lufthansa has been one of the aircraft manufacturer’s closest advisers – a pioneer when it comes to developing new, environmentally friendly and fuel-efficient aircraft,’ added Buchholz at the handover in Seattle. Lufthansa is expecting to receive a total of 19 aircraft of this type, and will therefore be the world’s largest operator of 747-8s among passenger airlines.
The “Dash 8”, as it is also known, has plenty to offer. By using the latest Jumbo, Lufthansa is taking a further step towards having a “three-liter fleet” (per passenger and 100 kilometers). The aircraft is 15 percent more fuel-efficient than its predecessor model and, as a result, its CO2 emissions are around 15 percent lower. The noise footprint of the Boeing 747-8 is 30 percent smaller compared with the older Boeing 747-400. What started as the first training flight with the new Boeing 747 over the mountains east of Seattle in October 1969 went on to become an icon of the Lufthansa fleet, and, indeed, of commercial aviation as a whole.
On March 9, 1970, the then Lufthansa CEO Herbert Culmann took delivery of the first Lufthansa Boeing 747-130 in front of the factory in Everett. The aircraft’s production number was 12 and its Lufthansa registration was D-ABYA. Lufthansa thereby became the second international airline, after Pan Am, and the first European carrier to deploy the Jumbo on scheduled services. The aircraft was host to several major world premières in succession, including the first film shown on board a Jumbo jet. Only twenty months after the maiden flight of the Boeing 747-130, the fourth Lufthansa Jumbo took off on April 2, 1971 as a modified model. Boeing had equipped the 747-200 with larger fuel tanks and a higher take-off weight of 378 tons. This meant that the aircraft had a longer range. Originally intended as a military aircraft, the Jumbo’s career was not limited to carrying passengers. On April 10, 1972, Lufthansa received the world’s first “smiling” Boeing as the launch customer of the cargo version, the Boeing 747-230F. The nose of the aircraft could be opened horizontally, making it possible to load even bulk goods without any problem. On April 19, 1972, the world’s first cargo Jumbo took off, bearing the tail number D-ABYE. This quickly catapulted Lufthansa to number one in airfreight transport.
‘A step towards the 1990s’ is how Lufthansa CEO Heinz Ruhnau described the purchase agreement signed on June 23, 1986 for an initial order of six enhanced Boeing aircraft. Lufthansa had already been involved in the planning of the Boeing 747-100. However, as the first airline to order the “Dash 400” (Boeing 747-400), it now played a key part in the development of the new aircraft, providing many hundreds of suggestions for improvements and more than 20,000 engineer hours. With this aircraft, the modern, digitalized two-man cockpit that Jürgen Weber, the man responsible for aircraft development at Lufthansa Technik in Hamburg at the time and later Chairman of the Executive Board and CEO of Lufthansa AG, and Reinhard Abraham, the former Chief Technical Officer of the Lufthansa Group, had worked to achieve became a reality. Upwards-pointing winglets, new and more economical engines, new materials such as composite materials and aluminium alloys: all of these innovations helped to cut fuel consumption by 24 percent compared with the -200 series.
On 23 May 1989, Lufthansa received the first enhanced Super Jumbo with tail number D-ABVA. The aircraft could cover almost 13,000 kilometers in 16 hours and thus reach nearly every destination in the world. As the new millennium started, the idea was put forth to develop an enhanced version of the Boeing 747-400. And so not only was the Jumbo extended by 5.6 meters, it was also totally redeveloped, including a new wing design and new engines. On May 2, 2012, Lufthansa became the first passenger airline in the world to receive a Boeing 747-8.
Copyright Photo: Bernie Leighton/AirlinersGallery.com. Boeing 747-830 D-ABYP with the special “1500th” emblem prepares to depart from Paine Field near Everett yesterday (June 28) on its delivery flight to Frankfurt.
Lufthansa (Lufthansa Group) (Frankfurt) has adjusted its earnings forecast. The company issue this revised forecast:
Deutsche Lufthansa AG is adjusting its earnings forecast as a result of the revenue development in the passenger and cargo businesses, which is below expectations: the company’s Executive Board is now projecting an operating profit for the current financial year of approximately EUR 1 billion ($1.35 billion)(approximately EUR 1.3 billion after adjustment for one-off effects). Previously the company had been forecasting an operating profit for 2014 of EUR 1.3 to 1.5 billion (EUR 1.7 to 1.9 billion after adjustment for one-off effects).
“The revenue risks mentioned when we presented the quarterly figures in early May have unfortunately materialized”, said Simone Menne, Chief Officer Finances and Aviation Services at Deutsche Lufthansa AG. The Group had already warned against increasing risks to the earnings forecast in the first quarterly reports. Above all it is the Group’s American and European business that has suffered from increasing excess capacity, which leads to falling prices on these routes. “We will therefore noticeably reduce our capacities during the winter timetable period”, emphasized Menne. Strong capacity growth by state-owned Gulf carriers was a major concern, she added. They are advancing ever further into the European market, also by means of investments in European airlines, she explained
The strike by the “Vereinigung Cockpit” pilots’ union in early April, had a negative results impact of EUR 60 million ($81.2 million). Only recently has booking activity returned to normal. Additionally, impairments on receivables denominated in Venezuelan Bolivar have burdened the result of the current year by EUR 60 million so far.
Given these economic developments the Executive Board no longer believes that the earnings target for 2015 of EUR 2.65 billion ($3.58 billion) set as part of the Score program can be achieved. The company nonetheless intends to substantially increase its operating profit compared with the current year. The basis for this will be laid with the noticeable reduction of capacities during the winter timetable period. Additionally, in order to boost the competitiveness of the Lufthansa Group, structural measures will be implemented at a higher pace. The details will be presented by Carsten Spohr, Chairman and CEO of the Executive Board in July. The Executive Board sets a new target of approximately EUR 2 billion on an operating profit level for 2015, provided that conditions remain stable. Menne emphasized: “The current development underlines the importance of Score for the group. We are achieving a sustainable reduction of our unit costs and now aim to stabilize the revenue trends, in order to counteract an ever intensifying competitive situation”, said Simone Menne.
Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Airbus A320-214 D-AIUD (msn 6033) is the only A320 painted by Lufthansa in the special “Fanhansa” colors for the 2014 FIFA World Cup Brazil.
Lufthansa (Frankfurt) will launch a new route between its Munich hub and the Canary Island of Gran Canaria on October 26, 2014. An Airbus A321 with 200 seats and two classes will fly to the airport of Las Palmas, the largest city in the Canary Islands.
Lufthansa will fly to Gran Canaria between October 26, 2014 and April 12, 2015 on Sundays at 9.00 a.m.
Gran Canaria has a mild climate in winter, making a beach holiday possible at any time of the year. The island, which is volcanic in origin, is unique because of its extremely diverse landscape and is popular among hikers.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Airbus A321-131 D-AIRR (msn 567) taxies at Palma de Mallorca.
Lufthansa (Frankfurt) will resume the Munich-Miami winter seasonal route on December 2 and will be operated until April 30, 2015. The restored route will be operated with Airbus A330-300 aircraft per Airline Route.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Airbus A330-343X D-AIKC (msn 579) touches down at Seattle-Tacoma International Airport.
Lufthansa (Frankfurt) has unveiled its first “Fanhansa” – titled aircraft for the upcoming World Cup in Brazil. The pictured Airbus A321-231 D-AIDG (msn 4672) was rolled out at Munich on Friday May 16 and is now in service in the LH European network. The airline issued this statement:
The first aircraft with the new “Fanhansa” livery taxied out to the runway on schedule at 11.20 on May 16. The Airbus A321-200, named after the town of Göttingen in Lower Saxony, flew from Munich to Hamburg as flight number LH 2066 on the same day. Overnight the “Delta Golf” – from its registration number D-AIDG – was embellished with special foil by five Lufthansa Technik employees in 40 hours of work. The Fanhansa lettering on this Airbus medium-haul aircraft is 7.65 meters long.
Lufthansa is celebrating a special premiere with Fanhansa. For the first time since beginning flight operations nearly 60 years ago, part of the fleet is to change the name on the aircraft fuselage. To mark the football World Cup, a total of eight Lufthansa aircraft will swap their familiar livery for the new Fanhansa logo. The Airbus A321-200 will be followed by two additional short-haul aircraft and a total of five long-haul aircraft with the Fanhansa lettering, including the Boeing 747-8, the world’s longest civilian aircraft. After departing from Munich at 11.20 a.m., the Airbus was scheduled to land at Hamburg Airport between 12.35 p.m. and 1.20 p.m., and arrive at London-Heathrow between 5.00 p.m. and 6.05 p.m. The return to Munich is scheduled for 8.55 p.m.
With Fanhansa, Lufthansa will be flying not just the German national team to Brazil, as partner of the German Football Association, but also thousands of football fans, media representatives and officials. During the many surprise Fanhansa promotions that will be happening on board Lufthansa scheduled flights and at check-in counters and gates in German airports, participants will be able to qualify immediately for a ticket to Brazil on board a Fanhansa plane.
Copyright Photo: Lufthansa. The first “Fanhansa” aircraft at Munich.
Lufthansa (Frankfurt) will temporarily rename 8 aircraft with “Fanhansa” titles for the upcoming 2014 FIFA World Cup in Brazil.
The first aircraft to have these unique titles is expected to be an Airbus A321, due to be unveiled on May 16.
The company issued this statement (translated from German):
In the summer of 2014, the biggest football event in the world keeps all fans in suspense. Part of the Lufthansa fleet will be temporarily unceremoniously renamed “Fanhansa”.
Fanhansa – this is not only a commitment to be a big fan of the German football team itself. This is also a clear message to all soccer fans: No matter what game it is, Fanhansa inspires the fans and brings them to the big soccer events around the world.
As a partner of the German Football Association, Lufthansa flies the national team and numerous media representatives and many thousands of football fans to Brazil. Of course, when you board a “Fanhansa” flight, expect to see numerous surprises.
Copyright Photo: Lufthansa.
Lufthansa Aircraft Slide Show: CLICK HERE
Deutsche Lufthansa AG (Lufthansa Group) (Lufthansa) (Frankfurt) achieved a further increase in its operating result for the first quarter of 2014, thanks to continued progress with its Score results-enhancement program. In what is traditionally the weakest quarter of the year, the company posted an operating result of EUR -245 million ($341 million), a EUR 114 million ($158.7 million) or 31.8% improvement on the same period last year. Adjusted for non-recurring items, such as the cost for the accelerated installation of new Lufthansa Business Class seats, which accounted for some EUR 55 million in this period alone, the first-quarter operating result was improved by EUR 105 million to EUR -190 million ($264.5 million). The improved quarterly operating result can be largely attributed to an increase in profits at Lufthansa Technik and the positive impact of the revised depreciation policy for aircraft and spare engines which was adopted at the beginning of the year. In addition, the Lufthansa Group also improved its cost structures in the passenger segment.
Adjusted to eliminate fuel-price and currency factors, first-quarter unit costs for the passenger business segment were a 3.7% improvement on their prior-year level. The Group has set itself the goal of reducing such costs by 4% for 2014 as a whole by implementing various Score-related actions. Total revenue for the quarter amounted to EUR 6.5 billion, a 2.5% decline on the prior-year period. Lower traffic revenues were generated for the period, not least as a result of adverse currency movements. The revenue result was achieved with a 1.2% reduction in total flights operated, owing mainly to fleet modernizations and the use of larger aircraft. The net result for the period amounted to EUR -252 million, a substantial EUR 206 million or 45.0% improvement on the first quarter of 2013.
“This is a sound first-quarter performance and a slight improvement in our results for the period in a difficult market environment,” says Simone Menne, CFO and Member of the Executive Board at Deutsche Lufthansa AG. “We have improved our cost structures, and have taken various actions to enhance the quality of our revenues. And we will continue with our consistent efforts to further raise our efficiency.”
The Lufthansa Group has further confirmed its previous expectation of posting an operating profit of between EUR 1.3 and 1.5 billion for 2014 as a whole. The Group also remains confident of reporting a 2014 operating result adjusted for non-recurring items of between EUR 1.7 and 1.9 billion. The projections remain unchanged despite the Verdi strikes at German airports in March and the three-day strike at Lufthansa, Germanwings and Lufthansa Cargo by the Vereinigung Cockpit pilots’ union in April, which reduced Group earnings by over EUR 70 million.
“Our advance passenger bookings saw sizeable declines during the Vereinigung Cockpit pilots’ strike,” Menne continues. “And, with the competition we face on our European network and the strong pricing pressures on our North American routes, we haven’t yet been able to raise them again. So, despite the currently tense market environment, we are doing our utmost to recoup these earnings losses in our ongoing business.” Some assistance should be provided here by the fall in fuel prices: full-year estimates for this cost item are now lower following the first-quarter results than they were in March.
The Group’s Passenger Airlines business segment reported an operating result for the quarter of EUR -332 million, a EUR 31 million improvement on the same period last year. The progress here was partially due to the revised Group depreciation policy, whose lower costs added EUR 86 million to the quarterly result. At the same time, the decline in revenue per available seat-kilometre was offset by cost economies, which were reflected in a clear reduction in cost per available seat-kilometre. Among the Group’s member airlines, Lufthansa and Germanwings posted a quarterly operating result of EUR -286 million (a EUR 6 million year-on-year improvement), Swiss International Air Lines (Zurich) achieved an operating profit of EUR 6 million (up EUR 22 million) and Austrian Airlines (Vienna) posted an operating result of EUR -54 million (a EUR 2 million improvement on the prior-year period).
Lufthansa Technik made the most positive contribution to the Lufthansa Group’s first-quarter results, with an operating profit for the period of EUR 97 million, a EUR 16 million improvement on January-to-March 2013. The Group’s IT Services segment raised its first-quarter operating result by EUR 2 million to EUR 5 million. LSG SkyChefs reported a first-quarter operating result of EUR -4 million, a EUR 7 million year-on-year decline which was in part attributable to adverse currency movements. And with rigorous cost discipline in a still-tough market environment, Lufthansa Cargo achieved a solid operating profit of EUR 21 million, which compares to EUR 28 million for the prior-year period.
The first quarter of 2014 in figures
Total revenue for the first three months of 2014 amounted to EUR 6.5 billion, a 2.5% decline on the same period last year. Total operating income also declined 2.5%, to EUR 7.0 billion. At the same time, total first-quarter operating expenditure was reduced 6.0% to EUR 7.2 billion. Fuel costs for the quarter declined by EUR 157 million or 9.4% to EUR 1.5 billion. The figure includes a EUR 20 million loss from fuel price hedging activities. Fees and charges were 0.8% below their prior-year level, owing in particular to the lower flight volumes.
The Lufthansa Group achieved an operating result of EUR -245 million for the first quarter of 2014, a period that is traditionally the weakest of the year. The net result for the quarter amounted to EUR -252 million, a substantial EUR 206 million improvement on the first three months of 2013. First-quarter earnings per share rose from the EUR -1.00 of 2013 to EUR -0.55.
The Lufthansa Group increased its investments in modernizing and maintaining its aircraft fleet to EUR 755 million in the first-quarter period. All in all, the Group invested EUR 859 million, some EUR 141 million more than in the same period last year. Cash flow from operating activities totalled EUR 855 million, while free cash flow (operating cash flow less net capital expenditure) amounted to EUR 195 million. Net debt stood at EUR 1.6 billion, down EUR 61 million year-on-year. The balance sheet equity ratio as calculated in accordance with the new IAS 19 capitalization principles amounted to 17.9%, up 2.5 percentage points from the first quarter of 2013.
Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A340-642X D-AIHV (msn 897) of Lufthansa completes its final approach to the runway at Los Angeles International Airport (LAX).
Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. The Lufthansa Group continues to shift more non-hub European flying to the lower-cost Germanwings. Airbus A319-132 D-AGWU (msn 5457) lands at EuroAirport.
Lufthansa (Frankfurt) and Boeing (Chicago and Seattle) celebrated the delivery of the German airline’s 75th 747 on Wednesday (April 30).
Lufthansa is the launch customer for the 747-8 Intercontinental jetliner and took delivery of the first one in April 2012. The airplane delivered Wednesday is Lufthansa’s 13th 747-8 Intercontinental, namely 747-830 D-ABYO (msn 37841). The airline currently flies the 747 to 22 destinations in 10 countries. Over the years, Lufthansa has ordered a total of 81 747s.
Lufthansa’s first 747 – a 747-100 – was delivered in 1970. The airline was also the first to order the 747-200 Freighter.
The 747-8 has accumulated 120 orders for passenger and cargo versions, 68 of which have been delivered.
Top Copyright Photo: Boeing. This poor-quality publicity photo shows D-ABYO departing from Paine Field.
Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. It all started with the Boeing 747-130. The pictured Boeing 747-130 D-ABYA (msn 19746) at New York (JFK) was delivered new to LH as the first 747 on March 10, 1970.
Lufthansa Group (Lufthansa) (Frankfurt) has issued this statement concerning fuel consumption:
In 2013 the passenger airlines in the Lufthansa Group beat the four-liter mark for the first time, with an average consumption of just 3.91 liters of kerosene per passenger per 100 kilometers. This is an improvement of 3.8 per cent over 2012. In short, the aviation group achieved over twice the annual efficiency target increase of 1.5 per cent set for the airline industry.
The second piece of good news: Absolute fuel consumption of the Lufthansa Group fell for the second time in a row since 2012, by 1.3 percent year on year, despite a production increase of 2.3 percent. In absolute terms, the Group’s fuel use decreased 114,152 tons compared to 2012 and carbon dioxide (CO2) emissions fell by more than 359,587 tons, a benefit for the environment. This is roughly equivalent to the CO2 volume emitted annually by oil-fired heating systems in about 50,000 homes.
The Lufthansa Group is working continuously and systematically to improve the environmental impact of its international services. A department set up in 2013 specifically to improve fuel efficiency is currently examining almost 1,000 individual steps for realising further potential savings. They include programs to achieve lasting weight reductions on board, testing and implementing new flight methods and developing intelligent software tools.
The most powerful lever for increasing efficiency is investing in technological progress, i.e. in the latest and most efficient aircraft. With its current fleet renewal program, the biggest in the history of the Lufthansa Group, the company is making good progress in this direction. As of December 31, 2013, the Group had a total of 261 aircraft on its order list for delivery by 2025 – this represents capital expenditure of EUR 32 billion at list prices. It will also make life much easier for those living near major air traffic hubs. For example, the 100 aircraft from the A320neo family ordered by the Lufthansa Group are fitted with highly efficient, quieter engines and reduce the noise footprint of take-off and landing by around 50 per cent.
In other news, the Lufthansa Group is transferring additional routes from Dusseldorf to Germanwings (2nd) (Cologne/Bonn) in the fall. Route transfers according to Airline Route from DUS:
Dusseldorf – Paris (CDG) (effective September 18)
Dusseldorf – Vienna (October 8)
Dusseldorf – London (Heathrow) (October 26)
Dusseldorf – Malaga (October 26)
Dusseldorf – Moscow (Vnukovo) (October 26)
Dusseldorf – Naples (October 26)
Dusseldorf – Nice (October 26)
Copyright Photo: Andi Hiltl/AirlinersGallery.com. Additional aircraft are being transferred to lower-cost Germanwings. Formerly operated by mainline Lufthansa, Germanwing’s Airbus A320-211 D-AIQK (msn 218) lands at Zurich.
Lufthansa‘ (Frankfurt) pilots started their three-day strike today (April 2). The strike has virtually grounded the German airline except for a few short-haul and long-haul international flights.
Lufthansa has cancelled 3,800 flights until late Friday.
According to Reuters, the pilots want Lufthansa to reinstate a retirement plan that allowed them to receive 60 percent of their pay and benefits when they leave the airline before the retirement date.
Lufthansa’s pilots were forced to retire at 60, leaving a gap of five years before the legal retirement age of 65. The retirement age for pilots was raised to 65 in Europe in 2011 according to Reuters. Lufthansa says it is no longer necessary.
Read the full report: CLICK HERE
The airline issued this statement:
As a result of strike actions of the German pilots’ union “Vereinigung Cockpit” (VC) at Lufthansa, Lufthansa Cargo and Germanwings from Wednesday, April 2, 2014, to Friday, April 4, 2014, Lufthansa has reduced its schedule significantly.
Flights of the Lufthansa Group Airlines Eurowings, Lufthansa CityLine, Air Dolomiti, Swiss, Austrian Airlines and Brussels Airlines are excepted from the strikes and schedule adjustments.
Previously on March 31 the airline issued this statement:
Due to the strike announced by the pilot’s union Vereinigung Cockpit (VC), Lufthansa, Lufthansa Cargo and Germanwings have canceled about 3,800 flights on Wednesday, Thursday and Friday. During the three day walkout of the cockpit crew only about 500 Lufthansa short and long haul flights will be operated.
Flight cancellations on such a massive scale will affect a total of 425,000 passengers. Lufthansa will inform all passengers who have registered their contact details in their booking or in their Miles & More profile about flight changes via text message and email. Most of the remaining domestic and European flights will be flown by the daughter companies Eurowings and Lufthansa Cityline, whose pilots are not participating in the walkout.
In addition to Lufthansa, Lufthansa Cargo will also be affected. For the three strike days 23 of 31 planned cargo flights from Frankfurt have been already canceled.
The pilots of Swiss International Air Lines, Austrian Airlines, Eurowings, Lufthansa CityLine and Air Dolomiti as well as the pilots of Brussels Airlines will not participate in the strike. Where possible, these companies will use larger planes on routes from and to Germany in order to bring as many rebooked Lufthansa passengers as possible to their destinations.
Additionally, Lufthansa will re-book affected passengers on other airlines and in cooperation with German Railways (Deutsche Bahn) will provide train tickets on domestic routes.
Copyright Photo: Pascal Simon/AirlinersGallery.com. Boeing 747-430 D-ABVH (msn 25045) with the special “50 Years of Innovation – Boeing and Lufthansa” emblem, arrives at the Frankfurt base.
Lufthansa’s pilots to strike on April 2-4, Lufthansa calls on the Vereinigung Cockpit pilots’ union to resume talks
Lufthansa (Frankfurt) is facing another strike by its pilots, represented by the Vereinigung Cockpit pilots’ union (VC), from April 2 through 4 next week. The labor dispute involves pay and retirement issues.
Read the full report from Reuters: CLICK HERE
Lufthansa has called for renewed talks to end the dispute and has issued this statement:
Lufthansa has called on the Vereinigung Cockpit pilots’ union (VC) to resume joint talks as soon as possible. “We still have four and a half days to avoid further disruptions for our customers, which would occur with the strike that has been announced,” said Dr Bettina Volkens, Chief Officer Human Resources and Legal, Deutsche Lufthansa AG. “We are willing to continue the discussions at any time and have laid the groundwork for negotiations with the new offer for the wage settlement and the offer concerning early retirement from flight service. With the goodwill of everyone involved, we should be able to avoid a strike,” Ms Volkens continued.
VC has announced a three-day strike for employees of Lufthansa German Airlines, Lufthansa Cargo and Germanwings at every German airport from April 2-4.
Although Lufthansa continues to hope for a negotiated solution, it is working flat out to keep the effects of a strike on its customers to a minimum. “We greatly regret the fact that this strike from April 2-4 may prevent us from bringing our passengers to their destination or back home on time. We will do everything to take care of those affected as well as we possibly can. Wherever possible, we will offer alternative travel options with. At the same time, we are still working to solve the collective bargaining dispute,” Ms Volkens said.
Lufthansa will, in any event, inform its customers in good time about the details of flight cancellations, rebooking options and alternative travel arrangements at LH.com. The Company will also send information about changes to flights by email and text message to customers who have provided their contact details.
Lufthansa made VC an improved offer for the wage settlement. It provides for a sustainable pay increase of 5.2 per cent for the period from May 1, 2012 to December 31, 2015 as well as a one-off payment for all pilots at Lufthansa German Airlines, Lufthansa Cargo and Germanwings. A pay freeze is planned for the first six months of this period. There is to be a one-off payment of €2,000 for the period from November 1, 2012 to December 31, 2013. This corresponds to 1.2 per cent of the pilots’ total remuneration. For the period from January 1, 2014 to December 31, 2015, salaries are ultimately to rise in two stages by a total of 5.2 per cent: by 3 per cent retroactively as of January 1, 2014, and by another 2.1 per cent as of July 1, 2014. The original plan of linking salary increases to the Company’s performance has been dropped. Lufthansa has therefore accepted key demands made by VC. This offer means that the pilots would make a contribution to ensuring the Group’s future viability comparable with that of other groups of employees.
Lufthansa also offered to ensure that pilots can continue to retire early in future. The offer safeguards the positions of all employees who joined Lufthansa before January 1, 2014. As before, these employees can receive up to 60 per cent of their last gross salary until they reach the earliest possible statutory retirement age of 63. From 2017, the earliest possible age at which pilots can retire from flight service at Lufthansa German Airlines will be raised, depending on the length of service, from 55 for more senior to up to 60 for younger employees. Employees who have been with the Company for thirty years or more are not affected at all by the changes. Pilots at Lufthansa Cargo and Germanwings can already leave flight service only when they reach 60 years of age, and then make use of transitional benefits.
The previous wage agreement also stipulated that Lufthansa German Airlines cockpit staff had to reach an average age of 58 for early retirement. Lufthansa’s offer now raises the agreed average early retirement age within three years from 58 to 61 years, starting in 2016. The effective average age for taking early retirement in 2013 was already 58.9 years. This also reflects the general societal trend towards longer working lives.
For pilots who start or have started work at Lufthansa after January 1, 2014, it will still be possible to retire early from flight service. The matter of financing these benefits is the subject of future talks with VC.
For all employees, the offer still includes employer-financed insurance against incapacity for flight service.
Read the 2013 Lufthansa Group Annual Report: CLICK HERE
Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A319-114 D-AILU (msn 744) “Lulu Stork” taxies at Zurich.
Lufthansa‘s (Frankfurt) 5,400 pilots, represented by the union Vereinigung Cockpit (VC), have voted by more than 90 percent to strike if necessary according to Reuters. No date has been set.
Lufthansa is restructuring under its SCORE program and trying to lower costs.
Read the full report: CLICK HERE
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A380-841 D-AIMH (msn 070) arrives at the Lufthansa hub in Frankfurt.
Lufthansa Group (Lufthansa) (Frankfurt) reported 2013 annual net income of €313 million ($435.7 million), down 75 percent from the €1.22 billion profit reported in the same period a year ago. Here is the full report:
Deutsche Lufthansa AG has achieved the targeted improvement in earnings well. Adjusted for non-recurring effects, the operating profit rose year on year by 62 per cent to EUR 1.042bn (previous year: EUR 643m). The reported operating profit came to EUR 697m, having totalled EUR 839m the previous year. A comparison of the reported results is of little informational value, however. The previous year’s reported result was largely boosted by non-recurring income from transferring operations at Austrian Airlines, while the result for 2013 was depressed by restructuring and project costs for the installation of the new Lufthansa Business Class seats.
Lufthansa Group revenue was stable at EUR 30.0bn (previous year: EUR 30.1bn). At EUR 313 m, net profit for the year, which last year also included a profit of EUR 631 m from the sale of shares in Amadeus IT Holding, S.A., was lower, as expected (previous year: EUR 1.2 bn).
Christoph Franz, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said: “We have strengthened the earnings power of the Lufthansa Group again last year. This is driven by the earnings performance in the passenger business, where all Airlines rose significantly. This performance trend is sustainable. It is based on a continuous improvement in the cost structure and on the billions invested in new products and services. Customer feedback here is extremely positive. This performance in our core business segment has prompted us to propose to the Annual General Meeting that a dividend of EUR 0.45 per share be paid.”
Lufthansa and Germanwings boost earnings power and increase profit
Lufthansa and Germanwings increased their operating profit last year to EUR 265m – an increase of EUR 240m and thus the most visible earnings improvement in the Group. Adjusted for restructuring costs, the increase even came to EUR 340m. The persistent implementation of Score projects at Lufthansa, including the transfer of European direct traffic outside the hubs in Frankfurt and Munich to Germanwings, had a positive effect on earnings. The new aircraft, which continually join the fleet, are being fitted with the latest cabin products across all travel classes, which has already led to greater customer satisfaction and has also had an impact on the bottom line. These state-of-the-art aircraft are also considerably quieter and more fuel-efficient, and stand out for their lower operating costs. In 2013 alone the Group ordered 167 new aircraft worth EUR 23bn. While the revenue per available seat-kilometre (RASK) fell slightly due to currency movements and also because of disproportionate growth in Economy Class, costs per available seat-kilometre (CASK) were reduced even faster, and so the overall result improved considerably.
The passenger business overall performed well in 2013, contributing EUR 495m (previous year: EUR 556m, including one-off effects) to the Group’s operating result. Swiss accounted for a substantial share of EUR 226m, a year-on-year increase of EUR 22m. Austrian Airlines generated a profit in 2013 without tailwind from special items for the first time since joining the Lufthansa Group. The company’s profit of EUR 25m for the financial year is EUR 178m lower than in the previous year. However, the previous year’s positive result was solely due to non-recurring effects in connection with the transfer of flight operations to Tyrolean Airways.
Lufthansa Technik and LSG Sky Chefs report record profits
All of the Group’s business segments were profitable in 2013. Lufthansa Technik and LSG Sky Chefs generated operating results of EUR 404m (previous year: EUR 328m) and EUR 105m (previous year: EUR 101m) respectively, which were both the highest earnings in their corporate history. The IT Services segment also increased its operating profit from EUR 20m in 2012 to EUR 36m – a rise of 80 per cent.
Effective cost management secured a positive result for Lufthansa Cargo, despite weak market demand and persistently high price pressure in the freight market. Revenue declined by nine per cent, but the company kept its operating margin stable. The Logistics segment generated an operating profit of EUR 77m (previous year: EUR 105m).
Group pursues restructuring undiminished and anticipates a further increase in the operating profit to between EUR 1.3bn and EUR 1.5bn in 2014
“Score is on track. We have achieved our profit and restructuring targets for 2013. And we have created the conditions that will enable us to keep increasing our profits in the years ahead. We are working on further measures to improve earnings, which will enable us to cope with greater headwinds, too,” said Simone Menne, Member of the Executive Board and CFO at Deutsche Lufthansa AG.
The Group amended its depreciation policy, which will have an effect on the operating result from 2014 onwards. As many of its competitors have already done, the Company extended the depreciation period for its aircraft from 12 to 20 years, and reduced their residual book value from 15 to 5 per cent of the purchase price. This alteration corrects the effective useful life and the depreciation of the aircraft and ensures that they are presented correctly in the balance sheet. In the new financial year, the operating result is to rise by EUR 340m due to the change in depreciation policy, in 2015; it will increase by EUR 350m.
This change to the method of depreciating aircraft has no material effect on the Group’s economic strength. Its effects are felt solely at an accounting level. “Score therefore still aims to boost the operating profit sustainably by EUR 1.5bn compared with 2011,” said Menne. Applied to the earnings target, this meant that the Group now needed to increase its operating profit to EUR 2.65bn by 2015, she added. The change would also lead to a review of the Group’s dividend policy, since this was also dependent on the operating result. Simone Menne said: “We will review our dividend policy this year. However, it is clear that we will continue to let shareholders participate reasonably on our profits.”
The Group expects a positive business performance in the current year, too. As in 2013, the higher results should come largely from the passenger business. The Group’s adjusted operating result should therefore increase again by around 40 per cent and would come to between EUR 1.7bn and EUR 1.9bn for 2014. The reported operating result of the Lufthansa Group, including restructuring and project costs, should reach EUR 1.3bn to EUR 1.5bn at the end of the year. Christoph Franz said: “I am convinced that the Lufthansa Group and its staff will continue to successfully hold their own in an industry which will continue to change rapidly and consolidate further. The company has already become noticeably more dynamic and is creating value – for customers, employees and shareholders in equal measure. The Lufthansa Group and its companies are well prepared for the challenges ahead.”
2013 in figures
Revenue in 2013 remained stable at EUR 30.0bn, a fall of 0.4 per cent compared with the previous year. Overall, the Group’s operating income declined slightly to EUR 32.2bn in the reporting period, a fall of 2.4 per cent. Traffic revenue declined by 0.9 per cent to EUR 24.6bn. There was no change in operating expenses last year, which came to EUR 31.4bn (-0.1 per cent). Fuel costs fell by EUR 334m to EUR 7.1bn, a decline of 4.5 per cent. Included in this amount is a contribution of EUR -125m from price hedging. Fees and charges fell by 0.3 per cent on the previous year, in particular due to a lower number of flights.
In 2013, the Lufthansa Group generated an operating result of EUR 697m. To facilitate comparison, the operating result originally reported for the previous year was adjusted by EUR 315m following the amendments to accounting standard IAS 19. Following this adjustment, the result for 2012 came to EUR 839m.
The net result for the period fell by EUR 915m to EUR 313m. Earnings per share sank to EUR 0.68.
The Lufthansa Group invested EUR 2.5bn in the reporting period, EUR 156m more than in the previous year. Of the total, EUR 2.1bn went on modernising and maintaining the fleet. Cash flow from operating activities came to EUR 3.3bn and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 1.3bn. For 2013, the Group had a by EUR 256m reduced net debt of EUR 1.7bn. Following the application of new accounting standards (IAS 19), the equity ratio went up 4.1 percentage points to 21.0 per cent.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 747-830 D-ABYJ (msn 37834) taxies at Los Angeles International Airport.
Although this video has been out for a while, I came across this great “inside look” video of an Airbus A380 of Lufthansa approaching and landing at San Francisco International Airport (SFO) from the cockpit perspective of the flight crew. If you are not a pilot, I think you will enjoy the professionalism of the crew as they give us an inside glimpse of their highly precise world. Thank you Lufthansa.
Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com.
Video: PilotsEye TV:
Lufthansa (Frankfurt) has called on the European Commission to block any alliance and buy-in between Alitalia (2nd) (Rome) and Etihad Airways (Abu Dhabi). Etihad, which already has alliances with Aer Lingus, Airberlin and Air Serbia in Europe, is reportedly close to a deal with Alitalia according to Reuters. Lufthansa has lobbied against state-owned Gulf airlines (especially Emirates Etihad Airways and Qatar Airways) from expanding in Europe because of their unfair state aid.
Read the full report: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYH (msn 37832) climbs majestically from the runway at Los Angeles International Airport (LAX).
Boeing launches the 777X today with orders from Lufthansa, Etihad Airways, Qatar Airways and Emirates
Boeing (Chicago) today formally launched the 777X program at the 2013 Dubai Airshow with a record-breaking number of customer orders and commitments for the newest member of its twin-aisle product family. Agreements for 259 airplanes from four customers across Europe and the Middle East provide a strong foundation to support development and production of the airplane.
Representing the largest product launch in commercial jetliner history by dollar value, 777X orders and commitments include Lufthansa with 34 airplanes; Etihad Airways with 25; Qatar Airways with 50 and Emirates with 150 airplanes. The combined value of the agreements is more than $95 billion at list prices.
The 777X builds on the passenger-preferred and market-leading 777, which today commands 55 percent of market share in its category in terms of backlog, and 71 percent of the in-service fleet worldwide. The 777X family includes the 777-8X and the 777-9X, both designed to respond to market needs and customer preferences.
The 777X builds on the best-in-class dispatch reliability from today’s 777, as well as offering more market coverage and revenue capability that surpasses the competition. The 777-8X competes directly with the A350-1000, while the 777-9X is in a class by itself.
Opening new growth opportunities for airlines, the 777-9X offers seating for more than 400 passengers, depending on an airline’s configuration choices. With a range of more than 8,200 nautical miles (15,185 km), the airplane will have the lowest operating cost per seat of any commercial airplane.
The second member of the family, the 777-8X, will be the most flexible jet in the world. The airplane will seat 350 passengers and offer an incredible range capability of more than 9,300 nautical miles (17,220 km). In addition, the airplane will have unmatched takeoff and payload capability compared to the competition.
The 777X introduces the latest technologies in multiple places, including the most advanced commercial engine ever – the GE9X by GE Aviation – and an all-new high-efficiency composite wing that has a longer span than today’s 777. The airplane’s folding, raked wingtip and optimized span deliver greater efficiency, significant fuel savings and complete airport gate compatibility.
Like the 787 Dreamliner which was launched as the 7E7, the 777X will be formally named at a later date. Design of the 777X is underway and suppliers will be named in the coming months. Production is set to begin in 2017, with first delivery targeted for 2020.
According to Reuters, Boeing will firm up the configuration of the aircraft in 2015 and plans to have a detailed design by 2016.
Production will begin in 2017, with the first test flight scheduled for 2019 and first delivery in 2020.
The Launch Customers:
Lufthansa (Frankfurt) will launch a new route linking its Munich hub and Mexico City in April. The new route will be operated five days a week with Airbus A340-600s.
In other news, Lufthansa has stopped its humorous Swedish ad campaign for contestants to change their name to the gender-confusing “Klaus-Heidi” in return for a new life in popular destination of Berlin. 38 Swedes signed up in the contest for the false name change promotion before the airline decided to stop the ad campaign according to this report by RT.
Read the full report: CLICK HERE
Lufthansa has had a long tradition of naming its aircraft after cities. In this report by Lufthansa, the airline explains how it choses the aircraft names:
Lufthansa has been carrying the names of German cities around the world for over 50 years
An Lufthansa Airbus A319 is about to begin its life as a “flying ambassador” under the name of “Herborn.” On October 29, 2013, the jet with the registration D-AIBH was officially named “Herborn” at Frankfurt Airport by Ursula Benner, wife of the mayor. In accordance with the convention for Lufthansa aircraft naming ceremonies, Herborn’s Mayor Hans Benner then revealed the name on the fuselage and signed the naming certificate together with Karl Ulrich Garnadt, CEO and Chairman of the Executive Board of Lufthansa Cargo AG.
Lufthansa naming conventions as a sign of our time
The “Herborn” brings the total number of aircraft named after German cities and states to over 300. This naming convention has a long tradition at Lufthansa. The first Lufthansa aircraft was named in 1960 (see inset). The idea was to express the company’s solidarity with its German homeland – not just with the major hubs and cities but also with the regions where a large portion of Lufthansa passengers and employees come from.
But 50 years later, the airline operates a much larger network. The increasing number of passengers from all over the world share a key Lufthansa characteristic – internationality. This is why the Airbus A380 will also bear the names of major international cities such as Beijing, Zurich and Johannesburg.
The size of the waiting list is a clear sign that there is still great interest in aircraft naming – even after 50 years. Lufthansa currently holds applications from 245 interested cities and the demand has led to extended waiting times of between 10 and 15 years. The name of your city on the body of a Lufthansa aircraft is still a desirable symbol.
The choice of partner cities – not an easy decision
When choosing names, Lufthansa is guided by the historical, social and economic relevance of the place. Cities may be considered if they have a special connection with aviation or with Lufthansa.
Size, on the other hand, is unimportant. Nevertheless, when choosing names, Lufthansa generally tries to match the population of the place to the size of the aircraft. A Boeing 747-8 carries the name “Brandenburg,” for example, and an Airbus A321 carries the name “Stade” all over the world.
So what happens when an aircraft is taken out of service? The towns and cities in question can relax, because aircraft naming has become an enduring tradition at Lufthansa. In other words, once a town has been accepted into the inner circle and had an aircraft named after it, the name is transferred to a new aircraft when the old one is taken out of the Lufthansa fleet. The motto is “Once Lufthansa, always Lufthansa.”
The history of the “Berlin,” 1960 to present.
The tradition of aircraft naming began on September 16, 1960 with the naming of the “Berlin” by the then mayor, Willy Brandt, who was later to become Chancellor of Germany. Five years after the refounding of the airline with its “crane” symbol, a Lufthansa aircraft began taking the name of a German city to all parts of the world. Over the next fifty years, the name “Berlin” would be passed on to five modern wide-bodied aircraft. At the present time an Airbus A380 bears the name of the German capital. The Lufthansa flagship was named at Berlin Tegel Airport by the mayor, Klaus Wowereit, in 2012. The “Berlin” now flies under the call sign “Mike India” along the east and west coasts of North America and to major cities in the Far East.
Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com (all others by Lufthansa). Airbus A340-642 D-AIHE (msn 540) arrives at the Frankfurt hub.
Lufthansa donates its Vickers Viscount 814 D-ANAF to the Museum of Technology in Speyer, Germany, will modify 157 Airbus A320 family aircraft
Lufthansa (Frankfurt) has issued this statement:
Representatives of Lufthansa Technik and Lufthansa Technical Training officially handed over a Vickers Viscount 814 to the Museum of Technology in Speyer in southwest Germany. Lufthansa operated the aircraft on scheduled routes from 1962 to 1969, and in 1972 converted it into a technical training aircraft. To date, more than 2,000 young people in the Lufthansa Group have undergone basic training on this Vickers Viscount as an aircraft mechanic or electrician.
In cooperation with the workshop team at the Museum of Technology in Speyer, Lufthansa Technik trainers and apprentices have now restored the Viscount 814 with the registration D-ANAF for exhibition purposes. Before being transported to Speyer, the plane had to be dismantled. It was then re-assembled at the museum and repainted in its original livery with its 1960s registration. The Lufthansa Technik apprentices completed the work in a total of 2,096 man-hours, and visitors to the museum can now admire the results.
In the 1960s, the Vickers Viscount 814 was the workhorse on European routes and was one of the most popular propeller aircraft ever deployed on short and medium-haul routes. Since 1958, Lufthansa has operated a total of eleven of these aircraft on its domestic German and European scheduled services.
A close friendship has developed between the Museum of Technology in Speyer and Lufthansa Technik, which is an honorary member of the Museum Association. For many years, both companies have collaborated successfully on joint projects. Back in 2003, Lufthansa handed over a retired Boeing 747-200 with the registration D-ABYM to the museum for the symbolic price of one euro. There was an outburst of applause as “Yankee Mike” (the phonetic designation used by pilots for the last two letters “YM” in the aircraft registration) taxied to its final parking position. And now the Vickers Viscount 814 has also found a new home.
While the Lufthansa Group is currently investing 36 billion euros in new, even more environmentally friendly aircraft as part of the largest fleet renovation process in the company’s history, the Vickers Viscount represents a “historic fleet renewal” at Speyer’s Museum of Technology.
In other news, Lufthansa has announced it will add vortex generators to reduce noise for its 157 Airbus family aircraft. The company issued this statement:
Lufthansa is an active proponent of noise abatement and is investing in the nationwide modification of 157 aircraft from its Airbus A320 family. These planes connect Lufthansa’s hubs in Frankfurt and Munich with the destinations in its closely meshed European route network.
The manufacturer, Airbus, has even developed vortex generators especially for the A320 family. These are based on the findings of research carried out by Lufthansa and the German Aerospace Center. Flyover measurements showed that the vortex generators eliminate two unpleasant tones and therefore reduce the total noise generated by the approaching plane by up to two decibels. They can be fitted both to aircraft already in service as well as to the new Airbus A319, A320 and A321 models, which are still to be delivered.
“By fitting these vortex generators to our Airbus short and medium-haul fleet, we are continuing to invest in active noise protection”, says Kay Kratky, Member of the Lufthansa German Airlines Board, Operation & Hub Frankfurt. “In addition to the extensive modernisation of our fleet over the next few years, this is one of several steps that we are taking to reduce noise. It shows our commitment to working towards a balance between the interests of aviation and local residents, especially at our hubs.”
The tons that the vortex generators will eliminate are created on the underside of the wing by the pressure equalisation vents for the fuel tanks. Airflows passing over them in flight have an effect like blowing across the mouth of a bottle. The new components create a vortex in front of these vents and so prevent the noise. The modification of the existing fleet is to start in early 2014. All new deliveries of the A320 and A321 for Lufthansa will be fitted as standard with the vortex generators in future.
Top Copyright Photo: Lufthansa.
Have you seen the “new look” AirlinersGallery.com photo library website?
Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A319-114 D-AILF (msn 636) (Star Alliance) arrives in Zurich.
Read the full report from France 24: CLICK HERE
Lufthansa is also carefully evaluating its relationships with the very successful and aggressive Gulf carriers. So far, the Lufthansa Group has decided to serve those markets on its own but it will not rule out a possible future alliance with the Gulf carriers like Emirates, Etihad Airways and Qatar Airways.
Read the full story from Reuters: CLICK HERE
Copyright Photo: TMK Photography/AirlinersGallery.com. SAS is one of the limited number of Boeing 737-600 operators. Boeing 737-683 LN-RPS (msn 28298) departs from the runway at Amsterdam International Airport Schiphol.
Lufthansa (Frankfurt) as expected, placed orders for 34 Boeing 777-9Xs and 25 Airbus A350-900s. The group issued issued this statement:
Following a recommendation by the Deutsche Lufthansa AG Executive Board headed by Dr Christoph Franz, the Supervisory Board approved the purchase of 59 ultra-modern aircraft for the Group at its meeting. 34 Boeing 777-9Xs (above) and 25 Airbus A350-900s (below) will be added to the Lufthansa Group’s wide-body fleet. The first of these new aircraft will be delivered as early as 2016. Older Boeing 747-400s and Airbus A340-300s will be phased out by 2025. The new airplanes will primarily serve to replace existing aircraft at Lufthansa.
The investment amount for the Lufthansa Group’s latest order totals EUR 14 billion at list prices and is the largest single private-sector investment in the history of German industry. “This investment will safeguard about 13,000 jobs at Lufthansa alone as well as thousands of jobs at our partners in aviation and other suppliers”, said Christoph Franz, Chairman of the Executive Board and CEO of the Lufthansa Group, explaining the macroeconomic significance of the investment at a press conference in Frankfurt.
This investment in new technology, efficiency and customer comfort is a continuation of the ongoing fleet modernization that is taking place at the Group’s airlines. Lufthansa operates a wide-body fleet of around 107 aircraft, among them ten ultra-modern Airbus A380s and nine Boeing 747-8s as well as the Airbus A330-300 (18 aircraft). The fleet also includes Airbus A340s (48) and Boeing 747-400s (22). In addition to these, the Group subsidiary Swiss has 31 wide-body airplanes, while Austrian Airlines’ wide-body fleet consists of 12 aircraft.
The aim is to reduce the number of different models and fleet complexity in the Passenger Airline Group segment and also replace existing aircraft with state-of-the-art airplanes. In March, the Group approved the purchase of around 100 short and medium-haul aircraft. This order included six new Boeing 777-300 ERs for Swiss, which are also intended to replace older Airbus A340-300s at the airline.
The new aircraft will be operated by ultra-modern, powerful, low-noise engines – the Airbus A350 by the Rolls-Royce ‘Trent XWB 84′ engine and the Boeing 777-9X by General Electric’s ‘GE-9X’ model. The noise footprint of the new models will be at least 30 per cent lower than today’s aircraft.
Lufthansa (Frankfurt) according to this report by Reuters, is close to announcing a new order for the proposed 406-seat Boeing 777-9X, which Boeing intends to formally launch this year. Lufthansa would be a launch customer like it was with the Boeing 747-800 Intercontinental.
The 777-9X will have new engines and wings and is expected to start flying passengers around the end of this decade.
Lufthansa, which is already a large Airbus operator, is also expected to order between 20 and 25 of the new 314-seat Airbus A350-900. The A350 will enter service in the second half of 2014.
Read the full report: CLICK HERE
Lufthansa’s transfer of Austrian Airlines employees to cheaper Tyrolean Airways deemed illegal by a Vienna court
Lufthansa Group (Frankfurt) in 2012 orchestrated the transfer of around 2,000 staff members of its Austrian Airlines (Vienna) subsidiary to the cheaper Tyrolean Airways (Innsbruck) subsidiary to reduce overall costs. A Vienna court ruled yesterday (September 2) that the move was illegal and the employees were still employed by Austrian Airlines.
Austrian Airlines stated it would appeal the verdict of the Vienna Labor and Social Affairs Court. The transfer was the heart of the loss-making airline’s restructuring plan and its attempt to return to profitability along with the Lufthansa Group.
Currently Tyrolean Airways is operating all Austrian Airlines-branded aircraft (except one Boeing 777) as Austrian Airlines flights. The one Triple Seven is keeping the Austrian Airlines AOC alive.
Read the full report from Euronews: CLICK HERE
Copyright Photo: Austrian Airlines-branded Boeing 777-2Z9 ER OE-LPA (msn 28698) pictured departing from Tokyo (Narita) is actually being operated Tyrolean Airways-employed crews on the Tyrolean AOC until the Vienna court deemed the crews to be considered Austrian Airlines employees again! What will now happen to the Tyrolean crews who were operating alongside Austrian crews?
Lufthansa (Frankfurt) will introduce the relatively new Boeing 747-800 on the Frankfurt-Mexico City route on September 2, 2013 according to Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYA (msn 37827) climbs away from the runway at Los Angeles International Airport.
Lufthansa Group (Lufthansa) (Frankfurt) reported its second quarter net profit dropped over 42 percent to $337 million due restructuring costs due to cost-cutting measures. The group believes it is on track and will raise profitability for the rest of 2013.
Read the full report: CLICK HERE
Copyright Photo: Tony Storck/AirlinersGallery.com. Lufthansa’s Airbus A320-214 D-AIZQ (msn 5497) with Sharklets departs from the Frankfurt hub.
The Lufthansa Group (Lufthansa) (Frankfurt) has firmed up a previous Supervisory Board decision from March this year and signed for 100 Airbus A320 Family aircraft (35 A320neo, 35 A321neo and 30 A320ceo aircraft with Sharklets) at the Paris International Airshow in Le Bourget, France.
The Lufthansa Group has been operating the A320 Family since October 1989. They were the launching customer for the A321 and belonged to the first operators of the A319 and A320. The new order confirms Lufthansa’s leading position as the largest Airbus airline customer and operator in Europe, increasing its order for the A320 type to 299. Over 150 of these aircraft have already been delivered.
Boeing (Chicago) yesterday (May 29) celebrated the 50th delivery of a 747-800. Lufthansa (Frankfurt), the launch customer of the passenger version, took delivery of the milestone aircraft almost one year after the first revenue flight of the 747-800 Intercontinental. It is the airline’s seventh 747-8 and its 82nd 747.
Boeing delivered the first 747-800 Intercontinental to Lufthansa in April 2012. The airplane entered service on June 1, 2012 with a flight from Frankfurt, Germany to Washington (Dulles), D.C. Cargolux Airlines took delivery of the first 747-800 Freighter in October 2011. To date, 35 Freighters and 15 Intercontinentals, including eight of the Boeing Business Jet version, have been delivered.
Top Copyright Photo: Boeing. Pictured at a soggy Paine Field, Boeing 747-830 D-ABYI (msn 37833) was handed over to the carrier on May 29.
Bottom Copyright Photo: Joe G. Walker/AirlinersGallery.com. Another view of D-ABYI arriving at Paine Field on May 18.
Lufthansa to change take-off procedures on June 1 to lower fuel consumption and reduce CO2 emissions
Lufthansa (Frankfurt) has issued this statement about new take-off procedures for its flights outside of Germany:
Lufthansa is set to change its take-off procedure for all departures outside Germany, thereby implementing worldwide standards. As of June 1, 2013, the altitudes for using the climb thrust and for further accelerating Lufthansa aircraft that are taking off will change from 1,500 feet (approx. 457 metres) to 1,000 feet (approx. 305 metres). This procedure is standard at most German and international airports and is already used by many airlines as it leads to lower fuel consumption and a reduction in CO2 emissions. At Frankfurt Airport, many airlines today are already benefiting from this take-off procedure.
Before it is introduced at German airports, the effects of the more level take-off will first be examined in a sound measurement test phase. Lufthansa expects the effects to be positive overall, as aircraft will be in a low-resistance, and therefore less noisy, configuration at an earlier stage. This assumption will be tested at Frankfurt Airport in a trial run from 1 July until 30 September 2013 by measuring selected flights, while all other flights will take off as before for the purpose of comparison. The sound measurements will be evaluated in co-ordination with the independent Airport and Region Forum (“Forum Flughafen und Region”). A scientific study was previously commissioned at the German Aerospace Center, which predicted only minimal sound changes as a result of the new take-off procedure.
The objective of this step-by-step process is to transparently record and evaluate reliable measurement data for noise levels during the new procedure. Once the data has been analysed, it will be decided whether the 1000-foot acceleration will be introduced at German airports.
What does 1000-foot acceleration mean?
After an aircraft takes off from the runway, it usually ascends at a constant speed with the flaps extended until it reaches a certain altitude. Modern aircraft generally do not use the maximum thrust available at this point, but rather a reduced level of take-off thrust. When the aircraft reaches an initial target altitude, the engines’ thrust switches to climb thrust. As the aircraft continues to take off, it has to accelerate so that the flaps can be retracted and it can climb to its cruising altitude at a higher speed. The altitude at which the speed increase begins is called the acceleration altitude.
By changing these two altitudes, the wind resistance decreases when the flaps are retracted, thus lowering fuel consumption. Lufthansa expects that changing the procedure in Frankfurt alone would save around 2,200 tons of fuel per year. This would mean around 7,000 tons fewer CO2 emissions. The benefit for the environment is much greater worldwide: approx. 6,000 tons less kerosene, or around 18,000 tons less CO2.
A reduction in the acceleration altitude from 1,500 to 1,000 feet is permitted under ICAO regulations and is already standard practice at many airlines. Any procedural changes to an airline’s operations manual must be notified to the national supervisory authority. For German airlines, this is the German Federal Aviation Authority (LBA). The LBA and the German Federal Ministry of Transport, Building and Urban Development have already granted Lufthansa permission to change the procedure.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-830 D-ABYF (msn 37830) climbs away from Los Angeles International Airport.
Video: Lufthansa commercial: “These Germans”:
Lufthansa Group (Lufthansa) (Frankfurt) reported its net loss for the first quarter widened to $602 million, up from a loss of $516.8 million in the same quarter a year ago. the first quarter is usually the weakest quarter for the carrier.
The airline issued this statement:
In the traditionally weak first quarter, Deutsche Lufthansa AG recorded an operating result on a par with last year at EUR -359m. The operating result includes restructuring costs of EUR 64m from the SCORE programme. Earnings improvements in the operating segments helped the Group make up for the extra costs. The net result for the period fell by 16.5 per cent to EUR -459m due to impairment losses and other valuations as of the reporting date. At EUR 6.6bn, revenue for the Lufthansa Group in the first quarter remained stable.
“We took another step towards our target of sustainable earnings improvements in the first quarter. Nearly all the Group companies improved their result,” explained Simone Menne, Member of the Executive Board, responsible for Finances and Aviation Services at Deutsche Lufthansa AG. “We are firmly on course with our SCORE programme.”
In operational terms, the Group improved its result by a total of EUR 95m in the Passenger Airline Group, Logistics, MRO, Catering and IT Services segments. Lufthansa German Airlines achieved the greatest improvement in the operating result, with an increase of EUR 77m. Thanks to a notable reduction in the number of flights and its optimised capacity management, the company boosted the load factor of its aircraft in the first quarter to 75.5 per cent and at the same time increased its yields. The strike by Lufthansa ground staff on 21 March depressed the operating result for Lufthansa German Airlines, as did high fuel costs and the long winter, which also weighed on the other airlines in the Lufthansa Group.
At the end of the first quarter 2013, Lufthansa German Airlines reported an operating loss of EUR 292m. At SWISS, the operating result came to EUR -16m, compared with EUR -3m in the same quarter last year. Austrian Airlines improved its operating result by EUR 11m to EUR -56m. Overall, the operating loss for the Passenger Airline Group segment improved to EUR -363m.
The Lufthansa Group also improved its operating result in the Logistics segment. Lufthansa Cargo increased its operating profit, in part thanks to targeted capacity management and lower depreciation and amortisation. At the end of the first quarter, the figure for the segment was EUR 27m, a rise of EUR 7m. The operating profit for the MRO segment was up by EUR 16m to EUR 81m. Lufthansa Technik adopted some 200 individual measures as part of SCORE in the first quarter, which by 2015 are intended to improve the organisation of administrative functions and align them better with customer needs. LSG SkyChefs improved its operating result by EUR 9m, posting an operating profit of EUR 3m for the period January to March. In the IT Services segment, Lufthansa Systems earned an operating profit of EUR 3m, compared with EUR 4m in the same quarter last year.
Given the improvement of the operating results for the Group companies in the first quarter, the positive contributions by SCORE and stable demand in the passenger business, the Group confirmed its earnings outlook for the year 2013. The operating profit for the Lufthansa Group in 2013 is predicted to be higher than the EUR 524m achieved last year. Positive earnings contributions from SCORE should not obscure the need for further change, however, emphasised Simone Menne, adding, “In competition with well-funded competitors, especially from the Middle East and Far East, and with low-cost airlines in Europe, we need new structures that will allow us to generate higher profits again. Putting the agreed measures into practice remains a challenge. We nevertheless intend to pursue our chosen path and shape our future with the required perseverance.”
The first quarter of 2013 in figures
Revenue for the Lufthansa Group in the first quarter of 2013 came to EUR 6.6bn – an increase of 0.1 per cent on the previous year. Traffic revenue declined by 0.2 per cent to EUR 5.3bn. Overall, the Group’s operating income went up to EUR 7.2bn in the reporting period, an increase of 0.3 per cent.
Operating expenses rose by 1.7 per cent in the first quarter to EUR 7.7bn. Fuel costs climbed by EUR 36m to EUR 1.7bn. This represents an increase of 2.2 per cent. Included in this amount is a negative contribution of EUR 25m from fuel hedging. Fees and charges fell by 2.2 per cent on the previous year, due to a lower number of flights.
In the first quarter, the Lufthansa Group reported an operating result on a par with the previous year of EUR -359m. To facilitate comparison, the operating result for the same quarter last year was adjusted by EUR 22m following the amendments to accounting standard IAS 19. Following this adjustment, the result for the first quarter of 2012 also came to EUR -359m.
The net result for the period was down by 16.5 per cent to EUR -459m. Expenses for severance pay and compensation as part of the SCORE job cuts depressed the Group’s result for the first quarter, as did impairment losses and valuation effects. Earnings per share sank to EUR -1.00.
Lufthansa invested EUR 718m in the reporting period. Of this sum, EUR 657m went on modernising and maintaining the fleet. Cash flow from operating activities came to EUR 976m and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 463m. For the first quarter, the Group had net debt of EUR 1.7bn. Following the application of new accounting standards (IAS 19), the equity ratio is now 15.4 per cent.
|of which traffic revenue||€m||5,337||5,349||5,349||-0.2%|
|Result from operating
|Net profit/loss for the period||€m||-459||-394||-379||-16.5%|
|Cash flow from
|Employees as of 31.3.||116,516||120,898||120,898||-4,382|
|Earnings per share||€||-1.00||-0.86||-0.87||-0.14|
*) Operating result plus write-backs of provisions, divided by revenue
**) Previous year’s figures have been adjusted in line with changes to IAS 19
Copyright Photo: Brian McDonough. Lufthansa is gradually replacing its older Boeing 747-430s. D-ABTF (msn 24967) climbs gracefully away from Dulles International Airport near Washington, DC.
Lufthansa (Frankfurt) and the Verdi union representing 33,000 Lufthansa workers have agreed to a new pay increase and a new contract. Pay increases range from three percent to 4.7 percent.
Read the full report from Reuters: CLICK HERE
Copyright Photo: Ole Simon. Boeing 737-330 D-ABEM (msn 25416) climbs gracefully away from the Frankfurt hub.
Lufthansa (Frankfurt) is facing additional strikes by its Verdi union.
According to this report by Reuters, Verdi is demanding a 5.2 percent pay raise over 12 months and job security for about 33,000 cabin crew and ground staff.
Read the full report: CLICK HERE
Copyright Photo: TMK Photography. Airbus A340-311 D-AIGC (msn 027) in the Star Alliance livery climbs away from the runway at Toronto (Pearson).
Lufthansa (Frankfurt) will be impacted heavily tomorrow due to a strike by the Verdi union which represents around 33,000 of its employees. The airline is pre-canceling almost 1700 flights. Only a few flights will operate. The airline has issued this statement:
The Lufthansa Group’s flight operations will be considerably restricted on Monday April 22, 2013 as a result of the planned warning strike by the Verdi trade union.
Due to the announced strike actions on Monday, April 22, nearly all Lufthansa flights within Germany and Europe will be cancelled. Only a select few short-haul flights will operate on Monday, such as in Berlin, where strike actions should end by 2:30 pm CET. In all, only 20 of the 1,650 planned Lufthansa short-haul flights on Monday will operate due to the limited flight schedule.
In addition to the cancellations in Germany and Europe, massive flight cancellations and delays are to be expected for long-haul flights beginning Sunday April, 21. Of the 50 planned flights in Frankfurt, only six will operate; in Munich, of the 17 planned flights, only three will operate; whereas, in Dusseldorf all three long-haul flights are scheduled to operate as planned.
Flights operated by Germanwings will not be affected.
Lufthansa regrets any inconvenience to Lufthansa passengers caused by the threatened strike measures by ver.di and will do its utmost to minimise impacts on passengers. Passenger support and service has paramount priority.
Passengers are kindly asked to please check the status of their flight before leaving for the airport. Passengers for flights that will take place please calculate extra time at the airport.
An overview of currently cancelled flights can be found here:
Read the full news report by Reuters: CLICK HERE
Copyright Photo: Nik French. The new Lufthansa 1955 retrojet is this Airbus A321-231 registered as D-AIDV (msn 5413) captured nicely at Manchester.
Lufthansa is granted rights to serve Shanghai Pudong with its Airbus A380, considers legal action against its unions
Lufthansa (Frankfurt) has received Chinese permission to operate its Airbus A380s on the Frankfurt-Shanghai (Pudong) route starting on September 26. The A380s will operate five days a week on the route.
In other news, the company is considering legal action after the main union Verdi called on its workers to go on strike on Monday according to this report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: Ole Simon. Airbus A380-841 D-AIME (msn 061) climbs away from the FRA hub.
Lufthansa (Frankfurt), according to this report by Reuters, is willing to endure additional strikes like last week (even with its pilots) in order to gain the flexibility it needs. The company is restructuring and is planning to eliminate 3,500 positions as it shifts more European flying to subsidiary Germanwings (2nd) (Cologne/Bonn).
Read the full report: CLICK HERE
Copyright Photo: Ole Simon. Full moon rising. Lufthansa will continue to gradually phase out the older Boeing 737s including the pictured 737-330 D-ABEC (msn 25149) rising from the Frankfurt hub.
Lufthansa (Frankfurt) today has cancelled nearly 40 percent of its flights due to a strike by its employees on the eve of wage discussions according to Reuters. According to this report, the union Verdi is demanding a 5.2 percent pay increase for the 33,000 cabin crew and ground staff at Lufthansa, Lufthansa Cargo, Lufthansa Technik, Lufthansa Systems, LSG Sky Chefs and the ground crews. the union also wants a commitment by Lufthansa to safeguard all current jobs.
Read the full report: CLICK HERE
Meanwhile Lufthansa issued this statement:
Due to a warning strike at German airports this morning it is expected that some flight operationsto and from Frankfurt, Munich, Düsseldorf, Berlin, Hamburg and Cologne will be affected throughout the afternoon and evening of 21 March 2013.
Lufthansa regrets any inconvenience to Lufthansa passengers caused by the strike measures and will do its utmost to minimise impacts on passengers. Passenger support and service has paramount priority.
All Lufthansa passengers are urged to check the status of their flight before beginning their journey at My bookings.
If your flight is operating, please plan for some extra time when travelling to the airport, as you may experience longer waiting times in the terminals.
Check currently cancelled flights under
Passengers whose flights have been cancelled are kindly asked to check on
if they have already been checked in on an alternative flight. If this is the case, the boarding pass for the new flight can instantly be created online.
Affected passengers please check the status of their booking prior to departure at
You might find an alternate flight and can check-in for it here.
Up-to-date information on your Lufthansa flights is available under
If your flight to/from Germany has been cancelled:
Affected passengers can refund or rebook their flights free of charge. If your flight has been cancelled and you cannot use the self-service options above, passengers in Germany can contact our Service Center toll-free on 0800-850-60-70* or via one of our local phone numbers.
*toll-free from German landlines
Passengers travelling within Germany whose flights have been cancelled due to the weather may alternatively travel by train with Deutsche Bahn.
To do this, please exchange your etix for a travel voucher under My Bookings or at a Lufthansa check in machine. When exchanging the voucher online you can either print the travel voucher or send it per E-mail/SMS to your mobile phone.
If you do not have the time to exchange your ticket online or at the machine, we recommend you purchase a regular train ticket. In this case we kindly ask for your understanding that you will then be refunded the unused portion of your ticket. As the reason for cancellation was force majeure we are unable to provide any compensation beyond the value of the unused ticket. Please contact your ticket issuing office after your travel for a refund of your unused ticket.
You can receive current travel information under Deutsche Bahn or on your mobile phone via m.bahn.de.
Your baggage could not be forwarded on the alternative flight/train.
In order to deliver your baggage please fill in our Lufthansa Baggage form or please contact the Lufthansa baggage tracing counter as soon as you arrive at your destination. For status updates on your missing baggage please go to Lufthansa baggage tracing online. Check here for further information on baggage liability.
Free of charge rebooking due to strike
Passengers holding a Lufthansa/SWISS, Austrian Airlines or Brussels Airlines ticket for flights from/to or via a German airport on 21 March 2013 can rebook free of charge online under My Bookings.
The following conditions apply:
- the ticket needs to have been issued on/before 20 March 2013
- the new travel date needs to be before/on 30 June 2013
- rebooking within the original fare: Exept for Lufthansa Group operated flights a rebooking can be in the next higher booking class
- departure/arrival city as well as class of travel remain unchanged
- all further original ticket conditions apply without changes
Copyright Photo: Michael B. Ing. Airbus A340-642X D-AIHX (msn 981) climbs gracefully away from Tokyo (Narita).
Lufthansa’s (Frankfurt) Supervisory Board has approved the acquisition of 100 A320 Family aircraft (35 A320neo, 35 A321neo and 30 A320ceo with Sharklets) and two A380s worth approximately $11.2 billion at list prices. The engine choices will be announced by the airline at a later date.
This latest acquisition reconfirms the Lufthansa Group as Airbus’ largest airline customer, with a total of 532 aircraft ordered. Today the Lufthansa Group is also Airbus’ biggest operator worldwide with 385 Airbus aircraft currently in service. These include: 271 A320 Family, 41 A330s, 63 A340s, and 10 A380s.
Copyright Photo: Michael B. Ing. Airbus A380-841 D-AIMG (msn 069) completes its final approach into Beijing.
Lufthansa (Frankfurt) has taken delivery of its first Airbus A320 equipped with Sharklets at the Airbus site in Hamburg (Finkenwerder), Germany. Lufthansa is becoming the first carrier in Europe to take benefit of the new fuel-saving wing-tip devices. The airline will receive 21 more A320 Family aircraft equipped with Sharklets until 2015.
A320-214 D-AIZP (msn 5487) was handed over to the carrier yesterday (March 1).
Sharklets are made from light-weight composites and are 2.4 meters tall. They are an option on new-build A320 Family aircraft and standard on all members of the new A320neo family. They offer operators up to four percent fuelburn reduction on longer range sectors and provide the flexibility of either adding an additional 100 nautical miles range or increased payload capability of up to 450 kilograms.
Top and Bottom Copyright Photos: Airbus. Sister aircraft A320-214 D-AXAE (msn 5497) will become D-AIZQ on delivery and will become the second with Sharklets for LH.
Lufthansa (Frankfurt) issued the following financial statement:
Lufthansa Group generated revenue of EUR 30.1 billion in 2012 ($40.2 billion) (previous year: EUR 28.7 billion). Net profit for the period rose to EUR 990 million ($1.3 billion) (previous year: EUR -13 million), largely due to non-recurring effects from the sale of equity investments. The operating profit came to EUR 524 million (previous year: EUR 820 million). This includes restructuring costs of EUR 160 million for the Group-wide SCORE program. The partial transfer of Austrian Airlines’ flight operations to Tyrolean Airways had a one-time positive effect of EUR 115 million on the operating result.
The Executive Board is proposing to the Supervisory Board to suspend the dividend payment. Net profit is to be fully retained.
The Executive Board plans to close sites and to merge administrative functions.
The Executive Board is proposing to the Supervisory Board to order eight long-haul aircraft and 100 short- and medium-haul aircraft, with a total volume of around EUR 9 billion. Deliveries are scheduled for the period 2015 to 2025.
Copyright Photo: Michael B. Ing. Boeing 747-830 D-ABYC (msn 37828) climbs away from Los Angeles INternational Airport.
Ryanair criticizes Brussels Airlines, the Belgian government, Lufthansa and Aer Lingus, announces a new Eindhoven base
Ryanair (Dublin) has publicly stated it will not move to Brussels (Zaventem) should Brussels Airlines (Brussels) fail due to its current financial losses. The airline is committed to Charleroi near Brussels. The company issued the following statement:
Ryanair rejected recent speculation emanating from the Belgian Government and/or Brussels Airlines that there was some prospect that Ryanair would move to Brussels Zaventem when Brussels Airlines disappears due to its catastrophic losses. Ryanair has rejected this idle speculation and confirmed its commitment to its base at Brussels Charleroi, where Ryanair has operated for 15 years, and has built a growing and successful partnership with Brussels South Charleroi Airport.
- 1 based aircraft
- 31 routes
- 4 new routes to/from Agadir, Bordeaux, Chania and Fez
- Warsaw Modlin extended for summer season
- Increased frequencies to/from Alicante, Faro, Ibiza, Malaga, Marrakech and Pisa
- 238 weekly flights (up 8%)
- 1.7 million pax p.a (up 7%)
- 1,700 jobs at Eindhoven Airport
Lufthansa (Frankfurt) and Turkish Airlines (Istanbul), two Star Alliance airlines, are in discussions about increasing their relationship and cooperation according to this report by the Financial Times. Turkish Airlines is a fast growing carrier and serves many destinations not served by the German carrier. Lufthansa appears to favor this approach rather than striking up a new relationship with any of the fast growing Gulf carriers. Lufthansa has been critical of the Gulf carriers which pose a threat to many European long-haul carriers. Competitor Airberlin (Berlin) now has a strong and growing relationship with Etihad Airways (Abu Dhabi) and fast growing Qatar Airways (Doha) will join the Oneworld alliance in August 2013 as previously reported.
Read the full report from the Financial Times: CLICK HERE
Read another report by Arabian Business: CLICK HERE
Top Copyright Photo: Christian Volpati. Airbus A380-841 D-AIMJ (msn 073) approach Singapore for landing.
Bottom Copyright Photo: Michael B. Ing. Boeing 777-3F2 ER TC-JJP (msn 40797) completes its final approach into Los Angeles International Airport dressed in the updated 2010 color scheme.
Lufthansa cancels its contract with Augsburg Airways, will launch Munich-Vancouver flights on May 16
The five Embraer ERJ 190-200s (ERJ 195s) assigned to Augsburg will be transferred to CityLine also on October 26, 2013.
The company was established in 1980 as Interot Airways. Revenue operations commenced in 1986. In 1996 the airline became Augsburg Airways. In 2003 Augsburg started operating as an Lufthansa Regional carrier. It was the last independent feeder operating for LH.
In other news, Lufthansa is expanding its long-haul services from its Munich hub and next year, for the first time, will offer a nonstop flight from Munich to Vancouver. From May 16, 2013, the new route to the largest city in British Columbia will be served daily with an Airbus A330. The service will complement Lufthansa’s daily flights from Frankfurt.
Read the full report about Augsburg from augsburger-allgemeine.de (in German) : CLICK HERE
Copyright Photo: Arnd Wolf. Augsburg Airways’ Embraer ERJ 190-200LR (ERJ 195) D-AEMD (msn 19000305) approaches the Munich hub for landing.
Lufthansa (Frankfurt) will merge all European Lufthansa operations (outside of the Frankfurt and Munich hubs) under the Germanwings (2nd) (Cologne/Bonn) AOC certificate on January 1, 2013. All Eurowings operations will also support this operation. This move is designed to reduce costs for the struggling European operations. A new name for this expanded operation will be announced at a later date.
The company issued this statement:
Lufthansa direct European services, which include all German domestic and European services outside of the Lufthansa Frankfurt and Munich hubs, will be merged commercially and organizationally with Germanwings to form one company on the basis of Germanwings GmbH from January 1, 2013. The company’s headquarters will be Cologne.
The new company is to operate the Germanwings aircraft and the Direct Services fleet from 2013. In addition, the aircraft of Eurowings GmbH are set to fly on behalf of the new company, meaning that around 90 aircraft will cover direct services in Germany and Europe. In the first year, over 18 million passengers are to be transported.
Christoph Franz, CEO and Chairman of the Executive Board of Deutsche Lufthansa AG, said: “As part of the Lufthansa Airline Group the new company will get underway with the accordingly high quality standards.” The decision about the future brand name will only be made in the upcoming months.
“Combining our domestic German and European point-to-point services has enormous potential to improve efficiency. Our aim is to once again fly these services profitably under the umbrella of a single company. This means we are continuing to offer our guests the prospect of a dense, high-quality network even outside of our Frankfurt and Munich hubs. And our employees in these areas have the prospect of secure jobs within a company of the Lufthansa Group”, Christoph Franz emphasized.
Copyright Photo: Rolf Wallner. The Germanwings name is now likely to be retired again as its role is expanded by its parent. Airbus A319-132 D-AGWP (msn 4227) taxies at Zurich.
Germanwings routes from Cologne/Bonn:
Lufthansa (Frankfurt) today is suffering through another 24-hour strike by its flight attendants. The company issued the following statement:
“The Independent Flight Attendants Organization (UFO) has announced a nationwide 24-hour strike action for Friday, 7. September 2012.
Lufthansa has prepared a list with cancelled flights. Our goal is to provide as much certainty as is possible for our passengers.
Lufthansa sincerely regrets that the labor dispute is being waged at the expense of its customers. Lufthansa will do its utmost best to minimize the impacts on its customers.
The call to strike action forces Lufthansa to cancel a majority of flights. Unscheduled cancellations and delays of Lufthansa flights must be anticipated. Flights of Austrian Airlines, Brussels Airlines, Germanwings and Swiss as well as LH codeshare flights will not be affected. However, at this stage, Lufthansa cannot say for sure what exact impact the strike action will have.
Even after the end of the strike, Lufthansa foresees irregularities in flight operations on the weekend.”
However the two warring sides are now showing signs they may want to settle their on-going dispute. Both sides are now welcoming a mediation as a possible way to resolve the issues.
Copyright Photo: Gerd Beilfuss. Boeing 747-830 D-ABYA (msn 37827) lands at Hamburg. The airline is planning to make Chicago (O’Hare) its third Boeing 747-8 Intercontinental destination after Washington (Dulles) and Bangalore.
Lufthansa (Frankfurt) is facing a strike by its cabin staff (flight attendants), represented by the Independent Flight Attendants Organization (UFO).
The company issued the following statement:
Strike actions by the Independent Flight Attendants Organization (UFO) announced for Friday, August 31, 2012
No strike actions are planned for today, Thursday, August 30, 2012. Thus, Lufthansa is confident to provide stable flight operations.
According to the latest UFO announcement, strike measures will start tomorrow, Friday, August 31, 2012. Details on the scope of the strikes (affected airports and expected duration) will be published by the union at very short notice only.
Lufthansa will do its utmost best to communicate the details on this page as soon as possible and to minimize the impacts on its customers.
In case of strike and resulting flight irregularities, passenger support and service have paramount priority.
Passengers whose flights have been cancelled due to strike action are entitled to rebook or cancel free of charge, regardless of the fare conditions.
Passengers travelling within Germany whose flights have been cancelled due to strike action may alternatively travel by train with Deutsche Bahn. To do so, customers can exchange their e-ticket for a travel voucher under “My bookings” or at any Lufthansa check-in kiosk.
Beyond that Lufthansa cannot offer further compensation or reimbursement. Flight cancellations due to strike action are considered force majeure by EU regulation. Thus, Lufthansa is exempted from the obligation of providing compensation payments.
Copyright Photo: Ton Jochems. Airbus A380-841 D-AIMB (msn 041) arrives at the Frankfurt hub.
Lufthansa‘s (Frankfurt) passengers can now book flights to the latest Boeing 747-8 destination. Tickets for flights on the Frankfurt-Bangalore route with the Lufthansa flagship are now on sale. From September 13, the “Queen of the Skies” will depart daily from Frankfurt for Bangalore at 12.15 hours, operating under flight number LH 754. The scheduled arrival time in the Indian metropolis is 0.30 hours local time. Two hours later, LH 755 will return to its home base in Frankfurt, landing at 08.25 hours.
Lufthansa will soon take delivery of its third Boeing 747-8 and add the final touches to the aircraft, which will bear the registration of D-ABYD. As soon as it is ready to enter into service, it will be deployed on the route to Bangalore – the third Lufthansa destination to be served by the new jumbo jet. The Boeing 747-8 Intercontinental currently flies to Washington (Dulles) and Delhi.
On board, Lufthansa passengers can enjoy the new Business Class, which includes a seat that can be converted at the press of a button into a horizontal sleeping surface measuring 1.98 metres in length. The new seat offers exceptional comfort for passengers in a sitting or recumbent position, intuitive adjustment features, additional storage space and enhanced entertainment system.
The Boeing 747-8 Intercontinental is a completely new aircraft that builds upon the positive features of the Boeing 747 series, Lufthansa’s long-haul workhorse for more than 40 years. The aircraft’s wings have significantly improved aerodynamics and newly developed wingtips. The aircraft also provides tangible improvements in terms of eco-efficiency. The GEnx-2B engines consume less fuel and achieve a 15 per cent improvement in fuel efficiency and CO2 emissions per passenger. In addition, noise emissions have been reduced by 30 per cent.
In 2012, Lufthansa expects to take delivery of a further Boeing 747-8 Intercontinental, which is scheduled to operate flights to Los Angeles. To date, Lufthansa has ordered a total of 20 Boeing 747-8 aircraft.
Copyright Photo: Nick Dean. Boeing 747-8 Intercontinental D-ABYD (msn 37829) departs from Paine Field near Everett.
Lufthansa‘s (Frankfurt) 10,000 cabin staff (flight attendants) have rejected the latest contract proposal. The union will decide next week whether they will strike according to this report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: Brian McDonough. Brand new Boeing 747-830 D-ABYA (msn 37827) climbs majestically away from Dulles International Airport near Washington.