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22-Jun-2023 1:30 AM

Lufthansa, CityLine and City Airlines – another alternative labour platform

Premium Analysis

On 7-Jun-2023 Germany's Civil Aviation Authority (Luftfahrt Bundesamt) confirmed that City Airlines had received an air operator's certificate (AOC). The airline, which was registered in Munich by Lufthansa Group in May-2022, will serve as a feeder at the group's hub in the Bavarian capital and also, potentially, at Frankfurt.

The name of Lufthansa Group's newest member, 'City Airlines', is very similar to that of the group's existing regional airline Lufthansa 'CityLine', which also provides feeder traffic to the hubs.

The main difference is that City Airlines will only operate Airbus narrowbodies - likely A319s - whereas CityLine also operates Bombardier and Embraer regional jets.

City Airlines will take on a role with some similarities to CityLine, so why is it needed?

The answer is to provide Lufthansa Group with another new platform to help it around restrictive terms in pilot agreements, thereby lowering labour costs and increasing labour flexibility - in particular, Lufthansa CityLine's operation of mainline narrowbodies could end in 2026, and the group needs to mitigate the impact of that possibility.

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