Lufthansa is reportedly considering launching an appeal against plans to cease night services from its Frankfurt Airport hub (Dow Jones, 14-Dec-2009). A Hesse Administrative Court criticised the airport’s night flight regulations, allowing 17 flights between 2200 and 0400, stating it was not compatible with aircraft noise regulations.
Lufthansa considering launching appeal against plans to cease night services from Frankfurt Airport
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Lufthansa: mainline pilot deal, growing Ryanair threat at Frankfurt; Eurowings vital to both.
The Lufthansa Group's juggling act continues to impress with the sheer number of balls that it has sought to keep in the air over the past year.
Striving for labour productivity improvements in its mainline operations, while also attempting to minimise industrial unrest; expanding its Eurowings low cost brand through organic growth, while also integrating the acquisition of Brussels Airlines and the wet lease of aircraft from airberlin; facing the growing threat of Ryanair's entry into its biggest hub at Frankfurt, while seeking to maintain a good relationship with the airport's owner Fraport; keeping positive momentum in its financial performance after earning more than its cost of capital in 2014-2016, while the global cycle may have reached a peak.
In the same week as reporting solid, if unspectacular, financial results for 2016, Lufthansa has achieved a break through agreement with its pilots over pay and conditions. As a strategic tool, Eurowings helped it to reach this agreement, but the LCC subsidiary now needs to become financially successful.
Later in Mar-2017, Ryanair will start its first four Frankfurt routes, to which it will add 20 more next winter. Eurowings will need to be part of Lufthansa's response to this growing competitive threat.
Etihad-Lufthansa partnership: Lufthansa – the good guys of globalisation, starting along the road
Pragmatism is forcing the Lufthansa Group to compromise its legacy outlook and adapt its rhetoric as it cautiously welcomes into its nucleus the Etihad Aviation Group. Lufthansa and Etihad’s 01-Feb-2017 USD200 million catering and engineering deal may seem underwhelming, but it brings Etihad into other areas of Lufthansa Group’s business – and management. After being so flagrantly opposed to Gulf airlines, Lufthansa Group CEO Carsten Spohr recognises he needs to change internal mindsets while not advancing faster than ultraconservative unions will allow. Mr Spohr also says there is potential for a JV with Etihad.
As with recent Etihad cooperation – addressing ailing airberlin, and a new simple codeshare – the benefits of the latest deals are tilted towards Lufthansa. Lufthansa has yet to bring Etihad into its core to help address its fundamental cost and network problem – as it surely must do. Such a deal would leverage Etihad’s fundamental business of a hub in Abu Dhabi.