Lufthansa supervisory board chairman Juergen Weber said Lufthansa's cash flow must be strengthened so the carrier can fund an urgently required renewal of its fleet without creating high debt levels, as reported by Boersen Zeitung. If the savings programme is not implemented as planned, the carrier’s management board and supervisory board agree aircraft orders have to be cancelled, "which I don't want," Mr Weber said. He noted the carrier will not finance any purchases via borrowing. "I won't accept debts in the order of 8-10 billion euros like our competitors," he said.
Lufthansa needs to strengthen cash flow to fund fleet renewal: Supervisory board chairman
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SunExpress: "Lufthansa's biggest strategic project"
The Turkish leisure airline SunExpress and its German subsidiary SunExpress Germany have historically had a fairly low profile, certainly among European air travellers. Nevertheless, their combined total of 7.9 million passengers puts SunExpress in the top 20 European airline groups in 2016, ahead of Brussels Airlines.
Jointly owned by Turkish Airlines and Lufthansa, SunExpress and its German counterpart brought about a consolidated result that fell into loss in 2016 as passenger numbers and revenue both declined. When the observer scratches beneath the surface of the headline figures, a picture of significant strategic change at SunExpress Germany starts to emerge.
The larger Turkish SunExpress has maintained its focus on Turkey-Germany routes, whereas SunExpress Germany has abandoned this country pair. It has instead developed leisure routes from Germany to elsewhere in Europe and in North Africa, in spite of not having an obvious competitive advantage in those markets. Within these new market areas, SunExpress Germany has undergone substantial changes in its route portfolio. Lufthansa wetleases capacity from SunExpress Germany for its Eurowings low cost operation and this may help to make some sense of these outwardly random network changes.
airberlin restructuring: summer capacity minus 31%; long haul growth; threat of Eurowings looms
The main elements of Air Berlin Group's latest restructuring are taking shape. In Feb-2017, 38 of its aircraft began a wet lease agreement to operate on behalf of the Lufthansa Group. On 26-Mar-2017, the majority of airberlin's tourist routes were reassigned to NIKI, prior to the transfer of its Austrian subsidiary to a new airline that will also include TUIfly and be part owned by Etihad. This leaves the core "new" airberlin airline to focus on developing its network operation from its hubs in Duesseldorf and Berlin.
Data from OAG for the summer 2017 schedule show that airberlin's total seat numbers will be reduced by 31% versus last summer, focusing on Europe, mainly due to these actions. On long haul, however, airberlin's US seat capacity will grow by 57% this summer, with four new routes. On routes to Latin America, airberlin's growth of recent years has been halted by a more intense competitive landscape. Lufthansa's low cost subsidiary Eurowings has grown rapidly to destinations served by airberlin in Latin America.
Eurowings is also now turning its attention to the US. They operate from different German airports, but Eurowings could become a growing thorn in airberlin's side.