It became known that during the meeting with investors, Lufthansa told that it faced considerable risks concerning its earnings targets. The causes of the problem were fresh oil price rises and weak passenger demand. Shares of Lufthansa decreased by 5.5 per cent to close at €10.37. The German carrier is sure that such situation can be explained by a difficult operating environment.
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Monthly Archives: October 2009
Germanwings says Ryanair won’t last
Thomas Winkelmann, CEO of the German low-cost company GermanWings, said Ryanair is not likely to last because it does not attract the corporate market. Winkelmann spoke for Travelmole saying the more Ryanair flies to an airport, the higher losses it has to sustain. This is not the first time Ryanair’s business model is questioned and won’t certainly be the last.
New Changes in Continental Airline Company
In order to struggle among three large alliances of global airlines, Continental Airlines decided to change its teams. It means that Continental comes out of Delta Air Lines’ shadow. Such move will help Continental to become closer to United Airlines as they are planning to work together on marketing and pricing. For that reason customers of Continental will be able to have a wide choice of flights and at the same time the company will have an opportunity to get a new international airlines’ roster due to which it will be possible to earn and spend miles.
Vueling makes record profit for 2009
The Spanish lowcost airline, Vueling, announced a €68.1m operating profit during the third quarter of 2009, a 10.2% increase compared to the same period of 2008. In the first 9 months of 2009, Vueling made a €71.9m operating profit, a 21,6% increase compared to 2008.
Air France to charge for second check-in bag
Air France/KLM has decided to introduce a fee for checking in a second bag on all passengers on Economy Class on flights between Europe and the United States. Passengers will have to pay US$50 for flights leaving from the United States and EUR50 for flights departing from Europe.
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New Concerns about the OneWorld Alliance
New concerns appeared about the planned alliance between American Airlines, British Airways and Spain’s Iberia as all three carriers suffered losses this year.The International Air Transport Association forecasted that the overall loss of the airline industry would be $11bn in 2009.
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Japan Airlines to cut 13,000 jobs
According to recent news, Japan Airlines (JAL) is going through some hard times due to the economical downturn and is planning a restructuring. As a result, the company will cut 13,000 jobs by 2015, a number considerably bigger than previously announced. Thus, the working force after the layoffs will reach about 35,000 and the number of subsidiaries will be cut from 120 to 50.