Originally Posted by
Terbang
But the Bloomberg article states that LH wants to compete with EK and QR!!
Quote - “The threat from Gulf carriers, for us, is Southeast Asia and it’s India,” Menne said. “That is a concern for investors, and the answer is we look at all strategic options. That can be partnerships, it can be joint ventures, it can be our own platform or it can be a retreat from this market.”
Yes they want to compete on the routes, that is the purpose of such an airline. But it does not say that they want to beat them on quality.
You can compete by lowering your cost base, and having a quality close (but below) that of your competitors as long as your prices are right.
Remember that most people choose an airline based on price first (although reading FT thats sometimes difficult to remember
), and other factors such as quality come second (some just choose on price!). People do fly business class with Condor (just an example) on routes where LH or others operate, and the reason they choose Condor is because it is probably 33%-50% cheaper!
Originally Posted by
starlicious
Yup!
But given the fierce opposition of the unions towards a base in Thailand in earlier years, I am skeptical about LH's chances of setting up an operation in Asia. I think it is more likely that they strengthen their ties with TK, maybe via a joint venture.
Isn't this one of the purposes of having a seperate company, so the unions can't interfere with it as much? Especially if the company is based outside of Germany.