FlyerTalk Forums - View Single Post - Lufthansa in talks with Etihad to buy parts of AB business
Old Dec 22, 2016 | 2:08 pm
  #92  
TPJ
 
Join Date: Jun 2008
Programs: TK*G (E+), IHG Plat Ambassador
Posts: 7,884
[QUOTE=Scrooge McDuck;27650446]LH used to have LH Italia and they stopped it as they lost lots of money on it. Taking AZ is not necessaritly wise as AZ already had some kind of re-start and it did not make it a profitable business. AZ's problems with work unions, over-staffing, ... is not easy to solve - if possible at all. [/rQUOTE]

AZ is losing EUR 0.5 million a day. Do you really think LH can either pay for these loses (from what other business units make) or make AZ a profitable business? I do not think so... Yes they were successful with SN, but I think it was because SN merged with low cost Virgin Express (even before LH stepped-in) and adopted VX business practices. I do not see it happening - AZ already merged with profitable Air One and is still losing money.
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