N1003U

So, LH is seeking acquisition targets?

Wasn't bmi up for sale a little while ago?...Oh, wait a minute...

Perhaps LH could assume AF's share of AZ? Those would be fun board meetings to attend...

Or perhaps a takeover of CY (or is that not even funny as a joke?)...

Seriously, who would be logical "merger partners"? Maybe a group or two in Scandinavia that can't reach critical mass? Is TP still on the market? What would be a sensible addition to the LH route structure?

TRAVELSIG

Big picture time. Big Big picture time.

1) TK JV
2) Form Newco (TK/LH) for 100% acquisition of AF/KL.
3) New Hub in the new centre of Europe: IST
4) Price fares the way they "should be priced" as from the point of view of the accounting department.

N1003U

At first, this sounds a bit odd.
But the more I think about it, the more it starts to make sense to me...@:-)

Item 4) sounds a bit dubious without further elaboration. If what is meant by that is to price fares for positive cash flow from all segments, then yes, I tend to agree...if what is meant is a single "fair" fare price (i.e., on price for each class of service), then I am not so sure...

Questions:

--Do we still provide point-to-point service from the major markets in the EU to major markets in Asia and America? If so, what does that service look like?

--In general how do we segment the market?

--What does the Newco Global Air Services AG fleet look like?

TRAVELSIG

Excellent questions- I will leave you to answer at the moment. If I were an airline CEO in Europe at the moment I would be looking very carefully at my strategic assumptions into the future and that the impact will be- not carrier specific however industry specific. I have a distinct feeling that a number of the problems within particularly the EU in reference to airlines come from a starting point that absolutely nothing about the current business model can change- and the result we get is what we have now. Perhaps this could even be correct- which explains why carriers such as Ryanair are able to start from zero and do something legacy carriers have not done consistently for years- create shareholder valuable which is sustainable.

PS: I am not advocating a Ryanair model for anyone- I am just using as an example.

N1003U

Absolutely agree.

There does seem to be a lack of imagination among airline executives. In the days of regulated markets and/or state monopolies, this is/was at least understandable.

OTOH, in a global competitive market, especially when one is being out-performed, I don't understand why airline CEOs don't question everything about how they are doing business and why things can't be done differently to improve the both the product and company operations (and I absolutely don't understand looking at cost-cutting program as somehow 'strategic').

Maybe (for practical and regulatory reasons) one can't easily change the way aircraft are operated, but it seems to me that almost all other operational processes and product offerings are open to challenge...

...when one takes a common sense business practice (like saving money where possible), and gives it an over-hyped name (like SCORE), and then has to constantly be a cheerleader for the now over-hyped 'program'--that is not only a lack of imagination--it is ineffective...

(unless, of course, you are a consultant who make his/her living thinking up stupid names for common sense--in this case you are a clever consulting executive who is taking advantage of the rapid growth in the executive ignorance market)

TRAVELSIG

Reducing costs leading to reduced customer base leading to reducing costs leading to reduced investments is a vicious cycle that rarely ends well.

SENfly

+1

Kanaman

The M&M Award chart seems to have... a page number(?) at the top left! I wonder of what this is page 96.

oliver2002

M&M sends out the Worldshop catalogue to all German members, the chart is within that, hence the page 96

NewbieRunner

LH in Japan is offering a complimentary arrival limousine service for passengers who have purchased 'normal' round-trip tickets in Business (J or C) or First (F) originating in Japan and who are M&M or ANA Mileage Club members. Neither the website advertising the service nor the application form tells you the maximum distance covered by the service. However, don't expect it to be cheap if your destination happens to be further than the unspecified distance for a free service since according to the small print:

"There is a limitation for the range of free service. If your destination lies outside of free service area, we will notify in the confirmation e-mail and you can settle the excessive charge on the limousine directly with the driver in cash."

YuropFlyer

Quarter hearted attempt at copying Emirates, as it seems

oliver2002

For those interested on how a aircraft lavatory can be NEKed:

http://blog.apex.aero/cabin-interior...ushed-success/

NewbieRunner

I thought LH's idea of NEKing lavatories was to remove (some of) them.

GBM.flights

From the LH onboard magazine, destination routemap.
Destination: New Quay. Wales.


Don't know if it has been there for long, just noticed it this weekend.

oliver2002

oops... atleast the real NQY is on the map too