IMH

I think it's bound to. Despite numerous missteps in recent years LH still has a generally positive image in Germany and in most of the other markets it serves. Stereotypical as it may sound, it's still true to say that people associate LH with reliability, safety, quality and -- for F and the FCT/FCLs -- understated luxury. As long as your customer sees you that way you don't need to be the cheapest -- a point well understood by many of the most successful German companies.

At the moment most people still see Lufthansa the same way they see BASF, Bayer, Bosch, Siemens and the quality German car manufacturers. LH can count themselves lucky that that's still the case. It's an incredible advantage, as there's still a large (if declining) number of people who base buying decisions on perceived quality. A few more stupid moves on LH's part, though, and they'll be just another airline -- as exchangeable as they seem to believe their customers are. It's all rather sad.

sw1x

Then good luck with that !

TRAVELSIG

Realistically- the management I have met from Lufthansa over the past 10 years all seem very competent- the one complaint I have is that it is a very insular company- it would not hurt to bring in more outsiders and particularly from other industries.

In general the airline industry tends to look inwards for a variety of reasons. Looking out and branching into new ways of thinking would not hurt the business at all.

Dialog such as this with customers while hardly ground breaking or revolutionary is indeed a post first step.

Now hire someone who hates NEK and we are on to a good start. Also a re-segmentation of customers would not hurt at all. The customer of 10 years ago is not the customer of tomorrow.

sw1x

I agree as far as Management until a few years ago is concerned. I met with several of their Management Board members and their team and always found Lufthansa one of the best managed airlines in the industry.
Especially while Mayrhuber may have had his faults, I think he at least developed an ambitious vision and strategy for the airline - which unfortunately was almost dropped completely post his departure as CEO and under Franz' regime where focus and bias were shifted totally towards cost reduction while from my point of view neglecting the entrepreneurial approach to continuously growing the business profitably.

I - as others here - find it hard to envision how Lufthansa wants to compete with LCC's considering their inherent structure and thus cost base. While it may have been necessary to cut some cost to free up cash for much needed investments into the fleet and improving profitability, I find the sale of an airline such as BMI cost cutting measures in loyalty shemes short sighted and lacking in entrepreneurial vision. The losses of BMI were hardly god given while BMI and its LHR slots could have been of highly strategic value to Lufthansa's TATL Business, e.g. for a strategic tie-up with Virgin Atlantic now that US Airways is bound to leave Star Alliance. It were bold approaches like the purchase of other carriers that set former Lufthansa Management apart from their peers, while Franz' defensive cost cutting measures hardly demonstrates a strategic vision for growth. And retreating from markets and accepting a shrinking business in favour of increased (short-term) profitability in an overall growing industry seems dangerously short-sighted and highly risky for the company's long-term future as a relevant European carrier.

seat 1a

Well said .

Cost cutting is a dangerous downward spiral , unless you have a very clear vision of what's the next step .
I am sure that the cost cutting and revamping is necessary , and this might be current managements strength , but if there is not someone hovering above this with a clear path forward once this is accomplished , LH owners are in for a tuff time .

weero

To be fair, the safety part is indeed real. They are no QF in that aspect but if you add food poisoning and being slain by a boozed passenger as flight risk, then traveling on QF is likely riskier than LH or BA for that matter.

I feel a lot less safe on SQ, UA, or LX for that matter. And on LX you can at least aim for the infallible A340.
Yes, I feel like that too. The last 10 years, LH gpt a lot uglier. And you cannot built on captive markets for the eternity.

SMK77

What part is real here?

Lufthansa is flying the same aircrafts as every competitor. It can't be new aircrafts that give the aura of safety as LH doesn't fly the youngest fleet. And it can't be German engineering as Lufti sends their aircrafts (at least the 747) to China for maintenance as competition does.

The real part could be the staff training for both cabin and cockpit. I think there Lufthansa still holds an advantage over others.

NA-Flyer

Not when I am flying on the LH almost 30 years old aging 737 fleet

TRAVELSIG

Actually a number of competitors including the GCC in some cases uses the Lufthansa maintenance centers around the world including Hamburg and they have long-term maintenance contracts with Lufthansa.

kanor

Its quite impressive to see a low flying EK A380 over the Hamburg port , would recommend it to everyone!

weero

So? Airframe failure is at the root of a negligible percentage of all fatal accidents. And age matters nowhere near as much as the press loves to claim.

So you are right on all accounts, I just don't share the conclusion.
Very much so. Not this blind flying into any weather as practiced by say SQ.
Something that flies for 30 years counts as safe in my book.

weero

I can imagine. Only beaten by EK's super low flying A340 in MEL ...

flyglobal

Hi Members,

One question after reaching 1 month anniversary since the famous LH dialogue event: Will we still see the transcript, as originally planned?
As I remember the FT/ VT Team were awaiting the LH notes, however this is some 3 weeks ago now.

Even if LH bureaucracy could be imagined complicated at least, Christmas is approaching and some may not find the notes anymore after new year.

Should FT/ VT consider a participants notes only transcript?

Hungry for an update

Best regards
Flyglobal

oliver2002

Just a quick update: we did receive a short version of the notes LH took at the event. rcs85551 is currently trying to find time to consolidate everything and will post it here. I'm unsticking the thread primarily to reduce the number of stickies in this forum.

Regards Oliver