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Would Lufthansa be better off leaving Star Alliance?

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Old Dec 10, 2013, 3:51 am
  #1  
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Would Lufthansa be better off leaving Star Alliance?

Given the recent enhancements to the Miles&More program, it's very clear that Lufthansa loose more than they gain from being a member of Star Alliance. While it's understandable that they give out SEN lounge access and First Class awards to partner airlines, with little in return, wouldn't it simply be better if LH left the alliance they helped to create?

Now I am not saying that they should cut the bonds completely, but that they should rather focus on maintaining partnerships with select joint-venture airlines (e.g the transatlantic JV and ANA).

I know this is a very bold and unlikely idea, but theoretically would it be possible?

Last edited by LH4116; Dec 10, 2013 at 6:03 am
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Old Dec 10, 2013, 4:09 am
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No I don't think that they should leave *A, IMO what is going on is just a display that *A is not a cartel and they actually compete against each other, which is helpful IMO as it keeps things up and going in an ever changing world.

And btw. TK*G are restricted to one post per month on the MM boards Shame on you (Nasty joke by me, wait for the day you are enhanced too, by TK)
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Old Dec 10, 2013, 5:04 am
  #3  
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*A is more than FFP benefits and lounge access ... the 20+ airlines do far more together behind the scenes than is apparent in the daily travel experience. @:-)
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Old Dec 10, 2013, 5:26 am
  #4  
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Originally Posted by Bernie2012
And btw. TK*G are restricted to one post per month on the MM boards Shame on you (Nasty joke by me, wait for the day you are enhanced too, by TK)
Lufthansa is my airline of choice for travels within Europe, pure luxury in comparison to SAS . Making SEN would be impossible based on my travel patterns, but I do credit my LH flights to M&M.

But yes I am expecting some enhancements to hit us *G peasants, only a matter of time.
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Old Dec 10, 2013, 5:56 am
  #5  
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Originally Posted by LH4116
Given the recent enhancements to the Miles&More program, it's very clear that Lufthansa loose more than they gain from being a member of Star Alliance. While it's understandable that they give out SEN lounge access and First Class awards to partner airlines, with little in return, wouldn't it simply be better if LH left the alliance they helped to create?

[...]
The main focus of Star Alliance is the offer of a seamless travel experience as well as the sharing of frequent traveller ressources. Just imagine the travel from anywhere in the world to Germany with one stopover at any hub.

1.) If you look at an Asian destination, Lufthansa or a US partner couldn't maintain an own lounge with a reputable size or food offering. Therefore it would be very difficult to lure away First and Business Class pax from the home or dominating carrier.

Sharing the ressources would enable to use that lounge not for only 1 or 2 hours a day but more continuous. With a positive effect on food/beverage offering and the waste percentage. (What would you do with the First Class lounge offering if the one and only flight per day departed?)

So you have a soft product which strengthens the hard product.

2.) Secondly the travel experience for the frequent customers (who pay the salaries of the airline employess) will be better: Connections can be coordinated in a better way.

In case of disruptions rebookings with a fair inter-company offsetting.

So the large partner is able to offer more destinations and a better travel experience even to destinations far away. This strengthens the complete network.
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Old Dec 10, 2013, 5:59 am
  #6  
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Maybe LH could finally close the SEN lounges to *G, move FTL back to 50,000 miles per year and up to *G, and make the Business lounges *G... Guess this is a very popular suggestion!
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Old Dec 10, 2013, 6:31 am
  #7  
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I'd wager that LH profits immensely from Star Alliance, especially thought the Atlantic++ agreement!
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Old Dec 10, 2013, 6:38 am
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Originally Posted by LH4116
Given the recent enhancements to the Miles&More program, it's very clear that Lufthansa loose more than they gain from being a member of Star Alliance.
Wow - what a conclusion

I am still very sure that Lufthansa greatly benefits from Star Alliance.

Of course they do have they do have some best friends in the alliance (e.g. UA, AC, NH). And on the other hand the likes of TK and A3, where they reconsider the value of their friendship.

But In my opinion exaggeration in the interpretation of the recent moves should be avoided.
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Old Dec 10, 2013, 7:12 am
  #9  
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Originally Posted by Rambuster
I'd wager that LH profits immensely from Star Alliance, especially thought the Atlantic++ agreement!
Indeed- and this is the most mind boggling instance of anti-trust waiver and anti-consumer friendly activity I have ever seen- how the United States and the EU could have ever approved this makes my head spin.
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Old Dec 10, 2013, 7:24 am
  #10  
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If LH lets go of its death grip on the *A life raft, it'll sink without trace!!!
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Old Dec 10, 2013, 7:52 am
  #11  
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Originally Posted by LH4116
I know this is a very bold and unlikely idea, but theoretically would it be possible?
Of course it's theoretically possible. It's also possible that LH executives take a couple hundred million euros of LH's revenue in bundles of cash, douse them in petrol, and set them on fire. This would also be a bold and unlikely course of action.

(Seriously- you think that F award seats that LH has 100% control over offering is a major problem for LH on the revenue side? If LH is giving away seats they could sell, as opposed to fly empty, LH needs to fire everyone in their revenue management department.)
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Old Dec 10, 2013, 11:53 am
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I'd stop flying LH immediately if they left *A. I know that's just one set of feet but it all adds up.
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Old Dec 10, 2013, 11:58 am
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Originally Posted by TRAVELSIG
Indeed- and this is the most mind boggling instance of anti-trust waiver and anti-consumer friendly activity I have ever seen- how the United States and the EU could have ever approved this makes my head spin.
At least there is choice from the U.S. to Germany for non-stop non Star Alliance flights. Canadians pay through the nose because of the AC/LH monopoly.
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Old Dec 10, 2013, 12:22 pm
  #14  
 
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Originally Posted by Crampedin13A
At least there is choice from the U.S. to Germany for non-stop non Star Alliance flights. Canadians pay through the nose because of the AC/LH monopoly.
Do you not have many choices through the UK, Finland, Denmark, France, etc.?
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Old Dec 10, 2013, 12:27 pm
  #15  
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Originally Posted by Crampedin13A
At least there is choice from the U.S. to Germany for non-stop non Star Alliance flights. Canadians pay through the nose because of the AC/LH monopoly.
Well if you don't mind the de-tour, you can always fly Turkish Airlines via IST. Their fares are usually lower than the LH/AC/UA cartel, and the product is way superior. But I suppose the travel time and low mileage earnings are discouraging.
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