LHs strategy: discussion thread for customers, investors, consultants & armchair CEOs
#781
Join Date: Oct 2007
Posts: 2,069
Thanks for your suggestion. I have had the "joy and pleasure" to drive a new car and the only thing I can say that it will fastly wear off.
After the artificial new car smell is away after some weeks only the depreciation remains.
And therefore my comment was really meant in a honest way. If I would have a *fat* bank account I just would book a holiday in China with at least visiting Shanghai and Xi'an.
Instead of a new car I would book nearly the whole 86th floor of a great hotel in Shanghai and enjoy the views.
Back to the thread: You can make an educated guess which airline, class and type of a/c I would choose.
After the artificial new car smell is away after some weeks only the depreciation remains.
And therefore my comment was really meant in a honest way. If I would have a *fat* bank account I just would book a holiday in China with at least visiting Shanghai and Xi'an.
Instead of a new car I would book nearly the whole 86th floor of a great hotel in Shanghai and enjoy the views.
Back to the thread: You can make an educated guess which airline, class and type of a/c I would choose.
But I can assure you your other suggestions wears off as well.
You would probably venture up to C on the 380 with the old seat.
In my case I would take the last row on the G5.
#782
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,730
Word on the street, Air Serbia is a negotiations with major cheddar producers from Surrey to upgrade their sandwiches. I spoke to one of their Catering guys and according to some market research, they figured out that they will increase their market share by 659%, if they start offering slightly older cheddar on their sandwiches.
Oh, and have I mentioned that they have a proper C seat? I probably have.
Don't underestimate the passengers' need to be treated humanely.
#783
Join Date: Sep 2004
Location: Southern Bavaria, Germany
Programs: LH Blue, BA Blue, Hyatt Gold
Posts: 1,517
And I would really admire the possibility to travel the sights of China in great comfort. Also flying some deviations in order to experience China Southern's A 380.
BTW: Your choice of airline was fine, the type of a/c and the seating not.
#784
Join Date: Dec 2001
Location: hamburg
Posts: 1,390
FD,
i say i am HAPPY with alternatives to LH, you say i am whining.
i am tellling you i am SEN until 2017, you say LH ditched me.
i am telling you i paid € 4.600.- for HAM-MEL, you are saying
the price is € 1.800.- (and fail to give any proof since).
i do not know what your idea of "educated" is, but tunnelvision and
the unability to understand even the most simple messages makes me feel
quite sorry for those remaining part of what you call "a discussion
among educated people".
over and out...
i say i am HAPPY with alternatives to LH, you say i am whining.
i am tellling you i am SEN until 2017, you say LH ditched me.
i am telling you i paid € 4.600.- for HAM-MEL, you are saying
the price is € 1.800.- (and fail to give any proof since).
i do not know what your idea of "educated" is, but tunnelvision and
the unability to understand even the most simple messages makes me feel
quite sorry for those remaining part of what you call "a discussion
among educated people".
over and out...
Last edited by sunseeker; Mar 27, 2014 at 7:13 am Reason: removed deleted quote
#785
Join Date: Oct 2007
Posts: 2,069
Quite the same goes for flights . One flight in LH C long haul was enough for me , the memory will stay with me forever . In fact I would not fly LH at all on long haul if I could not fly F.
Last edited by seat 1a; Mar 27, 2014 at 7:39 am Reason: Language hoopla
#786
Join Date: Jul 2010
Location: BSL/FRA or PHL
Programs: LH Miles and More, DL SkyMiles, Bonvoy, Hilton
Posts: 2,335
This is great. ^
I have never understood why so many people are chasing after a new car after 2-4 years just to have the sky-high depreciation of a new car.
Especially if it's their own and they can't offset these costs with lowering the profit position of a company.
Therefore just want to show my respect for your opinion.
I have never understood why so many people are chasing after a new car after 2-4 years just to have the sky-high depreciation of a new car.
Especially if it's their own and they can't offset these costs with lowering the profit position of a company.
Therefore just want to show my respect for your opinion.
However, as seat 1a alludes, there can be more to product and profit than simple, deterministic, cold calculations--especially in a service business.
It is a favorite pass-time in this forum to whine that good-old LH is not the same product that is used to be, and the reality is that it (probably) would not continue to survive if it were. The question then is: "what should the product look like now and in the future so that both LH and its customers benefit?" That is an entertaining question to argue here...^
Again, leisure traveler perspective...
Cheddar sandwiches, that' s actually cute...
I strongly recommend to start focusing on the slightly more important parameters that make an airline a high yield carrier, the network, reliability, safety and not so much a shower cabin onboard the A380 or a cheddar sandwich.
[...snide remarks redacted...]
Cheddar sandwiches, that' s actually cute...
I strongly recommend to start focusing on the slightly more important parameters that make an airline a high yield carrier, the network, reliability, safety and not so much a shower cabin onboard the A380 or a cheddar sandwich.
[...snide remarks redacted...]
So how does a carrier differentiate itself? Tough nut to crack, IMHO. I am not convinced even the carriers themselves really know how to do it. Emotion aside, safety is a non-issue. Network and reliability are comparable, so it is hard to take the home-market customers from the competition successfully. Given that LH has one of the largest and wealthiest "home-markets", it is not surprising they are a bit larger and more stable.
So I suppose if one seeks an edge, one has to think about how to draw in the customers on the margin who can go nearly as easily one way or the other, say from HKG or JFK (or VCE ).
Given the competitive environment today, I would not be so fast to dismiss even the cheapest of the back-pack crowd, let alone other leisure travelers. I doubt any carrier of significant size can afford to do that.
Stout, sturdy, regular business customers are nice to have (and LH has many), but I am not sure they are sufficient for the highest levels of success.
Which brings me to part of the joy and pleasure of this discussion: what does an air carrier need to do today to draw in truly non-captive and/or non-loyal customer? What customer problems can an airline solve for the traveling public that will differentiate it from its competitors? What unique experiences can it provide?
#787
Join Date: Jul 2010
Location: BSL/FRA or PHL
Programs: LH Miles and More, DL SkyMiles, Bonvoy, Hilton
Posts: 2,335
For some of us true FTers, this kind of activity is the stuff life is made of--flying for its own sake, and not because of some silly business requirement or other need to be at a particular place at a particular time, but to strap oneself down inside an aluminum tube and hurtle through the air at Mach 0.8 +...
Last edited by N1003U; Mar 27, 2014 at 9:04 am
#788
Join Date: Sep 2004
Location: Southern Bavaria, Germany
Programs: LH Blue, BA Blue, Hyatt Gold
Posts: 1,517
Just to begin with one of your questions
I am firmly convinced that a successful airline should rely on a healthy mix of business travellers and tourists as well. That said I really like the four-class approach of major airlines on long-haul travel.
With this differentiated approach to customer needs you can win the loyalty of many customer groups. This would include:
+ a fair recognition of frequent customers in terms of fast access to the flights (fast track)
+ a really flexible loyalty programmes where people can redeem for them and relatives even up to the last minute. This includes Upsellings with Miles and a good award availability. (As a thank you for all the people paying the salaries of the airline employees for 360+ days and redeeming once or two times a year).
-> I also would think of a kind of smart upselling within Germany and Europe. With this opportunity to upsell to Business Class there would be no need for the cr*ppy Germanwings approach eliminating Lounges/Business Class at some minor routes.
+ on the main routes within Germany: Full flexibility in Business Class and the flexible Economy ones. This would lead to slashing "J" surcharges for all flights. Also there should be a fair calculation of Y/B/M fares.
+ a First Class product an all routes. Also if only one row 1-2-1 can be sold. With extending a minimum check-in time of 25 minutes to all destinations. This would - for the first time - make First Class not only more comfortable but even faster.
An industry leading comfort in all classes would be the unique feature. I know that this would be a very brave approach to give Economy Class 2-3'' more space and going back to 33/34'' seating.
gojko88 wrote something about treating passengers humanely. I fully agree to that.
Uniqueness would also mean to slash those 99/109/119/129... fares within Europe. The first step would be to stop the NEK cabin. I can't imagine that SCORE works on the long run.
With this differentiated approach to customer needs you can win the loyalty of many customer groups. This would include:
+ a fair recognition of frequent customers in terms of fast access to the flights (fast track)
+ a really flexible loyalty programmes where people can redeem for them and relatives even up to the last minute. This includes Upsellings with Miles and a good award availability. (As a thank you for all the people paying the salaries of the airline employees for 360+ days and redeeming once or two times a year).
-> I also would think of a kind of smart upselling within Germany and Europe. With this opportunity to upsell to Business Class there would be no need for the cr*ppy Germanwings approach eliminating Lounges/Business Class at some minor routes.
+ on the main routes within Germany: Full flexibility in Business Class and the flexible Economy ones. This would lead to slashing "J" surcharges for all flights. Also there should be a fair calculation of Y/B/M fares.
+ a First Class product an all routes. Also if only one row 1-2-1 can be sold. With extending a minimum check-in time of 25 minutes to all destinations. This would - for the first time - make First Class not only more comfortable but even faster.
An industry leading comfort in all classes would be the unique feature. I know that this would be a very brave approach to give Economy Class 2-3'' more space and going back to 33/34'' seating.
gojko88 wrote something about treating passengers humanely. I fully agree to that.
Uniqueness would also mean to slash those 99/109/119/129... fares within Europe. The first step would be to stop the NEK cabin. I can't imagine that SCORE works on the long run.
#789
Suspended
Join Date: Aug 2008
Programs: Everything is refundable
Posts: 3,727
This is the main reason for bringing back the 732, isn't it?
A true C class seat, proper food, the 732. I wonder when they will start competing on the Venice-Moscow route...
Any idea how much of Etihad's profit comes from Air Serbia these days?
A true C class seat, proper food, the 732. I wonder when they will start competing on the Venice-Moscow route...
Any idea how much of Etihad's profit comes from Air Serbia these days?
#790
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,730
The 732 happened before the takeover and therefore has nothing to do with this.
I'm afraid I just cannot treat your question on profit seriously, as it's quite unreasonable (to put it mildly) to ask something like that for a six-month-old airline.
However, you do seem to confuse product quality with profitability. No one in their right mind chooses an airline based on its income statement.
I'm afraid I just cannot treat your question on profit seriously, as it's quite unreasonable (to put it mildly) to ask something like that for a six-month-old airline.
However, you do seem to confuse product quality with profitability. No one in their right mind chooses an airline based on its income statement.
#791
Suspended
Join Date: Aug 2008
Programs: Everything is refundable
Posts: 3,727
I have said it before, never underestimate the Nussini
#792
Join Date: Jul 2010
Location: BSL/FRA or PHL
Programs: LH Miles and More, DL SkyMiles, Bonvoy, Hilton
Posts: 2,335
#795
Join Date: Mar 2009
Location: GVA,OPO
Programs: BD the last decent FFP
Posts: 1,856
[...], you quoted some of the 'leading' analysts covering the industry and LH, among them, Ruxandra Haradou-Doeser and Euromonitor's Olga Popova.
Ruxandra calculated the LH profit for 2014 to be around 900 mio. , the analysis by CASA resulted in a number twice as high, between 1.7 and 1.9 billion. Popova argued that LH needs good aircraft to expand (its profit...)
Where do you see the main differences between CASA and the ladies?
Ruxandra calculated the LH profit for 2014 to be around 900 mio. , the analysis by CASA resulted in a number twice as high, between 1.7 and 1.9 billion. Popova argued that LH needs good aircraft to expand (its profit...)
Where do you see the main differences between CASA and the ladies?
In the Consensus Estimate it will be just an outlier if all the other analysts have another view.