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Longhaul EuroWings will start ops in Winter2015-16

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Old Oct 16, 2014, 5:59 am
  #46  
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Some internal insight:

Protecting the core
Premium service at Lufthansa, affordable fares to holiday destinations
and low-cost flights on short- and long-haul routes

“A battle for market share has been taking place for years in the airline sector,”
says Christina Foerster. As Senior Vice President Network, Group & Alliance
Development, she sits on all the review boards for fleet procurement as well as for the
“Jump” and Wings” concepts. In the following article, she gives an insight into
Lufthansa’s response to competitive pressure.

This is the logic employed by the airline
industry: in the event of oversupply,
you have to offer tickets at a lower price in
order to fill the planes. Customers benefit,
but the airline can no longer cover its costs.
Carriers with a high cost structure are hit
hardest,” Christina Foerster explains. Sitting
in her office on the sixth floor of the BG2
building at Frankfurt, she gazes out at the
apron, where a Turkish Airlines aircraft is
about to take off. “In the main, it is the
routes that are dominated by other major
competitors that are under pressure. For
example, our flights to Istanbul – both from
Frankfurt and Munich – are critical,” she says
matter-of-factly. “Turkish Airlines siphons
off passengers right across the board in
Europe, and then flies them on to other
destinations worldwide.”
Since 2013, Germanwings has taken over
Lufthansa’s former routes that do not operate
through Frankfurt or Munich in order to
protect Lufthansa’s core business. “4U’s
costs are roughly 20 cent below the Lufthansa
level. That helps us, but in comparison
with Easyjet, the prices are still not low
enough,” she explains. Eurowings operates
on behalf of Germanwings and its staffing
costs are even lower. However, at present the
Eurowings fleet is not suited to competing in
the low-cost segment. The unit costs of a
CRJ-900 are too high. “We are checking
to see whether we could gradually replace
the 23 Bombardiers with A320s,”
Foerster says.
On European routes, Lufthansa does not
benefit proportionally from the expanding
market. “Because of our cost structure,
we can only carry customers who
are prepared to pay a lot for their tickets.
Seventy-five percent of intra-
European flights, however, are
for leisure purposes, and this
target group is still more pricesensitive
than the target market
for business travelers,” Foerster
notes. One answer to this
problem is “Jump”. The plan is
for Lufthansa to keep the aircraft
that would otherwise be taken out of
service. Up to 14 Airbus A340–300s are
due to be retrofitted to accommodate 18
Business Class seats; the rest will remain
Economy and Premium Economy Class.
This means that flights could be operated
to destinations that cannot be served
within the current cost structure. Behind
the scenes, the unit costs for this concept
must, however, be reduced because when
you have a large Economy Class, the unit
costs also fall. “Every stakeholder must
make a contribution,” Foerster stresses.
“That means Lufthansa Technik and LSG
Sky Chefs as well as the airport and the
cabin and cockpit crews.” After all,
everybody profits from growth, and the
airport does more business. Jump aircraft,
meanwhile, could be handled at a
remote apron position. In terms of MRO,
having a small, single-model fleet and
basing all the Jump aircraft at Frankfurt
would be beneficial as it would require a
simpler maintenance concept than usual.
And it is hoped that the attractive destinations,
which require longer layovers,
will win over the crews. And, of course,
Jump would also open up other career
prospects because if Lufthansa grows,
more captains will be needed. “At present,
talks are underway with all those
concerned. We hope to receive the
support of all the stakeholders.”
Further ideas are being developed under
the working title “Wings”. The aim is to
create a new platform. “We would be
happy if we had a cost structure like the
one at Turkish Airlines. But even they
use a cheaper platform for tourist routes –
the low-cost carrier Anadolu Jet,”
Foerster says. “They, in turn, fly under
the Sunexpress AOC. Sunexpress
obviously has the right cost structure and
is therefore an option for us.” A real
low-cost carrier scrutinizes every detail,
however small, with a view to reducing
costs: for example, seats without a
reclining backrest, without seat pockets,
seats without sunshades in order to save
costs for cleaning and maintenance. For
ground staff, it means open-plan offices,
far removed from the airport, without a
canteen; for crews, cheaper crew hotels.
Low-cost airlines optimize every single
cost item. “That is not doable under the
Lufthansa brand,” Foerster adds. “Customers
expect more of us. But you could
do it under another name.”
A project group is currently
thrashing out the details,
which are due to be presented
to the Supervisory
Board in December. The
new concept could be
implemented on European
routes from the summer of
2015, and on intercontinental
routes at the start of the 2015/16
winter timetable, at the earliest. But what
is the purpose of all this? “Lufthansa
must continue to be a premium carrier.
In order to make that possible, we are
erecting ring fences around Lufthansa's
passenger airlines. That is the only way
we can protect our core business,”
Foerster says in conclusion.
Responding to
competitive pressure
Lufthansa German Airlines
Will remain a premium carrier
aiming to achieve its fifth star.
“Ring-fences” are needed in order to
protect its core business.
Germanwings
Operates point-to-point flights that
are not routed through the hubs. Its
costs are about 25 percent lower
than Lufthansa’s.
Eurowings
Flies on behalf of Germanwings. Its
costs are even lower than those of
4U. The idea is to replace the
Eurowings CRJ-900 with the A320
in order to improve the airline’s
competitiveness on point-to-point
routes.
Jump
A Lufthansa product mainly serving
holiday destinations with
A340–300s, which would otherwise
be taken out of service. Small
Business Class, the rest Economy
and Premium Economy Class. If all
the stakeholders agree on the unit
cost targets in the third quarter of
2014, the first aircraft could take off
at the start of the 2015/16 winter
timetable.
Wings
Still at the concept stage. First
consideration on European routes is
to allow some aircraft to fly from
Basel in competition with the
low-cost carriers. Conceivable on
long-haul routes from Munich and
North Rhine-Westphalia. If
the business plan is
positive, the Supervisory
Board will
pass a decision
at the end of
the year.
Source: Passage Issue 4/September 2014
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Old Oct 16, 2014, 6:06 am
  #47  
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A report on XQ/XG:

Code:
German-Turkish
friendship
Sunexpress proves itself
as a successful
joint venture company


As one of the seven
measures Lufthansa is
planning to establish a
long-haul platform under
the Wings umbrella for the
price-sensitive leisure
travel segment. It has not
yet been decided whether
Lufthansa will set up this
platform on its own or with
a partner. One possible
partner is Sunexpress. We
present a portrait of the
joint-venture between
Lufthansa and Turkish
Airlines.

De-Saint-Exupéry-Strasse 10 in
Gateway Gardens, a mere stone’s
throw from Frankfurt Airport. One
would never guess that this modern
office block houses a head office of one
of the most successful holiday carriers
– Sunexpress. The joint venture
founded between Lufthansa and
Turkish Airlines in 1989 has its headquarters
in Antalya. The German
branch office, besides housing the
commercial division and some staffing
divisions, is also a representative office
of the subsidiary Sunexpress Deutschland
GmbH, a 50:50 joint venture
founded three years ago. In the offices
in Gateway Gardens the parent company
and its subsidiary work side by
side to achieve a common goal: passenger
satisfaction on board.
While Sunexpress is responsible for
services to and from Turkish destinations
and serves domestic routes in
Turkey, the German subsidiary flies to
holiday destinations outside Turkey,
offering numerous nonstop connections
to Egypt and the Canary Islands,
Greece, Tunisia and Oman. And the
company is as international as its passengers.
The 3,100 or so colleagues based in Turkey and
Germany represent 25 different nationalities.
This summer, Sunexpress is operating a fleet of
70 Boeing 737-700/800s, of which 14 are
stationed in Germany – in Leipzig, Hanover,
Dusseldorf, Cologne, Frankfurt, Nuremberg,
Stuttgart and Munich.
“Over the past quarter-century, Sunexpress has
grown from a small and virtually unknown
charter airline to become a medium-sized holiday carrier that
is successful in three business segments,” reports CEO Paul
Schwaiger. And the figures stack up. This year, Sunexpress
expects more than 7.5 million passengers and, for the first
time, sales are likely to exceed the billion-euro mark. And what
is the recipe for this success? “We are fast and agile,” says CEO
Paul Schwaiger, “and also we don’t shy away from trying out
new things.” The manageable size of the company, flat hierarchies
and the team spirit among the international crew are
also contributory factors.
“Our success also rests on our three-pronged business
model,” Schwaiger explains. For one thing, there is international
tourism. “As we are a holiday carrier, holidaymakers
are our main target group. Day in, day out, we live up to our
name and fly our passengers to the best time of the year.”
About 60 per cent of the offers are sold through tour operators;
the remaining 40 per cent are seat-only sales marketed
via travel agencies and Internet platforms for individual
travelers.
The second pillar of the business model is domestic traffic in
Turkey. Alongside the international routes, this is an impor -
tant segment. With Antalya on the Turkish Riviera and a hub
in Izmir, Sunexpress has a strong position with an extensive
network right across Turkey.
And last but not least, there is the wet-lease business. For the
past two years, Sunexpress has successfully operated a steadily
growing fleet for the Turkish Airlines low-cost brand
Anadolu jet. Sunexpress operates more than 30 aircraft in this
way for the Turkish parent company. This year, with a wet
lease for Condor, Sunexpress Deutschland successfully entered
this business segment.
Individuality is also the key to the product innovations at
Sunexpress. When customers make a booking, they have a
choice of three different fare and service levels – rather similar
to the Germanwings concept. “That enables us to shape our
service on board and on the ground individually,“ Paul
Schwaiger explains.
The basic fare – SunEco – includes a free baggage allowance of
20 kg. Other services, such as hot food or a seat reservation can
be additionally booked on the Internet or through a call center.
The SunClassic fare includes a sandwich, a seat reservation
and an extra 5 kg free baggage allowance, while the
SunPremium fare encompasses a 30 kg free baggage allowance
plus a Premium menu and a seat with extra leg room.
Moreover, Sunexpress offers its passengers a wide range of
buy-on-board products and a choice of large and small snacks.
From this autumn, as a special benefit, Sunexpress will be
offering next-generation in-flight entertainment. Innovative,
wireless entertainment on demand will then be available on
board in collaboration with the Irish company Media inMotion.
The advanced in-flight entertainment system will allow
passengers to access films, magazines, games and other offers
from their own mobile end-user devices. Information about
the destination and the region can also be downloaded. And –
as a special gimmick – they will be able to book offers such as
excursions, hire cars, hotels and events directly, during their
flight.
And the future outlook looks very bright at Sunexpress: the
company has placed 40 firm orders for 737-800NGs and
737-800MAXs and has options on a further ten aircraft. This
German-Turkish friendship is set to continue.
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Old Dec 3, 2014, 7:35 am
  #48  
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There you have it, longhaul "wings" will be called Eurowings and operated by Sun Express.



http://www.airliners.de/eurowings-la...ufthansa/34306 (DE)
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Old Dec 3, 2014, 7:39 am
  #49  
 
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The 5 Star crap made it into the article again..

At the current condition, I would give Air Koryo more stars than Lufthansa
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Old Dec 3, 2014, 7:18 pm
  #50  
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Originally Posted by starflyergold
There you have it, longhaul "wings" will be called Eurowings and operated by Sun Express.
... unless pilot strikes kill LH, before they manage to launch Wings, Jump or yet another you-name-it airline
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Old Dec 3, 2014, 10:46 pm
  #51  
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The full video of Eurowings taking off is here: link

Details of the new EW:


Handlungsfeld Neue Konzepte für Wachstum

Der Aufsichtsrat gab für das vom Vorstand präsentierte Wings-Konzept heute grünes Licht und stimmte dem Lease von bis zu sieben Flugzeugen vom Typ Airbus A330-200 für das neue Low-Cost-Angebot auf Interkontinentalstrecken zu.

Unter dem Markennamen „Eurowings“ und unter einem gemeinsamen Dach sollen von Ende kommenden Jahres an die Fluggesellschaften Eurowings und Germanwings, sowie weitere Flugbetriebe in Europa mit kostengünstigen Kurz- und Langstreckenangeboten neue Kunden gewinnen und dabei Qualität zu günstigen Preisen bieten.

Mit den privatreiseorientierten Angeboten wird die starke Marktposition der Airlines der Lufthansa Gruppe in ihren Heimatmärkten Deutschland, Österreich, Schweiz und Belgien auch bei den Punkt-zu-Punkt-Verbindungen langfristig gesichert.

„Die ‚neue Eurowings‘ ist unsere Antwort auf eine der großen Herausforderungen der europäischen Airline-Industrie. Wir stehen bei Punkt-zu-Punkt-Verbindungen in Deutschland und Europa bereits seit vielen Jahren im harten Wettbewerb mit stark wachsenden Low Cost Airlines. Künftig wird sich diese Entwicklung auch verstärkt auf das Langstreckengeschäft ausweiten. Darauf geben wir mit der ‚neuen Eurowings‘ eine innovative Antwort und gestalten unsere Märkte“, betonte Carsten Spohr. „Innovative Konzepte mit deutlich geringeren Kosten kombiniert mit den Kompetenzen und Stärken der Lufthansa Gruppe: So lautet unser Erfolgsrezept. Unsere Angebote werden sich durch ein sehr gutes Preis-Leistungsverhältnis sowie Sicherheit, Qualität und Zuverlässigkeit auszeichnen“, so Spohr.

Das Konzept für die ‚neue Eurowings‘ schließt an die erfolgreiche Übernahme von Lufthansa-Strecken durch die Konzerntochter Germanwings nahtlos an. Anfang Januar 2015 wird die Übertragung von Lufthansa-Strecken, die nicht über die Drehkreuze Frankfurt und München führen, an Germanwings abgeschlossen sein.

Unter dem neuen Konzept werden zunächst die beiden bereits bestehenden Fluggesellschaften Germanwings und Eurowings mit ihren bisherigen Streckennetzen und Crews fliegen. Für die neuen Europa-Angebote wird die bisherige Flotte der Eurowings, die aktuell aus 23 Jets des Typs Bombardier CRJ900 besteht, zwischen Februar 2015 und März 2017 durch bis zu 23 Airbus A320 ersetzt. Dafür sind zehn neue Airbus A320 bestellt. Zusätzlich werden aus bestehenden Orders der Lufthansa Gruppe noch bis zu 13 weitere A320 an Eurowings übertragen. Die Airline wird Ende 2017 eine homogene A320-Flotte betreiben und durch die Treibstoffeffizienz der modernen Flugzeuge weitere Kostenvorteile haben. Im kommenden Jahr werden unter der Marke Eurowings weitere Europastrecken ergänzt, die aus einer neuen Eurowings-Basis außerhalb Deutschlands geflogen werden sollen.

Neben den europäischen Strecken wird die ‚neue Eurowings‘ in Zusammenarbeit mit der deutsch-türkischen Fluggesellschaft SunExpress Ende 2015 auch günstige Langstreckenangebote auf den Markt bringen.

Dazu wurde mit SunExpress, einem Joint-Venture-Unternehmen von Lufthansa und Turkish Airlines, ein „Letter of Intent“ unterzeichnet. Demnach werden die Interkontinentalflüge unter der Marke ‚Eurowings‘ im AOC (Air Operator Certificate oder Luftverkehrsbetriebszeugnis) der SunExpress Deutschland mit Cockpit- und Kabinencrews der SunExpress Deutschland fliegen. Die ersten interkontinentalen Ziele werden unter anderem in Florida, dem Indischen Ozean und im südlichen Afrika liegen. Für diese Verbindungen kommen zunächst drei Airbus A330-200 mit jeweils 310 Sitzen zum Einsatz. Die Langstreckenflotte soll in den kommenden Jahren auf bis zu sieben Flugzeuge vom Typ A330-200 ausgeweitet werden.

Wie beim Erfolgskonzept von Germanwings wird das neue Langstreckenangebot dem Kunden die Wahlmöglichkeit zwischen den Tarifen Best, Basic und Smart geben. Heimatbasis für den Start der neuen Langstreckenflotte wird der Flughafen Köln/Bonn sein. In Köln wird zudem die kommerzielle Steuerung der Wings-Fluggesellschaften angesiedelt.

So longhaul will be started from CGN to Florida, Indian Ocean and South Africa with A332 in 310 seat config with the XG AOC and crew.

Last edited by oliver2002; Dec 3, 2014 at 10:53 pm
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Old Dec 4, 2014, 12:15 am
  #52  
 
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But will be freely bookable or only charter or similar?
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Old Dec 4, 2014, 4:07 am
  #53  
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It will be a point to point operation like Germanwings and sold as such (directly on their system using the ticketless method, via interline partners, or via TAs using GDS).
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Old Dec 4, 2014, 5:26 am
  #54  
 
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Here is an article on Business Traveller about it;

http://www.businesstraveller.com/new...g-haul-plans-f

It’s now official. Lufthansa today announced plans for its new low-cost, long-haul division.

The new carrier will take the Eurowings branding and be operated by SunExpress Deutschland. The latter will provide the cockpit and cabin crew.

Eurowings will be based in Cologne and begin operations towards the end of next year with a fleet of three A330-200 twin jets configured for 310 passengers. In a few years’ time the plan is to increase fleet size to seven A330-200s.

But readers who were hoping that Lufthansa would operate Eurowings out of Frankfurt or Munich to cities such as New York, Dubai or Singapore will be disappointed.

As Business Traveller pointed out previously, Lufthansa is first and foremost a business airline. And therefore it would not wish to cannabalise any business traffic which would normally travel with its core brand. Therefore Eurowings flights will be departing from Cologne (considered a secondary airport within Germany) and will serve holiday destinations.

According to aviation newsletter aerotelegraph.com “The new carrier’s objectives will be to concentrate on the vacation traveller. It is expected that the first long-haul points will be in Florida along with destinations in the Indian Ocean and Southern Africa.”

The seating on Eurowings’ A330s will be dense, but, as with existing Germanwings (Lufthansa’s low-cost short-haul brand) tickets will be sold at Best, Basic or Smart depending on the level of service required.

Lufthansa maintains that tighter Eurowings’ seating and a few or no-frills approach will mean that its operating costs can be cut by 40 per cent.
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Old Dec 4, 2014, 6:10 am
  #55  
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The 'article' is pretty much a copy&paste job of the press release

http://www.lufthansagroup.com/en/themen/eurowings.html
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Old Dec 4, 2014, 7:03 am
  #56  
 
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I am more and more confused...

The difference between "Wings" (long haul LCC) and "Jump" (LH mainline brand, but different seat configuration with smaller premium cabin) has been discussed here multiple times. What I understood was that "Jump" should serve (holiday) destinations that don't support large premium cabins. Rumored potential destinations were e.g., Mauritius and Seychelles.

And now "Wings" is announced, and first destinations are Florida, Southern Africa, and Indian Ocean, so exactly those earmarked for "Jump"?

Does anyone have more insight? Has "Jump" been shelved?
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Old Dec 4, 2014, 10:46 am
  #57  
 
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Jump is an internal LH project, for LH branded flights from FRA & MUC to destinations where there is little business class demand (e.g. holiday destinations). The flights are configured with no F seats, fewer C seats, and many Y+ and Y seats. To make this passenger mix profitable, LH has negociated lower costs with flight attendants, airports and the pilots will be from Privatair. For a passenger this is a Lufthansa flight, and the service standards, branding will be the same as any other LH flight.
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Old Dec 4, 2014, 11:40 am
  #58  
 
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Meanwhile they don't want PrivatAir pilots anymore for Jump. LH Cityline pilots are supposed to fly jump planes now. Lufthansa brand cannot be on those planes since they would have to be flown by KTV personell (the main line pilots). So they'll carry star alliance livery.
If it's smart to man those planes with pilots who so far have flown within Europe only, don't know foreign airports/ATC, have no longhaul experience... we will have to see.
But I'm wondering as well.... looks like Eurowings longhaul will offer the same kind of routes. Ofc for a lower price. So why would Jump stay?
As long as there's someone who does the same job cheaper, they'll switch. Until at some point the customer doesn't buy the product anymore.
Eurowings for instance will have cockpit and cabin crew from Sunexpress (LH/Turkish joint venture).
Very confusing..
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Old Dec 4, 2014, 11:44 am
  #59  
 
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Scoojitsu, don't make too much thinkings into it.. within the next 6-9 months, the next "concept" will be put in place anyway.. (maybe another "mileage earning" category or two? We only have like 4 or 5 at the moment..)
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Old Dec 4, 2014, 12:44 pm
  #60  
 
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Originally Posted by Scoojitsu
But I'm wondering as well.... looks like Eurowings longhaul will offer the same kind of routes. Ofc for a lower price. So why would Jump stay?
Exactly! It's not like there is so much demand for those destinations. To me it looks like

1) They systematically destroy what's left of their brand equity. The positioning of all these new brands is totally unclear.

2) They create a zoo of carriers the complexity of which is in the end unmanageable, and thus it eats up a large chunk of the cost savings achieved on the personnel side.
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