LH, X3 and DE are about to form a new AB rival

Old Aug 23, 08, 4:23 am
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LH, X3 and DE are about to form a new AB rival

According to Der Spiegel (sorry, in german only) Lufthansa, TUI and Arcandor are in talks about merging their LCC's to form a new AB rival. Will be interesting to see if they are able to form such an alliance and which role M&M will play in the game. (My guess: no M&M involvement anymore…)
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Old Aug 23, 08, 5:22 am
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A very smart move by Mr Mayrhuber. With this he can kill two birds with one stone: to get rid of Condor -at least from LH's portfolio- and possibly AB as well. But I believe this will show up the second side of the medal. When AB is weak enough we will see a new player on the German market, who will snap up AB almost for free. However, if this becomes true, unions at LH will understand what free market economy looks like and we will see a completely new quality of service at LH and possibly less strikes. As long as the employees like their jobs...

And AB's Flop Plus program is history then
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Old Aug 23, 08, 2:25 pm
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I agree, they can pick up the pieces of AB in 6-9 months time and restructure the entire business.
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Old Aug 23, 08, 4:03 pm
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I wonder if this will affect LH Cityline (as does tbk06). Cityline folks apparently earn 20% less than LH mainline staff and this caused the strike a few weeks ago (http://www.spiegel.de/wirtschaft/0,1518,570770,00.html). Getting rid of the LH Cityline staff (not that i don't like Cityline) and AB at the same time would be a brilliant move.

I hope the M&M affiliations will still exist in the future, at least for award redemption. How many routes would M&M customers loose if they cannot book Condor award destinations anymore?
If miles can be earned on the flights as well this could become yet another UA TED or DL Song ... hopefully with a better lifetime
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Old Aug 23, 08, 4:20 pm
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This is also why LH does not want to own more than their current share of Eurowings, in order to justify the lower salary level compared to mainline.
Perhaps it really is best to bundle them in to a new entity in order to shut up the unions for good.
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Old Aug 24, 08, 9:51 am
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Originally Posted by El_Duderito View Post
I wonder if this will affect LH Cityline (as does tbk06). Cityline folks apparently earn 20% less than LH mainline staff and this caused the strike a few weeks ago ... Getting rid of the LH Cityline staff ... and AB at the same time would be a brilliant move.
I'm not sure about Cityline. The main (financial) prob are not the Cityline/Eurowings pilots, but the main liners. If we could have a look into their contracts we would start crying immediately... But LH has a chance to put pressure on the unions with a new market player/competitor. AB never was one. And a ragpicker for AB will appear in Germany within next twelve months that's for sure (I suppose they are already here).

Originally Posted by El_Duderito View Post
I hope the M&M affiliations will still exist in the future, at least for award redemption. How many routes would M&M customers loose if they cannot book Condor award destinations anymore?
...
As I prefer LH F on award flights I do not care about Condor.
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Old Aug 25, 08, 3:00 pm
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Originally Posted by El_Duderito View Post
Getting rid of the LH Cityline staff (not that i don't like Cityline) and AB at the same time would be a brilliant move.
And hand over the MUC hub at the same time?

I don't think the MUC hub would work w/o CityLine, even if you keep EN in the (star-)boat.
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Old Aug 25, 08, 3:36 pm
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Dresdner Bank has a share price target for AirBerlin of ZERO !
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Old Aug 25, 08, 5:12 pm
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Originally Posted by Rambuster View Post
Dresdner Bank has a share price target for AirBerlin of ZERO !
Another target for TFM

They've had that target for a while.
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Old Aug 25, 08, 5:15 pm
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A LH backed LCC? What a plan.

And soon Germany will have the situation like Australia where Jetstar is taking over more and more QF routes which means no FFP earning, closure of lounges, no business class plus all the other benefits of a LCC.
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Old Aug 25, 08, 5:49 pm
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Originally Posted by DownUnderFlyer View Post
A LH backed LCC? What a plan.

And soon Germany will have the situation like Australia where Jetstar is taking over more and more QF routes which means no FFP earning, closure of lounges, no business class plus all the other benefits of a LCC.
Don't worry, LH will not give up their (highly profitable) domestic business class anytime soon !
(I just did a €395 NUE-MUC-DUS C trip today...talking about value for money...NOT)
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Old Aug 26, 08, 2:54 am
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Originally Posted by Rambuster View Post
Don't worry, LH will not give up their (highly profitable) domestic business class anytime soon !
(I just did a €395 NUE-MUC-DUS C trip today...talking about value for money...NOT)
Agree. Domestic biz class is a cash cow and necessary as a feeder for international flights. So it is an essential part of LH's concept.

I do not know the colour code of EK, but it fits to AB...
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