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LX Top Customer Webcast [June 7, 2021] reports

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Old Jun 7, 2021, 9:48 am
  #1  
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LX Top Customer Webcast [June 7, 2021] reports

I'm on the SWISS Webcast for Top Customers right now. I probably shouldn't share a lot of the information provided, but think it's important to share (and that Swiss would probably want it shared) that you can now do Non-Schengen-Schengen transfers in Zurich based on the destination country's entry requirements, not Switzerland's entry requirements. This is apparently effective as of today.
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Old Jun 7, 2021, 1:43 pm
  #2  
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Originally Posted by sophialite
I probably shouldn't share a lot of the information provided, but think it's important to share (and that Swiss would probably want it shared)
Now as a mere lowly *G I'm intrigued, what else did they tell you? (if you are willing to share)

Last edited by Nick Art; Jun 7, 2021 at 1:50 pm
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Old Jun 8, 2021, 2:48 am
  #3  
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I don’t know about testing requirements. This was just regarding right of entry from a visa perspective.
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Old Jun 9, 2021, 3:07 am
  #4  
 
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LX Top Customer Webcast

Last Monday Swiss organized a webcast for 'Top Customers', inviting HON and SEN of which more than 100 (reportedly) participated. For LX, Tamur Godarzi Pour, Chief Commercial Officer hosted the the event. He started off with some remarks and then answered questions that could be submitted via chat. Main themes were the post-COVID recovery and ramp-up of service, premium economy and BoB, as well as M&M status which obviously gave rise to quite a few questions.

Key points:
  • LX foresee a recovery that will take a few years. This summer capacity is expected to be at 50-55% of 2019 levels, with a shift away from business travel to more leisure and VFR. The 2019 level may only be reached again in 2024
  • They plan 85 destinations from ZRH and 40 from GVA but all depending on easing of travel restrictions. TATL is expected to open up this summer (as indeed it has now albeit one-way only) but Asia will be slower
  • Feeders from GVA to ZRH (4 daily), MUC (4 daily) and FRA (5 daily) will be ramped up to improve connections and to maintain the position in GVA
  • Long haul restructuring will be more about frequency reductions than dropping destinations
  • Day return possibilities should increase, they are aware that this is holding back business travelers
  • Premium economy will be rolled out on the B77W first, with LX being the first in the LH group to introduce it in Q4. It is expected to be one of the best premium economy seats in the industry
  • BoB is considered a success so far; anecdotes of customers buying on board to take home. It is seen as an improvement on previous economy food. In response to a question, it was stated that Business pax should also have this choice (though it was left open whether this would be free or for a fee)
  • Mid term (until 2023) fleet will be reduced by 5 long-haul aircraft and 10 short-haul aircraft (as already announced). Reference was made to the long-haul fleet being composed of B77W, A343 and A333 and in the longer term being joined by 'future, new technology aircraft'. No answer was given to questions which aircraft would leave the fleet. TGP hinted that the 5 long-haul planes would not be sold but might be stored. The 10 short-haul planes leaving the fleet would be the oldest A320 (as already reported)
  • TGP confirmed that F would be maintained on all long-haul planes. No decisions yet on the number of seats in the future, all options are open. Answering a question about F being preferred for space, TGP indicated a potential reduction to 4 F seats would actually mean more space per seat
  • New C will be introduced by LH, LX will follow (the reverse for premium economy). Number of C seats in the future is not decided
  • Emphasis on flexibility of rebooking for tickets booked until end of July. TGP admitted that this meant in the same booking class and that this could mean upfare if travel picks up, or if bookings are moved to more popular periods. In response to a question about rebooking companion fares, it was stated that this would be looked into
  • Lounges will gradually reopen, a plan has been proposed for approval 'soon'. Regulations vary by country, this makes it difficult to plan but the intention is step-by-step and as quick as possible. ZRH lounges are reopening and food is now available again
  • Security queues in ZRH are recognized as an issue and concierge service started recently for HON in ZRH. F lounge will reopen this summer (tbc). Dock E will open on some weekdays in June, and may be fully open again July/August, with some kind of car shuttle (tbc). ZRH HON IRROPs support will be considered ad hoc
  • Improving ZRH bagage handling is a priority, big project underway
  • Non-Schengen to Schengen transit at ZRH now possible again, LX was at a disadvantage compared to other airlines
  • Looking at improving the document situation and replacing paper by electronic. All depends on authorities and mutual recognition. IATA travel pass being studied
  • Status and requalification: 1st priority: ensure that pax can fly again; 2nd: extension already granted (3 yr HON qual instead of 2) and 3rd: campaigns for extra status miles. Have done 2x miles in F/C, credit card status miles and more to come in H2. LX are watching the situation week by week and will take further action if necessary/appropriate. Many questions about requal, people expecting to lose status. No concrete answers given, obviously, but I got the impression that something would have to be done due to the lack of corporate travel still in 2021
  • Seat blocking for HON in Y: now exists with low load factors but might be done in the future as policy (tbc)
  • Expansion of call centers, BSL and worldwide. High praise for BSL ('best in industry' according to TGP) and asked for more flexibility for rebooking
  • EDW has done its own restructuring reducing long-haul from 6 to 4. EDW will remain a separate brand but product and customer experience will be aligned better

Last edited by MichielR; Jun 9, 2021 at 4:34 am
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Old Jun 9, 2021, 5:51 am
  #5  
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Really hoping they retain 8F on the new planes (A350s I suspect) as well
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Old Jun 9, 2021, 12:47 pm
  #6  
 
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Originally Posted by MichielR
Last Monday Swiss organized a webcast for 'Top Customers', inviting HON and SEN of which more than 100 (reportedly) participated. For LX, Tamur Godarzi Pour, Chief Commercial Officer hosted the the event. He started off with some remarks and then answered questions that could be submitted via chat. Main themes were the post-COVID recovery and ramp-up of service, premium economy and BoB, as well as M&M status which obviously gave rise to quite a few questions.

Key points:
  • LX foresee a recovery that will take a few years. This summer capacity is expected to be at 50-55% of 2019 levels, with a shift away from business travel to more leisure and VFR. The 2019 level may only be reached again in 2024
  • They plan 85 destinations from ZRH and 40 from GVA but all depending on easing of travel restrictions. TATL is expected to open up this summer (as indeed it has now albeit one-way only) but Asia will be slower
  • Feeders from GVA to ZRH (4 daily), MUC (4 daily) and FRA (5 daily) will be ramped up to improve connections and to maintain the position in GVA
  • Long haul restructuring will be more about frequency reductions than dropping destinations
  • Day return possibilities should increase, they are aware that this is holding back business travelers
  • Premium economy will be rolled out on the B77W first, with LX being the first in the LH group to introduce it in Q4. It is expected to be one of the best premium economy seats in the industry
  • BoB is considered a success so far; anecdotes of customers buying on board to take home. It is seen as an improvement on previous economy food. In response to a question, it was stated that Business pax should also have this choice (though it was left open whether this would be free or for a fee)
  • Mid term (until 2023) fleet will be reduced by 5 long-haul aircraft and 10 short-haul aircraft (as already announced). Reference was made to the long-haul fleet being composed of B77W, A343 and A333 and in the longer term being joined by 'future, new technology aircraft'. No answer was given to questions which aircraft would leave the fleet. TGP hinted that the 5 long-haul planes would not be sold but might be stored. The 10 short-haul planes leaving the fleet would be the oldest A320 (as already reported)
  • TGP confirmed that F would be maintained on all long-haul planes. No decisions yet on the number of seats in the future, all options are open. Answering a question about F being preferred for space, TGP indicated a potential reduction to 4 F seats would actually mean more space per seat
  • New C will be introduced by LH, LX will follow (the reverse for premium economy). Number of C seats in the future is not decided
  • Emphasis on flexibility of rebooking for tickets booked until end of July. TGP admitted that this meant in the same booking class and that this could mean upfare if travel picks up, or if bookings are moved to more popular periods. In response to a question about rebooking companion fares, it was stated that this would be looked into
  • Lounges will gradually reopen, a plan has been proposed for approval 'soon'. Regulations vary by country, this makes it difficult to plan but the intention is step-by-step and as quick as possible. ZRH lounges are reopening and food is now available again
  • Security queues in ZRH are recognized as an issue and concierge service started recently for HON in ZRH. F lounge will reopen this summer (tbc). Dock E will open on some weekdays in June, and may be fully open again July/August, with some kind of car shuttle (tbc). ZRH HON IRROPs support will be considered ad hoc
  • Improving ZRH bagage handling is a priority, big project underway
  • Non-Schengen to Schengen transit at ZRH now possible again, LX was at a disadvantage compared to other airlines
  • Looking at improving the document situation and replacing paper by electronic. All depends on authorities and mutual recognition. IATA travel pass being studied
  • Status and requalification: 1st priority: ensure that pax can fly again; 2nd: extension already granted (3 yr HON qual instead of 2) and 3rd: campaigns for extra status miles. Have done 2x miles in F/C, credit card status miles and more to come in H2. LX are watching the situation week by week and will take further action if necessary/appropriate. Many questions about requal, people expecting to lose status. No concrete answers given, obviously, but I got the impression that something would have to be done due to the lack of corporate travel still in 2021
  • Seat blocking for HON in Y: now exists with low load factors but might be done in the future as policy (tbc)
  • Expansion of call centers, BSL and worldwide. High praise for BSL ('best in industry' according to TGP) and asked for more flexibility for rebooking
  • EDW has done its own restructuring reducing long-haul from 6 to 4. EDW will remain a separate brand but product and customer experience will be aligned better
Great summary and was nice to 2 of my Qs being answered. Overall, nice loyalty event but not necessarily very insightful (vs. what I already knew/heard or in some cases experienced).
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Old Jun 9, 2021, 2:53 pm
  #7  
 
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Nice to hear about :
  • Long haul restructuring will be more about frequency reductions than dropping destinations
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Old Jun 10, 2021, 3:50 am
  #8  
 
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Originally Posted by Nick Art
Really hoping they retain 8F on the new planes (A350s I suspect) as well
Hoping, but when the question was asked, this was explicitly not confirmed.

4F is still better than zero F on part of the fleet if that's what works for LX.
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Old Jun 10, 2021, 3:52 am
  #9  
 
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Originally Posted by Nik_Jr
Great summary and was nice to 2 of my Qs being answered. Overall, nice loyalty event but not necessarily very insightful (vs. what I already knew/heard or in some cases experienced).
Which questions were yours?

Agreed, I think they could have used the opportunity to tell us something new, to surprise us in a positive way...
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Old Jun 10, 2021, 2:47 pm
  #10  
 
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Originally Posted by MichielR
Which questions were yours?

Agreed, I think they could have used the opportunity to tell us something new, to surprise us in a positive way...
Q on destinations and FCL in ZRH. I was hoping for that surprise, but also understand it's a listed company and the real "surprises" are for CEOs to share broadly.
Would love to have heard more about why AF can offer full F and LX isn't (a Q that wasn't answered). Or another Q not answered: why some small changes can't be done to have HON or F more efficiently through airport and in a lounge (some indirectly answered though). And lastly, shared my experience from last from, flying from ORD to ZRH in F: zero service, no lounge while KL/AF and BA has full service and lounge. No feedback or answer... :-))
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