From March 29, 2009, the start of the summer time table, Lufthansa and Brussels Airlines will deepen their cooperation and expand their existing partnership, ahead of Lufthansa's plans to take a 45 per cent stake in Brussels Airlines (subsequently to be raised to 100 per cent), and Brussels Airlines' entry in to the Star Alliance.
Codeshare flights on cross-border routes
From the end of this week, numerous Lufthansa and Brussels Airlines flights will be operated on a codeshare basis under the partner airline’s flight number. In future, Lufthansa and Brussels Airlines passengers will have access to both airlines’ route networks. Initially, this service will apply to flights between Brussels and Frankfurt, Berlin, Hamburg, Hanover, Nuremberg and Stuttgart as well as to selected European destinations. At a later date, it will be extended to other flights, particularly to and from Munich.
Frequent flyer programme partnership
The two carriers are launching a frequent flyer programme partnership. Brussels Airlines Privilege members will then be able to earn award and status miles on all flights operated by Lufthansa and also redeem any miles accumulated prior to that date for award tickets on Lufthansa flights. Conversely, Lufthansa Miles & More members will have their account credited with all the premium, status and HON Circle miles earned on flights operated by Brussels Airlines and will also be able to book award flights with Brussels Airlines.
In addition, elite status customers of both carriers will enjoy additional privileges such as more generous free baggage allowances and preferential baggage claim. Lufthansa status customers flying with Brussels Airlines will also be able to use Brussels Airlines’ Business Class check-in counters. Likewise, Brussels Airlines’ Platinum and Gold passengers will have access to Lufthansa’s First or Business Class check-in counters.
Reciprocal lounge privileges
Since mid-February, both airlines have granted their premium customers reciprocal use of the partner’s lounges. Members of Brussels Airlines’ frequent flyer programme Privilege who have attained Platinum status can thus use all Lufthansa Senator and Business Lounges worldwide. Likewise, since February, Lufthansa HON Circle members, Senators and First Class passengers have enjoyed access to Brussels Airlines lounges. In addition, from 29 March, Business Class passengers flying Brussels Airlines will be able to use all Lufthansa’s Business lounges, while Lufthansa customers will have access to Brussels Airlines’ Business Lounge at Brussels.
Joint ground operations under one roof
Whenever possible, Lufthansa and Brussels Airlines aim to locate their service desks and check-in areas close to one another at airports. At the start of the summer timetable, Brussels Airlines will therefore move into Terminal 2 at Hamburg Airport, where Lufthansa and other Star Alliance partners are located. At a later date, in line with the Star Alliance’s “Under One Roof” strategy, Brussels Airlines plans to relocate to Terminal 2 at Munich, which is used exclusively by Lufthansa and its Star Alliance partners.
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Lufthansa is opening its Tower Lounge for First and Business Class passengers as well as customers with Hon Circle, Senator or frequent traveller status, at the Frankfurt airport by this month end.
The best part of the lounge for airplane buffs like me; sink into deep leather armchairs and view the apron traffic through the spacious panoramic windows allowing a spectacular view of the tarmac.
The new Lufthansa Tower Lounge replaces the existing Lufthansa Senator and Business Lounge at gate A51.
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The entry of Air India in to the Star Alliance is delayed by at least one year to the first quarter of 2010.
Star Alliance founder, Lufthansa was a sponsor for Air India joining the Star Alliance. Since 2004, Air India has operated code-sharing flights with Lufthansa between Germany and India.
18 months ago, the Government of India decided to merge Air India and the erstwhile Indian (formerly Indian Airlines). The process of merger, which was to have been completed in 2008, has been severely delayed due to "integration" issues. Apparently there is major confusion at even the most basic levels between the staff of the two airlines, with no clarity on who is responsible for what. Where have we heard of this before?
While Star Alliance and Air India signed a non-disclosure agreement last year, the compliance is yet to be done. The IT systems are no where close to integration and Air India has not yet, even informed the Star Alliance, on which of the two systems it will finally be using. This is proving to the major sticking point for Air India's entry in to the global alliance.
Adding complexity to this issue are reports that mandarins at the Ministry of Civil Aviation of Air India owner, Government of India, are "upset" at reported talks between Jet Airways and the Star Alliance, whom they perceive as a threat to Air India.
Previously Jet Airways had an announced policy of remaining alliance neutral preferring to sign one-on-one bi-laterals instead. Delays by the US Federal Aviation Administration on Jet's code share deal with Star Alliance founder United Airlines have launched a diplomatic protest by the Indian government.
However, the extreme operating environment due to the on-going economic slowdown, the sheer size of India, and the desire of the Star Alliance to grow to 50 members especially regional airlines, may be tilting the scales in favour of Jet Airways joining the Star Alliance.
and I see not reason why can India not have two airlines participating in the alliance.
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Lufthansa has launched a new website devoted to its upcoming Airbus A380 which has a planned entry into service during the 2010 summer schedule. The airline invites visitors to discover more about its future flagship including details about the current status of Lufthansa’s first Airbus A380.
The site is meant for both passengers and A380 fans who can find out, for example, about the route proving programme, which was conducted exclusively with Lufthansa, as well as about component acceptance tests or the transport of sections across Europe to the final assembly facility in Toulouse.
Over the next few months, Lufthansa will add more documentary material including extensive multimedia, to the website, with the aim of highlighting what makes the Lufthansa A380 so special.
A particular page I liked was where the A380 is super-imposed on to some known landmarks like a soccer pitch and St. Marks square, for size comparison.
Visit the website at www.lufthansa.com/a380.
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At a time when the global airline industry is in a tailspin and the premium passengers are moving to the back of the plane in droves, Deutsche Lufthansa has opened an uber-luxurious lounge for its First Class passengers and members of the HON Circle at the new First Class Lounge in Concourse B at Frankfurt Airport. This follows their equally luxurious mega lounge opening at New York's JFK airport in January.
Presenting the lounge as an oasis of calm and relaxation lounge has a spa with extensive bathing area, equipped with six superior-quality shower rooms, two of them with jacuzzi s. For the first time, Lufthansa has introduced two massage rooms in their lounge with a choice of cosmetic treatments and massages.
The new lounge in Concourse B, which has a total floor space of 1,220 square metres, can seat more than 100 guests. With all the business and up-scale amenities including free WLAN access. Quiet rooms, a restaurant and bistro area, bar, and airline services desk are part of the lounge.
Lufthansa has also extended its First Class terminal limousine service, where a limousine transfers passengers to and from "non-aerobridge" aircraft.
Enjoy the images of the lounge. I am drooling.
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Germany’s cabin-crew union, Unabhaengige Flugbegleiterorganisation UFO e.V., began a six hour “warning strike” at airports in Berlin and Frankfurt at 06:00 (05:00GMT) today, and Deutsche Lufthansa AG is already experiencing delays and disruptions to its flights.
The union, is requesting a 15 per cent pay increase, bigger bonuses and improved working conditions. Negotiations between the union and the airlines broke off earlier this month.
Last Friday, January 23rd, the UFO members went on a three hour "warning strike" which caused Lufthansa to cancel 44 European and domestic flights. The backlog and delays took Frankfurt airport over six hours to clear, after the strike ended. This time the strike is twice the duration, which will end only at 12:00 (11:00GMT). There is bound to be significant disruption, cancellations, delays, and congestion that should last the whole day, and possibly stretch in to the night.
While Lufthansa spokespersons are indicating the airline "will try to minimize the impact for customers booked on long-distance flights", Lufthansa passengers are bound to have a difficult and uncertain time at both Frankfurt and Berlin airports.
Trains or an alternate airline might be the better option today.
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Lufthansa has opened its new design, super lounge for its premium passengers, in Terminal 1 at New York's John F. Kennedy airport. The new lounge is spread across 3 levels and has a total area of 1,500 square meters (about 16,000 square feet).
The highlight of the new lounge is the First Class area for HON Circle members and First Class passengers, located on the third level. The first outside the Lufthansa and SWISS hubs at Frankfurt, Munich and Zurich, it features an exclusive atmosphere, where First Class passengers and HON Circle members will find all the amenities they need in order to refresh themselves and unwind; or they can simply sit back and be spoilt by the attentive staff. The area has its own large reception desk, where guests are welcomed, and 27 comfortable chairs. In a separate pre-flight dinner area, guests can have a meal before their flight departs so that they can then sleep or relax on a night flight without any interruption. Generously proportioned shower rooms are also provided so that guests can freshen up before their flight.
The Senator Lounge on the second floor, which also reflects the elegant new lounge design, has 124 seats. Comfortable relaxing armchairs invite guests to unwind and recharge their batteries. In the bistro area, snacks, a choice selection of German wines, beers and spirits are served. The Senator Lounge also has comfortable bathrooms with bathtubs and showers.
On the lower floor, the completely renovated, spacious Business Lounge will accommodate up to 171 guests. It has a bistro and bar area offering a choice of snacks and drinks, a lounge area with groups of comfortable leather easy chairs and televisions and a separate work area with workstations for business travellers.
Oliver Wagner, Vice President Global Airport Products and Services at Lufthansa said
“The lounge at John F. Kennedy Airport is a walk-in advertisement for Lufthansa on the American continent and is an important component of our 150-million-euro investment programme to upgrade our lounges worldwide,” “In the first three months of this year alone, we will open seven lounges, including in Mumbai and Paris.”Access to the Lufthansa lounge at JFK is directly behind the security checkpoints to minimise the distance lounge guests have to walk to the departure gates.
Lufthansa currently operates about 60 lounges worldwide with a total floor space of over 22,000 square metres. One entirely new facility is the first Lufthansa Welcome Lounge at Frankfurt, Lufthansa’s largest hub.
Until 2013, Lufthansa will be investing about 150 million euros in constructing new lounges and refurbishing existing ones in order to further expand and enhance its airport lounge facilities for customers.
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More than 70 million passengers flew with Lufthansa and Swiss during the year
Lufthansa bucked the down trend in the industry and carried more passengers in 2008 than in the previous year.
In the twelve months from January through December 2008, number of passengers increased by 1.2 per cent over 2007, to about 57 million. Capacity was raised by 4.9 per cent. Revenue passenger-kilometres (RPKs) rose by 3.5 per cent, but passenger load factors declined 1.1 per cent to 78.6 per cent.
Swiss carried 13 million passengers. When combined with parent, Lufthansa adds up to more than 70 million passengers total, an increase of 12.2 per cent. The total number of flights increased by 10.9 per cent to 830,819.
The global economic slowdown had a deep impact on Lufthansa Cargo which transported 1.7 million tonnes or 6 per cent less cargo and mail over the previous year. The cargo load factor also fell by 3.2 per cent to 65.8 per cent.
The financial results of the Lufthansa Group in the 2008 business year will be published on 11 March 2009.
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The Star alliance press office announced that at their annual Board Meeting, the CEOs of the Star Alliance member airlines have voted to accept the application of Brussels Airlines to become a future member of the alliance.
Brussels Airlines is the Belgian airline offering the widest choice of flights to and from the “capital” of Europe. With a fleet of 45 aircraft the airline operates some 300 daily flights to 55 European airports and 15 African destinations.
Glenn Tilton, Chairman, President and CEO of United, in his role as chairman of the meeting said, “Brussels Airlines further strengthens the Star Alliance by offering greater connectivity throughout Europe and Africa to better serve the international travel needs of all our customers.”
Bernard Gustin, Managing Director of Brussels Airlines, said “We are very happy with this invitation from Star Alliance and we look forward to becoming a member carrier. Together we will be able to bring all the advantages of Star Alliance to our customers, both at the heart of Europe where we have our state-of-the-art hub, and to Africa, our second home where we have more than 80 years of experience.”
For the upcoming integration in Star Alliance, Brussels Airlines will be assisted by its sponsor Lufthansa. Wolfgang Mayrhuber, Chairman of the Executive Board and CEO of Deutsche 
Lufthansa AG, said, “Brussels Airlines is known for its reliability and brings into the alliance a trusted product. The leading Belgian carrier will significantly increase the presence of Star Alliance at Brussels Airport and will offer the easiest access to a couple of African destinations new to the network.”
Through its membership in Star Alliance, Brussels Airlines will be able to offer its passengers a variety of benefits. On the network side for instance, the airline will be able to offer its passengers seamless travel across the Star Alliance network which will expand to cover 1,074 destinations in 174 countries*.
Frequent Flyers in the Brussels Airlines Privilege programme will be able to collect and redeem miles on all other Star Alliance member carriers.
In order to provide all the alliance benefits, the specialised teams at Brussels Airlines, Star Alliance and its member carriers will now be working on the integration process, which once completed, will make Brussels Airlines a part of the Star Alliance network, currently consisting of 21 members.
Brussels Airlines is also a close partner with Indian carrier, Mumbai based, Jet Airways. At the same time, Lufthansa has announced its intention to help the state owned national carrier Air India, also based out of Mumbai, to become a member of the Star Alliance.
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Deutsche Lufthansa AG has further reduced its fuel surcharge on its flights as crude oil and kerosene prices have decreased.
The fuel surcharge on domestic German and intra-European routes will lower by 3 euros to 21 euros per flight segment. On long-haul routes the corresponding fuel surcharge will be decreased by 10 euros to 82 euros per flight segment. The reduction will apply to all Lufthansa tickets issued on or after 16 December 2008.
Lufthansa says it will continually monitor oil prices and will make any future adjustments to the fuel surcharge dependent on further trends in the price of jet fuel.
For more information visit Lufthansa website www.lufthansa.com
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Deutsche Lufthansa AG said its supervisory board approved a plan to buy ailing Austrian Airlines AG. At the end of September reporting period, Lufthansa had cash and reserves of about €3.8 billion, with a nine-month net profit of €551 million.
As the global economic turmoils squeeze the airline industry, the proposed merger highlights how the relative strong airlines are gaining by consolidation. Global giants including Lufthansa, Air France-KLM, British Airways, Qantas, Delta Air Lines, Northwest Airlines, even regional heavyweights Jet Airways and Kingfisher Airlines, have been pursuing mergers, acquisitions or commercial partnerships to boost operational efficiencies and increase size.
Lufthansa, has a long reputation of being one of the most risk averse airlines in the world. However, of late, the airline has been on one of the most ambitious buying sprees anyone has seen in the world.
In 2005, it acquired Swiss International Airlines. In January this year it bought a 19% stake U.S. budget carrier JetBlue, with which it is now establishing a close marketing relationship. In August, Lufthansa agreed to buy 45% of the parent of Brussels Airlines, with whom Jet Airways has a strategic relationship. Lufthansa has said it will increase its 30% stake in British Midland Airways Ltd. to 80%. Last week, Lufthansa announced the creation of Italian subsidiary, Lufthansa Italia that will operate from Milan.
Lufthansa and Austrian are geographical neighbours and close business partners. This deal will prevent rivals like Air France-KLM gaining a foothold.
Opportunism, and fear of rivals, are the seen as the main drivers of this buying spree.
The new investments give Lufthansa 
footholds in diverse and far flung markets. The JetBlue deal, gives Lufthansa a strong partner in the huge New York market, while the BMI takeover, makes Lufthansa the second-largest holder of ultra-precious takeoff and landing slots at London Heathrow airport. Brussels Airlines, brings access to lucrative West African markets and a partnership with Jet Airways from India, which uses Brussels airport as its European hub.
The acquisitions also raise traffic and revenues for Lufthansa, in it's bid to close the gap with the giant Air France-KLM combine, and to have the size to compete against British Airways who is in merger talks with Spain's Iberia, Australia's Qantas, and in anti-trust requests along with U.S. giant and OneWorld partner American.
The Austrian government could approve the deal by Friday, which values the national carrier at as much as €377.4 million ($479.5 million) and save it from collapse under mounting financial woes.
Austria's privatization agency last month selected Lufthansa for exclusive negotiations to buy the state's 41.56% stake in Austrian Air. Lufthansa is now proposing to pay only €366,000 for the stake because of Austrian's financial troubles, but could pay up to €162 million more in the future, depending on the company's financial performance. Lufthansa also plans to launch a tender to buy out private shareholders for a further €215 million.
A deal would require regulatory approval, partly because the Austrian government plans to spend €500 million helping to restructure the airline. This prospective Government help, could prompt challenges from other carriers.
Industry watchers, and analysts worry that Lufthansa may be overreaching, as Swissair did back in the late 1990's, but Lufthansa has experience managing diverse companies like 
Lufthansa Technik, an aircraft-maintenance company, and LSG SkyChefs, one of the biggest in-flight caterers. Also, Lufthansa management is known to keep an eagle eye, both on its balance sheet and profitability. This buying spree is being conducted with the typical methodical German caution, and a focus on profits and immediate benefits.
With inputs from Deutsche Lufthansa, Bloomberg, Flightglobal, and Wall Street Journal
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Reuters, quoting The Mail, reports, British airline Flybe is in talks to buy British Midland's (BMI) subsidiary operations bmi regional and bmi baby.
The two airlines are not core to the strategy of British Midland's new owner, Lufthansa (LHAG.DE: Quote, Profile, Research, Stock Buzz), it said.
Lufthansa took over British Midland last month, but the German airline has indicated it is more interested in bmi's long-haul routes and valuable Heathrow slots than in the two subsidiaries.
Bmi regional is UK-focused, while bmi baby is a low-cost airline that flies to a number of European destinations.
Privately-owned Flybe is in due diligence for the two businesses, which together make up about 40 percent of British Midland's turnover, the newspaper reported.
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New Italian airline to be established - Lufthansa Italia to offer direct connections from Milan Malpensa to European destinations - Flights already available for booking from 99 euros 
Lufthansa has launched its new "Lufthansa Italia" brand in Italy. Lufthansa is to found its own Italian airline under the new brand early next year and apply for an Italian Air Operator Certificate (AOC).
The new airline aims to blend German efficiency and reliability with Italian flair.
With an initial fleet of six Airbus A319 aircraft, Lufthansa Italia will focus on Northern Italy, Milano and Lombardy, and will offer connections to major European destinations from February 2009.
Flights to the first two destinations, Barcelona (BCN) and Paris-Charles de Gaulle (CDG), will commence from 2 February 2009. Flights to Brussels (BRU), Budapest (BUD), Bucharest (BUH) and Madrid (MAD) will be added to the timetable in early March. London-Heathrow (LHR) and Lisbon (LIS) will be added by end of March 2009.
The Airbus A319, will seat 138 passengers in Business and Economy Class, with a cabin design influenced by Italian origins. The Italian flight attendants will serve Italian delicacies in the in-flight menu.
Lufthansa Italia is cooperating with Milan Malpensa Airport to upgrade the infrastructure to provide passengers with more services and comfort, including an enhanced lounge product and fast-track passage through security.
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As per media reports, a group of about 20 airline crew members, have been evacuated from Mumbai's Oberoi hotel. Most of the rescued airline staff were in Lufthansa and Air France uniforms.
A bus immediately whisked the guests away from the hotel. One crew member in a Lufthansa uniform who wore a name tag identifying her as L. Laurence said things inside the hotel "were definitely not good." and "We're just very glad we're out."
About two dozen people had been evacuated from the hotel earlier Friday, after the elite NSG "Black Cats" commandos stormed the hotel to rescue guests and hostages from the clutches of Islamic militants.
About 125 people have lost their lives, and 327 injured till now.
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Kevin Done in London and Gerrit Wiesmann in Frankfurt of the Financial Times report that, Lufthansa is taking majority control of BMI British Midland, which will give it the second largest share of take-off and landing slots at London Heathrow airport, behind British Airways.
The deal marks an important step in the restructuring of the European airline industry with the German carrier gaining a leading role at Heathrow, the biggest airport in Europe measured by passenger numbers and the key European gateway for passengers from North America.
The takeover challenges British Airways at its Heathrow global hub. It could trigger an alliance or merger of operations between the German carrier and Virgin Atlantic, the London-based long-haul rival to BA, controlled by Sir Richard Branson.
It will consolidate the role of Star, the global airline alliance led by Lufthansa and United Airlines of the US, as the main challenger to Oneworld, the alliance led by BA and American Airlines, at Heathrow.
The German carrier is taking a leading role in the consolidation of European aviation as it takes advantage of its financial strength in the deepening financial crisis in the airline industry.
Earlier this year Lufthansa took over a 45 per cent stake in Brussels Airlines with an option to acquire 100 per cent in 2011. It is also in negotiations to buy strategic stakes in loss-making Austrian Airways and Alitalia, the latter in competition against Air France-KLM.
Lufthansa said Sir Michael Bishop, BMI chairman, had exercised his put option to sell the group his stake of 50 per cent plus one share.
Lufthansa already owns a stake of 30 per cent minus one share. The remaining 20 per cent is in the hands of SAS Scandinavian Airlines, which has previously indicated it also wishes to sell.
The option agreement was made by Sir Michael in November 1999.
Lufthansa said the option was not expected to become effective before January 12. The two groups were in discussions about the strategic development and future development of BMI
It was unclear last night whether Lufthansa would seek to challenge BA by building up long-haul operations at Heathrow, or through a link with Virgin, which is 49 per cent owned by Singapore Airlines..
The decision by Sir Michael to sell his controlling stake for about €400m (£317m) is a watershed in UK aviation. Sir Michael, 66, led the early drive to liberalise the UK and European industry and to break the dominance of BA. He has controlled BMI since 1978.
Steve Ridgway, chief executive of Virgin Atlantic, which has made several attempts to merge with BMI, said: “We are about to enter the next phase of BMI’s future and a turning point in aviation,” said . “Everyone has speculated that it would make sense for Virgin Atlantic and BMI to combine their long-haul and short-haul networks.”
BMI, which includes a low cost subsidiary BMIbaby and a UK regional subsidiary, warned recently it expected to fall into loss this year.
From its Heathrow base it has been seeking to develop a medium-haul network to the Middle East, central Asia and Africa following its takeover last year of BMed, British Mediterranean Airways, a former franchise carrier for British Airways.
The future ownership of BMI has been followed very closely by British Airways and Virgin Atlantic, the rival UK long-haul carrier controlled by Sir Richard Branson, which have both coveted BMI chiefly for its 11 per cent stake of all the take off and landing slots at Heathrow.
The airport is highly congested and there are no free slots at most hours of the operating day.
Virgin Atlantic, which is 49 per cent owned by Singapore Airlines which is also a member of the Star alliance, put itself forward as a potential partner for Lufthansa at Heathrow to exploit the BMI assets.
Steve Ridgway, Virgin Atlantic chief executive, said: ”Now we are about to enter the next phase of BMI’s future and a turning point in aviation.
“Everyone has speculated that it would make sense for Virgin Atlantic and BMI to combine their long-haul and short-haul networks. There is now a major opportunity to do that and create a new, strongly viable competitor to BA.
“I am sure that Lufthansa realises the future opportunities and this could be a really good example of the right industry consolidation. It would be good for consumers and for UK plc.”
The future of BMI’s small regional subsidiary is also being watched by Flybe, which has emerged as the leading UK regional airline following its takeover last year of BA Connect, the former UK regional operation of British Airways, and is regarded as a potential buyer of BMI Regional.
BMI became the first airline earlier this year to capitalise its holding of take off and landing slots at Heathrow airport in its 2007 accounts, transforming the value of its balance sheet and breaking new ground in airline accounting.
Inclusion of the slots with what the airline called a “conservative” valuation of £770m helped to raise the value of the group’s net assets from £12m at the end of 2006 to £800m at the end of 2007.
BMI holds 11.4 per cent of the highly lucrative take off and landing slots at Heathrow, a position second only to the 41.5 per cent held by BA.
BMI pre-tax profits last year fell from £29.7m to £15.5m. Pre-tax profits on continuing operations and before exceptional items fell by 45.2 per cent from £17m to £9.3m.
Turnover rose by 12.9 per cent from £905m to £1bn largely as a result of the takeover of BMed. Passenger numbers increased by one per cent from 10.5m to 10.6m.
Its profitability this year has been hit by the ending of a co-operation deal with Lufthansa and SAS, agreed at the start of the decade, under which the two carriers have underwritten a large part of the losses on the BMI mainline operation in Europe.
The takeover of BMed was aimed at reducing BMI’s dependence on short-haul European services.
Copyright The Financial Times Limited 2008
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According to the Press Trust of India, German flag carrier Lufthansa, today said, it will act as a mentor to Indian state carrier Air India to become a member of Star Alliance, a global grouping of top airlines.
"Lufthansa is the mentor for Air India and we will work together to get the latter on board the Star Alliance," the German airlines' South Asia director Werner Heesen said here.
However, Heesen said his company had no plans at present for financial investments in India.
"Financial investments are not on the strategic map of Lufthansa for India," he said when asked about the airlines' plans for South Asia in the wake of the current aviation industry crisis.
He said Lufthansa currently operated 55 flights from seven Indian cities to three destinations in Germany--Berlin, Frankfurt and Munich.
All Lufthansa flights have nearly 60 per cent bookings from travellers of Indian origin, he said. "Indians form about two-thirds of the total passengers on our flights from Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Kolkata and Pune," Heesen said.
So, Lufthansa was consciously planning its routes to suit Indian travellers. "Also, we are ensuring that Indians get to feel at home by including all types of Indian cuisine, Indian attendants speaking the languages of different regions and in-flight entertainment with local content," he added.
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Foreign airlines flock to India, ignore global downturn
India is seen as a growing market for international airline traffic and the current market size is nearly $5 billion (Rs 21,000 cr) a year
They are cutting flights to several destinations in the wake of a worldwide slump in business, but international airlines are doing just the opposite in India because they believe the country’s international air traffic will only grow in the coming years.
Interestingly, this comes even as the domestic aviation business is going through a downturn.
Large carriers already operating here such as British Airways and Emirates are either increasing the number of flights to Indian cities they already fly to, or beginning to fly to new cities, while smaller players such RAK Airways and Garuda Indonesia are starting to fly into the country.
India is seen as a growing market for international airline traffic and the current market size is nearly $5 billion (Rs21,000 crore) a year, said a senior official with a foreign airline.
“India, with its huge middle-class population of over 250 million, is like an untapped gold mine,” said K. Ravindran, chief operating officer, RAK Airways, which started operations in India from April, flying between Kozhikode and Ras al-Khaimah in the United Arab Emirates. “With its present international travel market not even covering 2% of the population, the country offers large opportunities for airlines. India is an important geographic area in all our future network plans.”
ON THE RADAR
Kapil Kaul, chief executive officer (Indian subcontinent and West Asia) of consulting firm Centre for Asia Pacific Aviation, said India is a critical destination for international airlines based on the “various dynamics of competition and consolidation of their network”.
“So, when a rebound happens there (in global markets), these carriers will have an advantage as they would have already built capacities in India,” he added.
Deutsche Lufthansa AG, Singapore Airlines Ltd, Cathay Pacific Airways Ltd, British Airways Plc. (BA) and Emirates are in the process of increasing the frequency of their flights and connecting new destinations here.
Hong Kong Dragon Airlines Ltd (an affiliate of Cathay Pacific), Saudi Arabia’s Sama LelTayaran Co. Ltd (popularly known as Sama), and AirAsia Berhad are also launching operations in the country.
This surge, Kaul said, is also because international airlines are trying to gain a foothold in the India-bound market before domestic private carriers Jet Airways (India) Ltd and Kingfisher Airlines Ltd grow into a threat.
Jet launched its international operations in 2004 and Kingfisher will start flying overseas routes from September.
“Other reasons include a nearly liberalized bilateral government policy with other countries and sustained economic growth amidst recession,” he added.
For instance, Emirates, which recently increased the frequency of its Delhi-Dubai flights, is readying for another round of expansion by increasing the number of flights to Hyderabad and Bangalore from October.
Singapore Airlines is also adding five flights on its Delhi-Singapore sector from September, taking its total flights to Indian cities to 63.
“We will be adding two more flights in Bangalore as India is our key market,” said Gunjn Chanana, public relations manager for India at Singapore Airlines, without disclosing the airline’s growth rates here. “We believe there is potential (for more) growth.”
“India today is by far the largest single market for Qatar Airways with a network of nine cities, which represents more than 10% of our global network of 83 international routes,” said Qatar Airways’ chief executive officer Akbar Al Baker in an email.
Qatar Airways added Kozhikode as its ninth destination in India in June.
The global aviation industry is waging a losing battle against rising aviation fuel costs, which have increased 30% this year.
However, international airlines expect potential passenger growth from India to nullify the impact over the long term.
“For example, we have registered a load factor of 86% during the first half of this year in the India-Sharjah sector,” said Housam Raydan, corporate communications manager, Air Arabia PJSC which operates 86 flights a week between Sharjah and India.
Much of the rise in international air travel from India is driven by traffic to South-East Asian countries, while demand for destinations in the US, Australia and New Zealand is also increasing.
“The overall (number of) Indian arrivals to Malaysia from January to May 2008 is 234,245, a growth of 32.5% from last year. Similarly, Singapore has also witnessed above-average growth,” said Neelu Singh, chief operating officer, Ezeego1.com, a Mumbai-based online travel agency.
Naresh Goyal, founder chairman of Jet Airways, had said in an earlier conversation with Mint that Indian airlines pose a serious threat to international carriers on account of the quality of their service.
He had added that Jet, which earns nearly half of its operating revenues from international operations, would extend its global reach to other cities in North America, Europe, Africa and Asia in phases.
“However, international carriers will have to be a bit cautious in increasing their capacities considering the current downturn,” said Wolfgang Prock-Schauer, chief executive officer of Jet Airways.
His warning holds merit as three carriers—Linee Aeree Italiane SpA (Alitalia), Eva Air (Taiwan) and British Midland Airways Ltd—have suspended their Indian operations over the past two years, because of intense competition.
Ryanair Ltd, United Air Lines Inc., US Airways Inc., Qantas Airways Ltd and BA have either deferred, or cancelled their international flights to various cities owing to the high jet fuel prices.
Source : The Mint
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