Well the tide ran out and the ones left standing naked was surprise surprise the germans

Maybe their towels was left on a sunbed somewhere. 
Lufthansa have been negotiating with the German government for a multi billion euro package. Howeber german pride within the company have topped them from actuallya ccepting the money offered. For the first they don't want to give up slots iin the german airports they hold a stranglehold on. For the second they don't want civil cervants or even worse politicians keeping an eye on how they run things, or god forbid how large a new Mercedes top managmenet changes to every year.

Pehaps it shouldn't have been so surprising, at least for they who knew luftie couldn't make money on transporting tourists. Well according to some insider commentators that is. But are instead depending on they who don't pay for the ticket themselves, and hopefully are not looking at the costs. That in a downturn is a castle built on sand. 
Letting foreign Low Costs in and showing the natives how little they really could get away with paying for their busines trips could be catastrophic for the future of the whole airline. Then better carving out a restructuring debt forgiveness and refinance by eating the pension fund, like BA. 

 Now all their commentators are busy searching for airlines doing worse than themselves, and the only one they found was Alitalia. That just makes it even more sad.

Comments

Post a Comment

Popular posts from this blog

Flyr aftermath

The cleanup after Flyr has brought to the front a number of ways the airline wasted its investors money. A number of staff had fancifull titles whcih point to an overflow of staff that wasn't completely necessary for a small startup company. Lots of VP's under the Chief level. Maybe some of the urge to comit to more planes was due to an overhiring of well titled staff that needed someone to manage which could only be justified by becoming a larger airline.  Where the ex-Norwegian managmenet building the backoffice of the new airline Flyr based on what the much larger airline Norwegian had. An airline that also went under unable to manage its debt or comitments, before being resurrected. A plane needs sa certain amount of pilots and cabinstaff to fly a certain schedule. It is the backoffice saving are to be had. Just as many staff in the back as flying staff seems excessive. Specially when one knows large parts of its ground handling and maintenance were outsourced A lot of effo
Read more

FareAutoCalc for calculating airline seat prices for a profitable result

Helpfull for airline pricing teams, actually just one person needed now, FareAutoCalc is an Android app that helps you set prices to rech profit on all your routes.  In its simplest form you enter the costs per flight, number of seats, how many fare classes (different price levels) you would like and at what load in percent you want to break even. Then it calculates the prices for each fareclass and the number of seats in same. You can manually enter the price rise scale for how much in percent you want the fare to rise between each fare clas. Or the app can do this for you using an even step in percent scale. It also has a Cost Detail page where you can enter detailed costs. This allows you to enter a number of set costs that could be the same for all flights, and some variable costs that varies by example flight distance. In principle its for a low cost carrier that don't have different seat classses and only differs in fare classes with different price levels where the price go
Read more

The Flyr wet leases where not the saviour but possibly what breakes it

Flyr has had extra costs over the winter to prepare for possible wet leases of halve it's fleet of 12 aircrafts. They where desperate for these as they tought the news of them would bring the share price over 1 norwegian øre (0.001 Euro) so they could get some more financing according to a desperate plan. However the deal inclided paying for preparation cost up front. Money Flyr didn't have the finances for. They should relly not have gone for any wet leasing that didn't include at least a 10% payment up front and the rest of the money for each flight paid at least 1 week before it took place. After all the charter companies customers pays it all up front. Another tell tale sign of poor management is that none of the 12 planes actually have any flights scheduled for tomorrow Tuesday 31/1-2023. So we are now awaiting whether they will still be in the skies on Wednesday. A poor sign is also that on the Oslo - Trondheim route, that has a total air-passenger trafic comparable w
Read more