Lufthansa introduces a discounted fare for the long-haul first class

Discussion in 'Miles & More | Lufthansa, SWISS, Austrian/Partners' started by sobore, Mar 8, 2013.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    http://www.traveldailynews.asia/news/article/51838/lufthansa-introduces-a-discounted-fare

    German carrier Lufthansa remains one of Europe’s largest carriers with close to 75 million passengers a year. Despite economic difficulties in many European economies, clever marketing strategy and constant quality of product helped the airline to withstand a more difficult environment, according to Jens Bischof, Lufthansa German Airlines Board Member in charge of Sales and Revenue Management during a press conference at ITB.

    Lufthansa even managed to grow its share in extremely competitive markets such as the Middle-East or transatlantic routes. In Asia, a new joint venture with All Nippon Airways in Japan helped grow traffic between Japan and Europe. “We offer nine daily flights between Germany and Japan thanks to a code share agreement with our Japanese partner. We will now expand this cooperation with the integration of our subsidiaries Swiss and Austrian Airlines into our JV from April 1st. Which means more flights and then more flexibility to our passengers”, added Mr. Bishof.

    Asked if such a joint venture could be reproduced with Mainland China –where Lufthansa has assured a strong presence for many decades-, Mr. Bishof remains vaguer. “China is of course a country with enormous potential and rapid growth of its passengers’ traffic. We developed many new routes to secondary destinations in China. And we are looking at ways to see if such a joint venture with China could be reproduced. We do explore possibilities with our Star Alliance partner Air China for closer cooperation which could take place in technical maintenance, cargo and passengers,” Jens Bishof added.

    Among commercial products announced during the ITB is a new air fare in First Class. “We are the only one in the Western World to have obtained a five-star rating for its First Class with Skytrax and we offer the biggest number of seats daily in first class at 1,000 seats. We would like to encourage more passengers to enjoy our celebrated first class”, said Jens Bischof.
    The introduced new fare can be down by up to 50% compared to the full First Class fare. The discounted fare is however assorted with restrictions such as booking period, length of stay or restrictions on booking changes. For example, minimum stay requirement for Asian destinations is fixed at ten days. The First Saver Plus fare is not re-bookable, but bookings can be cancelled on payment of a 400-euro fee.

    Read More: http://www.traveldailynews.asia/news/article/51838/lufthansa-introduces-a-discounted-fare
     
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  2. Gaucho
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    Gaucho Gold Member

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    Sounds like a smart move.... but it is also a clear indication that consumer spending levels, even in the high-income brackets is not doing so well.
     
  3. skyvan

    skyvan Gold Member

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    I think this will completely destroy any availability that was left from JFK/EWR or LAX/SFO for awards.
     
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  4. Bembel-Terrorist

    Bembel-Terrorist Active Member

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    It's already like a lottery
     
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  5. skyvan

    skyvan Gold Member

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    Yeah but I now see almost every single flight ex-LAX going out F0 with 8 paid F seats.
     
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  6. Fredrik
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    Fredrik Silver Member

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    I think this is a good idea. Paid F should be within reach for many more people now and I think some of those who never thought about it before may do so now.

    Personally I will look into certain city pairs to see if I can afford it.
     
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  7. ralfkrippner
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    ralfkrippner Silver Member

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    Definitely a wise move. But I doubt that too many of these tickets will be sold, especially the 1 week minimum stay seems to be a bit too much. Sunday rule would have been better. Pricing is about right for people to think about booking these fares.
     
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  8. Gaucho
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    Gaucho Gold Member

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    Ive always wondered if airlines get some sort of "compensation" from given cities to place these minimum stay requirements. For cases like Thai, where it is a state owned carrier and Tourism is a State Policy, its clear how this would work... buy a fare on Thai and stay a little longer, you get a better fair.... but, say in this case, if you can get a better fare on LH First Class and then extend your stay in Thailand for 1 week, its hard to see how LH gets "compensated" for the "discount" its offering for this fare.

    Thoughts...?
     
  9. Gaucho
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    Gaucho Gold Member

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    Of course, I remember my old days as a heavy duty fflyer where I would get around minimum stay requirements by nesting tickets, so in that case, no extra revenue for that given city as I was turning around the same day.....

    ;) :cool:
     
  10. TRAVELSIG
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    TRAVELSIG Gold Member

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    I think it is more a case of not wanting to cannibalize business traffic in this situation. As well the masters at getting money from cities, regions, provinces, and local governments now seem to be Ryanair who manage to get a great number of benefits out of various areas in Europe and near Europe. I don't know if LH does this however I have not heard it mentioned in airport discussions (they tend to refer to this as "marketing money").
     

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