Lufthansa shutting down Italian Operation

Discussion in 'Miles & More | Lufthansa, SWISS, Austrian/Partners' started by jbcarioca, May 23, 2011.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    From Aviation Daily today:

    Lufthansa will shut down affiliate Lufthansa Italia after less than three years and massive losses.
    The Lufthansa Italia brand will be discontinued in October and the subsidiary's fleet will be reallocated
    throughout the Lufthansa group, the German carrier said in a statement. Lufthansa Italia currently has
    a fleet of eight Airbus A319s, but it operated up to 12 aircraft in its short history.
    The affiliate was set up when Alitalia slashed its capacity at its former Milan hub. Lufthansa believed
    it could fill the void with an upscale on-board product and a European network geared toward business
    travelers. However, the airline faced strong competition, particularly from Easyjet, which moved into
    Milan Malpensa at about the same time. Lufthansa Italia lacked the necessary cost structure and local
    market knowledge to be able to compete effectively. Earlier this year, Air Dolomiti CEO Michael Kraus
    was put in charge of Lufthansa Italia as well, in a last-minute attempt to turn it around. But now the
    group's CEO Christoph Franz said that "it was extraordinarily difficult to profitably establish a European
    network under a separate brand." Lufthansa says it will add capacity to Italy mainly from its hubs in
    Munich and Frankfurt, and Air Dolomiti, its regional subsidiary based in Verona, will also add more flights
    to keep the network link intact.
    - Jens Flottau * jens@flottau.com
     
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  2. Lufthansa Flyer
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    Smart move. no need for air dolomiti and LH italia to both be there diluting the impact to LH. Not having 2 sets of marketing programs and other redundancies will only help the bottom line.

    LH.com story Link
     
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  3. tom911
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    tom911 Gold Member

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    I have a friend that is a pilot for Lufthansa Italy, coming down from Frankfurt on a temporary assignment from mainline Lufthansa and living outside Milan. Imagine he's going to miss this assignment. One thing that struck me as odd was that they did not fly into Rome at all, using Milan mostly as a base to fly outside Italy.
     
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  4. jbcarioca
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    jbcarioca Gold Member

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    They went to Milan because Alitalia dehubbed there, IIRC. I agree with 744 about that choice.
     
  5. TRAVELSIG
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    It is too bad- always nice to have another choice. Milano is still the industrial capital of Italy- and with Alitalia leaving for only Rome- the city is missing a major carrier. One significant change 2 years ago was the introduction of the high speed rail link to Rome- practically eliminating the very profitable Milano-Roma corridor.
     
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  6. jbcarioca
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    The same seems to be happening Shanghai-Beijing, no mystery, I always take the train myself because it is faster and more comfortable both Milano-Roma and Shanghai-Beijing. It would be interesting to know how much business was lost to airlines Milano-Roma
     
  7. TRAVELSIG
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    Reported >75% O&D traffic migrated to train from air-route FCO/MXP-LIN
     
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  8. jbcarioca
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    jbcarioca Gold Member

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    Thanks. That sounds right to me.
     

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