Eurowings in 2019

[Homo Aeroportus]

Communication is an art ....

High class, really appealing. Not.

H.A.

[sn26567]

Communication is an art ....

High class, really appealing. Not.

H.A.

The yellow touch that the new Lufthansa livery has lost!

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Eurowings plans additional routes to Turkey, mainly from Cologne and Hamburg, with germanwings A319s or A320s. Routes begin in late May 2019 and include Ankara, Kayseri, Kutahya, and Adana.

[sn26567]

Eurowings to launch Cologne – Arvidsjaur route with A320 from 17 January 2020 on a seasonal basis.

Arvidsjaur? A small city in Lapland, Sweden.

[sn26567]

Eurowings plans to resume Hamburg – Oslo route from 27 October 2019, with A319 and A320.

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Eurowings is not competitive

Doomsday rhetoric would be exaggerated given the Lufthansa profit warning. Nevertheless, one thing is clear: Eurowings works too cumbersome and too expensive to compete with low-cost airlines such as Ryanair or Easyjet in direct competition, analyses the "Manager Magazin" (in German).

https://www.manager-magazin.de/unterneh ... 72848.html

Pity to see Brussels Airlines onboard that venture!

[sn26567]

What the profit warning of Lufthansa doesn't say

A comment by Michael Machatschke


Carsten Spohr wanted to be nice to the investors. The current profit warning of the Lufthansa chief sounds in places like a success story. There is talk of a "strong long-haul business" and the intention to defend the Group's "leading position" in its home markets. So tuned, the story is made for investors to better accept that the profit will be significantly lower than previously planned, and the stock drops sharply.

In fact, it would be exaggerated to fall into Doomsday rhetoric. Two billion euros pre-tax profit - the now lower target issued - would have been enough to cheer a few years ago in the headquarters of Lufthansa. The profits of virtually all airlines are currently declining. After fantastic years, the industry now has to settle for less good, but certainly not catastrophic figures.

And yet there is something alarming in the profit warning. Lufthansa is obviously in a huge mess with its subsidiary Eurowings - but is unable to address the problem openly and offer convincing answers.

Who is to blame for the misery in the European business and thus the loss of Lufthansa? Spohr's bulletin points to the others: "Aggressive competitors are willing to accept significant losses to grow their market share." The other way around, one gets closer to the truth: the Lufthansa spin-off Eurowings works too cumbersome and too expensive to compete directly with low-cost airlines such as Ryanair or EasyJet.

Actually, Eurowings should finally have made a profit this year. It will not work out again. And the Lufthansa strategists have to ask themselves whether something is fundamentally wrong with the Eurowings brand.

It is undeniable that many gross calculations speak for the second platform of Lufthansa. Only the internal competition has made it possible for Group CEO Carsten Spohr to remain tough in the dispute with the pilots, according to the formula: If you do not give in, then growth is only possible with Eurowings! And only thanks to Eurowings Lufthansa could really benefit from the bankruptcy of the blissful competitor Air Berlin. In the classic Lufthansa line, it could hardly accommodate the Air Berlin planes and their routes.

But with all its added value, the main purpose of Eurowings has come too short: to offer easy, reliable and highly efficient flights in Germany and Europe. Eurowings is still a jumble of different airlines and business models under one roof, including intercontinental flights. Currently, the Belgian Brussels Airlines - the specialist for Africa traffic - is also to be integrated. This has nothing to do with a slender low-cost airline, and this is also evident in the reliability. In the chaos summer of last year with many enervating flight cancellations and delays, Eurowings took an inglorious top position.

In the meantime, management has counteracted and, among other things, provided more replacement aircraft. However, this further increases the cost and does not fix the built-in inefficiencies.

In many other companies, a comparable situation would start a discussion about the relevant division manager, in this case, Lufthansa Executive Board member and Eurowings boss Thorsten Dirks. He seems to have enough backing, his contract was recently extended. It could be tight for him anyway. Because the supply of excuses disappears. The integration of the Air Berlin remnants should be completed sometime.

And the myth that sinister Desperados ruin the market, even with lively repetition, is not credible. Only one thing will help Dirks like Spohr: an honest stocktaking and massive reforms.

[convair]

It is becoming urgent that the performance of SN, isolated from that of EW, be well identified. Kristina Foerster's role and duty as CEO is to defend her own airline within the LH group.

[Poiu]

It is becoming urgent that the performance of SN, isolated from that of EW, be well identified. Kristina Foerster's role and duty as CEO is to defend her own airline within the LH group.

To achieve what?
Brussels Airlines is not doing well, the results are not as bad as the rest of Eurowings, but not good at all. Also don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.
Eurowings is losing money, BUT, at the same time, they are preventing Ryan, Ezy and other Wizzes to become really big in Germany, the loss that generates is probably a price worth to pay.

[convair]

It is becoming urgent that the performance of SN, isolated from that of EW, be well identified. Kristina Foerster's role and duty as CEO is to defend her own airline within the LH group.

To achieve what?
Brussels Airlines is not doing well, the results are not as bad as the rest of Eurowings, but not good at all. Also don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.
Eurowings is losing money, BUT, at the same time, they are preventing Ryan, Ezy and other Wizzes to become really big in Germany, the loss that generates is probably a price worth to pay.

Do you have evidence of that? Are these DUS flights profitable?

[Stij]

Also don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.

It all depends on the transfer price...

Stij

[sn26567]

It is becoming urgent that the performance of SN, isolated from that of EW, be well identified. Kristina Foerster's role and duty as CEO is to defend her own airline within the LH group.

To achieve what?
Brussels Airlines is not doing well, the results are not as bad as the rest of Eurowings, but not good at all. Also don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.
Eurowings is losing money, BUT, at the same time, they are preventing Ryan, Ezy and other Wizzes to become really big in Germany, the loss that generates is probably a price worth to pay.

Do you have evidence of that? Are these DUS flights profitable?

Generally speaking (and it is acknowledged within the LH group), long-haul flights are more profitable than short-haul ones. Hence, SN, which has a higher proportion of long-haul than EW, should be more profitable (or losing less money, if you prefer).

[Poiu]

don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.
Do you have evidence of that? Are these DUS flights profitable?

The profitability of the flights is not relevant!
Ew sells the tickets, SN gets paid for the ACMI, that payment is the same wether the aircraft is full or empty. This has been explained here ad nauseam!

[convair]

don’t forget that the EW long haul by SN is a form of money transfer from one unit to another within the same company. If that transfer r stops the results in Brussels will be worse.
Do you have evidence of that? Are these DUS flights profitable?

The profitability of the flights is not relevant!
Ew sells the tickets, SN gets paid for the ACMI, that payment is the same wether the aircraft is full or empty. This has been explained here ad nauseam!

You're right. I had forgotten about the ACMI arrangement in which one may expect SN gets a margin over the costs.
Btw, it is interesting to note that SN has been allowed to rent several aircraft (from LH) in order to have this ACMI contract with EW for these DUS flights that don't seem too successful, but isn't allowed to add one single long-haul aircraft for its own operations.

[Poiu]

Btw, it is interesting to note that SN has been allowed to rent several aircraft (from LH) in order to have this ACMI contract with EW for these DUS flights that don't seem too successful, but isn't allowed to add one single long-haul aircraft for its own operations.

That one has been explained before as well...
It is a cost cutting exercise, the crews employed by SN on behalf of EW are paid peanuts. Direct employment by EW of long haul crews is restricted by agreements between LH and the unions.

[convair]

Btw, it is interesting to note that SN has been allowed to rent several aircraft (from LH) in order to have this ACMI contract with EW for these DUS flights that don't seem too successful, but isn't allowed to add one single long-haul aircraft for its own operations.

That one has been explained before as well...
It is a cost cutting exercise, the crews employed by SN on behalf of EW are paid peanuts. Direct employment by EW of long haul crews is restricted by agreements between LH and the unions.

Good to have an expert (or insider?) on board! Thanks Poiu.

[Passenger]

Good to have an expert (or insider?) on board! Thanks Poiu.

The real insiders are gone here. Sick and tired of all the crap and all the nonsense that is posted about SN and/or LH and/or EW in almost every topic here.

[convair]

Good to have an expert (or insider?) on board! Thanks Poiu.

The real insiders are gone here. Sick and tired of all the crap and all the nonsense that is posted about SN and/or LH and/or EW in almost every topic here.

Luckily the official gospel is there to bring the lost souls back to the right track.

[sn26567]

In an attempt to get Eurowings back on course, Lufthansa CEO Carsten Spohr (who might be on his way out soon, too) is likely going to announce drastic changes tomorrow. Possible base closures in Vienna and Palma,...

The Austrian and Belgian AOC (Brussels Airlines) are likely going to be integrated into the German AOC and Germanwings may finally die. EW CEO Dirks is reportedly also facing heavy criticism from employees and the top.

Whatever happens tomorrow, it won’t be good for all parties involved.

Source: HDH Aviation on Twitter, for what it is worth...

[Boeing767copilot]

LUFTHANSA announces a re-orientation of Brussels Airlines: closer alignment with Network Airlines; integration into Eurowings will not be further pursued.

The best news ever.