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Lufthansa aims to mimic budget carriers

DDP/The Local · 17 Nov 2009, 11:01

Published: 17 Nov 2009 11:01 GMT+01:00

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“We can’t focus our strength and management on bringing one or two foreign markets like Switzerland or Austria on board and simultaneously lose an important part of our own domestic market,” the company’s vice-CEO Christoph Franz told German daily Die Welt on Tuesday.

Lufthansa plans to implement selected elements of business models used by budget carriers, such as installing more seats on planes. Franz said Lufthansa is also considering changes to its in-flight service, which currently offers six options ranging from a snack to a full meal, depending on flight length.

The company is exploring the changes to cut growing costs for the company.

“If we don’t take advantage of our chances in the market, the competition will do it for us,” Lanz said. “That’s why we’re mindful of the fact that competition boosts the well-being of the entire system.”

Yet Franz told Germany’s Frankfurter Allgemeine daily that Lufthansa doesn’t plan to copy the budget business model one-to-one. He pointed to the company’s low-cost subsidiary Germanwings as proof that Lufthansa can compete “very well” in the budget flight market.

Story continues below…

Franz noted there were still no plans to follow competing airlines’ policy of making passengers pay extra for additional services.

DDP/The Local (news@thelocal.de)

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Your comments about this article

17:38 November 17, 2009 by Gerlinde Bankemper
If Germanwings is doing "very well" why shouldn't they take over costly Lufthansa operations? In the meantime Mr. Franz could study the basics of business. Where does customer's satisfaction come from? What are customers willing to pay for what? Cutting cost AND price/quality value for customers isn't a solution - cutting cost in the field of operation might be a better way.
18:04 November 17, 2009 by Scottrocks9
What a shame. There goes one of the last bastions of air travel being something special and awe-inspiring. Lufthansa was quality in the air. So many organisations are adopting the dumbed down version of everything(coming straight from America). I certainly hope they don't follow the 'Valuejet' model that was so cheap that they ended up in the Florida Everglades, all 145 of them. The final analysis was : Human negligence- based on cheap. I experienced it first hand and saw a tragedy coming. Lufthansa , fortunately, will have more quality than that, but go cautiously.
10:47 November 18, 2009 by Kayak
Why the negativity and why bemoan the airline industry? It seems to me that we simply get what we pay for.

Perhaps this is just a romantic ideal but there seems to have been a time in the past when people saved their money for a holiday ­ one they had planned for a year or more in advance.

There's nothing stopping you from doing it now.

If you want first class service just buy it BUT start saving for it now. Why do we expect the highest quality service when we're not prepared to pay for it? Instant gratification at the highest level of service doesn¦#39;t sound right to me.

It¦#39;s just a thought for what it's worth as I'm sure there are readers out there that have more knowledge about these things than I do.
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