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Name: LUFTHANSA GERMAN AIRLINES
7JetSet7 Code: DLH
Status: Operational
Region: EUROPE
City: HAMBURG
Country: GERMANY
Employees 101000
Web: lufthansa.com
Email: lht.infoline@lht.dlh.de
Telephone: +49 69 69 60
Fax: (40) 50 70 44 01
Sita: CGNCILH
Background
(definitions)

Click below for data links:
DLH-2002-TOP AIRPORTS-FRA
DLH-2003-06-CORP JET SVC
DLH-2003-10-NEWS-1
DLH-2003-TRAFFIC
DLH-2003-WLDTOP25
DLH-2004
DLH-2004-01-NEWS
DLH-2004-01-NEWS-A
DLH-2004-03-NEWS
DLH-2004-03-NEWS-A
DLH-2004-03-NEWS-B
DLH-2004-05-NEWS
DLH-2004-06-LIDO
DLH-2004-08
DLH-2004-12-NEW FRA TERMINAL
DLH-2004-1ST6MTHS-TRAFFIC
DLH-2004-1STQTOPRPK
DLH-2004-WORLD-RPK
DLH-2005-01-A380
DLH-2005-03-A
DLH-2005-04-50TH ANNIVERSARY
DLH-2005-04-50YRS-B
DLH-2005-04-50YRS-C
DLH-2005-04-50YRS-D
DLH-2005-04-50YRS-E
DLH-2005-11-A
DLH-2005-TOP-RPK
DLH-2006 WLD TOP RPK
DLH-2006-07-CSR DEAL
DLH-2006-1ST-6-MTHS
DLH-2007-11-GERMAN MKT
DLH-2007-STATS
DLH-2008-03-GDS
DLH-2008-03-INCDT
DLH-2008-10-NEWS
DLH-2008-TOPWLD6MTHSRPK
DLH-2008-WLD-TOP-RPK
DLH-2008-WORLD TOP 10 CARGO
DLH-2009-10-OCTOBERFEST CA
DLH-2010-04-VOLCANIC ERUPTION
DLH-2010-08-WLD RPK-2009
DLH-2010-12-SLIM SEAT
DLH-2011-01-2010 WORLD TOP TRAFFIC
DLH-2011-01-EUROPEAN MERGERS
DLH-2011-01-MUN T2
DLH-2011-10 - FRA 4TH RUNWAY OPENS
DLH-2011-10 - MUC 3RD RWY
DLH-2012-02 - 747-8I PREPARATION
DLH-2012-05 747-8I-A
DLH-2012-05 747-8I-B
DLH-2012-05 747-8I-C
DLH-2012-05 747-8I-D
DLH-2012-09 - C MIA TO FRA A380-A
DLH-2012-09 - C MIA TO FRA A380-B
DLH-2012-09 - C MIA TO FRA A380-C
DLH-2012-09 - C MIA TO FRA A380-D
DLH-2012-09 - ROBOTIC RAPID REPAIR
DLH-2013-06 NEW ORDERS
DLH-2014-01-TOP 20 WORLD AIRLINES-A
DLH-2014-03-PREMIUM CLASS
DLH-2014-12 - TO MIAMI
DLH-2014-12-LUFTHANSA TECHNIK PURTO RICO
DLH-2014-TOP 2013 WORLD AIRLINES-B
DLH-2015-04 - Puerto Rico MRO.jpg
DLH-2015-04 - TOP 25 WORLD TRAFFIC.jpg
DLH-2015-07 - Puerto Rico MRO C Check.jpg
DLH-2017-01 - Smartphone Boarding Pass.jpg
DLH-2017-02 - A350 C Class.jpg
DLH-2017-02 - Digitalization via Smartphones.jpg
DLH-2017-02 - DLH and EHD Link.jpg
DLH-2017-03 - Berlin-Tegel Airport Strike.jpg
DLH-2017-03 - Cathay Code Share.jpg
DLH-2017-08 - New Frankfurt LCC Terminal.jpg
DLH-747-8I - C CLASS UPPER DECK-A.jpg
DLH-747-8I - UPPER DECK.jpg
DLH-BUSINESS CLASS SEATS - 2012-05
DLH-Flight Crew Cabin Attendants - 2016-04.jpg
DLH-GERMANY FACTS - 2015-12.jpg
DLH-LOGO
DLH-LUFTHANSA TECHNIK AD - 2013-11
DLH-MAINTENANCE MRO
DLH-MAINTENANCE MRO-LTK HANGAR
DLH-MAINTENANCE MRO-LTK-A
DLH-MAINTENANCE MRO-SVC PROGRAMS
DLH-MAP
DLH-NEW BUSINESS CLASS SEAT - 2012-03
DLH-TAIL LOGO
DLH-VISIT BAVARIA
DLH-VISIT BAVARIA
DLH-VISIT NEUSCHWANSTEIN CASTLE
DLH-VISIT NEUSCHWANSTEIN CASTLE-A
DLH-VISIT OBERSEE LAKE - 2013-08

ESTABLISHED IN 1953. STARTED OPERATIONS IN 1955. GERMANY'S FLAG CARRIER. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.

ADDRESS:
POSTFACH 63 03 00
D-22313 HAMBURG, GERMANY

Germany (Federal Republic of Germany) was established in 1949, it covers an area of 356,945 sq km (137, 847 sq mi), its population is 81,147,0005 million, its capital city is Berlin, and its official language is German.

SEPTEMBER 1993: ACCDT: A LUFTHANSA (DLH) A320 OVERRAN RUNWAY AT WARSAW WITH TAIL WIND = 1/1 FATALITIES OF 6/64.

SEPTEMBER 1995: WORLD'S 6TH LARGEST AIRLINE (IN TRAFFIC (RPK).

4 ORDERS 747-430'S & 1 A340-300.

OCTOBER 1995: INDIA GIVES APPROVAL FOR NEW CARGO OPERATOR, 60% OWNED BY HINDUJA GROUP & 40% (DLH) CARGO (LUB), TO BE OPERATED WITH 4 OR 5 727-200F'S, BUT INITIALLY BY A DC-8F, SHARJAH TO DELHI, BOMBAY, MADRAS, CALCUTTA & BANGALORE (LATER TO BE NAMED "MODILUFT").

LUFTHANSA TECHNIK (LTK) RECORD "D" MAINTENANCE CHECK, INCLUDING STRUT MODIFICATION, TOOK 7 WEEKS ON 747-400C (NORMALLY TAKES 10 WEEKS).

NOVEMBER 1995: TO DO TECHNICAL SUPPORT FOR TRANSBRASIL (TBL) (PW4000).

DECEMBER 1995: $7 MILLION CONTRACT FOR PHILIPPINE AIRLINES (PAL) 87 (CF6-50) ENGINES OFF 747-200 & A300B4'S TO LUFTHANSA TECHNIK (LTK).

1 ORDER (1997) A340-300 (CFM56-5C4), & 2 A321-100 (V2530-A5).

JANUARY 1996: LUFTHANSA (DLH) GROUP (INCLUDING CONDOR (CDF) 1995 = +$340 MILLION (NET PROFIT): +9.1% (RPK) (TRAFFIC), +9.7% (ASK) (CAPACITY), +8.2% PASSENGERS (PAX) (RECORD 40.7 MILLION (PAX), 70.4% LF (LOAD FACTOR) (-0.4).

MARCH 1996: IN MID-96, TO FORM NEW CARGO AIRLINE IN INDIA WITH 2 727-200F'S WITH TOTAL 5 727-200F'S BY OCTOBER 1996, CALLED LUFTHANSA CARGO INDIA (LATER TO BE NAMED "MODILUFT"), HINDUJA GROUP OWNS 60%, (DLH) 40%, BASED IN NEW DELHI, 60 FLIGHT CREW (FC).

MAY 1996: LUFTHANSA (DLH) SEVERS TIES WITH MODILUFT (MOU), DUE TO "FINANCIAL CONSTRAINTS BETWEEN TWO PARTNERS." HAD SUPPLIED 7 737'S, WITH MAINTENANCE & FLIGHT CREWS, NOW WILL CANCEL LEASE ON AT LEAST 3 OF 737'S.

AUGUST 1996: LUFTHANSA (DLH) HAS BROADBAND, INTEGRATED SERVICES, FOR AIRCRAFT MAINTENANCE (BISAM), A PROTOTYPE SYSTEM, COMBINING SEVERAL FUNCTIONS INTO A SINGLE X-WINDOWS OPERATIONS ENVIRONMENT, INCLUDING ELECTRONIC MAINTENANCE, & FAULT ISOLATION MANUAL DATA, AIRPLANE FAULT HISTORY, FAULT REPORTING, VIDEO IMAGE CAPTURING, VIDEO CONFERENCING, E-MAIL, & VOICE MAIL.

(DLH) WANTS BOEING ON-LINE DATA (BOLD), & LINKS TO INVENTORY SYSTEM TO THE BOEING INTEGRATED PARTS CATALOG. VIDEO IMAGES CAN BE TRANSFERRED FROM FRANKFURT TO BERLIN FOR TROUBLESHOOTING, ALONG WITH TEXT AND VOICE DATA.

HAS A CONTRACT TO RECEIVE BOEING (TBC)'S (PMA) (PORTABLE MAINTENANCE AID). AIRBUS (EDS) HAS SIMILAR VERSION OF (PMA).

BERLIN MAINTENANCE BASE USES BOEING (TBC)'S 737 TASK CARDS. 747-400 USE A SYSTEM CALLED GRAPHIC AND TEXT ENVIRONMENT (GATE), TO INPUT DIGITAL, MAINTENANCE MANUAL DATA INTO THE TASK CARDS. DIGITAL MAINTENANCE MANUAL DATA WILL USE ELECTRONIC DOCUMENTATION RETRIEVAL (ELDR), A JEPPESON DESIGNED SYSTEM. DR WIGGARS, MANAGER PRODUCTION PLANNING WOULD LIKE DIGITAL DATA FOR ALL MODELS.

747 "C" CHECKS, & SHORTER TURNAROUNDS AT FRANKFURT. 747 "D" CHECKS, AND STRUCTURE REPAIRS, AT HAMBURG.

SEPTEMBER 1996: LUFTHANSA TECHNIK'S (LTK) 1ST FULL YEAR = +35 MILLION DM/+$23.6 MILLION, WITH 35% BASED ON ITS 3RD PARTY CUSTOMERS, AND IS BASED ON ITS 3 MAIN STRENGTHS: QUALITY; FAST THROUGHPUT; & FLEXIBLE RESPONSE TO CUSTOMER REQUIREMENTS. IN FISCAL YEAR (FY) 1995, (LTK) REPAIRED/OVERHAULED 90 AIRPLANES, 411 ENGINES, 3,600 ENGINE MODULES, AND >64,000 INSTRUMENTS/OTHER COMPONENTS FOR >200 CUSTOMERS = 65% OF (DLH) SALES (2.5 BILLION DM) & HOLDS 10% OF WORLD MAINTENANCE MARKET.

(LTK) IS USING A NEW INDUSTRIAL LASER TECHNOLOGY TO MARK WIRING AND CABLES, WHICH IS COMPUTER CONTROLLED, IS OF SUPERIOR QUALITY, AND X10 FASTER THAN THE OLDER METHOD.

JUERGEN LAUTERBACH, RESIDENT REPRESENTATIVE AT BOEING (TBC) SEATTLE.

GERMAN GOVERNMENT PLANS TO SELL ITS REMAINING 36% STAKE BY THE END OF 1997.

OCTOBER 1996: IBERIA (IBE) CONTRACT MAINTENANCE FOR 4 A340'S. (HAP) CONTRACT FOR ALL COMPONENTS OF 16 737-800'S.

NOVEMBER 1996: (LTK) CONTRACT, FOR SCANDINAVIAN AIRLINES (SAS) (V2500-05) ENGINES FOR MD-90'S (8).

JANUARY 1997: 1996 = 39.31 BILLION (RPK) (TRAFFIC) (#7 HIGHEST IN WORLD).

TO BE PRIVATIZED BY THE END OF 1997. GOVERNMENT TO SELL REMAINING 35.68% ($1.89 BILLION).

LUFTHANSA TECHNIK (LTK) ACQUIRES AIRMOTIVE IRELAND (ARL) ENGINE MAINTENANCE SUBSIDIARY) AND SEEKS AER LINGUS (ARL) LINK, RE-TECHNICAL COOPERATION.

(DLH) GROUP 1996 = 41.4 MILLION PASSENGERS (PAX) (+1.7%). (DLH) = 31.8 MILLION PAX (-.6%). PRETAX = +$446 MILLION.

APRIL 1997: MUMBAI COURT OK'S RETURN OF 3 737-230'S FROM MODILUFT (MOU).

NEW ROUTES, VIA FRANKFURT TO PERM AND KASAN, RUSSIA. CODE SHARE WITH UNITED (UAL), TO WARSAW. CODE SHARE WITH BRITISH MIDLAND (BMA), LONDON HEATHROW, TO BONN/COLOGNE, & ROME FIUMICINO.

LUFTHANSA TECHNIK WITH 180 CLIENTS WORLDWIDE IS LARGEST MAINTENANCE CONTRACTOR, AND IS SENSITIVE TO BOEING'S FORAYS INTO OUTSOURCING MAINTENANCE.

DR KLAUS NITTINGER RETIRES, REPLACED BY FREDERICK REID, (COO) AND PRESIDENT.

MAY 1997: LUFTHANSA (DLH), & LUFTHANSA TECHNIK (LTK), ACCEPT BOEING REDARS AND BOEING ON-LINE DATA (BOLD).

(http://www.lufthansa-technik.com).

FISCAL YEAR (FY) 1996 PRE-TAX = +$404 MILLION (-9.3%).

TO KAZAN ON THE VOLGA & PERM ON THE KAMA (A319, 126Y) FOR LARGEST WESTERN OPERATOR INTO EASTERN EUROPE & (CIS), FOR 28 DESTINATIONS IN 19 COUNTRIES.

"STAR ALLIANCE" WITH SCANDINAVIAN AIRLINES (SAS), UNITED AIRLINES (UAL), AIR CANADA (ACN), AND THAI AIRWAYS (TII) TO SHARE TICKET COUNTERS, & SOME CODE SHARES.

FY 1996 = +$372 MILLION (NET PROFIT).

AGREEMENT WITH UNITED (UAL) TO JOINTLY OFFER TOTAL TECHNICAL SUPPORT PROGRAM FOR 777.

MAINTENANCE COOPERATION WITH FINNAIR (FIN), WHERE (FIN) DOES HEAVY MAINTENANCE ON (DLH) 5 MD-11F & LUFTHANSA TECHNIK (LTK) DOES 4 (FIN) 757'S.

IN 1996, (LTK) REPAIRED & OVERHAULED 85 (90) AIRPLANES, 450 (411) ENGINES, 4,000 (3,600) ENGINE MODULES, & >68,000 (64,000) INSTRUMENTS & OTHER COMPONENTS. LABOR HOURS 8.3 MILLION (8 MILLION). (DLH) WORK ACCOUNTED FOR 57.6% OF TOTAL DM3 BILLION SALES.

JULY 1997: ASIANA (AAR) SIGNS 5 YEAR MAINTENANCE CONTRACT WITH LUFTHANSA TECHNIK (LTK) FOR (CF6-80C2) ENGINES.

"COOPERATIVE AGREEMENT" WITH AIR NEW ZEALAND (ANZ).

TO ACHIEVE PRIVATIZATION, GOVERNMENT TO SELL 36% STAKE FOR $2.7 BILLION.

AUGUST 1997: CODE SHARE WITH AIR CANADA (ACN) TO KIEV & ODESSA, UKRAINE.

LUFTHANSA TECHNIK (LTK) TO CONVERT 7 747-400C'S TO PASSENGER CONFIGURATION.

SEPTEMBER 1997: $2.4 MILLION PASSENGER (PAX) JUDGEMENT FOR CONTINUING FLIGHT (MIA) TO FRANKFURT AFTER PASSENGER HAD A HEART ATTACK, 3 HOURS AFTER TAKE OFF.

LUFTHANSA TECHNIK & SHANNON AEROSPACE TO DO LAUDA (LAL) 737'S HEAVY MAINTENANCE "D" MAINTENANCE CHECKS, AT SHANNON, WITH LIGHT, & "C" CHECKS AT SCHONEFELD, BERLIN.

TO EXPAND CODE SHARE WITH BRITISH MIDLAND (BMA), LONDON HEATHROW (LHR) TO BERLIN, DRESDEN, BREMEN, DUSSELDORF, HANNOVER, HAMBURG, AND LEIPZIG.

SELLS 24.5% SHARE OF CARGOLUX (CLX) TO THE SWISSAIR (SWS) GROUP.

OCTOBER 1997: 57,999 EMPLOYEES.

TO START LUFTHANSA "LIGHT" WITH 50 AIRPLANES, DOMESTIC SERVICES, REDUCED SEAT PITCH, AND IN-FLIGHT SERVICE & JUNIOR PILOTS (20% CHEAPER).

COMPLETED PRIVATIZATION.

NOVEMBER 1997: CODE SHARE WITH UNITED AIRLINES (UAL), USA TO RIGA, LATVIA VIA GERMANY.

LAST 737-230 LEAVES SERVICE. WERE REPLACED BY A319'S (-20% FUEL CONSUMPTION, LOWER NOISE FOOTPRINT).

DECEMBER 1997: MEMO OF UNDERSTANDING (MOU) ON STRATEGIC PARTNERSHIP WITH SINGAPORE AIRLINES (SIA), THAT SHIFTS LUFTHANSA (DLH) AND POSSIBLY STAR ALLIANCE ASIAN HUB TO SINGAPORE. DISSOLVED GLOBAL EXCELLENCE ALLIANCE WITH DELTA AIRLINES (DAL) & SWISSAIR (SWS), EVEN THOUGH EACH OWN 5% OF EACH OTHER. (DLH) 18% SALES DURING 1996 IN ASIA. (SIA) & (DLH) HAVE JOINT FREIGHTER SERVICE SINCE 1989, EX: FRANKFURT - SHARJAH - SINGAPORE.

MEMBER OF STAR ALLIANCE (SAL) WITH UNITED AIRLINES (UAL), VARIG (VAR), SCANDINAVIAN AIRLINES (SAS), THAI AIRWAYS (TII), & AIR CANADA (ACN), AGREED TO FORM A GLOBAL AIR CARGO SYSTEM, SHARE INFORMATION TECHNOLOGY (IT) SYSTEMS, HANDLING FACILITIES, & JOINT PRODUCTS.

JANUARY 1998: 1997 = +$482 MILLION (+$371 MILLION): 44.45 MILLION PASSENGERS (PAX) (+7.4%); 73.5% LF LOAD FACTOR (+3.2).

TO INCREASE WORK FORCE BY +3,500 JOBS.

FEBRUARY 1998: CODE SHARE WITH ALL NIPPON AIRWAYS (ANA), TO TOKYO.

BY END OF 1998 = ALL (TCAS) FLEET.

MARCH 1998: MAINTENANCE TECHNICAL SERVICES CONTRACT FOR AEROFLOT (ARO) 10 737-400'S.

ENTERS CYBERSALES IN FORCE BY AGREEMENT WITH MICROSOFT EXPEDIA TO AUCTION TICKETS ON THE INTERNET, WITH infoflyway TO GROW FROM $6 MILLION IN 1997 TO $24 MILLION.

APRIL 1998: ANDREAS KADEN, VP TECHNICAL OPERATIONS LEAVES TO JOIN BERLIN LUFTHANSA TECHNIK AS MANAGING DIRECTOR.

58,209 EMPLOYEES (INCLUDING 11,412 FLIGHT CREW (FC).

FRANKFURT - SARAJEVO/AMMAN.

REGIONAL SUBSIDIARY CITYLINE = 900,000 PASSENGERS (+23.2%).

MAY 1998: DR HANS-JURGEN LOSS, VP TECHNICAL OPERATIONS, DEPARTMENT OB/M. WALTER HEERDT, SENIOR VP POWERPLANT OVERHAUL REPLACES WOLFGANG ZEITZER. BERNHARD CONRAD, SENIOR VICE PRESIDENT ENGINEERING & DEVELOPMENT, LUFTHANSA TECHNIK, HAMBURG.

ENGINE SHOP OVERHAULS 500 ENGINES/YEAR.

IN FISCAL YEAR (FY) 1997, LUFTHANSA TECHNIK SIGNED 50 NEW CONTRACTS, INCLUDING 14 NEW CUSTOMERS. TOTAL LIST IS >200 AIRLINES, & OTHER COMPANIES.

LUFTHANSA GROUP 1997 (FY) = +$465 MILLION RECORD! (DLH), CITYLINE & CONDOR (CDF) = 44.4 MILLION PASSENGERS (PAX) (+7.4%), +11.7% (RPK) TRAFFIC, +6.9% (ASK) CAPACITY, 73.5% LF LOAD FACTOR.

CODE SHARE & MARKETING ALLIANCE WITH AIR NEW ZEALAND (ANZ) TO CHRISTCHURCH, NEW ZEALAND, VIA SINGAPORE.

JUNE 1998: (IATA) (ITA) REPORTS LUFTHANSA (DLH) MOVED AHEAD OF BRITISH AIRWAYS (BAB) IN 1997 WITH TOTAL PASSENGER (PAX) VOLUME, OF 35.3 MILLION PASSENGERS (PAX), IN 9TH PLACE IN THE WORLD.

IN 1997, LUFTHANSA TECHNIK ACQUIRED 20% IN HEICO AEROSPACE, HOLLYWOOD, FLORIDA (SPARE PARTS), ESTABLISHED (51%) LUFTHANSA BOMBARDIER AVIATION SERVICES, BERLIN, AND 30% OF CONDOR (CDF)/CARGO TECHNIK.

(DLH) CITYLINE NOW HAS 1,491 EMPLOYEES.

1997 = 3.7 MILLION PASSENGERS (+25%).

FREDERICK REID, PRESIDENT, RESIGNS TO JOIN DELTA AIRLINES (DAL) AS
EXECUTIVE VP & CHIEF MARKETING OFFICER.

LUFTHANSA TECHNIK HAS MAINTENANCE CONTRACT FOR SCANDINAVIAN AIRLINES (SAS) 767 FLEET.

JULY 1998: QATAR AIRWAYS (QTA) CODE SHARE, MUNICH - DOHA (A300-600).

DR GERWIN DIENGER, HEAD OF ENGINEERING, LUFTHANSA TECHNIK RETIRES, REPLACED BY BERNHARD CONRAD, EX-HEAD AIRCRAFT MAINTENANCE & OVERHAUL, & HEAD OF LUFTHANSA BOMBARDIER AVIATION SERVICES, AT BERLIN SCHOENEFELD.

1997 TOP WORLD AIRLINES COMPARISON:
EMPLOYEES (1,000): 1 FED 94; 2 UAL 92; 3 AAL 86; 4 DAL 63; 5 DLH 58; 6 BAB 53; 7 NWA 48; 8 USA 42; 9 CAL 40; 10 AFA 36.

NET ($ MILLION): 1 AMR 985 (1,016); 2 UAL 949 (533); 3 DAL 934 (248 4 BAB 754 (876); 5 SIA 670 (731); 6 NWA 597 (536); 7 FED 583 (371); 8 USA 494 (263); 9 DLH 482 (371); 10 CAL 385 (319).

(RPK) TRAFFIC (BILLION): 1 UAL 195; 2 AAL 172; 3 DAL 160; 4 NWA 116; 5 BAB 106; 6 JAL 77; 7 CAL 77; 8 DLH 71; 9 AFA 70; 10 USA 67.

PASSENGERS (PAX) (MILLION): 1 DAL 103; 2 UAL 84; 3 AAL 81; 4 USA 59; 5 NWA 55; 6 SWA 50; 7 ANA 41; 8 CAL 39; 9 DLH 35; 10 BAB 34.

(FTK) FREIGHT TRAFFIC (BILLION): 1 FED 9.3; 2 GRC 6.5; 3 KAL 5.7; 4 UPS 5.4; 5 AFA 5.0; 6 SIA 4.8; 7 JAL 4.2; 8 BAB 3.9; 9 KLM 3.9; 10 CAT 3.6.

IN EUROPE, 1997 COMPARISON:
EMPLOYEES (1,000): 1 DLH 58; 2 BAB 53 (+2%); 3 AFA 36 (+19%); 4 KLM 26; 5 SAS 23 (+19%); 6 IBE 21 (-4%).

(RPK) TRAFFIC (BILLION): 1 BAB 105 (+5.1%); 2 DLH 71 (+12.8%); 3 AFA 70 (+21.8%); 4 KLM 55 (+13.4%); 5 ALI 36 (+4.2%); 6 IBE 28 (+6%

(FTK) FREIGHT (BILLION): 1 LUB (DLH) 6.5 (+2.4%); 2 AFA 4.9 (+5.5%); 3 BAB 3.9 (+12%); 4 KLM 3.7 (+.8%); 5 SWS 1.8 (+12.8%); 6 ALI 1.4.

1 ORDER A340-300 FOR TOTAL 31. .

AUGUST 1998: TO INSTALL (EGPWS) ON ALL BOEING (TBC) AND AIRBUS (EDS) AIRPLANES (185 AIRPLANES).

LUFTHANSA TECHNIK HAS 10 YEAR, ENGINEERING & MAINTENANCE SUPPORT FOR ATLAS AIR (TLS) 747-400F FLEET "POWER-BY-THE-HOUR."

SEPTEMBER 1998: IN 1999-03, NEW NON-STOPS FRANKFURT - DETROIT, & PHILADELPHIA (A340). CODE SHARE WITH AIR NEW ZEALAND (ANZ) TO AUCKLAND, & CHRISTCHURCH, AS PRELUDE TO (ANZ) JOINING THE STAR (SAL) ALLIANCE, IN 1999. IN SUMMER 1999, TO ADD NON-STOPS FROM FRANKFURT TO CARACAS, DETROIT, AND PHILADELPHIA.

(IATA) (ITA) REPORTED (DLH) FISCAL YEAR (FY) 1997 = +$548.31 MILLION.

OCTOBER 1998: JURGEN WEBER, (CEO) MEETS WITH NEW (CAAC) (CAC) MINISTER, LUI JIANFENG, RESULTS IN NEW DAILY FLIGHT TO SHANGHAI FOR LUFTHANSA (DLH) AND DAILY CONNECTIONS TO FRANKFURT FOR AIR CHINA (BEJ). (BEJ) & (DLH) LOOKING FOR 3RD PARTNER TO SET UP A JOINT MANAGEMENT COMPANY FOR A CARGO TERMINAL AT SHANGHAI'S FUTURE PUDONG AIRPORT.

DR BERNHARD CONRAD, SENIOR VP PROJECT & DEVELOP ENGINEERING (HAMBURG).

NEW ROUTE TO MUSCAT, VIA DUBAI. CODE SHARE WITH MEXICANA (CMA), TO MEXICO CITY. PLANS TO EXTEND TO GUADALAJARA, MERIDA, MONTERREY, ACAPULCO, AND CANCUN.

NOVEMBER 1998: MUNICH - LONDON STANSTED (737, 2 CLASS).

LUFTHANSA TECHNIK MAINTENANCE CONTRACT FOR VIETNAM (VIE) 4 767-300ER & (CF6-80)'S.

JURGEN WEBER, (CEO), AS PRESIDENT OF ASSOCIATION OF EUROPEAN AIRLINES (AEA) MET WITH JACQUES SANTER, EUROPEAN COMMISSION (EC) PRESIDENT ON INFORMATORY TALKS ON THE INDUSTRY INCLUDING THE FUNDAMENTAL SUPPORT FOR INTERNATIONAL ALLIANCES. AT SAME TIME, NEIL KINNOCK, (EU) TRANSPORT COMMISSIONER PLANS TO TAKE LEGAL ACTION AGAINST 8 (EU) COUNTRIES, WHO SIGNED AVIATION AGREEMENTS WITH USA: AUSTRIA, BELGIUM, DENMARK, FINLAND, GERMANY, LUXEMBOURG, FRANCE, AND SWEDEN.

JANUARY 1999: LUFTHANSA TECHNIK OPENS 43,000 SQ FT, 3-BAY MAINTENANCE HANGAR AT STUTTGART AIRPORT.

FEBRUARY 1999: 1998 LUFTHANSA(DLH) GROUP (EXCLUDING CONDOR (CDF) = 40.4 MILLION PASSENGERS (PAX) (+8.8%), 1.7 MILLION TONNES CARGO (-.4%), 619,000 FLIGHTS (+3.7%), 70.4% LF LOAD FACTOR (-.1). (DLH) 1998 = 36 MILLION PASSENGERS (+8.2%).

(DLH)'S 7 MAJOR BUSINESS UNITS: PASSENGER SERVICES, LOGISTICS, TOURISM, MAINTENANCE, CATERING, GROUND SERVICES, & INFORMATION TECHNOLOGY.

MEXICANA (CMA) SIGNED CONTRACT WITH LUFTHANSA CONSULTING TO UNDERTAKE A TURNAROUND MANAGEMENT PROJECT OVER 3 YEARS, SEEKING TO IMPROVE ECONOMIC PERFORMANCE WITH MAJOR EMPHASIS ON SHORT- & MEDIUM-TERM COST REDUCTIONS, & TRAINING OF 4,000 (CMA) EMPLOYEES IN SERVICE QUALITY.

LUFTHANSA TECHNIK (LTK) SUSPENDS PLANS TO SET UP PRODUCT SUPPORT TECHNICAL SERVICES OPERATIONS IN HAMBURG FOR SIROCCO AEROSPACE INTERNATIONAL'S TU-204-120 (RB211)'S.

MARCH 1999: SIGNS (MOU) WITH SCANDINAVIAN AIRLINES (SAS), & SINGAPORE AIRLINES (SIA), RE-AIR CARGO INTEGRATION, INCLUDING COMMON INFRASTRUCTURE, FOR INFORMATION TECHNOLOGY (IT). 3 COMBINED = 13% OF INTERNATIONAL CARGO MARKET.

APRIL 1999: LUFTHANSA (DLH) INFORMATION TECHNOLOGY (IT) ACQUIRES 49% OF SH&E, NEW YORK (AVIATION MANAGEMENT CONSULTING FIRM).

54,695 EMPLOYEES (INCLUDING 12,281 FLIGHT CREW (FC).

(http://www.lufthansa.com). (info@lufthansa.co.uk). SITA: CGNCILH.

1998 TOP WORLD AIRLINES - TRAFFIC (RPK) (BILLION):
1 UAL 200 (195); 2 AAL 175 (172); 3 DAL 166 (160); 4 BAB 117 (107); 5 NWA 107 (116); 6 CAL 87 (77); 7 DLH 72 (71); 8 USA 66 (67); 9 SIA 58 (55); 10 KLM 57 (55).

MAY 1999: 1998 FISCAL YEAR (FY) LUFTHANSA (DLH) GROUP = +$760 MILLION RECORD! (+33%), +8.4% (RPK) TRAFFIC, +8.3% (ASK) CAPACITY, 70.5% LF LOAD FACTOR (+2.1).

JUNE 1999: PLANS TO CHANGE THE FLIGHT RECORDERS IN ITS FLEET FROM ANALOG TO DIGITAL, SOLID STATE RECORDERS.

$215 MILLION CONTRACT WITH (SITA), FOR GLOBAL COMMUNICATIONS NETWORK (5 YEARS). PETER HEATH, SITA PRESIDENT, NORTH, EAST, & CENTRAL EUROPE, TARGETS THE STAR ALLIANCE (SAL) FOR COMMON USE TERMINAL EQUIPMENT (CUTE), FOR 6,000 PERSONAL COMPUTER WORKSTATIONS IN 400 LOCATIONS IN 100 COUNTRIES.

LUFTHANSA TECHNIK (LTK) ADDED 31 AIRLINE CUSTOMERS IN 1998 FOR TOTAL CLIENT LIST >230. LUFTHANSA TECHNIK JOINT VENTURE TO OPERATE A MAINTENANCE, REPAIR & OVERHAUL (MRO) FACILITY WITH MACROASIA, IN THE PHILIPPINES, WITH PHILIPPINES (PAL) AS ONE OF ITS LONG-TERM CUSTOMERS.

LUFTHANSA CONSULTING SIGNED AN AGREEMENT TO MANAGE THE RESTRUCTURING OF (PAL).

1998 TOP WORLD AIRLINES - TRAFFIC (RPM) (BILLION):
1 UAL 124.54; 2 AAL 108.87; 3 DAL 103.24; 4 BAB 72.08; 5 NWA 66.71; 6 CAL 50.94; 7 JAL 48.97; 8 DLH 46.88; 9 AFA 46.35; 10 USA 41.25; 11 SIA 35.88.

JULY 1999: LUFTHANSA TECHNIK (LTK) = 10,146 EMPLOYEES WITH 7,500 INTERNATIONALLY WITH AFFILIATED COMPANIES (AMECO). IN 1998, CONCLUDED 89 CONTRACTS, +31 FOR TOTAL 230 CUSTOMERS. (LTK) ACQUIRES 51% IN JOINT VENTURE WITH AVIAPARTNER, FOR ITS SUBSIDIARY, BELGAVIA MAINTENANCE, BRUSSELS.

AUGUST 1999: LUFTHANSA (DLH) GROUP FISCAL YEAR (FY) 1998 = +$754 MILLION (+$567 MILLION) (+33%), 75.44 BILLION (RPK) (+5.7%), 38.50 MILLION PASSENGERS (PAX) (+9.1%), 73.9% LF (+1.4). (DLH) 1998 = +$764.7 MILLION (+$548 MILLION): 46.88 BILLION (RPM) (+5.7%), 9.53 BILLION (FTM) (+3.3%).

5-YEAR TECHNICAL SUPPORT CONTRACT TO LUFTHANSA TECHNIK, FOR 2 AIR KAZAKHSTAN (KAZ) A310-300'S. A310-300 (CF6-80C2) (595) LEASED TO AIR AFRIQUE (AFR) FOR 3 YEARS.

SEPTEMBER 1999: DR WOLFGANG GOHDE, SENIOR VP AIRCRAFT OVERHAUL & MODIFICATION SERVICES, HAMBURG (HAM), EX-MANAGING DIRECTOR, SHANNON AEROSPACE.

BUYS 26% STAKE IN AIR DOLOMITI.

JOINS WITH MALEV (HGA) TO FORM LUFTHANSA TECHNIK BUDAPEST UTILIZING 7,000 SQ M, HANGAR, AT FERIHEGY AIRPORT IN 2000-03, (LTK)'S 5TH FACILITY OUTSIDE GERMANY. (LTK) HAS 10 YEAR MAINTENANCE, OVERHAUL CONTRACT, FROM TRANSASIA (FSH), FOR (V2500) ENGINES, FOR 11 A320/A321'S.

(LTK) HAMBURG: CONTACT: WOLFGANG MENGEL, REGIONAL DIRECTOR, WEST EUROPE, HAMBURG: wolfgang.mengel@lht.dhl.de). HANGARS FOR 4 WIDE BODIES & 7 NARROW BODIES AIRPLANES; "A" - "D" CHECKS FOR 707'S, 737'S, 747'S, 757'S, 767'S, 777'S, MD-80'S, MD-11'S, A300/310'S, A319/320/321'S, & A330/340'S; INCLUDING AVIONIC UPGRADES, 747 SECTION 41 & PYLON MODS, HUSHKITTING, COMPOSITE REPAIRS, STRIP/PAINT, INTERIORS, VIP REFURBISHMENTS, & CORROSION PREVENTION & CONTROL PROGRAM (CPCP).

OCTOBER 1999: DR WOLFGANG GOHDE, OVERSEES (LTK) WORLDWIDE OVERHAUL INTERESTS INCLUDING 1,700 EMPLOYEES AT HAMBURG IN 4 BUSINESS UNITS: AIRCRAFT OVERHAUL; VIP & EXECUTIVE JET SERVICES; AIRFRAME RELATED COMPONENTS; & AIRCRAFT PAINTING.

(LTK) CONTRACT FOR AIR ROSE (TOI) 737-700 "C" CHECKS. (LTK), WITH UNITED AIRLINES (UAL), HAS TOTAL TECHNICAL SUPPORT (TTS) FOR AIR EUROPE ITALY (EIY) 777'S. TO COOPERATE FOR MAINTENANCE OF SPANAIR (SPP)'S FLEET, INCLUDING 45 RECENTLY ORDERED A320 AIRPLANES.

(http://www.lufthansa-technik.com/e/media/index.html).

CODE SHARE WITH SPANAIR (SPP) BETWEEN GERMANY, & SPAIN, AND OTHER
EUROPEAN NATIONS.

LUFTHANSA (DLH) AND UNITED AIRLINES (UAL) OFFER C$730 MILLION SUPPORT PACKAGE TO AIR CANADA (ACN) TO REPEL ONEX TAKEOVER OF (ACN), INCLUDING JOINT VENTURE TO ACQUIRE C$230 MILLION STOCK, EXTEND CODE SHARE THROUGH 2009, CREATE C$310 MILLION GUARANTEED CREDIT FACILITY, + BUY & LEASE BACK 3 A330-300'S.

(DLH) BUYS 20% BRITISH MIDLAND (BMA) FROM SCANDINAVIA AIRLINES (SAS), FOR $148 MILLION.

NOVEMBER 1999: BUYS 26% STAKE IN AIR DOLOMITI, TRIESTE, ITALIAN REGIONAL AIRLINE.

DECEMBER 1999: (LTK) TO COMPLETE 1ST A319 CORPORATE JETLINER AS AN XXL, BY 2000-01, FOR ITALIAN GOVERNMENT (IDM).

JANUARY 2000: "MANAGER" MAGAZINE VOTES JUERGEN WEBER "MANAGER OF YEAR" FOR TURNING A BUREAUCRACY INTO A BUSINESS ENTERPRISE IN A FEW YEARS.

DR THOMAS STRUEGER, VP MAINTENANCE, LUFTHANSA TECHNIK REPLACES DR RUDOLPH TEWES, WHO HAS AN EXECUTIVE POSITION ON C&N TOURISTIC LEISURE GROUP. UWE MUKRASCH, SENIOR VP AVIONICS & AIRCRAFT COMPONENTS OVERHAUL. DR ANDREAS HEITZNER, GENERAL MANAGER AIRCRAFT MAINTENANCE (A320/A340/737) REPLACES MARIO HEINEN, WHO JOINED AIRBUS. THOMAS GOCKEL, GENERAL MANAGER AIRCRAFT MAINTENANCE (747/A300/A310), HEADS UP PHILIPPINE AIRLINES (PAL) TECHNICAL CONSULTING EFFORT.

LUFTHANSA TECHNIK (LTK) HAS 5 YEAR TOTAL COMPONENT SUPPORT CONTRACT FOR 5 BRITANNIA (BRI) 737-800'S. (LTK) BUYS LAND IT IS USING AT HAMBURG, FOR $130 MILLION TO CITY, & $220 MILLION TO COVER DEBTS (82 BUILDINGS ON 750K SQ M).

1999 INCLUDING CITYLINE = +13.1% (RPK) TRAFFIC, +13.7% (ASK) CAPACITY, 72.6% LF LOAD FACTOR (-.4), 44 MILLION PASSENGERS (PAX) (+8.2%), 1.7 MILLION (FTK) FREIGHT (+25%). 1999 (DLH) = 38.9 MILLION PASSENGERS (PAX) (+7.8%), CITYLINE = 4.9 MILLION (+10.3%).

FEBRUARY 2000: 58,000 EMPLOYEES.

AIR TRANSPORT WORLD MAGAZINE AWARDS LUFTHANSA (DLH) "AIRLINE OF THE YEAR" FOR "MANAGEMENT EXPERTISE" AND "A CLEAR VISION OF THE FUTURE."

(http://www.lufthansa.com).

DR GERALD KORBLER, PROMOTED TO HEAD OF ENGINE DIVISION, HAMBURG.

IN 2000-06, CODE SHARE WITH AIR CANADA (ACN), MUNICH - TORONTO (767-300ER).

MARCH 2000: DR A HEITZNER, GENERAL MANAGER AIRCRAFT MAINTENANCE (737, A320, A340). H DIETSCH, GENERAL MANAGER AIRCRAFT MAINTENANCE (747, A300, A310) (FRA). M COELIUS, SECTION MANAGER MAINTENANCE CONCEPTS. UWE MUKRASCH, HEAD AIRCRAFT COMPONENTS, (LTK) HAMBURG.

LUFTHANSA TECHNIK (LTK), TEAMS WITH WESTLB DAL LEASE AND FINANCE SERVICES (WDLF), TO OFFER NARROW BODY & REGIONAL AIRPLANE LEASE, INCLUDING INTEGRATED MANAGEMENT PROGRAMS, STARTING LATE 2000.

(LTK), 10-YEAR, (CFM56) ENGINE OVERHAUL CONTRACT, FOR AIR MALTA (MLT) 7 737-300'S & 2 A320'S.

AFTER DELIVERING MODDED 737-700 BBJ'S TO PRIVATAIR (PTS), (LTK) HAS TECHNICAL SUPPORT CONTRACT. (LTK) ACQUIRES PHILIPPINE AIRLINES (PAL) MAINTENANCE OPERATIONS.

CODE SHARE WITH BRITISH MIDLAND (BMA), LONDON, TO ROME, MILAN, MADRID, NICE, PALMA DE MALLORCA, PARIS, AMSTERDAM, AND BRUSSELS +ALL FLIGHTS BETWEEN ENGLAND AND GERMANY. CODE SHARE WITH UNITED AIRLINES (UAL), USA - PORTUGAL.

APRIL 2000: LUFTHANSA CONSULTING SCHEDULES GENERAL AIRLINE MANAGEMENT SIMULATION (GAMS) SEMINAR IN FRANKFURT IN 2000-04 & 2000-11 + AVAILABLE ON INTERNET:
(http://www.lufthansa-financials.de).

54,695 EMPLOYEES (INCLUDING 12,281 FLIGHT CREW (FC)).

SITA: FRACILH. (info@lufthansa.co.uk).

MAY 2000: (DLH) GROUP FISCAL YEAR (FY) 1999 = +$549 MILLION. (DLH) = +$522 MILLION (-35.2%): 81.40 BILLION (RPK) TRAFFIC (+13.2%); +13.9% (ASK) CAPACITY, 73.3% LF LOAD FACTOR; 38.87 MILLION PASSENGERS (PAX) (+7.8%).

LUFTHANSA TECHNIK (LTK) ACQUIRES BIZJET INTERNATIONAL SALES & SUPPORT, TULSA, OKLAHOMA, A MAINTENANCE REPAIR & OVERHAUL (MRO) FACILITY FOR BUSINESS JETS.

(LTK) 1999 = +$17 MILLION (+29%). (LTK) ACCOUNTED FOR 50.3% OF (DLH) SALES (+11.6% (LTK) SERVICED >700 AIRPLANES (350 UNDER TOTAL TECHNICAL SUPPORT CONTRACTS) FROM 268 OPERATORS, AND OVERHAULED 510 ENGINES/79,000 COMPONENTS; EMPLOYING 10,394 (10,146).

CONVERTING ACCOUNTING TO EUROS.

JURGEN HAACKER, MANAGER ENGINEERING RESIGNS TO JOIN FAIRCHILD-DORNIER AS VP TECHNICAL OPERATIONS BASED IN MUNICH.

747-430 (25046, D-ABVK "HANNOVER") PAINTED WITH SPECIAL "EXPO 2000 HANNOVER" MARKINGS FOR 5 MONTH LONG WORLD EXPOSITION OPENING IN CAPITOL OF LOWER SAXONY IN 2000-06, FOR ATTRACTING 40 TO 50 MILLION VISITORS.

JUNE 2000: IN 2000-09, WILL IMPLEMENT A CARGO MARKETING & OPERATIONS AGREEMENT WITH VARIG (VAR), FOR CONNECTIONS TO BOGOTA, RIO DE JANEIRO, MONTEVIDEO, AND BUENOS AIRES.

VASP (VSP) TO SELL ITS 50% IN LLOYD AEREO BOLIVIANO (LAB), TO LUFTHANSA (DLH).

(LTK) JOINT VENTURE WITH MACROASIA, TO TAKE OVER PHILIPPINE AIRLINES (PAL) MAINTENANCE & ENGINEERING UNIT BY 3RD QUARTER OF 2000, NAMED LUFTHANSA TECHNIK PHILIPPINES.

AGREEMENT WITH SIBIR AIRLINES (SBR) FOR PASSENGER THROUGH-FARE, & INTERLINE, ADDS TO EXISTING CARGO ACCORD SINCE 1998.

PLANS TO INTRODUCE INTERNET AND E-MAIL ACCESS ON BOARD ITS AIRPLANES WITHIN 2 YEARS.

JULY 2000: IN 2000-10, FRANKFURT - ABIDJAN, IVORY COAST (A340, 2/WEEK).

(EC) OK'S CREATION OF SYNAVION, A JOINT VENTURE WITH SIEMENS, BY (DLH) INFORMATION TECHNOLOGY (IT), SUBSIDIARY, LUFTHANSA SYSTEMS, TO DEVELOP AND SELL INFORMATION & COMMUNICATIONS SERVICES FOR AIRPORT OPERATORS, AND AIRPLANE HANDLING COMPANIES.

(LTK) PHILIPPINES, HAS 226,000 SQ M, EX-(PAL) FACILITY, & EXPECTS $125 MILLION/YEAR (70% 3RD PARTY WORK), + TECHNICAL SERVICES FOR (PAL)'S 9 737-300'S, 7 747-200/-400'S, 3 A320'S, 8 A330'S, & 4 A340'S. HAS LETTER OF INTENT (LOI) FROM AIR PHILIPPINES (PHP), FOR MAINTENANCE OF 8 737-200'S.

1999 TOP WORLD AIRLINES COMPARISONS:
TRAFFIC (RPK) (BILLION): 1 UAL 201.9; 2 AAL 177.3; 3 DAL 168.6; 4 NWA 119.3; 5 BAB 117.5; 6 CAL 93.4; 7 AFA 83.7; 8 JAL 82.9; 9 DLH 81.4; 10 USA 66.9; 11 SIA 64.5.

NET PROFIT ($ MILLION): 1 DAL 1,285; 2 UAL 1,235; 3 AMR 985; 4 SIA 737; 5 DLH 633; 6 SWA 474; 7 CAL 455; 8 FED 442; 9 AFA 340.

EMPLOYEES (1,000): 1 UPS 308; 2 FED 150; 3 UAL 96.7; 4 AAL 86.1; 5 DAL 72; 6 DLH 66.2; 7 DHL 60; 8 AFA 55.2; 9 BAB 53.1; 10 NWA 52.

(FTK) FREIGHT TRAFFIC (BILLION): 1 FED 10.31; 2 DLH (LUB) 7.07; 3 UPS 6.02; 4 KAL 5.96; 6 SIA 5.48; 7 BAB 4.54; 8 JAL 4.42; 9 KLM 4.15.

LUFTHANSA (DLH) GROUP 1999 = +$632.97 MILLION (+$734.52 MILLION): 81.4 BILLION (RPK) TRAFFIC (+13.2%); 73.3% LF LOAD FACTOR; 38.87 MILLION PASSENGERS (PAX) (+7.8%); 66,207 EMPLOYEES (+33.9%).

AUGUST 2000: JOINS E-COMMERCE VENTURE CALLED "aeroexchange" FOR AIRPLANE PARTS, MAINTENANCE SERVICES, & GENERAL SUPPLIES WITH 12 AIRLINES: (CAT); (SIA); (FED); (NWA); (ACN); (ANA); (AMW); (SAS); (KLM); (AUL); & (ANZ).

REHIRES KLAUS NITTINGER AS FLEET PLANNING CONSULTANT, WHO MAY ADVISE ON STAR ALLIANCE FLEET PLANNING. KLAUS LEFT (DLH) IN 1997, TO BECOME CHAIRMAN OF ROLLS ROYCE, DEUTSCHLAND.

(http://www.lufthansa.de).

PHASED OUT 1 737, & 1 A310, WHILE TAKING DELIVERY OF 4 A321'S & 5 A340'S. A340-313X (352, D-AIFA) DELIVERY.

SEPTEMBER 2000: CODE SHARE WITH AIR ONE (ADH) ON ALL DOMESTIC ITALIAN ROUTES AND LUFTHANSA (DLH) FLIGHTS FROM ROME, INCLUDING FREQUENT FLYER PROGRAM. PLANS SIGNIFICANT LONG-HAUL EXPANSION AT ITS MUNICH HUB, BY MOVING 3 SERVICES FROM FRANKFURT: 1 OF 2 TO LOS ANGELES (LAX) (747-400), TO HONG KONG, & TO SINGAPORE.

WOLFGANG MAYRHUBER, PRESIDENT, EX-(LTK) CHAIRMAN, REPLACES KARL FRIEDRICH, WHO WILL NOW DEAL WITH INFRASTRUCTURE ISSUES.

LUFTHANSA TECHNIK (LTK) JOINT VENTURE WITH SHENZHEN INVESTMENT HOLDING CO (SIHC) & BEIJING KAILAN AVIATION TECHNOLOGY (BKAT) TO OPEN 2001-01 AS SHENZHEN LUFTHANSA TECHNIK COMPANY LTD (SLHT), INITIALLY WITH WHEEL & BRAKE OVERHAUL, BUT TO EXPAND TO FULL COMPONENT SERVICE CENTER. (LTK) HOLDS 70%, BKAT 20%, & SIHC 10%. (LTK) BUYS 40% OF HAWKER PACIFIC AEROSPACE, SUN VALLEY CALIFORNIA, WHICH HOLDS 20% OF WORLD MARKET FOR OVERHAUL OF LARGE JET, LANDING GEAR. POSSIBILITY OF TAKING 60%.

LUFTHANSA (DLH) TAKES 24.9% OF GERMAN REGIONAL CARRIER, EUROWINGS (RFG).

OCTOBER 2000: CODE SHARE WITH AIR CHINA (BEJ), FRANKFURT - SHANGHAI - BEIJING. IN 2001-03, FRANKFURT CODE SHARE WITH UNITED AIRLINES (UAL), TO DENVER (A340, DAILY) AND TO PHOENIX (A340, DAILY). ALSO, MUNICH - LOS ANGELES (LAX) (747-400, DAILY).

ACCELERATES DEVELOPMENT OF MUNICH AS 2ND HUB, FOLLOWING NEWS OF POSSIBLE BAN ON NIGHT OPERATIONS AT FRANKFURT FROM 2006, AND DELAYS, IN 4TH RUNWAY OPENING DUE 2008.

(LTK) RECEIVES 10/20 737-700 BBJ MAINTENANCE CONTRACT FROM BOEING NETJETS.

NOVEMBER 2000: NEW ADVERTISING CAMPAIGN: "THERE'S NO BETTER WAY TO FLY."

(LTK) SIGNS TOTAL TECHNICAL SUPPORT (TTS) WITH SPANAIR (SPP), FOR 33 AIRBUS JETS, FOR 10 YEARS. WILL EQUIP 30 BOEING BUSINESS JETS, FOR BOEING NETJETS.

DECEMBER 2000: LUFTHANSA TECHNIK (LTK) COMPLETES VIP INTERIOR MODIFICATION ON SAUDI OGER (SAO) 777 (29953). COMPLETES 5TH A319CJ FOR ITALIAN GOVERNMENT (IDM).

(LTK): (http://www.lufthansa-technik.com); (lht.infoline@lht.dlh.de).

BUYS 20% OF BRITISH MIDLAND (BMA) FROM SCANDINAVIAN AIRLINES (SAS).

JANUARY 2001: 2000 = +9.1% (RPK), +6.4% (ASK), 74.4% LF (RECORD!), 47 MILLION PASSENGERS (PAX) (+7.4%), +3.2% (FTK).

(DLH) CITYLINE, RECEIVED ITS 60TH REGIONAL JET, AND ORDERED 60 FAIRCHILD DORNIER 728JETS.

LUFTHANSA TECHNIK (LTK) ACQUIRES COMPOSITE INTERNATIONAL, TULSA, FOR COMPLETE REPAIRS & OVERHAUL OF STRUCTURAL COMPONENTS. ALSO, SETS UP A NEW WORKSHOP TO SERVICE AIRPLANE COMPONENTS IN SHENZEN, CHINA.

CODE SHARE WITH AIR CANADA (ACN), FRANKFURT - MOSCOW/ST PETERSBURG.

TOP WORLD AIRLINES 2000 - TRAFFIC (RPM) (BILLION):
1 UAL 126.88; 2 AAL 116.51; 3 DAL 107.78; 4 NWA 79.10; 5 BAB 73.88; 6 CAL 62.31; 7 DLH 58.52; 8 AFA 57.04; 9 JAL 55.30; 10 USA 46.83; 11 SIA 43.99.

747-430 DELIVERY. 1 A340-313X (379, D-AIFC) DELIVERY.

FEBRUARY 2001: 747-430 (29870, D-AVVZ) DELIVERY.

MARCH 2001: TO TAKE 30% STAKE IN STAR ALLIANCE (SAL) AFFILIATE, SPANAIR (SPP), AND (SAS) WOULD REDUCE ITS STAKE FROM 49% TO 30%.

LUFTHANSA CONSULTING IS ASSISTING THE HINDUJA GROUP, INDIA, TO PREPARE ITS BID FOR AIR INDIA (AIN), AND INDIAN AIRLINES (IND).

GOVERNMENT ANTITRUST REGULATORS BLOCK (DLH)'S STAKE IN EUROWINGS (RFG).

TO BELGRADE. IN 2001-05, FRANKFURT - SHANGHAI (PUDONG) (747-400, DAILY). CODE SHARE WITH SINGAPORE (SIA) (SAL) TO D-AIFD) TO SINGAPORE (A340-300, 3/WEEK) FROM MUNICH.

7 737-330QC'S (23522; 23523; 23524; 23835; 23836; 23837; 24283) TO AUTOMATIC, FLORIDA. SELLS 1 A319 (CFM56-5A) (636) LEASED TO AIR MALTA (MLT), TIL 2001-11. 1 A340-313X (390. 10/15 ORDERS A380-800'S.

APRIL 2001: IN 2001-09, FRANKFURT - BANGALORE (A340).

LUFTHANSA TECHNIK (LTK) HAS 10-YEAR CONTRACT EXTENSION FOR SRILANKAN (LNK), 4 A340'S (CFM56-5C) REPAIR/OVERHAUL. (LTK) HAS MAINTENANCE CONTRACT FOR DEUTSCH BA (DBA) 737 FLEET, AT BERLIN SCHONEFELD.

INTRODUCES NEW CORPORATE PROGRAM CALLED "D CHECK" TO ENSURE LUFTHANSA (DLH) REMAINS COMPETITIVE.

1 A300-600R (608), EX-EMIRATES (EAD).

MAY 2001: PILOTS (FC) OFFERED +16.5% PAY RAISE - - PILOTS (FC) STRIKE.

LUFTHANSA TECHNIK (LTK) SERVICED 663 AIRPLANES (379 UNDER TOTAL TECHNICAL SUPPORT CONTRACTS) FROM 319 OPERATORS, & OVERHAULED 544 ENGINES, & 82,000 COMPONENTS; EMPLOYMENT 10,738 (10,344). (LTK) BRUSSELS (JOINT VENTURE WITH BELGAVIA MAINTENANCE) HAS TOTAL TECHNICAL SUPPORT CONTRACT FOR CITYBIRD (CBD) 6 737-800's WITH HEAVY MAINTENANCE DONE IN BERLIN.

IN 2001-07, JOINT VENTURE WITH THAI AIRWAYS (TII) MUNICH - BANGKOK (747-400, 3/WEEK).

737-330QC (23522) SOLD TO DART GROUP. 3 A319-114'S (641, D-AILH; 651, D-AILI; 679, D-AILK), WET-LEASED TO KHALIFA (KHZ).

JUNE 2001: 2ND A319 (700) LEASED TO AIR MALTA (MLT) UNTIL 2001-11.

JULY 2001: (LTK) HAS TOTAL TECHNICAL SUPPORT (TTS) PACKAGE, FOR KHALIFA (KHZ) A319 FLEET (3 AIRPLANES).

FRANKFURT TO BANGALORE (3/WEEK).

AFTER 2 COSTLY STRIKES OVER THE LAST 4 MONTHS, THE 4,200 FLIGHT CREW (FC) STAFF ACCEPTED BIG WAGE HIKE FOR PILOTS (FC).

737-330 (23523) SOLD TO DART GROUP, LEASED TO ISLANDFLUG (ISF).

AUGUST 2001: 5-YEAR TOTAL TECHNICAL SUPPORT (TTS) CONTRACT FOR AEROFLOT (ARO) 4 DC-10-30F'S.

737-330 (23524) DELIVERED TO CHILEAN AIR FORCE (CHF). 4 ORDERS (2002-02) 747-400 TO REPLACE 8 747-200'S.

SEPTEMBER 2001: JUERGEN WEBER, (DLH) CHAIRMAN & (CEO) SHARED HIS VISION OF AVIATION IN THE NEW MILLENNIUM IN A SPEECH AT PURDUE UNIVERSITY. THE OCCASION "TRENDS INFLUENCING AIR TRANSPORTATION IN THE 21ST CENTURY" WAS THE WILLIAM BOEING DISTINGUISHED LECTURE. JOHN HAYHURST, BOEING (TBC) PRESIDENT, AIR TRAFFIC MANAGEMENT STATED "JUERGEN WEBER IS A FORWARD-THINKING MAN WHOSE WORK HAS WON HIM ACCOLADES FROM MANY IN THE AIR TRANSPORT INDUSTRY. HIS INSIGHT AND FORESIGHT WILL PROVE TO BE HIGHLY VALUABLE AS WE DEVELOP THE NEW PARADIGM OF AIR TRAFFIC MANAGEMENT (ATM)."

CODE SHARE WITH AIR INDIA (AIN) TO INDIA.

LUFTHANSA SYSTEMS GROUP MERGES WITH SWISSAIR (SWS) GROUP'S INFO TECHNOLOGY (IT), SUBSIDIARY PROVIDER "ATRAXIS."

FOLLOWING ISLAMIC, TERRORIST ACTION IN USA ON NEW YORK (WTC) TOWERS, & PENTAGON, LUFTHANSA (DLH) STATES IT WILL GROUND 28 AIRPLANES, POSTPONES DECISION ON A380, AND WILL NOT ADD NEW 747-400'S TO ITS FLEET. CANCELLED PLAN TO REPLACE ITS 8 AGING 747-200'S, WITH 4 747-400'S. STATES THAT GIVEN RECENT DRAMATICALLY RISING COSTS FOR SECURITY AND INSURANCE FEES, A SIGNIFICANT AIRFARE INCREASE WILL BE UNAVOIDABLE.

OCTOBER 2001: TO AVOID LAYOFFS, MAY INTRODUCE 4-DAY WORK WEEK.

IN 2001-12, MUNICH - JOHANNESBURG (3/WEEK).

5 737-330'S (23527; 23528; 23529; 23530; 23531), 1 737-530 (24819), 2 A320-211'S (093; 382), 3 A321-231'S (06; 26; 1903); 1 A300B4-603 (414); 1 A340-211 (018) WFU. 737-330 (24563) STORED AT BERLIN; 737-530 (25358) STORED AT BUDAPEST; 2 747-230B'S (21588; 21591) WFU AT FRANKFURT. 747-230B (23509) RETIRED. A340-313X (434, D-AIFE) DELIVERY.

NOVEMBER 2001: MAY TAKE OVER SWISSAIR'S (SWS) INFORMATION TECHNOLOGY (IT) SUBSIDIARY "ATRAXIS," WHICH IS FACING BANKRUPTCY. ATRAXIS IS USED BY CROSSAIR (CSR), SWISSAIR (SWS), (LOT) POLISH, SABENA (SAB), SOUTH AFRICAN AIRWAYS (SAA), AND EMIRATES (EAD).

APPLIES TO GERMANY'S FEDERAL TRANSPORT MINISTRY FOR $163.5 MILLION AID.

STUTTGART - BRUSSELS (4/DAY).

GERARD FRIELINGHAUS, PRODUCTION HEAD, AIRCRAFT OVERHAUL & MODIFICATION DIVISION, LUFTHANSA TECHNIK (LTK).

3 747-230B'S (21590; 21643; 23622) STORED AT FRANKFURT. PLANS TO SELL ITS 6 747-200'S.

DECEMBER 2001: EUROPEAN COMMISSION (EC) OK'S CODE SHARE WITH AUSTRIAN (AUL) TO AUSTRIA. IN 2001-03, MUNICH - NEWARK; MUNICH - SHANGHAI.

29TH 747-430 (D-ABTK) DELIVERY.

"PERMANENTLY" STORES 4 747'S: 2 747-230B's (21590 /79 102 16 D-ABYP; 639-23407, /86 74 10 D-ABZD); 1 747-230C (550-22670, /82 91 14 D-ABYX); & 1 747-230F (625-23348, /85 74 13 D-ABZB), LEASED TO LUFTHANSA CARGO (LUB), AT MARANA, ARIZONA. 3 747-230BC'S (21588; 21591; 21643) SOLD TO LUFTHANSA TECHNIK (LTK) FOR PART OUT AND DONATION OF AIRFRAME TO A MUSEUM. A340-313X (D-AIFF) DELIVERY.

15 ORDERS (2007-07) A380, 555 PAX (TRENT 900).

JANUARY 2002: IN 2002-03, MUNICH - SHANGHAI (A340-300, 5/WEEK). SUMMER SCHEDULE, INCLUDING MUNICH TO SAN FRANCISCO (SFO), NEW YORK (JFK), TOKYO, AND SHANGHAI

2001 = -1.9% (RPK) TRAFFIC, +2.1% (ASK), -2.9% LF LOAD FACTOR, 45.7 MILLION PASSENGERS (PAX) (-2.7%) REFLECTING A WEAKER WORLD ECONOMY AND THE CONSEQUENCES OF 9/11/01. PROJECTS 2001 = -$354 MILLION.

LUFTHANSA TECHNIK (LTK) DEVELOPS LOADPERFECT 3.03 SOFTWARE, TO CALCULATE OPTIMAL, AIRCRAFT LOADING, AND FUELING PLANS.

LUFTHANSA TECHNIK LOGISTIK'S NEW WEBSITE:
(http://www.lh-technik-logistik.com).

(LTK) IN 2001 HAD 320 TOTAL CUSTOMERS, 700 SERVICES.

SUBSIDIARY, BIZJET INTERNATIONAL, TULSA, OKLAHOMA IS EXPANDING ITS AIRPLANES AND PROJECTS $5 BILLION TURNOVER.

(DLH) SIGNS 3-YEAR, $40 MILLION AGREEMENT WITH SITA FOR DESIGN, DEVELOPMENT, AND IMPLEMENTATION OF A GLOBAL, NETWORK INFRASTRUCTURE, BASED ON INTERNET PROTOCOLS. THE (IP) SYSTEM, WILL PROVIDE HIGH-SPEED ACCESS TO SHARED APPLICATIONS AND DATABASES FOR WORKERS IN >500 LOCATIONS, THROUGHOUT 99 COUNTRIES, ALLOWING (DLH) TO CUT COSTS, WHILE BOOSTING PRODUCTIVITY.

2001 LUFTHANSA (DLH) GROUP = 90.4 BILLION (RPK) TRAFFIC (-1.9%); +2.1% (ASK) CAPACITY; -4.3% (FTK) FREIGHT; 39.69 MILLION PASSENGERS (PAX) (-3.8%).

2001 TOP 50 WORLD AIRLINES - TRAFFIC (BILLION) (RPM):
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.

A340-211 (018, D-AIBD) RETURNED TO SERVICE.

FEBRUARY 2002: IN 2002-05, MUNICH - BOSTON (A340, 6/WEEK). ALSO, MUNICH TO SHANGHAI (5/WEEK), AND TOKYO (6/WEEK).

OPENS NEW, 18,000 SQ M, MAINTENANCE REPAIR & OVERHAUL (MRO) FACILITY IN SHENZHEN, CHINA AT ITS HUANGTIN AIRPORT (4TH LARGEST IN CHINA), FOR OVERHAUL OF AIRFRAME-RELATED COMPONENTS SUCH AS THRUST REVERSERS, NACELLES, RADOMES, AND OTHER COMPOSITES. LUFTHANSA (DLH) HOLDS 70%, IN JOINT VENTURE WITH BEIJING KAILAN AVIATION TECHNOLOGY COMPANY (29%).

MARCH 2002: 2001 = -591 MILLION EUROS/-$514.2 MILLION (+689 MILLION EUROS).

NEW GLOBAL CARGO VENTURE WITH SCANDINAVIAN AIRLINES (SAS), AND SINGAPORE AIRLINES CARGO (SIA), TO BE CALLED "WOW."

2 737-330'S (23527; 8) WET-LEASED TO INDONESIAN AIRLINES (IPB). LAST ORDERED 747-430 DELIVERY (D-ABTL).

APRIL 2002: 38,094 EMPLOYEES.

MAIN BASE: FRANKFURT/MAIN AIRPORT (FRA).

HUB: MUNICH INTERNATIONAL AIRPORT (MUC).

OWNERS/SHAREHOLDERS: PRIVATE INVESTORS (88.52%); MGL GESELLSCHAFT FUR LUFTVERKEHRSWERTE (10.05%); DEUTSCHE POSTBANK (1.03%); DEUTSCHE BANK (0.4%).

SUBSIDIARIES/SHARES: AIR DOLOMITI (26%); BMI BRITISH MIDLAND (BMA) (20%); CONDOR (CDF) (10%); DHL AVIATION (25%); EUROWINGS (RFG) (24.9%); LUFTHANSA CITYLINE (100%); & LUXAIR (13%).

(DLH) GROUP 2001 = -$568.8 MILLION/EUR 633 MILLION (+EUR 689 MILLION): 87,975 EMPLOYEES (+26.5%).

MAY 2002: 5th anniversary of Star Alliance: (ACN); (ANZ); (AUL);(BMA); (CMA); (DLH); (LAL); (SAS); (SIA); (TII); Tyrolean; (UAL); & VAR).

WOLFGANG MAYRHUBER IS TO BECOME (CEO) AT THE END OF 2003, TO REPLACE JURGEN WEBER WHO HAS LED LUFTHANSA (DLH) SINCE 1991.

1ST AIRLINE IN WORLD TO OPERATE A BUSINESS JET ON ONE OF ITS
THIN LONG-HAUL ROUTES. USING 1 737-7AK BBJ (30752), PRIVATAIR (PTS)
WET-LEASED, 48C PAX, 55 INCH SEAT PITCH VS 48 INCH, ON 747'S, AND A340'S. OPERATES DUSSELDORF - NEWARK (6/WEEK, NONSTOP).

2 A319-114'S (636, D-AILF; 700, D-AILN) TO LONG TERM STORAGE AT HAMBURG.

June 2002: (MOU) with Shanghai Airlines (SHA) for closer ties (frequent flyer programs, joint system development, harmonization of products & services, as well as network connectivity).

2001 Top World Airlines by Traffic (RPK) (Billion):
1 UAL 187.67; 2 AAL 170.88; 3 DAL 163.66; 4 NWA 117.66; 5 BAB 106.27; 6 CAL 98.37; 7 AFA 94.42; 8 DLH 86.70; 9 JAL 84.27; 10 USA 73.93; 11 SWA 71.59; 12 SIA 69.15; 13 QAN 67.89; 14 ACN 67.03; 15 KLM 57.85; 16 ANA 56.90; 17 CAT 44.79; 18 TII 44.04; 19 IBE 41.30; 20 KAL 38.45; 21 MAS 38.31; 22 ALI 36.52; 23 SWS 32.98; 24 TWA 31.85; 25 AMW 30.69.

LUFTHANSA (DLH) GROUP = -$557 Million (+$606 Million): 86.70 Billion (RPK) traffic (-2.2%); 72.2% LF load factor; 36.69 Million (PAX) (-3.8%); (LUB) 7.08 Billion (FTK) freight (-7.6%); (DLH GROUP) 87,975 employees (+25.5%).

July 2002: Lufthansa Technik (LTK) 2001 pre-tax = + EUR88.1 Million (+EUR37.1 Million): Serviced 724 airplanes (663); 536 engines (544); & 85,000 (82,000) component overhauls; employment = 10,934 (10,738). Outsourced EUR 580 Million (40% TO (LTK) Companies) (+20%).

August 2002: Peter Von Moltke, President & (CEO), Lufthansa Systems, North America.

(DLH)'s supervisory board is expected to ratify a decision to order 10 A330-300's (2004-02), 295 PAX. (DLH) will become the biggest Airbus (EDS) operator of A330/A340 airplanes with 54+. Plans to lease 5 A330-200's, and 2 A340-300's in 2003, pending delivery of 10 orders A330-300's.

October 2002: Munich to Cairo (nonstop, 4/week).

Lufthansa Technik Budapest, a joint venture of Lufthansa Technik (LTK) AG (85%) and Malev Hungarian (HGA) (15%), officially inaugurated, refurbished, Maintenance Repair & Overhaul (MRO) facilities at Budapest Ferihegy Airport, after investing HUF4 Billion/$16.1 Million to renovate, and modernize its 2 hangars.

1 A320-211 (382, D-AIQR), leased to Eurowings (RFG).

November 2002: Acquires another 10% from (BBW) partnership, for total 30% of British Midland (BMA). Receives (EU) approval to sell its 25% stake in DHL Worldwide Express to Deutsche Post for EUR 610 Million/$596 Million.

In 2003-03, Munich - Los Angeles (LAX) (A340-300, daily). Frankfurt - Portland (A340-300, daily).

Lufthansa Technik (LTK) finished overhauling its 25,000th engine (CF6-80C2) for a Lufthansa (DLH) 747-400. An internal division of (DLH) until 1994, (LTK) has been servicing jet engines at its facility on the Elbe since 1961. In 2001, (LTK) overhauled 840 engines, including 460 of them in Hamburg (which services mainly (CF6-80)'s, (CFM56)'s, as well as (PW4000)'s and (IAE V2500)'s). (LTK) currently has engine-servicing contracts with >100 customers.

737-330 (26431, D-ABER) returned from Sun Express (SNS). Canceled 4 orders A340's. 1 A330-223 (324, D-AIME), ex-Sabena (SAB), Commuter leased. 2 A340-211's (CFM56-5C2G) (075; 081), 36C, 227Y, Austrian (AUL) leased for the winter season.

December 2002: (DLH) Board announces that Wolfgang Mayrhuber will be the successor to current Chairman & (CEO), Juergen Weber effective 2003-06.

Code share with Condor (Thomas Cook) (CDF), Frankfurt to Orlando.

Considering expanding its 737 BBJ, Privatair (PTS) wet-lease in 2003-01 from Dusseldorf to Chicago (ORD); Berlin (Tegel) - Washington (Dulles); Frankfurt - Charlotte, Hamburg - Chicago (ORD)/Newark; Munich - Bangalore, and Stuttgart - Detroit.

Lufthansa Technik purchased Swissair Technics' (SWS) 50% share of Shannon Aerospace, for full 100% ownership.

1 737-530 to be leased to Belavia (BLV), in 2003-04. 747-230F (23521, D-ABZF) stored at Marana, Arizona, USA.

January 2003: Lufthansa Technik (LTK) (DLH) contract with Air Malta (MLT) for maintenance of (CFM56-5B's) powering its fleet of 12 A319's/A320's. The Total Engine Support contract extends for 12 years.

In 2003-03, Munich - Los Angeles (LAX) (A340-300, 3 Class, daily nonstop).

Scandinavian Airlines (SAS) has taken over all (DLH) services between Munich and Stockholm.

Lufthansa (DLH)'s Group Executive Board stated that due to the weakness in the economy worldwide and the persisting substantial effects on the business travel market, its is taking immediate action to reduce the capacity in continental traffic by a further -9 airplanes (-3 737-500's, -3 CRJ's, & -3 F 100's), and thus adjust their route offer in line with persisting weakness in demand. As of 2003-04. -21 airplanes at (DLH) and -15 at its regional partners, will be withdrawn from use (WFU).

A319-114 (636, D-AILF) returned to service. A330-223 (322, D-AIMD), Wouters Aircraft leased.

February 2003: Lufthansa (DLH) Group significantly tightened its cost-reduction thumbscrews by declaring an immediate hiring freeze, along with -EUR 200 Million/-$214 Million in unspecified spending cuts, and will withdraw from use (WFU) another 10 airplanes. This is all part of a supplementary, "D" maintenance check, belt-tightening initiative, called "Cash 100."

A330-223 (308, D-AIMB), Flightleased. 1st of 6 A340-211's (008) to be traded in to Airbus (EDS) for 10 orders A340-600's, is leased by (AFIS) to South African Airways (SAA).

March 2003: Lufthansa Technik (LTK) raised its stake in Condor/Cargo Technik (CDF) to 90% by acquiring an additional 60% of shares. Thomas Cook subsidiary, Condor Flugdienst GmbH retains the remaining 10% (previously held 70%). Condor/Cargo Technik's most important customers continue to be Thomas Cook Airlines "powered by Condor" with 757's and 767's, as well as Lufthansa Cargo (LUB)'s MD-11F's. It has 600 employees and occupies 3 hangars at Frankfurt Airport, with a combined floor space of 11,000 sq m.

(DLH) launched high-speed, wireless Internet access for passengers at Berlin Tegel.

(DLH) acquires a majority interest in its Italian Regional airline partner, Air Dolomiti, by boosting its stake from 22% to nearly 52%, costing $43.8 Million. Also, may assume total control in 2003-04, by acquiring the remaining shares. Air Dolomiti carried 868,000 passengers in 2001.

In 2003-05, code share with Air Canada (ACN), Munich - Montreal (A340, daily nonstop) and Germany to Moscow, St Petersburg, Kiev, Prague, Budapest, Oslo, Copenhagen, Stockholm, and Gothenburg.

2002 (DLH) Group = +EUR 717 Million/+$760 Million (-EUR 633 Million). 2002 including CityLine = 88.57 Billion (RPK) (-2%); 43.95 Million (PAX) (-3.8%). Lufthansa Technik (LTK) 2002 = +EUR 96.2 Million (+EUR 50.1 Million).

2 A319 ACJ LR's, 48C, Privatair (PTS) wet-leased, to operate nonstop Munich - Newark (6/week, 7 hours, 45 minutes) starting 2003-05, and Dusseldorf - O'Hare (6/week, 8 hours, 50 minutes) starting 2003-06.

2 A320-211 (071, D-AIPC; 072, D-AIPD) leased to GermanWings (RFG). Is parking 7 long-haul airplanes in addition to 31 mainline and 17 regional airplanes.

April 2003: Lufthansa Systems 2002 = +42.9 Million EUR/+$46.2 Million (+14.5%): 4,200 employees, implemented a new business segment structure and developed a comprehensive portfolio that supports business processes throughout the airlines and aviation industry. It further increased its international presence to 14 locations in 13 countries.

39,000 employees. (http://www.lufthansa.com).

(info@lufthansa.com). SITA: FRACILH.

As the German flag carrier and 8th largest airline in the world, serving, together with its partners, destinations in Europe, North and South America, Africa, the Middle East, and Asia-Pacific regions.

Karl-Ludwig Kley, (CFO) stated that (DLH) is suffering revenue losses of -EUR 50 Million/-$53.7 Million/week because of the Severe Acute Respiratory Syndrome (SARS) worldwide virus alert, the Iraq war, sluggish global economies and recession in the home market in Germany. The overall financial situation is much more serious now than after the 1991 Gulf War or "9/11."

May 2003: Faced with an anticipated -20% drop in passenger revenue in 2003-04, and continuing soft traffic across its system, (DLH) will park another 15 airplanes "in continental traffic," bringing the total taken out of service by the group to 70. Work hours for all staff in Germany will be cut to 35 hours/week with a corresponding reduction in remuneration.

June 2003: Privatair (PTS), Switzerland forms Privatair, Dusseldorf, to operate 2 A319-133's corporate shuttles, 48 PAX, for Lufthansa (DLH), under a newly-issued German Air Operating Certificate (AOC). Lufthansa Technik (LTK) has a long-term Total Technical Support contract.

Wolfgang Mayrhuber took over as Chairman & (CEO), replacing Juergen Weber, now Chairman of the Supervisory Board, succeeding Dr KLaus Schlede.

737-530 (25311) wet-leased to Air Bulgaria (BUL). A330-223 (305, D-AIMA), Kayo leased. A340-211 (019, D-AIBE) sold to Airbus (AFIS). A340-312 (047, D-AIMF), Senne Aviation leased.

July 2003: SITA: FRASELH.

2002 = +$681.2 Million (Group) (-$567.4 Million): 88.57 Billion (RPK) (-2%); -5.2% (ASK); 73.9% LF (+2.4); 43.9 Million (PAX) (-3.8%); (LUB) 7.16 Billion (FTK) (+1.1%); 29,494 employees (+1.7%).

2002 TOP 25 WORLD AIRLINES - TRAFFIC - Billion - (RPK):
1 (AAL) 195.81; 2 (UAL) 176.15; 3 (DAL) 152.66; 4 (NWA) 115.91; 5 (BAB) 99.71; 6 (AFA) 96.80; 7 (CAL) 95.51; 8 (DLH) Group 88.57; 9 (JAL) 83.54; 10 (QAN) 75.23; 11 (SWA) 73.05; 12 (SIA) 71.12; 13 (ACN) 69.42; 14 (USA) 69.42; 15 (KLM) 58.89; 16 (ANA) 52.97; 17 (CAT) 49.04; 18 (TII) 48.51; 19 (KAL) 41.80; 20 (IBE) 40.47; 21 (MAS) 36.90; 22 (AMW) 31.98; 23 (SAS) Group 30.91; 24 (EAD) 30.17; 25 (ALI) 29.84.

Raises its stake in Air Dolomiti to 98.8% by acquiring the remaining stock held by all Air Dolomiti shareholders, including 23.7% share held by founder, Domenico Alcide.

In 2003-10, Munich to Dubai and Miami (A340, daily).

Has reduced its fuel consumption to 4.5 liters/100 passenger Km, through more efficient airplane utilization, deployment of a modern fleet, and "intelligent, flexible management."

8 month contract with Tunisair (TUN) for Lufthansa Consulting (DLH) to analyze market/organization to develop a new commercial strategy. Stefan Auerbach, Managing Director (DLH) Consulting stated "We'll be looking forward to developing for Tunisair (TUN) a strategy that will enable it in changing economic environment to offer a marketable and competitive service both in its home market and internationally."

A320-211 (147, D-AIPX) leased to GermanWings (RFG). A340-211 (018, D-AIBD) sold to Airbus (AIFS).

August 2003: Lufthansa (DLH)'s regional partner Eurowings (RFG) has its backing for its low-cost subsidiary, germanwings (RFG) to counterattack the growing challenge of other low-cost carriers, particularly Ryanair (RYR) and EasyJet (EZY) on its own turf. They do not feel threatened by Air Berlin (BER), Deutsche BA (DBA), Hapag Lloyd (HAP) Express, or Germania (GER) Express. (DLH) is also dribbling onto the market, special low fares for early bookers on its own domestic and cross-border services. GermanWings (RFG) will start operating from Stuttgart head-on with Hapag Lloyd Express (HAP).

Frankfurt - Cairo - Addis Ababa (A330-200, 3/week). In October, code share with Shanghai Airlines (SHA).

September 2003: Lufthansa Technik (LTK) has a 5-year, EUR 65 Million technical cooperation agreement with Austrian Airlines (AUL) under which both companies will be rendering to each other, maintenance and technical support services. Annual "C" checks of (DLH) A330-200s & A340-300s/-600s will be performed at (AUL)'s facilities at Vienna Schwechat airport. Altogether, an average of 25 wide bodies will be flown every year to the (AUL) facility for those 5 days of maintenance.

In return, (LTK) will perform for (AUL) and Lauda Air (LAL) all its heavy maintenance needed every 4 to 5 years on A320s, A330s, & A340s as well as the maintenance of their (PW4000) engines for 767s, & (CFM56) engines for A340s. Some of this work will be done at (LTK)'s facilities in Hamburg, with the rest by its worldwide alliance members, e.g., (LTK) Philippines, and Shannon Aerospace.

Alitalia (ALI) sells 40% shareholding in its engine maintenance/repair subsidiary, Alitalia (ALI) Maintenance Systems to Lufthansa Technik (LTK) (DLH). Under the partnership, (LTK) will transfer mainly (CF6-50) engines to (ALI)'s facility in Rome, and (ALI) will send engine components to (LTK) in Hamburg.

(DLH) believes the serious crisis besetting the industry has botommed out, and in 2003-10 the new winter schedule shows moderate growth. Frankfurt - Rio de Janeiro (747, daily). Frankfurt to Kuwait, via Cairo (5/week).

October 2003: Unveiled a new business class (C) product (DLH) invested EUR 300 MILLION/$351 Million) that will be installed initially on A330-300/A340-600's & eventually on all 80 long-haul airplanes, including new lie-flat seats (PrivateBed 6.6 ft-long seat-bed with full recline, and only a 9-degree inclination to the floor, also incorp a foldaway screen for privacy along with motorized adjustments), in-flight entertainment (IFE) systems, and food & beverage service.

Munich - Dubai (A340-300, daily). In 2004-05, Dusselforf - St Petersburg (737-300, weekly).

November 2003: Lufthansa Technik (LTK) has maintenance contracts for total support of 3 Dutchbird (DUT) V-Bird A320's, heavy checks on Swiss (CSR) 2 A330-200's, & 1 Blue Panorama (BPA), Itochu (CIF) leased 767-300, plus line maintenance for Hapag Lloyd's 737-800's at Munich.

December 2003: Lufthansa Technik's (LTK) Maintenance Management Services, Hamburg, has developed a special (MRO) support package for no-frills carriers called "Quick-2-air." It is a customized system (Germanwings (RFG) is an early user) which bundles services specifically designed for the need of low-fare carriers with fast airport turnarounds and high airplane utilization. "By pursuing sustained cost-reduction programs and using (PMA) parts for engine overhauls, we can significantly reduce maintenance-specific costs of no-frills carriers," asserted Ralf Noether (LTK) in (LTK)'s magazine "Connection." (LTK) is focused on offering tools necessary to enhance the expected growth market share of such carriers. It tailors "Quick-2-air" maintenance plans to the requirements of each carrier, geared to minimize costs and maintenance-induced downtimes.

Frankfurt - Munich upgraded its business class (C) to sleeper seats (A340-600 nonstop, 14 hours, 10 minutes, 13,207 km). In February, Munich - Shanghai, continuing to Beijing. In March, code share with US Airways (USA), Munich - Charlotte, North Carolina, USA (A340-300, daily). In April, Munich - Tehran (A340-300, 3/week).

A340-642 (523, D-AIHC "Essen") delivery.

January 2004: In summer, Frankfurt - Kuala Lumpur, via Bangkok (4/week).

2003 (DLH) Group = -EUR 984 Million/-$1.19 Billion (+EUR 717 Million/+$866 Million): 90.71 Billion (RPK) (+2.4%); +2.4% (ASK); 73.1% LF (-.6); 45.4 Million (PAX) (+3.4%): (PAX) traffic climb, 1st in 2 years, upbeat results come in the face of "persistently difficult operating environment" and hot price competition from low-cost carriers (LLCs) who are siphoning traffic from (DLH)'s bread & butter European routes, while combating the consequences of a continuing weak global economy, (SARS) effects, and fallout from the Iraq war, with "flexible capacity management."

Star Alliance (SAL) (Lufthansa (DLH) is one of 15 members) signed a 5-year Information Technology (IT) accord with (BEA) Systems Inc, San Jose, California, an application infrastructure software firm. The contract gives Star's 15 members "the opportunity to introduce (BEA)'s innovative application platform suite at a cost no single airline would be able to negotiate" said Michael Stagl, Star (CIO). United Airlines (UAL), Lufthansa (DLH), & Singapore Airlines (SIA), as well as the alliance itself, have developed ticketing, baggage handling, and loyalty software applications on the BEA WebLogic platform in recent years. Under the new agreement, (BEA) WebLogic Server and (BEA) WebLogic Integration become Star's preferred application server and integration software.

A340-642 (540, D-AIHE) delivery.

February 2004: Lufthansa Systems outsourced the management of 9,500 personal computer workstations at Lufthasa (DLH) passenger airlines to T-Systems as part of infrastructure modernization. Deutsche Telekom IT, Frankfurt, subsidiary was tasked by Lufthansa Systems with procurement & installation of all hardware at offices and airports. Pact includes the operations of systems at 350 (DLH) locations through onsite service & support. T-Systems is rolling out more than 300 new workspaces/week running Microsoft Windows XP. In addition, it will install 4,000 printers and connect 9,400 new e-mail addresses & 3,000 Internet accounts. Project completion is targeted for summer.

Lufthansa Systems said Singapore Airlines (SIA) had successfully deployed the innovative new Routing Selector tool for optimizing cargo business by supporting management of all airline booking requests & bookings.

Lufthansa Technik (LTK) has 20,000 employees at its maintenance bases throughout the world.

A340-642 (543, D-AIHF) delivery.

March 2004: With other partner airlines, serves 344 destinations in 91 countries. (DLH) itself flies to 175 destinations in 75 countries.

Qatar (QTA) code share with Lufthansa (DLH), Munich - Geneva, Frankfurt - Geneva, Frankfurt - Zurich and (DLH) code share on (QTA)'s Munich - Doha, and Frankfurt - Doha.

2 A319-114's (651, D-AILI; 689, D-AILK), leased to GermanWings (RFG). 1st A330-343X (570, D-AIKA) delivery. Will serve points in Africa and the US East Coast, starting with Frankfurt - Cairo - Khartoum, and Frankfurt - Cairo - Addis Ababa.

April 2004: 50 years of operations anniversary!

Signs "cooperative agreement" with Shanghai Airlines (SHA) whereby (DLH) will put its code on (SHA)'s flights, Shanghai to Beijing, Shenzhen, and Qingdao in 2004-05.

Stuttgart - Venice, Bilbao (737-300, 2/week).

2 737-530's (24815; 24816), wet-leased to Travel Service (TSF). A340-642 (569, D-AIHI), delivery.

May 2004: (DLH) iIs selling its Lufthansa Gebaude-management (LGM) management services group to Hochtief Facility Management in 2004-06.

Air France (AFA) Industries and Lufthansa Technik (DLH) (LTK) signed an agreement to offer component support services jointly for the A380. The accord includes providing component services for the future A380 fleets of (AFA) & (DLH), which together have paced orders for 25 A380's, and also for 3rd party customers. Under the scheme, the two will furnish component repair, management of a component pool with all required logistics services, and comprehensive component servicing at airlines' A380 main bases as well as outstations.

2 A340-642's (580, D-AIHK; 583, D-AIHL), deliveries.

June 2004: Selects Global ePoint's AirWorks Division for installation of additional cockpit door surveillance systems on its fleet of A340-600's.

British Airways (BAB) and Qantas (QAN) implemented the latest release of Sabre AirFlite SlotManager. Delta Airlines (DAL); Lufthansa (DLH); El Al (ELA); & Japan Airlines (JAL) also use the new system.

Amadeus acquires a controlling 55% stake in travel portal Opodo for EUR 62 Million/$74.5 Million in cash. Opodo was created by 9 European network airlines: Aer Lingus (ARL); Air France (AFA); Alitalia (ALI); Austrian Airlines (AUL); British Airways (BAB); Finnair (FIN); Iberia (IBE); (KLM); & Lufthansa (DLH) - - whose stakes will be reduced in proportion to the investment by Amadeus. The 3 biggest shareholders: (AFA); (BAB) & (DLH) - - will hold 10.3% each, while the shareholdings of (ARL) & (AUL) will be diluted to 0.51% each. Amadeus, which is majority owned by (AFA); (IBE) & (DLH), said Opodo will continue to operate as a separate company.

Star Alliance (SAL): Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).

A319-114 (689, D-AILL), wet-leased to GermanWings (RFG).

July 2004: In 2004-10, Frankfurt - Capetown (A340-300, daily).

A319-114 (636, D-AILF), wet-leased to GermanWings (RFD).

August 2004: Lufthansa (DLH) Group and Air China (BEJ) will invest $100 Million in their jointly owned Aicraft Maintenance & Engineering Company (AMECO), Beijing over the next 4 years as part of their agreement to extend their cooperation for +25 years. (BEJ) will continue to hold 60% of the venture. The new capital will be used to finance hangars, warehouses, plus components & engine shops.

Signed an extensive cooperation agreement with Air India (AIN) which includes codesharing and reciprocal frequent-flier mileage accrual, including cooperation in sales & marketing, and Information Technology (IT).

Contracted with Lufthansa Systems to supply all (IT)-related services involving the revenue management solution ProfitLine/Yield O&D Forecaster under a comprehensive long-term service level agreement. The deal for hosting and support of O&D Forecaster is for an initial term of 4 years.

September 2004: Lufthansa (DLH) Technik (LTK) Malta (LTM), a joint venture between Air Malta (49%) and Lufthansa Technik (DLH) (51%), completed its 100th "C" check (Spanair (SPP) A320). (LTM) specializes in 737 & A320 family "C" checks, employs 118 employees, nearly all Maltese, and started operations in 1/03.

August-Wilhelm Henningsen, Executive Board Chairman, Lufthansa Technik, (LTK) has had his contract extended.

October 2004: Dusseldorf - Moscow Sheremetyevo (737-300, 4/week). Frankfurt - Cape Town (A340-300, daily). Adds Nanjing and Xian as its next destinations in China. Plans to increase service to China by +50% by 2007, to around 60 flights/week, and to India by about 60%. Munich - Bangkok (A340-600). In February, Frankfurt - Hyderabad (3/week).

Threatens to transfer money-losing European routes to partners such as EuroWings GermanWings (RFG) if it does not reach agreement with unions over cost cuts.

Air France (AFA) (23.36%), Iberia (IBE) (18.5%), & Lufthansa (DLH) (5.05%) have begun their sale of their 46.91% shareholding in Amadeus Global Travel Distribution.

A330-343X (629, D-AIKD), delivery.

November 2004: Kuala Lumpur - Munich (A340-600, 4/week, featuring FlyNet onboard Internet service).

Selects Teledyne Control's Wireless GroundLink (WQAR) for use on its A320 fleet to assist in replacing traditional manual data retrieval procedures with a reliable automated data recording and wireless transmission system.

(IATA) Code: LH - 220. (ICAO) Code: DLH (Callsign - LUFTHANSA).

Wolfgang Mayrhuber, Chairman & (CEO), when unveiling (DLH)'s new EUR 14 Million/$18.2 Million, first-class (F) terminal & 2 new (F) class lounges, which are in Terminal 1, sectors A & B, stated "The steady evolution away from international first class (F) in favor of enhanced business class (C), provides a market opportunity for those carriers that remain committed to a three-class (F), (C), (Y) service product. With more carriers dropping their (F) class and the end of Concorde, (DLH) can grow in this segment if we offer a very good product." The new terminal offers separate rooms furnished as offices or luxury suites including full bathrooms. There is a separate restaurant as well as a cigar lounge. (F) class PAX will be transferred directly from the lounge to the airplanes via Mercedes S-Class & Porsche Cayennes. In addition to (F) passengers, members of the new HON Circle status within (DLH)'s Miles & More loyalty program, may use the lounges. To achieve HON Circle status, a member must collect 600,000 HON Circle miles within a period of 2 calendar years. These are status miles that are collected aboard flights operated by (DLH), (DLH) Regional, Austrian Airlines Group (AUL); (LOT) Polish Airlines, Air Dolomiti, Air One (ADH), or United Airlines (UAL).

Wolfgang Gohde, (CEO), 51, Lufthansa Systems Group, ex-Senior VP Aircraft & Overhaul VIP Jet Services, (LTK) succeeds Peter Franke, who is retiring 2005-04 after 10 years. Gunter Kuechler, will continue as Managing Director in charge of distribution and marketing.

A319-114 (700, D-AILN) wet-leased to GermanWings (RFG). A320-211 (086, D-AIPH), returned from (RFG).

December 2004: Lufthansa Systems developed a new maintenance record information system for Lufthansa Technik (LTK). Lufthansa Systems implemented e-ticket interlining between Air Canada (ACN) and (DLH).

Frankfurt - Port Harcourt (A330-200) continuing to Abuja (3/week). To increase frequencies to Accra to daily, routed via Lagos. In March, (Frankfurt) - Johannesburg - Cape Town (4/week), Frankfurt - Guangzhou - Manila.

A320-211 (071, D-AIPC) returned from GermanWings (RFG). 2 A330-223's (308, D-AIMB; 312, D-AIMC), returned to Flightlease. 2 A340-343X's (636, D-AIKE; 642, D-AIKF) deliveries. 7 orders (2006-02) A340-600's.

January 2005: 4th Quarter = +EUR 236 Million (-EUR 575 Million). 2004 = +EUR 400 Million/+$530 Million (-EUR 984 Million): 104.06 Billion (RPK) (+14.7%); +13.4% (ASK); 74% LF (+.9); >50 Million (PAX).

Lufthansa Systems completed the project to convert Deutsche Lufthansa to the Lido Route Manual by the end of 2004. Condor (CDF), Lufthansa Cargo (LUB), & Lufthansa CityLine also are using the charts, which are generated electronically from the Lido navigation database created and maintained by Lufthansa Systems.

In 2005-02, "extensive strategic cooperation" with (TAP) Air Portugal, incl codesharing on all flights between Portugal and Germany. (DLH) will codeshare on (TAP), Lisbon to Porto, Faro, Funchal, & Dakar, with (TAP) codeshare on (DLH) Munich & Frankfurt to major European cities like Helsinki, Riga, Prague, Athens, Budapest, & Zagreb + selected (DLH) flights to Asia.

March 2005: 50th anniversary of its rebirth although Deutsche Lufthansa was founded in 1926.

Star Alliance (SAL) partners (TAP) Air Portugal, All Nippon (ANA), bmi (BMA), Lufthansa (DLH), Thai (TII), Adria Airways (ADR), & (SAS) will all start using Terminal 1 at Paris Charles de Gaulle (CDG) which will have 8M passengers/year and will become a minihub for these carriers.

16 long-haul airplanes including 3 A340-300's will be based at the Munich hub and projects it will handle 19 Million passengers in 2005 (+1 Million from 2004). Target is to base 30 long-haul airplanes at Munich by 2010.

According to news agency n-tv.de, (DLH) will enter into a joint venture with NetJets to be marketed under the name Lufthansa Private Jet using NetJets airplanes and flight crews.

Andreas Meisel, Senior VP Aircraft Overhaul Lufthansa Technik (LTK), replaces Wolfgang Gohde, now Managing Director Lufthansa Systems Group.

Swiss International Air Lines (CSR) has been acquired by Lufthansa (DLH). 84% of (CSR)'s capital has been acquired by AirTrust, the holding company through which Lufthansa (DLH) is taking over Swiss (CSR). (CSR)'s Swiss brand will be retained and will remain a mostly independent airline with its management seat still in Switzerland, keeping its own airplane fleet and crew, but managed within the Lufthansa (DLH) system as a separate profit center. Total purchase price ranges between EUR 45 Million & EUR 300 Million.

Strategic cooperation with Aegean (CRM) will result in codeshare on flights between Germany & Greece, as well as some Greek domestic routes and on some selected (DLH) international routes.

2 737-530's (24823; 24937) returned to service.

April 2005: Lufthansa Technik Group 2004 = +EUR 227 Million (+5.3%): 514 customers worldwide (+12%).

737-530 (24815, D-ABIA), returned from SmartWings (TVS).

June 2005: Lufthansa Technik (DLH) (LTK) signed with Air France Industries (AFA) to launch Spairliners GmbH, a 50/50 joint venture that not only will support the 25 A380's ordered by (AFA) & (DLH) ut will offer a "full sprectrum of support services for components to all A380 operators worldwide." Spairliners will operate as a standalone company with 7 employees initially with the CEO from (AFA) and the (CFO) from (DLH) (LTK) and will e ased at Paris Charles de Gaulle (CDG).

Expands its e-ticketing program to include flights on its partner airlines bmi (BMA) and (LOT) Polish.

July 2005: Karsten Benz, VP Sales & Services Europe, replaces Ulrich Wachter, now head of Lufthansa's (DLH) Cabin Crew (CA) division.

In 2005-08, Munich and Frankfurt to Kiev (6/week), including a connecting service from Dusseldorf. In 2005-09, Munich to Donestsk. In 2005-10, Frankfurt to Dnipropetrovsk (6/week).

A340-343X (687, D-AIKI) delivery.

August 2005: In 2005-10, to base 4 737's at Hamburg for services to Budapest, Gothenburg, Madrid, Nice, Prague, & Rome.

Lufthansa (DLH) will close for economic reasons its cabin crew bases in Bremen, Hanover, Cologne and Nurnberg starting with the winter schedule. According to staff magazine 'Lufthanseat,' the carrier also is looking to close Stuttgart. Affected cabin staff will be offered the opportunity to transfer to one of the other (DLH) bases.

34,700 employees (+.4%).

As part of the integration of Swiss International Air Lines (CSR)into the Lufthansa (DLH) system, the carriers announced they will operate all services between Switzerland and Germany, a total of 563 weekly flights, as codeshare flights with introduction of the 2005 -2006 winter schedules from 2005-10. (DLH) and (CSR) also are harmonizing their entire schedules, with timetables closely linked "to provide a coordinated and complementary range of services at their three hubs of Zurich, Frankfurt and Munich . . . instead of competing against each other with almost simultaneous departures --as was often the case in the past."

(CSR) will offer 69 destinations in 41 countries in its winter schedules with a 70-airplane fleet, reduced from the current 80, while (DLH) offers service to 181 destinations in 76 countries.

September 2005: Lufthansa (DLH) and Frankfurt Airport (FRA) operator Fraport signed a deal lowering the cost of ground handling for the carrier at the airport for the next five years. Savings amount to more than >-€10 million per year, according to "Reuters," which cited (DLH) Passenger Airline management board member Carsten Spohr. Savings will come from a combination of lower prices and greater efficiencies, Spohr said. (DLH) will not achieve its target of reducing its €160 million ($195.9 million) bill by €50 million when a contract expires at year end, "but we will significantly reduce our costs." Fraport Chief Executive Wilhelm Bender said the airport operator will offset the reduction in ground handling fees from Lufthansa through its own cost savings. Fraport already has agreed on a cost-cutting package with its works council.

(DLH) purchased a 4.95% stake worth €170 million/$206.3 million in Frankfurt Airport operator Fraport AG on Friday, strengthening its partnership with Europe's largest passenger and freight hub. Lufthansa (DLH) said it plans to increase its holding to 5% in the short term. "Our stake in the airport operator will intensify our partnership with Fraport and lastingly strengthen our airline's position at the major Frankfurt hub," (DLH) Chief Executive Wolfgang Mayrhuber said in a statement. The carrier accounts for approximately 60% of Frankfurt's traffic. "(DLH)'s acquisition of shares does not have any negative impact on the operational airport business. In the future, Fraport will continue to cater to the needs of all airlines serving (FRA)," the airport said in a statement.

Amadeus was selected to provide the Common Information Technology (IT) Platform for passenger service systems for the Star (SAL) Alliance. The multiyear selection process was managed and decided by Lufthansa (DLH) and United Airlines (UAL), the carriers that will be the first (SAL) members to migrate to Amadeus's next-generation Altea platform, which also has been chosen by a number of non-Star (SAL) airlines.

According to a joint statement from (SAL) and Amadeus, savings will come from a variety of areas encompassing "initial development costs, running costs and costs for future enhancements. The automation of business processes will also lead to further cost savings. Additionally, the platform will enable the carriers to improve speed to market for the introduction of new products or functionalities."

2 A330-343X's (687, D-AIKI; 701, D-AIKJ),deliveries.

October 2005: Lufthansa Commercial Holding GmbH, a wholly owned subsidiary of Deutsche Lufthansa AG (DLH), is selling its 52.6% stake in Loyalty Partner GmbH to British private equity company Palamon Capital Partners. (DLH) said it will realize a book profit of around €100 million ($121 million) in the just-ended third quarter. After the sale, (DLH) will continue "the successful cooperation between Miles & More and the Payback bonus card program operated by Loyalty Partner."

Lufthansa (DLH) and Swiss International Air Lines (CSR) will use the same terminals and check-in facilities at Zurich, Frankfurt and Munich and, as previously announced, will codeshare on their more than 80 daily flights between Germany and Switzerland with introduction of the 2005 - 2006 winter schedules from Oct 30. Codeshare services will be extended from Frankfurt and Munich to Bremen, Leipzig, Cologne-Bonn, Krakow, Gdansk, Sofia, Riga and Los Angeles. Swiss (CSR) also is adding service from Zurich to Venice and ending service to Alicante. From Geneva it is adding Lisbon under a codeshare agreement with (TAP) Portugal while dropping service to Rome. The network from Basel covers four destinations: Zurich, London City, Brussels and Amsterdam.

A319-114 (738, D-AILT), returned from GermanWings (RFG).

November 2005: Aegean Airlines (CRM) and Lufthansa (DLH) launched their first code share flights on November 1. Eighty-two daily departures within Greece and additional flights to Munich, Frankfurt, Amsterdam, Brussels, Larnaca, Hannover, Berlin, Hamburg and Paris will be operated under codeshare. (CRM) could become the next Star Alliance (SAL) Regional member.

(DLH) will upgrade the equipment used on its overnight flight from Frankfurt to Tel Aviv from an A330-200 to an A340-600 on Mar 27th. (DLH)'s dayflight will continue to operate with a 747-400. (DLH) is also interested in resuming Munich - Tel Aviv service.

All Nippon Airways (ANA) will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star Alliance members Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), Scandinavian Airlines (SAS), Singapore Airlines (SIA), Thai International (TII), United Airlines (UAL), and Varig (VAR).

Lufthansa (DLH) Flight Training will provide a comprehensive training package for Martinair (MTH) with the introduction of the 747-400 Freighter to the latter's fleet. Through 2007, 42 Martinair (MTH) pilots (FC) will earn their type ratings from (DLH) for the 747-400F. Value of the deal is more than €2 million/$2.3 million.

Lufthansa Systems Group (LHS) will be converted into a stock corporation effective January 1. The decision by the group executive board of Deutsche Lufthansa AG (DLH) was confirmed by the supervisory board of Lufthansa Systems on November 24. Following Cargo, Technik, LSG and Thomas Cook, the Information Technology (IT) services segment will be the latest Lufthansa Group company to be transformed into a stock corporation. It will remain a wholly owned subsidiary of (DLH).

Separately, (LHS) said it introduced a new feature to its Electronic Logistics and Warehouse Information System cargo handling system that enables users to send all invoices to airlines, forwarders and other customers via e-mail in PDF format. It also will offer NetLine/Plan light, which will allow small and medium-sized airlines to use the flight planning functions of NetLine/Plan.

December 2005: Lufthansa (DLH) wants to reduce pilot (FC) costs further to help boost profitability and meet increasing competition in the global airline market, Chief Executive Wolfgang Mayrhuber said. In an interview with Reuters, Mayrhuber questioned how long (DLH) can continue to pay its pilots (FC) "significantly above the market rate" and said market conditions should apply to new pilots (FC) joining (DLH). "We have to convince the unions that lower pay is advantageous for them, as only profitable jobs are secure jobs," he said. "We have to negotiate with the unions. It is not easy. Not everyone understands how much a large company like (DLH) has to earn to be secure." Mayrhuber said previously that (DLH) needs to achieve an annual operating profit of +€1 billion/+$1.2 billion "as soon as possible" to grow and create value. He added that the Vereinigung Cockpit pilots union will have to budge on an agreement preventing lower-paid pilots at its airline partners such as CityLine from flying regional planes with more than 70 seats. "If not, we will have to find other solutions," he said. These would not include using Swiss International Air Lines (CSR), which (DLH) took over this year, he added.

(DLH) and tourism company TUI are interested in joining a consortium to bid for German Air Traffic Control (ATC) provider Deutsche Flugsicherung (DFS). (DLH) CEO Wolfgang Mayrhuber said possible partners include Fraport, Munich Airport, Air Berlin (BER) and TUI leisure carrier Hapagfly (HAP), "Reuters" reported. "A majority held by a German consortium is the right way," he said. TUI CEO, Michael Frenzel told "Financial Times Deutschland" he wanted to avoid any single company having a dominant position in (DFS), perhaps enabling it to raise (ATC) charges to its German competitors. Fraport and German construction firm and airport operator Hochtief reportedly have said they would be interested in bidding for (DFS) in a consortium. The government plans to sell 74.9% of the entity to private investors in 2006.

Separately, the European Commission (EC) approved (DLH)'s acquisition of majority voting rights in Eurowings (EWG). (DLH) will continue to own 49% of the company but will acquire an additional 1%-plus-one-share of the voting rights. In return, (DLH) and (EWG) agreed to make slots on the Cologne - Vienna, Stuttgart - Vienna and Stuttgart - Dresden routes available to any competitor unable to acquire them through standard allocation processes.

(DLH) Flight Training named Managing Director Florian Hamm chairman of the management board.

The supervisory board of (DLH) approved an order for 12 CRJ-900s that will be configured for 84 seats and will replace 50-seat CRJ-200s. In a statement, the airline said, "The competitiveness and cost-efficiency of the regional fleet are of crucial importance in (DLH)'s European operations and for feeder flights to intercontinental connections at its major hubs."

(DLH) has reorganized and restructured its Regional operations over the past 12 - 24 months, downplaying the independent identities of its partners in favor of a more homogenized approach. The regional fleet currently consists of 160 airplanes.

(DLH) "will look seriously at the 747-8," Chairman & CEO, Wolfgang Mayrhuber said, citing in particular the decision by Boeing (TBC) to offer the (GEnx) as the engine for the new model. The 747-8 would fit in (DLH)'s fleet between the A340-600 already in service and the A380, which arrives in a few years. Mayrhuber explained that prior (TBC) proposals to extend the life of the 747 would not have made the airplane competitive. However, "With a new powerplant [and a] small capacity enhancement, one seriously has to consider it." He added, "In fact, we wanted this airplane 10 years ago."

January 2006: The Association of European Airlines (AEA) selected Wolfgang Mayrhuber, (CEO) & Chairman of the executive board of Lufthansa (DLH), as Chairman for 2006. He takes over from (TAP) Portugal (CEO), Fernando Pinto.

Honeywell (SGC) will provide its Runway Awareness and Advisory System (RAAS) to Lufthansa (DLH). (RAAS) uses (GPS) technology to compare an airplane's location against a database of airport runways and provides audio alerts.

(DLH) carried 51.3 million passengers last year, up +0.7% compared to 2004. It flew 108.2 billion (RPK)s passenger traffic, up +4% (8th highest in world). (ASK)s capacity rose +2.5% to 144.2 million, resulting in a 1-point gain in load factor to 75% LF. Lufthansa Cargo (LUB) had Freight traffic 18.73B (FTK) (+1.5%), carried 1.7 million tonnes of freight, down -1%, on a +1.3% increase in capacity owing to additional belly space on the group's passenger airplanes, causing cargo load factor to fall -2 points to 65% LF.

(DLH) said that AirTrust AG, a joint venture between (DLH) (49%) and the Almea Foundation of Switzerland (51%), completed its acquisition of Swiss International Air Lines (CSR) in a deal reportedly worth €310 million/$374.9 million.

(DLH) said it installed lie-flat seats in its two A319LRs and one 737-7AK BBJ Business Jet, which are operated by Geneva-based PrivatAir (PTS). The all-business-class (C) airplanes currently fly to Newark from Dusseldorf and Munich and to Chicago from Dusseldorf. Each seat is equipped with a (DVD) player and laptop power. The A319s seat 48 and the 737-7AK BBJ 44. (DLH) also recently announced upgrades to its business class (C) and economy (Y) cabins on flights within Germany and Europe beginning this spring with new leather seats from Recaro and B/E Aerospace. In business class (C), each middle seat in the 3-3 configuration is left vacant and is equipped with a center console providing additional storage space. Pitch in business will be 48 cm and 44 cm in economy. The new seats are lighter, resulting in an annual reduction in fuel consumption across the European fleet of approximately 5 million liters.

A320-211 (689, D-AILL), returned from germanWings (RFG).

February 2006: Lufthansa (DLH) Systems (LHS) and Airbus (EDS) reached agreement to offer the (LHS) eRouteManual across the Airbus fly-by-wire product line in new airplanes and as a retrofit. It already is offered as a Class III Electronic Flight Bag (EFB) solution on the A380. The eRouteManual charts include taxiway displays for airports, approach and takeoff charts and a seamless worldwide en route chart. When provided as a retrofit solution for airplanes already in service, the product is being offered as a Class I or Class II (EFB). Class III (EFB)s with fully integrated systems are available for all new airplanes.

Lufthansa Technik (LTK) continues to grow its presence in the Asia/Pacific market, where more than a quarter of the global jet airplane Maintenance Repair & Overhaul (MRO) provider's 25,500-plus employees are located. Japan Transocean Air (SWL) signed a Total Component Maintenance contract covering its 23 737-400s based in Okinawa. (LTK) also will provide Total Technical Support to StarFlyer (STF), a Japanese startup set to launch March 16 using A320s. Additionally, it has new (MRO) agreements with All Nippon Airways (ANA), Japan Airlines (JAL)/(JAS) and Skymark (SKM).

"Asia is the most important growth market" for (LTK), Chairman August Henningsen said. The company is committed to growing Ameco-Beijing (BEJ), its joint-venture (MRO) facility with Air China (BEJ), as well as Airfoil Services, its joint venture with (MTU) based in Malaysia. It recently added the capability to do (PW4000) thrust reversers at its Shenzhen facility.

Lufthansa (DLH) Systems (LHS) views the rapid development of new airlines in the Asia/Pacific region as an opportunity to grow its market share here, Managing Director-Lufthansa Systems Asia/Pacific Ralf Cabos said at Asian Aerospace. The Information Technology (IT) solutions subsidiary of Lufthansa Group (DLH) has opened sales offices in India and Hong Kong as well a new office in Shanghai to complement its facility in Beijing. It will be opening an office in Japan as well, Cabos said. Its biggest regional endeavor is its (IT) joint venture with Garuda (GIA) that employs close to 100 and is doing all of Garuda (GIA)'s customer (IT) software and hosting systems and developing new solutions for the industry.

With a product portfolio that ranges from technical and operational solutions, such as its eRoute Manual that is onboard the A380 here, to FACE (future airline core environment), its reservations and passenger management system that is being done with Unisys, (LHS) believes it is uniquely positioned among airline (IT) providers.

(SAS) Ground Services signed a three-year agreement with Lufthansa (DLH) covering operations at Copenhagen, Oslo, Bergen, Stavanger, Stockholm and Gothenburg. (DLH) is (SAS) Ground Services' biggest customer outside (SAS) Group carriers.

March 2006: (DLH) will resume service to Bahrain with a thrice-weekly Frankfurt - Manama flight beginning June 2 aboard an A330-300. The flight will continue to Abu Dhabi.

Swiss International Air Lines (CSR) and (DLH), continuing the integration of their schedules, will create minihubs in Sao Paulo and Bangkok from the start of the summer season on March 26, permitting passengers to transfer between the airlines for onward travel. For example, (CSR) will extend its five weekly Zurich - Sao Paulo services to Santiago, while (DLH) will have a daily flight from Sao Paulo to Buenos Aires. The two westbound flights will arrive in Sao Paulo from Europe at almost the same time, enabling customers to transfer from one to the other for their onward travel within South America. The same arrangements will be made for the Swiss (CSR) and (DLH) services from Sao Paulo and Buenos Aires respectively, providing passengers with transfer connections to Frankfurt and Zurich, (DLH) said. A similar minihub will be created in Bangkok, from which passengers will have connections to Singapore, Kuala Lumpur and Ho Chi Minh City.

April 2006: Lufthansa Technik (DLH) (LTK) launched Total Material Operations (TMO) support service offering integrated supply of components, spare parts and consumables for airline networks. As part of (TMO), (LTK) said it is establishing "central component and supplies depots at the main bases of its customers and subsequently at all the airline's stations throughout its network." For North American customers, "this would support a coast-to-coast operation where (LTK) employees from California to New York will supply all maintenance stations throughout the network with Line Replaceable Units (LRU)s," including cabin interior furnishings and fittings as well as large components such as thrust reversers.

May 2006: (DLH) resumed service to Bahrain after a 10-year absence, launching thrice-weekly flights from Frankfurt aboard an A330 and six-times-weekly freighter service.

June 2006: Lufthansa (DLH) appears to have been unsuccessful in its bid to cut pilot (FC) costs in the face of strong earnings last year, announcing a new deal with the approximately 4,000 pilots (FC) represented by the Vereinigung Cockpit union that offers a +2.5% pay raise from July 1, a further +1.5% raise on March 1, 2007, a small one-off payment and an incremental reduction in regular work hours.

(DLH) and Qatar Airways (QTA) started code share flights from Doha to the USA via Germany at the beginning of the month. (DLH) will operate the transatlantic legs to New York (JFK), Newark, Washington Dulles and Houston. (QTA) plans to launch its own nonstop flights to the USA this year with its first A340-600IGW.

Lufthansa Technik (LTK) joined the Airbus Maintenance Repair & Overhaul (MRO) Network, which was launched in March 2005 and now includes 14 members. "The new arrangements will simplify and accelerate the exchange of technical data. Combined with our strong engineering resources, there will be a further increase in the efficiency of (MRO) services for Airbus airplanes," (LTK) Executive Board Chairman, August Henningsen said.

July 2006: Lufthansa (DLH) will launch thrice-weekly Frankfurt - Kolkata service from December 1 aboard an A340-300. It is the carrier's sixth Indian destination.

(DLH) chose (SAS) Ground Services Finland for its ground handling services at Helsinki Vantaa. The three-year agreement goes into effect August 15. (DLH) operates eight flights per day from the airport.

South African Airways (SAA) and (DLH) were fined by South Africa's Competition Tribunal for anticompetitive behavior. (SAA) agreed to the fines in May for allegedly colluding with (DLH) to fix ticket prices on flights between Cape Town, Johannesburg and Frankfurt. (SAA) will pay ZAR40 million/$5.6 million, while Lufthansa (DLH) agreed to pay ZAR8.5 million.

(DLH) wants to increase the number of long-haul destinations it serves from Munich from 18 to 40 by the end of the decade. (DLH) will start a daily Munich - Sao Paulo service on September 13 using A340-300s.

(DLH) opened the Lufthansa Aviation Center at Frankfurt International Airport. The facility will house offices for 1,800 employees and features 36 meeting rooms and seven conference rooms.

August 2006: Lufthansa (DLH) will launch services from Hamburg to Moscow Sheremetyevo (four-times-weekly from October 30), Geneva (daily from October 29), Innsbruck (twice-weekly from December 21) and Palma (thrice-weekly from February 17).

(DLH)'s partially owned subsidiary, Thomas Cook AG (JMA) sold subsidiaries Thomas Cook Overseas and Thomas Cook Lebanon to Dubai Financial, a Dubai Investment Group subsidiary.

September 2006: Thales (THL) and Smiths Aerospace announced that Lufthansa (DLH) selected the Topflight Flight Management System, a joint product of the two companies, for seven new A340-600s. (DLH)'s decision represents a switch from Honeywell (SGC).

(DLH) broke ground on an A380 hangar in Frankfurt, initiating construction on a facility that it aims to build out completely by 2015. Lufthansa Technik (LTK) Chairman, Wilhelm Henningsen said the airline will invest €150 million/$190.2 million "in what will become Europe's largest airplane maintenance hangar." (DLH) signed a 65-year land utilization agreement with airport operator Fraport that will allow it to build and operate the hangar on a 17-hectare site southwest of the airport.

(LTK) signed an agreement with Aeroflot-Don (DAU), a 51% subsidiary of Aeroflot (ARO), under which it will provide its Total Component Support Maintenance Repair & Overhaul (MRO) solution for the carrier's 737-500 fleet, two of which have been delivered with four more due for delivery next year.

(DLH)'s Supervisory Board gave approval for the airline to order 35 Airbus (EDS) airplanes valued at more than >$3 billion, including five new A330s that will "compensate for the delayed entry into service of the A380," (DLH) said in a statement. (DLH) has firm orders for 15 A380s. It currently operates 10 A330-300s.

(DLH) said it also intends to order five A319s, 10 A320s and 15 A321s as well as 5 A330's and will place options for 30 more A320 family airplanes. Deliveries will begin next year, with all five A330s delivered by the end of 2008.

October 2006: Lufthansa (DLH) said it will recruit +500 flight attendants (CA) and +250 staff for check-in and other ground services in Munich. (DLH) said that 2.2 million passengers used the hub in September, an increase of +10% over the year-ago month.

(DLH) selected the (Trent 700) to power the five A330s it ordered last month. The $300 million deal includes a TotalCare long-term services agreement. Deliveries begin in the first quarter of 2008.

November 2006: Lufthansa (DLH) is expanding its presence in Malta. First, Lufthansa Technik (LTK) will set up new Maintenance, Repair & Overhaul (MRO) capabilities for "C" and "D" checks on the A330 and A340 families. Under terms of a Memo of Understanding (MOU) signed by the Maltese government and (LTK) Malta, a joint venture with Air Malta (MLT), a hangar will be constructed by Malta Industrial Parks and leased to (LTK). Pending approval of a new labor agreement with local trade unions, the facility is due to be up and running as early as 2008.

Meanwhile, (DLH) and (MLT) will operate code share flights on several routes and recognize each other's loyalty programs. All 21 weekly flights between Malta and Frankfurt and Munich will be operated on a code share basis with immediate effect.

(DLH) will continue to strengthen its second hub at Munich International Airport (MUC) and plans to base approximately 120 airplanes there for the summer 2007 schedule.

December 2006: Turkish Airlines (THY) officially became the newest member of the Star (SAL) Alliance. Beginning March 25, (DLH) and (THY) will operate selected flights between the two countries on a code share basis and "harmonize" schedules. "For passengers, this will mean more frequencies, a wider choice of destinations and better connections at Lufthansa (DLH )'s Frankfurt and Munich hubs, as well as at Istanbul," (DLH) said. Participants in each airline's frequent-flier program will be able to collect miles on either's network and to redeem them with the partner carrier.

(DLH) inaugurated its thrice-weekly Frankfurt (FRA) - Kolkata service, making the West Bengal capital, its sixth destination in India.

(DLH) signed a Memo of Understanding (MOU) to sell its 50% stake in leisure travel group Thomas Cook (JMA) to KarstadtQuelle for €800 million/$1.05 billion, but will raise its stake in Condor Flugdienst (CDF) from the present 10% to 24.9% and receive the shares held by Condor (CDF) in Turkish holiday airline SunExpress (SNS). (DLH) and KarstadtQuelle each currently hold a 50% stake in Thomas Cook (JMA), and Condor (CDF) is presently 90% owned by Thomas Cook (JMA).

To that end, (DLH) believes it can contribute to the growth of SunExpress (SNS), which "has established a leading position as a holiday carrier operating flights to Turkey," Mayrhuber said, adding that (DLH) will work with future Star (SAL) Alliance partner Turkish Airlines (THY), a stakeholder in (SNS), to expand that position.

(DLH)'s board approved orders for 20 747-8 Intercontinentals - - the first of the variant to be sold by Boeing (TBC) - - plus 20 options and seven A340-600s, a total investment in long-haul planes valued at nearly $7 billion.

The 747-8Is will be delivered from 2010 to 2013, while the A340-600s will begin delivering in 2008. "With airplane types in the 747 series from Boeing (TBC) on the one hand, and others from the A330/A340/A380 family from Airbus (EDS) on the other, Lufthansa (DLH) is ideally equipped to strengthen and expand its leading position in intercontinental traffic," (DLH) Executive Board Chairman, Wolfgang Mayrhuber said.

The order for the 747-8 passenger version may come as a surprise to some given the German involvement in the A380 program. However, many in Germany are incensed by the blame game that has resulted from A380 production problems and suggestions that all German A380 work will be transferred to France. (DLH), a longtime (TBC) and McDonnell Douglas customer, traditionally has striven to split its airplane orders and signaled its continued support for Airbus (EDS) with the A340-600 order. (DLH), which said that it expects to take delivery of its first A380 in 2009, also is considered a leading contender to be the launch customer for the A350 XWB.

But this 747-8I order clearly was a big win for (TBC). (DLH) said the 20 747-8Is will be powered by (GE) (GEnx-2B67) engines. "When those engines became available, the 747-8I started to make economic sense," Nico Buchholz, (DLH) Senior VP Corporate Fleet, said. (GE) said the firm order for 80 (GEnx) engines is valued at more than >$950 million.

January 2007: For 2006, the (DLH) Group had 110.33 billion (RPK)s passenger traffic (+2%) (world's 8th highest); and 53.43 million passengers (+4.2%).

Lufthansa (DLH) will add around +3,000 new employees in 2007, according to "Bild." (DLH) is looking for 1,200 flight attendants (CA), 800 ground staff and 240 pilot cadets (FC). It currently employs 94,000, up from 92,300 at the end of 2005.

(DLH) said it is extending its Lufthansa (DLH) Private Jet cooperation with NetJets (EXF) for a further five years, after a successful 2006 in which the number of Private Jet flights rose +13%. Up to 10 private corporate jets were booked daily last year, with highest demand - - 60% of the total - - coming from point-to-point connections to around 1,000 destinations in Europe, and the Russian Federation. (DLH) said "more jets will be on call" to accommodate increased demand, and it is adding a Falcon 2000 capable of seating 10 passengers to its offering.

February 2007: UK-based MyTravel (GUE) and German tourist conglomerate, Thomas Cook (JMA) are merging in a deal that will create the second-biggest travel company in Europe behind (TUI). MyTravel (GUE) shareholders will own 48% of the combined company with the controlling 52% held by Thomas Cook (JMA)'s German owner KarstadtQuelle, which agreed in December to buy (DLH)'s 50% stake in (JMA) for €800 million.

March 2007: Lufthansa (DLH) Group, as projected in last month's earnings preview, posted record net income of +€803 million/+$1.05 billion for 2006, a +77.3% increase over net income of +€453 million in 2005, on a +9.9% lift in revenue to €19.85 billion, its highest-ever annual total. Operating profit increased +46.4% to +€845 million from +€577 million in 2005. Passengers carried rose +4.1% to 53.4 million, while cargo transported lifted +1.1% to 1.76 million tonnes. Passenger load factor was 75.2% LF, up +0.2 point.

Lufthansa (DLH) Systems (LHS) will provide its (ELWIS) cargo handling solution to M&M Air Cargo Service of Bulgaria. (ELWIS) is part of (LHS)'s AdvancedCargo suite.

(DLH)'s domestic schedule will rely entirely on e-ticketing by April, it said. It currently is at 96%. Passengers on a domestic flight connecting to a foreign destination, still will have access to paper tickets, albeit with a higher service charge.

Lufthansa Technik (LTK) is investing up to $500 million in preparing for the A380. (LTK) also was involved closely in defining Lufthansa (DLH)'s cabin and In-Flight Entertainment (IFE) configuration. It had 10 technicians (MT) onboard the proving flight to and from (JFK) conducting various tests, including on the new Panasonic (IFE) and noise levels. (LTK) expects the first (DLH) A380 heavy check at the end of 2010. Its A380 capability includes construction of a new hangar in Frankfurt capable of housing four A380s and a hangar in partnership with Ameco Beijing (BEJ) in the Chinese capital, creation of the N3 (Trent) engine overhaul Joint Venture (JV) with Rolls-Royce (RRC), and the Spairliners (JV) with AirFrance (AFA) Industries. In addition, (LTK) teamed up with Airbus (EDS) for the A380 VIP cabin.

April 2007: Lufthansa (DLH) Technik (LTK) said it will become the first international Maintenance Repair & Overhaul (MRO) provider to establish an Indian base when it opens a 20,000-sq-m facility outside Hyderabad at the end of next year. Construction of the two-bay hangar and workshops will begin this summer at the new Rajiv Gandhi International Airport. (LTK), which is partnering with Indian infrastructure firm, the (GMR) Group, will hold more than >75% of the complex's equity share capital and will make an initial investment of more than INR1 billion/$23.3 million. The facility will provide base (MRO) services including "C" and "D" checks for all 737 models and A320 family airplanes using two parallel maintenance lines. The company will begin training technicians and engineers (MT) immediately in partnership with Lufthansa (DLH) Technical Training. The Managing Director (MD) of the new facility, Dominik Wiener-Silver, said he plans to hire more than >400 employees and expects Hyderabad to "emerge as a new aviation cluster with some of the country's best-qualified engineers and technicians (MT)."

Claiming it "is assuming again the leadership in fleet modernization," (DLH) announced a commitment for 15 CRJ-900s and took over commitments for 30 Embraer regional jets from Swiss International Airlines (CSR), now a (DLH) subsidiary. (DLH) currently operates 145 regional airplanes including 12 CRJ-900s.

May 2007: (TAM) (TPR) signed a Memo of Understanding (MOU) with Lufthansa (DLH) to explore "possible close cooperation," that will include "the implementation of code sharing on domestic and international routes" as a first step. The deal marks the third code share agreement inked by the Brazilian airline with a Star Alliance (SAL) carrier in the past month. Star (SAL) lost its only Latin American partner last year, when it expelled Varig (VAR) and, while there has been no known offer to TAM (TPR), (TPR)'s recent string of code share deals with (TAP) Portugal, United Airlines (UAL), and now (DLH) likely will raise speculation that it is targeting Star (SAL) membership.

(TPR) said the (DLH) deal could go beyond code sharing, to include reciprocal loyalty program benefits and shared airport lounges. "We are happy to find a trusted and professional partner in TAM (TPR) in the growing Brazilian market," (DLH) VP Alliances, Strategies & Subsidiaries, Gotz Ahmelmann said.

(DLH) and Swiss (CSR) currently offer a combined 20 weekly flights to Sao Paulo Guarulhos from Frankfurt, Munich and Zurich. Bologna said this month that TAM (TPR) will continue to pursue bilateral code share agreements, but does not currently have plans to join an alliance.

(DLH) announced a partnership with TACA (TAC) that will further (DLH)'s Latin American reach. The (TAC) deal is similar to the (TAM) (TPR) code share recently announced and will comprise code sharing on both domestic and international routes, as well as the possibility of future links between loyalty programs, flight schedules and lounges. (DLH) and Swiss International Air Lines (CSR) offer 35 weekly flights to Latin America while (TAC) serves 35 destinations in 20 countries across North and South America from hubs in San Salvador, San Jose and Lima.

June 2007: Austrian Airlines (AUL) announced it is moving to the Star Alliance (SAL) Common Information Technology (IT) Platform (CITP) for its inventory and check-in systems. The (CITP) is hosted by Amadeus for participating Star member (SAL) carriers and is based on the Altea customer solutions suite. Austrian (AUL) joins Lufthansa (DLH) and United (UAL), as well as regional member carriers Adria Airways (ADH) and Croatia Airlines (CRH) in choosing to migrate to the new platform, expected to occur by mid-2009.

(DLH) and EgyptAir (EGP) announced a code share agreement that they said will be part of a close cooperation between the two and that will boost rumors that the African carrier is being courted by the Star Alliance (SAL).

Code sharing will start with the introduction of the winter schedule and will be introduced on Frankfurt (FRA) - Cairo (CAI), (FRA) - Alexandria, and Munich (MUC) - (CAI) flights. Cooperation on flights to "tourism centers" in Egypt and North Africa, as well as (DLH) services throughout Europe and to North America, is planned. (DLH) is the largest European carrier in Egypt, and currently operates 14 weekly (FRA) - (CAI) services, and thrice-weekly (FRA) - Alexandria flights. EgyptAir (EGP) operates daily flights from (CAI) to (FRA) and (MUC), and twice-weekly services to Berlin Schoenefeld and Dusseldorf. Chairman, Abd El Hamid said the agreement is "part of our corporate strategy aimed at forging partnerships with leading airlines in targeted markets."

(DLH) will launch five-times-weekly Frankfurt - Buenos Aires service October 28 aboard a three-class, 330-seat 747-400.

Goodrich (BFG) said (DLH) is performing in-service evaluation of its laptop docking station electronic flight bags (EFB) on an A340.

Thales (THL)/Smiths Aerospace "TopFlight" Flight Management System ( FMS) was chosen by (DHL) for retrofit on 39 single-aisle and wide body Airbus (EDS) airplanes, plus all 42 new A320s, A330s and A340-600s recently ordered by the airline.

Seventeen months after taking over Swiss International Air Lines (CSR) as part of the AirTrust joint venture, (DLH) announced it will acquire all remaining shares in (CSR) effective July 1. (DLH) partnered in AirTrust with the Almea Foundation, which was founded by Swiss majority shareholders.

(DLH)'s expansion plans include addition of three A340-300s over the next year, replacing two A330-200s. In addition, it announced that it will increase its six-times-weekly services from Zurich to Los Angeles, Johannesburg and Santiago (via Sao Paulo) to daily from the middle of next month. It also will offer a fifth weekly flight to Riyadh over the summer under a wet-lease agreement with PrivatAir (PTS).

(DLH) placed a firm order with Embraer (EMB) for 30 EMB-190s with first delivery slated for January 2009. The airplanes will be configured with 100 seats in two classes.

July 2007: Lufthansa (DLH) said it will shift its daily 44-seat all-business-class (C) flights to Frankfurt (FRA) - Newark (EWR), from the current Munich (MUC) - (EWR) route beginning October 28. It will operate a three-class A330-300 on (MUC) - (EWR) "to accommodate increased demand in all categories on the route." The (FRA) - (EWR) flights will be aboard a wet-leased PrivatAir (PTS) BBJ. The 44 lie-flat seats "provide a near-horizontal sleeping surface measuring 6-ft 6-inches long," (DLH) said.

Lufthansa Technik (DLH) (LTK) started construction on a 27,000 sq m maintenance hangar for A330s and A340 in Malta. (LTK) will invest €55 million/$74.9 million and said the project will create about +540 jobs. The facility should be operational by the 2008 fourth quarter and will be leased to Lufthansa Technik (LTK) Malta, in which Lufthansa (DLH) will hold 92% and Air Malta (MLT) the remainder. (DLH) said the expansion is required to meet rising demand for Maintenance Repair & Overhaul (MRO) on the Airbus (EDS) wide bodies. (LTK) also operates an A330/A340 facility in Manila. Meanwhile, (LTK) Malta will continue to perform maintenance and checks on A320s and 737s. The company was founded in 2002 and has completed 202 "C" checks on narrow body airplanes.

(DLH) signed a Memo of Understanding (MOU) with Moscow Domodedovo (DME) operator East Line Group (ESL) to transfer its 61 weekly flights to the Russian capital to (DME) from Sheremetyevo (SVO), beginning with the summer 2008 schedule. (DLH) is the largest foreign airline at (SVO), but next year will head south to (DME), where it will become the airport's seventh Star Alliance (SAL) carrier. The move represents another blow for (SVO), which lost Austrian Airlines (AUL) the prior month.

(DLH) will join Star (SAL) alliance partners (AUL), Swiss International Air Lines (CSR), bmi (BMA), Spanair (SPP), Singapore Airlines (SIA), and Thai Airways (TII) at (DME). Its current Moscow operation comprises five-times-daily service to Frankfurt, thrice-daily flights to Munich, a daily to Dusseldorf, four-times-weekly flights to Hamburg and a weekly to Berlin that will increase to twice-weekly in September.

(DLH) ended service to Ghana after 40 years. The last Accra - Frankfurt flight took off July 14. According to press reports from Ghana, (DLH) said it refused to reduce its daily service to twice-weekly as requested by the Ghanaian government.

August 2007: Lufthansa (DLH) Technik (LTK) and Bulgaria's Hemus Air (HMS) will open a maintenance facility in Sofia. It is expected that (LTK) will hold 80% of the joint venture, Hemus (HMS) Managing Director, Dimitar Pavlow told the "BTA national news agency." Maintenance Repair & Overhaul (MRO) work will begin on 737s on an unspecified date, with 777s and A340s to follow. (LTK) operates similar (JV)s in Budapest, Malta and the Philippines, and recently linked up with Austrian Airlines (AUL) to open a 777 center in Vienna.

(AUL) Technik and Lufthansa (DLH) Technik (LTK) firmed an April Memo of Understanding (MOU) and signed a 10-year contract to increase a strategic cooperation, highlighted by the establishment of a 777 (MRO) center in Vienna that will service (LTK) clients and third-party customers. The center will be the first of its kind in Europe and is scheduled to be operational in July 2008 at the latest. "First, we will start with 777 Engineering, then we want [to offer] more. The cooperation means a promising future not only for our 1,120 (AUL) Technik employees but the possibility to increase our workforce in a very tough market," (AUL) (CFO), Thomas Kleibl said. Kleibl revealed that he expects cost savings in the double-digit million euros thanks to the (LTK) cooperation, which will fill more maintenance capacity in Vienna. Eventually, up to 70% of (AUL) Technik's capacity may be used by (LTK) clients. (DLH) does not operate the 777, but (LTK) handles (MRO) on the airplane for third-party customers. (AUL) flies four 777-200ERs. (AUL) currently performs "C" checks on (DLH) Airbus (EDS) wide bodies in Vienna, and plans to continue to do over the next decade even as (LTK) expands its A330/A340 capability with establishment of its Malta base.

(DLH) and Air Astana (AKZ) signed a cooperation agreement in the Kazakh capital, that will include code sharing and schedule coordination beginning next year and a linking of the carriers' loyalty programs, that may begin as early as October. The deal is similar to the one (DLH) signed with Russia's AiRUnion (ZXD)/(DOD)/(SMR)/(OMK) last month. (DLH) operates a daily Frankfurt - Almaty service with twice-weekly ongoing service to Astana. (DLH) Cargo (LUB) uses Astana as a hub for flights between Europe and Asia, operating 49 weekly flights through the airport.

(DLH) announced an expansion of its transatlantic network from Dusseldorf starting next May. It will base a trio of three-class, 221-seat, A340-300s there, and operate flights to Chicago O'Hare (ORD) (six-times-weekly), Newark (EWR) (daily) and Toronto (YYZ) (six-times-weekly). (ORD) and (EWR) service currently is offered aboard two PrivatAir (PTS) A319 all-business-class airplanes, which will be placed on other (DLH) routes. (YYZ) will be a new destination from Dusseldorf. (DLH) said that the company was "absolutely satisfied" with the PrivatAir (PTS) offering and that it would find a new market for the airplanes.

(DLH) also will invest €100 million in upgrading its lounges by 2010. It will open a new first class (F) lounge at Munich (MUC)'s Terminal 2 on August 14. The 900-sq-m facility, in which it invested €6 million, will serve up to 300 passengers daily and will feature a restaurant, cigar lounge, passport control, and security checks. Upgrades in Frankfurt and Dusseldorf are underway and a first class lounge will open at New York (JFK) "by the middle of next year," he said. The new lounge is not the only enhancement scheduled for (MUC). Garnadt revealed that three A340-600s will be based there next year, increasing the airport's dedicated long-haul fleet to 23 airplanes. (DLH) expects to handle 23 million passengers at (MUC) this year, representing +11% year-over-year growth.

(DLH) will introduce individual video screens in its long-haul economy (Y) cabins starting in November. It started testing the screens, and both touchscreen and armrest control panels, on flights from Frankfurt to Detroit, Houston Intercontinental and Toronto. The menu will be available in nine languages.

September 2007: Lufthansa (DLH) will increase capacity (ASK)s by +5.7% on its global network for the winter season starting October 28, including the launch of new services to Orlando, Karachi and Lahore. Additionally, it is resuming five-times-weekly nonstop service to Buenos Aires. The winter timetable includes 13,272 scheduled flights, +2.9% more than in the year-earlier period. Beginning October 28, it will operate 12,208 weekly flights on domestic German and European routes, representing a +4% increase in capacity and 1,064 long-haul flights to 42 countries on three continents for a +6.5% rise.

(DLH) will launch thrice-daily, Frankfurt - Bordeaux service on October 28 aboard CityLine CRJ-200s and CRJ-700s. (DLH) will launch weekly Saturday flights from Dusseldorf to Newquay Cornwall in June.

Lufthansa (DLH) Technik (LTK) intends to invest close to €50 million/$70.1 million to build a new engine Maintenance Repair & Overhaul (MRO) shop in Hamburg, that is expected to boost repair capacity from 320 engines per year currently to 400. Construction of the facility, which will have 15,000 sq m of floor space, is set to begin next month with the first engine overhaul planned for early 2009. According to (LTK) Executive Board Chairman, August Henningsen, "the new hall will make it possible to design engine overhaul production and processes so as to incorporate the latest thinking on these subjects. As a result, and in conjunction with optimization of logistics, turnaround times for engines will be further reduced." (LTk) expects a +15% increase in productivity in large part owing to more flexible work rules agreed to by union representatives. The hall will be dedicated to its existing portfolio of engines at Hamburg comprising the (PW4000), (IAE) (V2500), (CFM56), and (GE) (CF6).

(DLH)'s supervisory board approved orders for nine A330-300s and 32 A320 family airplanes. All nine A330s and two A320s will be operated by Swiss International Air Lines (CSR), with deliveries starting in early 2009. The A330-300s will replace A330-200s that Swiss (CSR) currently operates. (DLH) will take delivery of 20 A321s, four A320s, and six A319s beginning in 2011 to operate within Europe. "We are modernizing our continental fleet with the new airplanes and expanding our leading position in our European home market," (DLH) Chairman & (CEO), Wolfgang Mayrhuber said, adding that Swiss (CSR) is "underscoring its capability to compete" with the order.

October 2007: Lufthansa (DLH) Technik (LTK) and Bulgarian Aviation Group (LZB) will open a hangar facility at Sofia for 737 and A320 heavy maintenance, including "D" checks. The 6,000-sq-m facility, Lufthansa Technik Sofia, is expected to be operational in October 2008. It will be capable of handling two narrow bodies at once. Forthcoming renovation and training investments are put at €20 million/$28 million, to be shared by (LZB) and (LTK). The facility will employ up to 380. (LZB) is the parent of three airlines: Bulgaria Air (LZB), Hemus Air (HMS), and Viaggio Air.

Lufthansa (DLH) Technik (LTK) opened a second wide body hangar at Lufthansa Technik Philippines in Manila. It is expanding its Asian operation to include heavy checks on A330s/A340s. The new hangar offers a fifth wide body maintenance line and measures 8,500 sq m.

November 2007: Lufthansa Passenger Airlines (DLH), LH Cargo (LUB), and Germanwings (RFG) need about +420 additional pilots (FC) next year to meet growing demand, including 315 pilots (FC) for the passenger segment alone, and the company is formulating a new training concept to help fill the ranks. Approximately 4,500 pilots currently fly for the three carriers. "Our subsidiary, Lufthansa Flight Training (LFT) trained around 220 new pilots in the last two years at its pilot school in Bremen. For additional expansion, we are looking for an additional 200 pilots on the free market," VP Training Standards & Crewtraining, Werner Maas said. (DLH) doubled its order for student pilots in Bremen from 120 cadets in 2004 and 2005, to nearly 300 this year. "This figure should grow up to 360 by the end of 2008. Since late 2005, we are seeing an enormous growth in pilot training," Maas said. To enhance that growth, a special training concept for new students called "Progresso" will debut in January. The scenario includes updated programs such as (ICAO)'s Multi-Crew Pilot License. Progresso also strives for more efficiency, putting 27 to 30 cadets in each class and reducing training time by six weeks to 22 months. "Progresso not only meets new training standards, but our pilots learn in a more realistic environment," VP (LFT) Pilot School, Nils Ecke said. After 12 months of ground school in Bremen, and four months of flight training in Arizona (Beech Bonanzas and Frasca FNPTs), cadets return to Bremen and continue training on Cessna Citation CJ1+ jets. "The first of four light training jets will be in service by the end of 2008, and with the new program and the new plane, we will bring our cadets closer to real jet flying," Ecke explained. Lufthansa (DLH) has seen a good response so far. "By the end of September, (DLH) had 5,000 applications for ab initio training. They all fulfill the basic qualifications to become a Lufthansa (DLH) cadet," Maas said, adding that the figure is expected to grow to 6,000 by year end.

(DLH) added +350 flight attendants (CA) in the first nine months of this year at its Munich (MUC) base, +25% more than in 2006. (DLH) now employs 2,700 cabin staff at (MUC). Next year, it will add three long-haul airplanes to the base.

(DLH) will start thrice-daily, Frankfurt - Billund flights at the end of March. Eurowings (EWG) will operate the route with B Ae 146-300s. (DLH) currently code shares with Cirrus Airlines (RUS).
(DLH) is launching a thrice-daily Frankfurt (FRA) - Bristol service from March 30, and in April plans to begin daily (FRA) - Seattle flights and recommence daily (FRA) - Calgary services aboard A330-300s. From June 8, it will re-launch five-times-weekly A340-300 Munich - Singapore flights.

EgyptAir (EGP) and (DLH) launched their first code share flights, introduced on (EGP)'s daily services from Cairo to Frankfurt and Munich, and (DLH)'s from Frankfurt to Cairo (twice-daily), and Alexandria (thrice-weekly). Commercial cooperation between the carriers is planned to cover additional domestic and international destinations.

(DLH), which is set to take delivery of the first of 60 A320 family airplanes to be used on European flights, will feature a new cabin design with increased "usable . . . width, which will especially benefit passengers in window seats, giving them more room at shoulder height," the airline said. Also included, will be new window surrounds that "make the windows appear larger" and enlarged overhead bins, (DLH) added.

December 2007: Lufthansa (DLH) will launch five-times-weekly, Frankfurt - Nanjing service March 31 and thrice-weekly, Munich - Shenyang service, via Seoul June 8, bringing the number of Chinese destinations served to five. Routes will be operated with 221-seat A340-300s.

(DLH) and TAM (TPR) signed an agreement to code share, beginning in the first half of next year, and link loyalty programs. TAM (TPR) passengers will have access to (DLH) flights from Sao Paulo Guarulhos (GRU) to Frankfurt (FRA) and Munich, and onward to German destinations, Zurich and Geneva. (DLH) passengers will have access to TAM (TPR)'s (FRA) - (GRU) service and onward connections to nine domestic destinations, Buenos Aires, Montevideo and Santiago. TAM (TPR)'s A340-500 Frankfurt service launched November 30.

(DLH) will launch a weekly, Frankfurt - Luanda service on April 1 aboard an A340-300. It will be (DLH)'s 15th African destination.
(DLH) will launch twice-daily, Frankfurt - Bergen service on March 30, aboard a Lufthansa (DLH) CityLine CRJ-700. (DLH) will operate a twice-weekly, Hamburg - Bergen service during the summer schedule.

Austrian Airlines (AUL) Group (AAG) and Lufthansa (DLH) Technik (LTK) signed a wide-ranging Maintenance Repair & Overhaul (MRO) cooperation agreement in Vienna, based on an (MOU) reached last spring, and firmed over the summer that the two said will reduce Austrian (AUL)'s annual technical costs by approximately -€15 million/-$21.6 million from 2009. (AUL) said (DLH)/(LTK) provides "a comprehensive dispatching in "C" checks and maintenance work, as well as in the airplane components section at (AUL)," part of a "considerable increase in utilization and efficiency," that will secure "the location of the (AUL) Technical Services Division in Vienna for the long term."

(DLH) is considering placing two wet-leased PrivatAir (PTS) A319LRs, which are outfitted with all-business-class (C) cabins and fly out of Dusseldorf to Newark and Chicago O'Hare, on a new Beijing service beginning next summer. They would be the first all-business-class (C) flights between Europe and China.

Lufthansa Technik (DLH) (LTK) Shenzhen reached a 10-year Total Component Support agreement with Shenzhen Airlines (SHZ) covering the carrier's growing A320 fleet with a projected 500 line replaceable units provided locally. The contract eventually will cover up to 70 A320s.

(DLH) will end its cooperation with NetJets (EXF) in February and purchase its own airplanes to expand its Lufthansa (DLH) Private Jet service, which it said then will be better equipped to handle "strong" demand. "Based on the excellent market response, (DLH) anticipates steady growth in this segment," it said. It did not say what type of airplanes it will buy or how many, but it expects the jets to start entering service next spring.

Reluctant to pursue acquisition opportunities currently available in Europe, (DLH) instead opted to invest approximately $300 million in a recently loss-making carrier based in one of the world's most saturated and volatile markets. (DLH) announced the acquisition of 19% of the equity of JetBlue Airways (JBL), a move that Chairman & (CEO), Wolfgang Mayrhuber said marked "a compelling opportunity to invest in the USA point-to-point carrier market as the industry continues to evolve." (DLH) has declined to bid on either Iberia (IBE) or Alitalia (ALI), but Mayrhuber said the JetBlue (JBL) investment "links two airlines with international reputations for quality, innovation and a service culture." The deal, already approved by the boards of both companies, "represents the first significant investment by a European air carrier in a USA point-to-point air carrier," according to JetBlue (JBL), and calls for (DLH) to purchase around 42 million newly issued common shares in a private placement at $7.25 per share. JetBlue (JBL) said the per-share price represented a 16% premium on recent $6.25 closing price. "They see a really good deal at that price," a (JBL) spokesperson said, adding, "It's definitely within [(DLH)'s] practice to look for good investments. It's not tied to any commercial or marketing deal. It's a standalone financial transaction, but (JBL) remains willing to explore any further partnership." The spokesperson confirmed that (DLH)'s interest was not tied to any hopes that a limit on foreign control of USA carriers might be lifted when discussions between USA and (EU) authorities resume. (DLH) will gain a seat on the (JBL) board and its nominee will be a Class II director up for election at the carrier's annual meeting next year. The cash infusion comes at a time when fuel prices are rising, the USA government is considering restricting capacity at (JBL)'s New York hub, and the airline continues to slow its growth following several quarters of losses. It did return to the black in the recently completed third quarter, posting a +$23 million profit. "We welcome this significant endorsement of (JBL)'s franchise from one of the most respected leaders in global aviation," (CEO), Dave Barger said. "The agreement reaffirms our belief in (JBL)'s disciplined growth plan and will also improve our balance sheet and give us greater financial flexibility as we move into 2008." (DLH) scheduled a news conference in Frankfurt to discuss the deal.

January 2008: 2007 statistics: 117.63 billion (RPK)s passenger traffic +6.6%; +4.3% capacity (ASK)s; +1.7 load factor for 76.8% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "DLH-2007-STATS."

(DLH) will add +4,300 new employees this year in Germany, including 2,000 flight attendants (CA) and 1,000 ground staff to be based in Frankfurt and Munich. In addition, 360 flight cadets will start their careers at (DLH) Flight Training in Bremen. (DLH) employs 105,000, with 65,000 based in Germany.

(DLH) and JetBlue Airways (JBL) announced the completion of their stock purchase agreement under which (DHL) took a 19% stake (JBL). "With the conclusion of the financial transaction, (DLH) and (JBL) will begin exploring innovative commercial arrangements designed to benefit both airlines and their customers."

German travel conglomerate TUI (TUG) announced that it signed a Memo of Understanding (MOU) with (DLH) to combine their Low Cost Carrier (LCC) subsidiaries under one "joint and independent holding company." TUI (TUG) owns TUIfly, the combination of Hapag-Lloyd Flug (HAP) and Hapag-Lloyd Express (HLX), while (DLH) partners with Germanwings (RFG) and Eurowings (EWG), along with Albrecht Knauf Industriebeteiligung.

Lufthansa (DLH) Technik (LTK) announced the inauguration and first-phase completion of its wide body Maintenance Repair & Overhaul (MRO) hangar in Frankfurt with capacity for two A380s or three 747s in a 25,000-sq-m ground plan. Second-phase completion is slated for 2015, when four A380s will be able to be serviced simultaneously. Total capital expenditure is approximately €150 million/$220.4 million, (LTK) said. Lufthansa (DLH) has 15 A380s on order, with first delivery scheduled for next year.

(DLH) will start operating a wet-leased PrivatAir (PTS) A319LR outfitted with an all-business-class (C) cabin on a Munich (MUC) - Dubai flight from June 1, creating an all-year service that will supplement (DLH)'s winter flights aboard a three-class A340-300. It sees sufficient demand to justify an all-business (C) operation during the summer. (DLH) currently has two PrivatAir (PTS) A319LRs operating from its minihub in Dusseldorf (DUS) on a daily Newark (EWR) run and a five-times-weekly service to Chicago O'Hare (ORD). Both services will upgrade to three-class A340-300s on May 1, when (DLH) also will launch a five-times-weekly, (DUS) - Toronto. In October, it upgraded its (MUC) - (EWR) service from a PrivatAir (PTS) BBJ with 48 business class (C) seats to an A340 and moved the PrivatAir (PTS) airplane to Frankfurt, to operate the six-times-weekly "Bankers Shuttle" to (EWR).

Lufthansa (DLH)/(LUB) and (DHL) Express announced that their 50/50 joint venture (JV) cargo airline, "AeroLogic" (AGC) will be based at Leipzig/Halle Airport and have a fleet comprising 11 leased 777Fs by 2012. The first eight airplanes will be leased from Deucalion Capital VII, which is managed by Germany's DVB Bank. Boeing (TBC) said the 777Fs, valued at $2 billion, originally were ordered by Iceland's Avion Group in 2005 and were "picked up" by Deucalion in late 2007 after Avion terminated its order. Boeing (TBC) will deliver the first four to AeroLogic (AGC) next year, ahead of (AGC)'s summer 2009 launch, and four more will be delivered in 2010. (AGC), which will paint its airplanes gray and yellow, plans to take delivery of two more in 2011 and one in 2012.

Lufthansa Cargo (LUB) Chairman & (CEO), Carsten Spohr said the (JV) airline "is the culmination of a successful partnership that has existed for many years between (DHL) Express (DHK) and (LUB)." The venture first was announced four months ago. The new carrier will be guided by co-Managing Directors, Thomas Papke (from (DLH)) and Thomas Pusch (from (DHL)). Papke said it aims to rank "among the top five cargo carriers in Europe." Pusch added that (AGC) plans "to fly a route network which, in addition to the major Asian cities, includes exciting destinations across North America." It officially started business with 20 employees and plans to hire +250 more, including 200 pilots (FC).

February 2008: Lufthansa (DLH) will launch thrice-weekly, Frankfurt - Malabo on April 1 aboard an A330-300. The flight will continue to Abuja. Malabo is (DLH)'s 15th African destination.

(DLH) will strengthen its Munich (MUC) hub with the addition of 180 weekly European frequencies and new services to Bilbao, Klagenfurt , and Cluj in the summer schedule beginning March 30. It will base three additional A321s at (MUC), increasing its Bavarian fleet to 102 narrowbody airplanes. It plans to operate 5,000 weekly flights from (MUC) to 90 destinations this summer. (DLH) will launch thrice-weekly, Munich - Mumbai passenger service on May 3 with an A340-300 and increase thrice-weekly, Frankfurt - Kolkata to five-times-weekly on June 3, when it will operate 50 weekly flights to six Indian destinations.

Lufthansa Technik AG (LTK) is investing €50 million/$73.2 million to extend its engine maintenance business in Hamburg. The new 15,000-sq-m facility will start operations early next year, and should increase annual engine maintenance from 320 units to 400.

Dusseldorf International will invest €300 million in infrastructure upgrades in order to offer shorter connecting times and compete more effectively with other European hubs. (DUS) is looking to increase the percentage of passengers flying long-haul to 20% from 10%. It is the third-busiest airport in Germany with 17.8 million passengers last year.

March 2008: Lufthansa (DLH) reported a net profit of +€1.66 billion for 2007, more than double the +€803 million earned in the prior year, on a +13% rise in revenue to €22.42 billion, both records for the Lufthansa Group as results were boosted by a book gain of about €503 million from the sale of its shares in Thomas Cook (JMA). Chairman & (CEO), Wolfgang Mayrhuber noted that the results were achieved despite high fuel prices, economic uncertainty, and stiff competition. They include Swiss International Air Lines (CSR) earnings for the second half of 2007, the first time those numbers have been incorporated into (DLH)'s full-year figures. (DLH) said it achieved "cost and revenue synergies" with Swiss (CSR) totaling €233 million. Traffic revenue was €17.6 billion, up +14.4%. (DLH) attributed the revenue rise both to the effects of consolidation with Swiss (CSR) and to growing passenger demand. But consolidation also added to expenses, particularly in the areas of materials and personnel. Overall expenses rose +10.8% to €22.5 billion. Fuel costs were €3.9 billion, up +14.7%. Operating profit climbed +63.1% to +€1.38 billion from +€845 million.

(DLH) is looking to enhance its airport product as well. By 2013, it will invest €150 million to refurbish its worldwide lounge network. It has opened new premium facilities at Cologne, with other German airports to follow, while a new lounge concept is being developed at Frankfurt for A380 operations.

(DLH) released further details about its plans to operate its own private jet service beginning this year to replace the agreement it had with NetJets (EXF) to provide the service. First announced three months ago, (DLH) Private Jet (LPJ) will feature nine airplanes from Bombardier (BMB) and Cessna with the first, a six-seat Citation CJ3, due for delivery this month and the remainder coming onboard "in the following months." The (LPJ) fleet will comprise two CJ3s, three four-passenger Citation CJ1+s, two seven-seat Citation XLS+s, and two converted 12-seat CRJ200s. The airplanes will feature "neutral" livery in (DLH) colors. (DLH) will partner with DC Aviation to handle demand peaks.

INCDT: (DLH) A320-211 (346, D-AIQP "Suhl") had a highly public wing-strike incident on attempting to land at Hamburg on March 1. The airplane's left wing tip struck the runway, bending the wing-fence and causing minor damage to the wing surface, before the crew (FC) aborted the landing and executed a go-around. None of the 5 (FC)-(CA)/131 passengers on board were injured. A video of the incident may be seen on "flightglobal.com/a320wingstrike."

Lufthansa Technik (DLH) (LTK) is scheduled to open its four-bay, A380 hangar at Ameco Beijing (BEJ), which will be the world's largest such facility and is part of a massive investment the Maintenance Repair & Overhaul (MRO) giant is making in the new jumbo airplane. (LTK) Chairman, August Wilhelm Henningsen said that the company is investing approximately $100 million in the new hangar, along with another +$100 million in a Frankfurt (MRO) hangar, €120 million in the N3 Engine Overhaul Services joint venture with Rolls-Royce (RRC) and another €100 million in spares. It is moving forward following a year in which its own revenue growth outpaced that of the world market. It enjoyed a +4.6% boost in full-year turnover to €3.6 billion in 2007, citing a +6.7% increase in business from customers outside the Lufthansa Group. Pre-tax earnings rose +18.6% to €287 million. Chief Executive Finance, Peter Jansen said that 61.2% of (LTK)'s business is third-party, up from 60% in 2006. (LTK) worked on 1,551 airplanes last year. "In view of rising passenger numbers and growing fleets, but also with regard to continuing high fuel prices and price pressure from the airlines, (LTK) was very successful in 2007," Henningsen said. "Although the global market is growing, I anticipate Lufthansa (DLH) [Group carriers] will remain our largest customers," he predicted. (LTK) added 47 new customers last year, bringing its worldwide customer base to 630. It signed contracts worth €440 million in new business last year. Henningsen said the (MRO) market continues to be very fragmented. "We see that some carriers have stopped offering (MRO) to other airlines, but we also see new competitors in Asia or the Middle East with big plans. (LTK) is still the largest player and we have a 12% to 14% market share of the global (MRO) business." The worldwide (MRO) business is worth an estimated $38 billion.

Back home in Germany, (LTK) is building a new Research & Development center in Hamburg for its Cabin Innovation business unit that will feature state-of-the-art testing laboratories and exhibition areas for new products being developed for international customers. The five-story, 6,500 sq m building involves an investment of €10 million. "The new building will represent an expansion of (LTK)'s competence in the field of cabin innovation," Henningsen, said.

For discussion of (DLH)'s plans to pass on costs of Global Distribution System (GDS) fees to customers - SEE ATTACHED "(DLH)-GDS-MAR08."

April 2008: (DLH) will strengthen the independent hub system it initiated in October 2006 at Frankfurt (FRA) and Munich (MUC), where it installed managers responsible for their own fleet, employees and operations. "We realized economical and operating synergies [at (FRA) and (MUC)]. For example, since we split the fleet at each hub, airplane efficiency has increased by +5%," Executive VP, Karl Ulrich Garnadt said. "We found out that splitting (DLH) into smaller, separate operational units made sense," he said, and the company is examining how to expand on this potential. It already has planned to build a new cabin crew (CA) center at (MUC) and a flight simulator center could follow. "We will have 1,000 pilots (FC) based in Munich. It is logical to also expand the training facilities," he said. If (DLH)'s expansion at Dusseldorf is successful, it is possible a hub manager could be installed there as well. In the short term, the Munich manager is responsible for 24 long-haul and approximately 100 narrowbody airplanes. "By introducing the A380, more big planes like the A340-600 could transfer to (MUC)," Garnadt said. But (MUC) is running out of capacity and (DLH) is in talks with airport operator (FMG) to expand its terminal facilities. "We would need the [upgraded] facility in 2010, but it may not be available until 2012," he said. (DLH) handled 18.2 million passengers at the airport last year and is expecting annual growth of +7%.

Garnadt said there are "a bunch of new destinations on our agenda." He said (DLH) is studying expanding its service to oil-producing countries, especially in Africa, and this summer will operate a six-times-weekly flight to Pune aboard a wet-leased PrivatAir (PTS) all-business-class (C) A319LR.

(DLH) introduced mobile phone boarding passes on flights from Hamburg to Munich and Frankfurt. They will be introduced "gradually" on most domestic routes this summer, following an eight-week pilot phase, the airline said.

Amadeus completed (DLH)'s migration to its Star Alliance (SAL) Common Information Technology (IT) Platform inventory management module. The migration covered inventory control, 700,000 flight schedules, and 40 existing applications. The system is based on Amadeus's Altea Inventory technology.

(DLH) announced the sale of its 49% stake in ground handling company, GlobeGround Berlin to the (WISAG) Group. (DLH) said the Berlin airports also will sell their majority stake in the company to (WISAG). GlobeGround will continue to handle (DLH) in Berlin, after the sale closes.

The (DLH) group operated a combined fleet of 524 airplanes at the first quarter's end.

May 2008: (DLH) will launch all-business-class (C) service between Boston (BOS) and Munich (MUC) on Ocober 26. The route will be served six-times-weekly with a 48-seat A319CJ Corporate Jet, operated by Swiss VIP carrier, PrivatAir (PTS). The new service is a premium extension of (DLH)'s existing daily, (BOS) - (MUC) summer service.

June 2008: Lufthansa (DLH) released a series of "ambitious" environmental goals designed in part to meet the (IATA) (ITA) target of a -25% reduction in CO2 emissions per flown km by 2020. It also said it intends to increase the amount of biofuel mixed with conventional kerosene by up to +10% by 2020.

Travelport Global Distribution System (GDS) signed agreements with (DLH) and Swiss (CSR) that assure that the full content of both airlines will be made available to all Galileo and Worldspan users worldwide through 2011.

(DLH) will begin phasing out its 60-strong 737-300/-500 fleet by next year, with the 737-500s leaving by the end of 2009, and the remaining airplanes being retired by 2012, depending on market developments. (DLH) owns 80% of its fleet. Nico Buchholz, who as Senior VP Corporate Fleet is responsible for 520 airplanes (plus those operating for partner airlines like Contact Air), said that (DLH) is selling an average of one airplane per month. "But the number of new airplanes we are bringing into the fleet, is higher," he said, adding that (DLH) has up to 180 on order, worth approximately €14 billion/$21.6 billion.

Some incoming airplanes are replacements. A320s will replace the 737s and 747-8s will replace 747-400s, for example, although Executive VP Operations, Juergen Raps said that "If market development is good, then we will keep the 737-400s longer." Some of the 60 A320s on order will be transferred to Swiss International Air Lines (CSR) to grow its fleet, with the remainder slated for mainline service.

Buchholz expressed confidence that the 747-8 will be successful. "We need a 400-seat airplane in the future," he said, claiming that engine commonality with the 787 will secure the airplane's place in the mainline fleet. "The A350-1000 or 787-10 will not have the performance we need," he said.

Meanwhile, four (DLH) pilots (FC) have secured their A380 certifications. "We have to train 30 check captains for the A380. The pilots (FC) come from the A330/A340 fleet. Also, a small team will work as so-called mixed fleet pilots (FC) and fly both types," Raps explained, adding that (DLH) needs 30 pilots (FC) for each A380. It is scheduled to take its first airplane in the 2009 fourth quarter and operate 15 of the type by 2015.

Motorola will provide Lufthansa Technik (LTK) with its (RFID) solution for tracking components. The technology reads (EPC) (UHF) tags and is expected to reduce manual data entry and accelerate the repair process.

July 2008: Lufthansa (DLH) said it is expecting a +10% increase in passengers flying between Germany and Russia. It transported 1.7 million between the countries in 2007 and currently flies to nine Russian destinations.

August 2008: 1st 6 months = 61.74 billion (RPK)s traffic - - see "DLH-08TOPWLD6MTHSRPK."

Lufthansa (DLH) initiates new summer services to Calgary; Luanda; Malabo; Nanjing; Pune; Seattle; & Shenyang.

September 2008: Lufthansa (DLH) will take over Brussels Airlines (DAT)/(EBA) in a deal that potentially values (DAT)/(EBA) at €250 million/$355.6 million and could pave the way for its entry into the Star Alliance (SAL). In a first step, (DLH) will take a 45% "strategic" stake in (DAT)/(EBA) parent, SN Airholding for €65 million. It will have the option of acquiring the remaining 55% from 2011. It was agreed that the total price of the acquisition will not exceed €250 million.

(DAT)/(EBA), launched in 2006, is the fruit of a merger between Brussels-based Low Cost Carrier (LCC) Virgin Express and its full-service competitor SN Brussels Airlines (DAT)/(EBA), which itself was the successor to former Belgian flag carrier Sabena (SAB).

With its latest addition, (DLH) secures a fourth hub in Europe alongside Frankfurt, Munich, and Zurich, and strengthens its position in Africa. (DAT)/(EBA) operates to 14 African destinations of which only four also are served by (DLH) subsidiary, Swiss (CSR). The group will be the largest European operator to Africa with 28 destinations, ahead of Air France (AFA)/(KLM).

(CEO), Wolfgang Mayrhuber said (DLH) has developed a "unique multihub, multibrand" strategy. In line with that philosophy, (DAT)/(EBA) will retain its brand and headquarters and will operate under its own Air Operator's Certificate (AOC). He added that (DLH) has transformed from a "branded house" to a "house of brands," from a "traditional or legacy airline" to a "multiproduct provider," and from a "standalone" company based in Frankfurt to a "European" airline system.

The (DLH) supervisory board approved the company's strategic investment in (DAT)/(EBA) parent SN Airholding. (DLH) will acquire a 45% stake in (DAT)/(EBA) for €65 million, and in 2011 will have an option to purchase the remaining 55%, at which point (DAT)/(EBA) will be integrated fully into the group.

(DLH) will exit flights from Frankfurt to Lahore next month. It recently exited Karachi, Pakistan's largest commercial center.

Lufthansa Technik (LTK) is expanding capacity in European countries with lower labor costs and plans to perform its first "D" check on an A321 at its new Sofia facility in November. (LTK) Sofia will open formally on October 28, employ 258, and feature a two-bay, 6,000 sq m hangar. (LTK) has invested €20 million in the facility along with partner Bulgarian Aviation Group. Sofia will join (LTk) sites in Germany, Ireland, Hungary, and Malta in performing single-aisle Maintenance Repair & Overhaul (MRO).

Meanhile, (LTK) Malta is planning to open its new 27,000 sq m hangar early next year to accommodate A330s and A340s in addition to narrow body airplanes. The joint venture between (LTK) (51%) and Air Malta (MLT) (49%) will increase the number of employees to 274 from the present 150, and eventually to approximately 700.

October 2008: Lufthansa (DLH) was the only carrier to confirm its interest in bidding for the Austrian Airlines Group (AAG) by the deadline. "Due to the current economic developments at (AUL) and obviously (DLH) said that it would maintain (AUL)'s (VIE) hub for at least 30 years, but also warned that if the sale does not go through and if (AUL) leaves the Star Alliance (SAL), (DLH) will launch negotiations with Austrian Low Cost Carrier (LCC) Niki (NKI) to become an investor and compete with (AUL).

(DLH) will become bmi (BMA)'s main shareholder with an 80% stake, following the decision by bmi (BMA) Chairman, Michael Bishop to exercise his option requiring (DLH) to purchase his 50%-plus-one-share of the carrier he helped to found more than >30 years ago.
The deal makes (DLH) the second-largest slot holder at London Heathrow behind (BAB) with a 12% share. The option, which was part of a 1999 agreement that gave (DLH) a 10% share in (BMA), was exercised three weeks ago, but the action was revealed in (DLH)'s third-quarter earnings report. It posted a +€149 million profit, down -74.6% from the +€586 million earned in the third quarter of 2007.

(DLH) currently holds a 30%-minus-one-share stake in (BMA) and the remaining 20% is owned by the (SAS) Group, which has expressed publicly its desire to divest.

Lufthansa Technik (DLH) (LTK) announced that the former Swiss International Air Lines (SWS) Technical Division based in Basel has been relaunched as Lufthansa Technik Switzerland, focusing on technical support for VIP and business airplanes, including the Boeing (BBJ) and Airbus (EDS) ACJ. It also will service regional airplanes and engines operated by Swiss (CSR), such as the Avro RJ-100. It employs nearly 500. The company will be headed by (CEO), Rainer Lindau and (CFO), Jan-Hendrik Labe. Lindau previously headed Aircraft Maintenance at Lufthansa CityLine. Labe has been Head of Commercial & Logistics at Swiss (CSR)'s Technical Division since 2005.

(DLH) (LTK) announced that Croatia Airlines (CRH) is performing "C" checks on A320s on its behalf, broadening a cooperative relationship dating to 1992. Work is being done at (CRH)'s Zagreb facility.

(LTK) Budapest reached a three-year agreement with (AUL) to provide heavy maintenance checks on 20 A320s.

(LTK) opened a new Maintenance Repair & Overhaul (MRO) center at Sofia. The joint venture between (LTK) (80%) and Bulgarian Aviation Group (20%) will offer maintenance and heavy checks on both Airbus (EDS) and Boeing (TBC) narrow bodies. The company invested €20 million in renovation of a 6,000 sq m, two-bay hangar and will employ 350. It will look to secure third-party work from European, Middle Eastern, and North African carriers.

(DLH) Flight Training announced the opening of its Munich training center. Expected to have a staff of 24, the facility initially will accommodate EMB-190, A320, and A330/A340 simulators.

(DLH) intends to switch to an all-Airbus (EDS) mainline fleet at Munich to cut maintenance and crewing costs. The last 8 Munich-based 737-300/-500s will be withdrawn during 2009, leaving (DLH) with 40 A320-family narrow bodies and 27 long-haul A330/A340s SEE ATTACHED "FLIGHT" ARTICLE IN - - "DLH-NEWS-2008-10."

November 2008: Lufthansa (DLH) launched daily, Dusseldorf - Miami aboard an A340-300.

(DLH) opted not to wait for a decision on a foreign partner for the restructured Alitalia (ALI) and will be launching its own subsidiary at Milan Malpensa (MXP), called "Lufthansa Italia," in February. Six former Germanwings (RFG) A319s will comprise the venture, designed to take advantage of (ALI)'s cutbacks in Lombardy. (DLH) originally had planned to base Air Dolomiti EMB-195s at (MXP) but instead has decided to pursue its own Italian Air Operator Certificate (AOC).

The A319s will be painted in (DLH) livery and include the Italia brand and will seat 138 passengers across two classes. Italian flight attendants (CA) will staff the cabin. (MXP) operator (SEA) will cooperate on upgrades including an enhanced lounge product and security fast-tracking.

Last year, (DLH) placed an order for 15 CRJ-900s for CityLine and took over Swiss International Air Lines (CSR)' order for 30 EMB-190s. (DLH) subsidiary Air Dolomiti will take the first EMB-190, with the distribution of the remaining airplanes unannounced. CityLine transported 7.3 million passengers last year, approximately 10% of (DLH)'s total.

December 2008: Vienna will be (DLH)'s preferred hub for routes to Central and Eastern Europe, while Zurich (Swiss International Air Lines (CSR)) and Brussels (Brussels Airlines (DAT)/(EBA)) will be the centers for its African operations.

(DLH) confirmed that it temporarily has removed four A300-600s from service as a result of reduced demand. "We have parked the airplanes for an unspecified time," a spokesperson said. (DLH) has no current plans to park additional airplanes, but if further capacity adjustments are necessary it will consider removing A340-300s from the fleet.

(DLH) will purchase Germanwings (RFG) from Eurowings (EWG), in which (DLH) already holds a 49% stake. "(EWG) can now concentrate more on its core business," (CEO), Friedrich-Wilhelm Weitholz said. Transfer is expected to occur January 1. Germanwings (RFG) posted revenue of €630 million/$801 million last year.

The Star Alliance (SAL) confirmed that Brussels Airlines (DAT)/(EBA), which is owned partially by (DLH), will join the (SAL) organization, and (SAL) (CEO), Jaan Albrecht said the 21-member group eventually may more than double in size.

To handle its much larger future, (SAL) is examining restricting its leadership and management, Albrecht revealed. He said that smaller carriers will provide "local leadership" while (SAL) linchpins like (DLH) or United Airlines (UAL) will offer "global leadership."

No time line was revealed regarding (DAT)/(EBA)'s membership. It will become (SAL)'s 10th European member and operates 45 airplanes on approximately 300 flights to 55 European and 15 African destinations. (DLH) reached agreement to purchase 45% of (DAT)/(EBA) in September and has an option to acquire the remainder in 2011.

(DLH) Chairman & (CEO), Wolfgang Mayrhuber said recently that the acquisition of Austrian Airlines (AUL) and (DAT)/EBA) is a "logical step" toward creating a pan-European network. Mayrhuber said (DLH) is targeting further consolidation. "From the (DLH) management perspective, we can do more," he said. "Our logo is the crane, not a chicken," he said.

Lufthansa Technik (DLH) (LTK) opened a 15,000 sq m Maintenance Repair & Overhaul (MRO) shop in Hamburg focused on (CFM56) overhaul. (LTK) expects the facility to increase the region's annual engine overhaul capacity from 320 to more than >400 and generate some 2,000 maintenance contracts in the long term. The investment in the site since late last year is put at nearly €50 million/$68.3 million.

January 2009: "Lufthansa Italia" took to the skies following a ceremony christening of its first two A319s. The airplanes were named "Milano" and "Varese," breaking with (DLH)'s tradition of naming planes after German cities and marking a new phase in its aggressive expansion strategy, which now includes the first establishment of a carrier outside its home market.

Lufthansa Technik (LTK) announced the establishment of Lufthansa Technik Maintenance International (LTMI), a 100% subsidiary integrating the former Condor (CDF)/Cargo Technik (CCT) it previously acquired. (LTMI) will be based in Frankfurt and will assume responsibility for airline third-party Maintenance Repair & Overhaul (MRO) business previously handled by (LTK). It will continue to maintain Lufthansa Cargo (LUB)'s MD-11s as well. The unit has some 1,000 employees. Additionally, (LTMI) will take over responsibility for (LTK)'s "Technical Operations Management (TOM)" product. Under (TOM), which was introduced last fall, (LTMI) assumes "the complete maintenance organization for an airline fleet across its entire station network." The company will operate under the same approvals as (LTK) and the former (CCT), assuming maintenance activities for 757s, 767s, MD-11s, A330s and A340s, and eventually A320s and 737s.

International Aero Engines (IAE) won a deal with (DLH) to provide its (V2500) SelectOne engine to power 20 firm A321s plus options. The contract is valued at $850 million if all options are exercised. Deliveries are scheduled to begin this year. Pratt & Whitney (P&W), a partner in (IAE), valued its share of the order at more than >$283 million if all options are exercised.

February 2009: Lufthansa (DLH) reported a +€1.38 billion operating profit in 2007.

The Thomas Cook Group announced that it plans to acquire (DLH)'s 24.9% stake in its Condor Airlines (CDF) subsidiary for €77.2 million/$99.9 million under options granted in 2007. (CDF) transported just under 7 million passengers last year but suffered a -10% year-over-year decline in January, a source close to the airline said.

(DLH) and Brussels Airlines (DAT)/(EBA) announced reciprocal lounge access and baggage check-through. The carriers said a code share agreement covering "large parts" of their networks "is also envisaged," in addition to the pooling of (DLH), (DAT)/(EBA) and Swiss International Air Lines (CSR) loyalty programs.

March 2009: The Lufthansa Group concluded a volatile 2008 with a +€599 million/+$759.8 million net profit, down -63.8% from the hefty +€1.66 billion earned in 2007, and admitted that it expects declines in passenger numbers, revenue and operating profit this year.

Group revenue rose +10.9% year-over-year to €24.87 billion on a +13.8% lift in traffic turnover to €20 billion. Profit from operating activities sank -1.7% to +€1.35 billion from the +€1.38 billion reported in 2007. The group's Swiss International Air Lines (CSR) subsidiary reported 2008 (EBIT) of CHF507 million/$438.7 million, down -6.5% year-over-year.

The Passenger Transportation segment posted an operating profit of +€722 million, down -12.6% year-over-year. The company transported 70.5 million passengers, up +12.2%, and load factor fell -0.9 point to 78.9% LF. Lufthansa Cargo (LUB)'s operating profit rose +20.6% to +€164 million and Lufthansa Technik (LTK)'s increased +2% to +€299 million.

Executive VP Marketing & Sales, Thierry Antinori said that two of the three all-business-class (C) airplanes wet-leased from PrivatAir (PTS) (two A319s and one 737 BBJ) will be reconfigured with 60Y economy and 32C business seats by late summer. The two airplanes will fly from Frankfurt to Bahrain and Dammam.

Brussels Airlines (DAT)/(EBA) and (DLH) will code share on flights between Brussels and Frankfurt, Berlin, Hamburg, Hannover, Nuremberg and Stuttgart beginning March 29.

April 2009: Lufthansa Technik (LTK) officially opened its new Cabin Innovation research center in Hamburg. The €10 million/$13.2 million, 6,300-sq-m facility features testing laboratories and an exhibition center to showcase newly developed cabin products. Lufthansa (DLH)'s Hamburg base also includes a new engine overhaul center and an expanded Airframe Related Components business unit.

(LTK) said (C&D) Zodiac selected its on board floor proximity lighting system, Guideline ColourFit, for installation on board the CSeries.

(LTK) opened a €60 million/$80.9 million Maintenance Repair & Overhaul (MRO) facility at its (LTK) Malta subsidiary after only 18 months of construction. The 60,000-sq-m complex features two wide body hangars and one narrow body bay and will become a second maintenance center for (DLH)'s A330 and A340 fleet and wide body airplanes operated by third parties. (DLH) is the world's largest operator of A330/A340 airplanes (15 A330-300s, 27 A340-300s and 23 A340-600s) and currently operates an A330/A340 "center of excellence" in Manila.

"It has been a trend for 20 years that classic aircraft maintenance has become too expensive within [continental] Europe," (LTK) Chairman, August Wilhelm Henningsen said. "We have had a positive experience with the Maltese workforce, as well as good cost advantage compared to Europe and an enormous support from the Maltese government." Employee numbers at (LTK) Malta should rise from the current 450 to at least 700 by 2011 depending on developments in the market.

(LTK) Malta plans to perform 24 A330/A340 "C" airplane maintenance checks annually. Average transit time for a heavy check could be up to four weeks depending on the age of the airplane. "C" checks are necessary about every 18 months on average. Since its establishment in 2002, (LTK) Malta has carried out more than >350 "C" checks for (DLH) and more than >20 other airlines.

May 2009: Lufthansa Technik (DLH) (LTK) Sofia, the 80 - 20 joint venture (JV) between Lufthansa Technik (DLH) (LTK) and Bulgarian Aviation Group launched last year, recently opened a second maintenance line for Boeing (TBC) and Airbus (EDS) narrow bodies. The first user of the facility was a Ural Airlines (URL) A320. Beginning in July, the (JV) will add 737 maintenance to its portfolio.

Sabre and (DLH) signed a four-year global agreement providing Sabre Travel Network-affiliated agencies and corporations continued access to (DLH)'s full content.

June 2009: Lufthansa (DLH) announced it will operate five-times-weekly, Frankfurt - Accra - Libreville service from July 15 aboard A330s/A340s.

July 2009: (DLH) will reduce winter schedule capacity at London Stansted by -40%, operating just 24 airplanes from the airport compared to the present 40.

(DLH) phased out its last A300-600 on July 1 following a flight from Rome Fiumicino to Frankfurt as part of (DLH)'s effort to cut -€300 million/-$421.6 million in costs this year. The A300-600 served as the backbone of (DLH)'s continental fleet for 22 years. It operated 26 A300s in addition to 24 A310-200s/300s. All the A300-600s have been offered for sale and some already have been purchased.

August 2009: Lufthansa (DLH) will launch thrice-weekly, Munich - Tashkent service March 28 to be operated by PrivatAir (PTS) aboard a 737-800.

The European Commission (EC) confirmed that it will approve (DLH)'s takeover of the Austrian Airlines Group (AAG). (DLH) plans to operate the (AAG) as an independent subsidiary as part of its strategy of becoming a "system of independent airlines" with multiple European power bases.

September 2009: Brussels Airlines (DAT)/(EBA) will launch 12-times-weekly, Brussels - Milan Linate service October 25 aboard an Avro RJ. (DLH) will code share on the flight. (DAT)/(EBA) and (DLH) also announced an expansion of their code share arrangement covering more routes to Africa. (DLH) will place its code on (DAT)/(EBA) flights from Brussels to Abidjan, Banjul, Bujumbura, Nairobi, Monrovia, Douala, and Yaounde. (DAT)/(EBA)'s code will be on (DLH) services from Frankfurt to Accra, Khartoum, Johannesburg, and Cape Town.

(DLH) announced a +40% increase in capacity to Nigeria beginning October 25. It will continue to operate daily, Frankfurt (FRA) - Lagos flights and will increase its (FRA) - Abuja service to daily from thrice-weekly. Abuja will continue to Port Harcourt four-times-weekly and to Malabo thrice-weekly. All flights are aboard A330-300s, A340-300s or A340-600s.

JetBlue Airways (JBL) and (DLH), which owns 15.6% of (JBL), announced a code share agreement. (DLH) initially will place its code on connecting flights from (JFK) and/or Boston to Austin, Buffalo, Fort Lauderdale, Fort Myers, New Orleans, Pittsburgh, Raleigh-Durham, Rochester, San Juan, Syracuse, Tampa, and West Palm Beach. (DLH) said (JBL) customers will have access to (DLH)'s "network of 180 destinations in Europe, the Middle East, Africa, and Asia."

(DLH) plans to cut -15% of the 1,800 employees working in central operations, such as those in the Communications & Financial departments. (DLH) will reduce the number of positions by -5% annually in 2010 to 2012. "During the same period, we want to reduce our non-personnel costs by -7% annually."

Meanwhile, Lufthansa Cargo (LUB) will reduce its fleet from 19 MD-11Fs to 13 in October, starting with four airplanes on October 1, and is evaluating making at least a portion of the cut permanent. A decision depends on the pace of global economic recovery and the possibility of a night flight ban at Frankfurt.

October 2009: (SAS) agreed to sell its 20% stake in bmi (BMA) to Lufthansa (DLH)-related UK holding company (LHBD) Holding, effectively giving (DLH) full control over (BMA) when the transaction takes effect on November 1. Under the terms of the agreement, (LHBD), which already owned an 80% stake in (BMA), will pay (SAS) £19 million/$30.4 million for its 20% stake.

Lufthansa Technik (DLH) (LTK) officially inaugurated Lufthansa Technik Milan (LTMIL) at Malpensa. (LTMIL) will offer component and maintenance services up to "A" maintenance checks, airplane-on-ground (AOG) support and troubleshooting. Initially, airplanes from the A320, A330/A340 and 737 families will be maintained, but "in case of an adequate market demand, (LTMIL) will also extend its services to other airplane types." The new facility is an extension of Lufthansa Technik (LTK) Component Services Milan, which opened in spring 2008. (LTK) will invest about €8 million/$11.9 million over the next five years in Milan. (LTMIL) rented a 6,400 sq m airplane maintenance hangar that has space for up to four narrow bodies or one wide body and two narrow bodies.

SEE PHOTO - - "DLH-OCTOBERFEST CA-2009-10."

November 2009: JetBlue Airways (JBL) and Lufthansa (DLH) launched code share operations at New York (JFK) and Boston. Passengers originating in 13 (JBL) destinations currently have access to transatlantic flights on (DLH) out of (JFK) and (BOS), with more cities set to come online next year, the airlines said.

(DLH) said its first A380 delivery will be delayed again by several weeks and it now is expected in early summer next year instead of spring.

December 2009: Regarding the restructuring at the Austrian Airlines Group (AAG), the group's newest member, Mayrhuber expressed confidence in the measures being implemented, but he expects a profit by 2011. "It is possible. The (AAG) must maintain its service level. It has to adjust capacity and cut costs further," he said. "I will be satisfied with the (AAG) when it makes a profit again."

January 2010: Lufthansa (DLH) said it plans to launch flights to Baghdad and Erbil from both Frankfurt and Munich during the summer schedule. (DLH) said demand for Iraq service is "growing" and traffic rights and "further infrastructure improvements" are required. Subsidiary, Austrian Airlines (AUL) currently serves Erbil from Vienna.

(DLH) will launch flights from Munich to Miami (thrice-weekly on March 29 aboard an A330-300), Tashkent (thrice-weekly on March 28 aboard a PrivatAir (PTS) 737-800) and Teheran (four-times-weekly on March 29 aboard a (PTS) 737). (DLH) will launch five-times-weekly, Dusseldorf (DUS) - Toronto Pearson on May 13 aboard an A330-300 and will operate new continental service beginning March 30 from (DUS) to Gdansk (five-times-weekly, aboard CRJ-700s), Naples (twice-weekly aboard CRJ-900s), Athens (five-times-weekly, aboard CRJ-900s) and Dubrovnik (twice-weekly, aboard CRJ-700s). Service to Nice will increase to daily from five-times-weekly.

Germanwings (RFG) said it will increase capacity (ASK)s by "double-digits" this year and will add four new A319s to its fleet. By year end, (RFG) will operate 30 A319s/A320s. It said it will focus on growing business traffic this year with initiatives that might appeal to travelers looking for cheaper tickets and travel solutions. (RFG) expects to transport more than >8 million passengers in 2010; it carried 6.3 million in the first 11 months of 2009. It operates bases at Cologne, Stuttgart, Berlin Schoenefeld, Hamburg, and Dortmund, and serves 65 destinations. Last month, (DLH) Chairman & (CEO), Wolfgang Mayrhuber said (RFG) will grow independently and will not be used as a vehicle to cut costs across the (DLH) mainline's European network.

A340-313 (355, D-AIFB) converted to VIP configuration for German Air Force.

February 2010: Lufthansa Technik (DLH) (LTK) Philippines (LTP) signed a contract with AirAsia X (ASX) to provide Maintenance Repair & Overhaul (MRO) services on (ASX)'s fleet of eight A330s/A340s for three years beginning in March. The work will take place at (LTP)'s Manila facility. (LTP) will provide four "C"-checks and a heavy maintenance check in the first year and also has committed to performing cabin retrofit services.

The contract is another signifier of (LTP) parent, Lufthansa Technik (LTK)'s commitment to Asia. (LTP), he noted, now has 3,000 employees in Manila. He described Asia as the "driving motor" of the nascent recovery in global air traffic.

Lufthansa Technik (DLH) (LTK) and Virgin Blue (VOZ) signed a three-year exclusive agreement "on an innovative repair procedure" for (CFM56-7B) engines powering 737NGs operated by (VOZ) and its Pacific Blue (PBI) and Polynesian Blue (PLY) entities. All repair work will be carried out by (LTK)'s Airline Support Teams based at its Melbourne subsidiary (LTQ) Engineering, a joint venture between (LTK) and Qantas (QAN). According to (LTK), the agreement covers inspection and replacement of variable stator vane bushings.

(DLH)'s first A380 completed painting and is on schedule for May 10 delivery. The airplane is named "Frankfurt am Main." (DLH)'s second A380, dubbed "Munchen," arrived at Airbus (EDS)'s Hamburg Finkenwerder facility ahead of cabin interior and painting work.

March 2010: Lufthansa (DLH) said it ended a "difficult" 2009 with a net loss of -€112 million/-$151.9 million, reversed from a restated 2008 profit of +€542 million and the company's first full-year deficit since 2003.

Revenue fell approximately -10% to €22.3 billion, while operating profit plunged -90% to +€130 million from +€1.3 billion in 2008.

The net result implies a -€80 million fourth-quarter net loss based on the -€32 million deficit incurred through the first nine months of 2009. (DLH) said when announcing its third-quarter results in late October that a full-year operating surplus might be out of its reach. It was +€226 million in the black on an operating level through September 30, meaning it suffered an operating loss of -€96 million in the fourth quarter.

The Passenger Airline Group, which was enlarged last year with the additions of Austrian Airlines (AUL), Brussels Airlines (DAT)/(EBA) and bmi (BMA), reported a +€78 million full-year profit, down -90.9%, but an -€8 million operating loss that compared to a +€789 million surplus in 2008. Lufthansa (DLH) Passenger Airlines' operating loss was -€107 million, narrowed -11.8%. The group carried 76.5 million passengers, up +8.5%, on a +4.2% increase in traffic (RPK)s to 160.65 billion. Capacity rose +5.5% to 206.27 billion (ASK)s, lowering load factor -1 point to 77.9% LF.

(DLH)'s March 28 to October 30 summer schedule will feature a +3.6% year-over-year increase in seat capacity owing to fleet renewal, a -0.1% decline in the number of weekly flights and a reduction in destinations to 204 from 206 last year. It will launch A380 service in June. New routes are Munich to Tashkent (thrice-weekly), Chisinau (daily), Rostock (twice-weekly), Zadar (weekly), and Bari (daily) and a daily Lufthansa Italia Milan Malpensa - Palermo service.

Lufthansa (DLH) will launch six-times-weekly, Dusseldorf - Edinburg service on April 26.

Lufthansa Cargo (LUB) reported a -€152 million loss, reversed from a +€201 million profit in 2008, on a -32.9% drop in revenue to €1.95 billion. Lufthansa Technik (LTK) earned +€331 million last year, up +0.6%, and Lufthansa Systems suffered a -59% drop in profit to +€16 million. LSG Sky Chefs earned €75 million, down -20.2%.

Lufthansa (DLH) regional subsidiary, Eurowings (EWG), which plans to reduce its fleet from the current 34 airplanes to 15, will close all its bases except for Dusseldorf in order to reduce costs. Bases at Dortmund, Munster Osnabruck, Paderborn, Cologne, Nurnberg, Berlin Tegel, Hannover, Frankfurt, Stuttgart, and Munich will close.

Lufthansa (DLH) Systems appointed Vodafone Deutschland executive, Stefan Hansen, Chairman & (CEO) effective July 1, succeeding the departing Wolfgang Gohde.

The first of four A380s scheduled for 2010 delivery now is expected to arrive on May 19. (DLH) expects each A380 to transport 366,000 passengers and fly 4.6 million km per year, Antinori said. The first 747-8 Dreamliner should arrive in late 2011 and enter operation in early 2012 and will feature a new business class (C) product. The number of seats on each airplane will increase, but so will the comfort, Antinori said.

April 2010: Volcanic ash from the Eyjafjallajokull volcano eruption on April 14th in south-eastern Iceland caused dramatic disruption to air traffic in Europe, with many airlines cancelling services throughout the following five days owing to airspace closures but questioning whether European Union (EU) governments and Air Traffic Control (ATC) providers were overreacting.

(KLM) and Lufthansa (DLH) were among the carriers that performed test flights over the following weekend. Several European carriers, including Finnair (FIN) and Lufthansa (DLH), grounded their entire fleets.

SEE ATTACHED "AIRLINER WORLD" MAGAZINE ARTICLE ON THE VOLCANO ERUPTION IN ICELANDAIR (ICE) - - "ICE-2010-04-VOLCANO ERUPTION-A/B/C/D/E."

SEE ATTACHED - - "DLH-2010-04-VOLCANIC ERUPTION."

Lufthansa (DLH) introduced a mobile-friendly version of its MySkyStatus social networking tool, which automatically sends flight status updates to users' Facebook and Twitter accounts as well as through personalized e-mails.

(DLH) announced that it will initiate scheduled flights aboard its first A380 on June 11 with thrice-weekly service between Frankfurt (FRA) and Tokyo Narita (NRT). The airplane is the first of four A380s slated for delivery to (DLH) in 2010. It will replace a 747-400 on the route. Daily (FRA) - (NRT) A380 service will start August 4 after (DLH) takes delivery of its second A380. Its third A380 will operate between (FRA) and Beijing thrice-weekly beginning August 25 and its fourth will fly between (FRA) and Johannesburg, thrice-weekly from October 25.

(DLH) said its A380s will be configured with 526 seats, "including a completely revamped first class (F) cabin on the upper deck that features eight generous seats and promotes a sense of privacy." Business class (C), also on the upper deck, will feature 98 seats. Main-deck economy class (Y) will comprise 420 seats.

May 2010: Lufthansa (DLH) Consulting was selected by Yakutia Airlines (SYL) to support (SYL) in achieving (EASA) Part 145 certification. (SYL) said its objective is to achieve the approval for line maintenance by year end.

(DLH) took delivery of its first A380-841 (038, D-AIMA "Frankfurt am Main") in a ceremony at Airbus (EDS)'s Hamburg facility. The (Trent 900)-powered airplane is the first of 15 A380s that (DLH) has on order. It expects to receive three more this year and four in 2011.

(DLH) will initiate scheduled passenger service with the A380 June 11 with thrice-weekly service between Frankfurt and Tokyo Narita. (DLH) said it has about 100 total airplanes on order. It expects to take its first 747-8 in late 2011 or early 2012.

(CTT) Systems said its cabin humidification system Cair is installed in the first class (F) cabin of the A380 (DLH) received. It said the system will allow for around 25% relative humidity in the cabin, which "will improve sleep, reduce jetlag, reduce tiredness and alleviate dehydration of the eyes, skin and linings of the mouth and nose." It said that "the Cair system is based on evaporative cooling technology. The dual-purpose system increases cabin humidity to 20% TO 25% relative humidity, compared to 5% TO 10% otherwise in a first class (F) environment due to the few number of passengers in the premium sections." It includes (CTT)'s Zonal Drying System to counter condensation problems.

June 2010: Lufthansa (DLH) will launch four-times-weekly, Munich - Baghdad service September 30, operated by PrivatAir (PTS) aboard a 737. It last operated the service 20 years ago. "Against the backdrop of the economic recovery and as foreign companies establish themselves in the country, there is growing demand for flights to Iraq," Group Representative & Head of Hub Management Munich, Thomas Klühr said.

Lufthansa (DLH) will launch five-times-weekly, Frankfurt Main - Libreville - Pointe Noire service November 3 aboard a PrivatAir (PTS) 737-800.

Lufthansa (DLH) operated its first scheduled A380 flight from Frankfurt (FRA) to Tokyo Narita (NRT) with 520 passengers and 22 crew (FC) - (CA) on board. Thrice-weekly service on the route will become daily on August 4, following delivery of (DLH)'s second A380 by the end of July. Its third will operate between (FRA) and Beijing, thrice-weekly beginning August 25, and its fourth will fly between (FRA) and Johannesburg thrice-weekly, from October 25.

(DLH) flew its A380 from the recent Berlin Air Show to Brussels (BRU) to show the airplane to the Belgian market, part of its tour of European cities prior to its service launch. It is configured with 526 seats: Eight first (F) class and 98C business class on the upper deck, and 420Y economy on the lower deck." The (FRA) - (NRT) flight is almost fully booked through September with very strong bookings in first (F) class," (DLH) Chief Pilot & (COO), Juergen Raps said.

The (DLH) A380's visit to Brussels "proves that Brussels Airlines (DAT)/(EBA) plays an important role in (DLH)'s global network and that Brussels has a place in its multi-hub strategy," (DAT)/(EBA) Co-(CEO), Bernard Gustin said during the flight. "We are too small to operate the A380 ourselves, but through our partnership with (DLH), we are able to offer this fantastic product to our clients."

(DAT)/(EBA) will add its code to (DLH)'s A380 (FRA) - (NRT) service as well as the planned service to Johannesburg, he said. "Subject to traffic rights, we want to maximize code sharing on (DLH)'s global network."

(DLH) reopened its largest lounge in Frankfurt.

July 2010: (DLH) and the ver.di union representing 50,000 cabin crew (CA) and ground workers (MT) agreed on a 22-month pay freeze.

(DLH) said it has seen "major growth" in the number of passengers traveling between Manchester (MAN) and its Munich (MUC) hub in the first five months of 2010, with May traffic on the route up +67.5% compared to May 2009. "Even the disruption caused by the volcanic ash cloud in March and April did not prevent the growth, with passenger numbers still up by +14.6% in April and +38.5% in March." (DLH) said that the strong performance demonstrates that passengers from northwest England" are looking for alternatives to the congested London airports," with more than >65% of travelers connecting or continuing their trips through (MUC). "We took the decision to substantially increase capacity on our flights between Manchester and Munich and our confidence in the route has paid off," (DLH) General Manager UK & Ireland, Marianne Sammann said.

(DLH) will operate 747-400s on German domestic routes during the traditional busy travel month of September. (DLH) said it will use 747-400s on some frequencies on selected peak days from Frankfurt to Munich, Berlin Tegel, and Hamburg.

(DLH) has added a second A380 to its fleet, which will operate the daily Frankfurt (FRA) - Tokyo Narita route beginning August 4. Two more A380s will join (DLH) this year and another four will be added in 2011. Lufthansa Cargo (LUB) will begin placing its last two parked MD-11Fs into service by year end. (LUB) operates a total of 19 MD-11s.

August 2010: Lufthansa (DLH) 2009 World Passenger Traffic = 122,991 Million (-2.4%) (RPK)s (World Highest #7) (#6); Total World Employees = 58,083 (+25.3%) (World Highest #4). SEE ATTACHED - - "DLH-2010-08-WLD RPK-2009."

(DLH) will launch twice-daily, Munich – Luxembourg service on October 31 aboard a CityLine CRJ-700.

Lufthansa Technik (DLH) (LTK) said it will build a new three-bay airplane maintenance hangar at the future Berlin Brandenburg International airport for maintaining short- and medium- range Lufthansa (DLH) airplanes from 2012.

September 2010: Lufthansa (DLH) and Germanwings (RFG) plan to more closely cooperate early next year as (DLH) and its low-cost carrier (LCC) affiliate (RFG) start interlining. Also, (DLH) will open its frequent flyer program to (RFG) passengers, among other measures.
(DLH) has been debating internally about what the right strategy for
(RFG) should be. The affiliate was set up in 2002 with the unofficial target of reaching a fleet of about 100 airplanes within a few years
in order to be able to compete more effectively with Ryanair (RYR) and Easyjet (EZY). But under the leadership of (DLH) (CEO), Wolfgang Mayrhuber, who was appointed in mid-2003, (RFG)’s development slowed significantly.

(RFG) currently operates a fleet of 30 A319s, many of which are based at Cologne/Bonn Airport. In other markets, (RFG) is flying routes parallel with (DLH). Part of (DLH)’s senior management believes that
the group should grow (RFG) much more to take advantage of its cost base, which is estimated to be approximately -40% lower than (DLH)'s. However, the plans recently published indicate that Mayrhuber is
still not willing to free up more space for (RFG) within the Lufthansa group, but it can be used as a basis for future transfer of markets. Mayrhuber will retire early next year.

According to the agreement, (RFG) will be included in (DLH)’s frequent flyer program "Miles & More," but (RFG) will keep its own program, which is branded the “Boomerang Club.” (DLH) also plans to add the (RFG) network to its large corporate contracts. (RFG)
passengers that have a (DLH) "HON Circle" or "Senator (Gold)" status can use (DLH) business (C) and "Senator" lounges.

Internal critics say the initiative still does not go far enough. Instead, (DLH) should withdraw mainline flying from many non-hub markets and give up internal competition with (RFG). (DLH) Deputy (CEO), Christoph Franz, who will succeed Mayrhuber as (CEO) early next year, has not publicly commented on his plans yet, but he is understood to be more open to a more aggressive response to the Low Cost Carrier (LCC) threat.

Two European airlines’ maintenance and engineering operations are looking toward the future through apprenticeship programs. Lufthansa Technik (DLH) (LTK) just started 257 apprenticeships in Germany and British Airways (BAB) Engineering will have 105 in London on September 6. The robust, Germany-based training program that started in 1956 includes 1,025 young people. (BAB) offers three-year apprenticeships for 10 to 15 students at maintenance, repair and overhaul (MRO) bases in Cardiff, Wales, and Glasgow, Scotland; but the London Heathrow-based apprenticeship will be the first offered there in 16 years.

While the schemes differ, their intent is similar. As Garry Copeland, (BAB) Director Engineering, says, the reintroduction of Heathrow engineering apprenticeships is important not just to bring new people and skills to the organization, but also “to recruit leaders for tomorrow.” The apprenticeship coincides with (BAB)’s need for more engineers in two years and the receipt of (BAB)’s first 787 in 2012 and its first A380 in 2013. Copeland says 90 people will start a traditional program in conjunction with Farnborough, Kingston, and Brooklands colleges. This will be followed by 18 months “rotating around the Engineering department working in casualty, ramp and base maintenance,” then six months of activity based on “operational requirements and individual aptitude,” says Mark Ballington, Engineering Training Manager. After the three-year apprenticeship, students will qualify for a City & Guilds Level-3 certificate in Aeronautical Engineering. The second new apprenticeship for 15 people also will start in September, but will teach business administration skills, such as material distribution, logistics and documentation management. This is a two-year stint in business administration at Farnborough College of Technology.

Ballington says (BAB)’s investment for the two programs is “commercially confidential” but adds that it “will be sufficient to make the program a success and manage our future engineering requirements.”

Lufthansa Technik (DLH) (LTK), which spends roughly €47 million/$60 million annually on its youth training programs, received about 5,000 applications this year for the 257 spots. Students choose from 19 career paths—from airplane mechanic (MT) to inventory administration, to educational degree programs such as Bachelor of Engineering or Master of Mechatronics.

INCDT: Lufthansa (DLH) pilots (FC) decided to shut down one engine on an A380 August 6 after they became aware of changing oil pressure data. The incident happened toward the end of a scheduled flight from Tokyo to Frankfurt on approach to (DLH)'s home base. The engine was replaced and the airplane is back in service. Lufthansa (DLH) operates two A380s on the Frankfurt - Tokyo route. (DLH) will take another two A380s later this year. (DLH)’s A380s are equipped with Rolls-Royce (RRC) (Trent 970) engines.

(DLH) took delivery of its third A380 on August 20 with a ferry flight from Hamburg to Frankfurt. The worldwide A380 fleet now stands at 36 operating airplanes. (DLH)’s fourth A380 will be delivered this fall.

September 2010: The Lufthansa Group announced that, as expected, Christoph Franz will succeed Wolfgang Mayrhuber as Chairman & (CEO) of the Lufthansa Group. Carsten Spohr will succeed Franz as (CEO) of Lufthansa German Airlines (DLH) and has been appointed to the group’s Executive Board, and Karl Ulrich Garnadt was named Chairman & (CEO) of Lufthansa Cargo AG (LUB).

(DLH), the largest airline company in the world by revenue, said that Mayrhuber had successfully laid decisive foundations for the future of the company with the expansion of the Star Alliance (SAL), the establishment of the airline group and the development of new markets. “The quality of his leadership could ultimately be seen in the way he successfully steered Lufthansa (DLH) through various crises that the group managed to overcome while maintaining orientation towards quality and without having to sustain any major job losses,” it said.

Franz began his career at (DLH) in 1990. He moved to Deutsche Bahn AG in 1994 and returned to the group in 2004, when he was appointed (CEO) of Swiss International Air Lines (CSR). In 2009, he was named deputy Chairman to Mayrhuber.

Mayrhuber congratulated his successor saying that, “With [Christoph] Franz at the helm and his broad wealth of experience, foresight and determination to implement change, our company will continue to be able to react to future challenges with the necessary speed and flexibility.”

Lufthansa (DLH) and Germanwings (RFG) plan to more closely cooperate early next year as (DLH) and its low-cost carrier (LCC) affiliate (RFG) start interlining. Also, (DLH) will open its frequent flyer program to (RFG) passengers, among other measures. (DLH) has been debating internally about what the right strategy for (RFG) should be. The affiliate was set up in 2002 with the unofficial target of reaching a fleet of about 100 airplanes within a few years in order to be able to compete more effectively with Ryanair (RYR) and Easyjet (EZY). But under the leadership of (DLH) CEO, Wolfgang Mayrhuber, who was appointed in mid-2003, (RFG)’s development slowed significantly.

(RFG) currently operates a fleet of 30 A319s, many of which are based at Cologne/Bonn Airport. In other markets, (RFG) is flying routes parallel with (DLH). Part of (DLH)’s senior management believes that
the group should grow (RFG) much more to take advantage of its cost base, which is estimated to be approximately -40% lower than (DLH)'s. However, the plans recently published indicate that Mayrhuber is
still not willing to free up more space for (RFG) within the Lufthansa group, but it can be used as a basis for future transfer of markets. Mayrhuber will retire early next year.

According to the agreement, (RFG) will be included in (DLH)’s frequent flyer program "Miles & More," but (RFG) will keep its own program, which is branded the “Boomerang Club.” (DLH) also plans to add the (RFG) network to its large corporate contracts. (RFG)
passengers that have a (DLH) "HON Circle" or "Senator (Gold)" status can use (DLH) business (C) and "Senator" lounges.

Internal critics say the initiative still does not go far enough. Instead, (DLH) should withdraw mainline flying from many non-hub markets and give up internal competition with (RFG). (DLH) Deputy (CEO), Christoph Franz, who will succeed Mayrhuber as (CEO) early next year, has not publicly commented on his plans yet, but he is understood to be more open to a more aggressive response to the Low Cost Carrier (LCC) threat.

Peter Jansen will continue as Lufthansa Technik (DLH) (LTK)’s (CFO) for five more years. (DLH)’s board of directors extended his contract at its most recent meeting. Jansen has been serving in his current role since 2001. (LTK)'s (CEO), August-Wilhelm Henningsen signed a contract for another five-year term in 2009. He has been (CEO) since 2001.

As the aviation market bounces back in Asia, Lufthansa Technik Philippines (LTP) is looking at expanding its customer base beyond the region, as well as adding new technical services, such as overhaul layovers and cabin refurbishment designed for budget airlines. (LTP) is a joint venture between Lufthansa Technik (DLH) (LTK) (51%) and the Philippine MacroAsia Corporation. In its 10 years of operation, Lufthansa Technik Philippines (LTP) has grown from a workforce of 1,300 at Ninoy Aquinoh International Airport,
to 2,700 employees, who specialize in the Airbus A330/340 and the A320 airplane families.

Five hangar bays and workshops have been upgraded to support airplane maintenance and overhaul, major modifications, cabin reconfigurations, engine maintenance and painting for the Airbus (EDS) airplanes, as well as 747-400s. “The Manila operation has become the Lufthansa Technik (LTK) Group’s most important internationally active maintenance organization for the overhaul of Airbus (EDS) airplanes,” says August Wilhelm Henningsen, Chairman of the executive board of Lufthansa Technik (LTK).

Lufthansa Technik Philippines (LTP) said it intends to expand its activities to attract more business, particularly from Low Cost Carriers (LCC)s. "We will be offering new products such as overhaul layovers and cabin refurbishments designed specifically for low-cost airlines," President & (CEO), Bernhard Krueger-Sprengel said. Manila-based (LTP) was established to perform Maintenance Repair & Overhaul (MRO) services on the A330/A340 family of airplanes, and added the A320 family in 2005. It has also started repairing engine components. (LTP) says it can provide an A340 "D" heavy maintenance check in 22 days, which it claims is "the best time offered anywhere in the world!"

The German government approved a highly criticized air passenger duty tax, which will take effect for bookings beginning January 1, 2011.

The "ecological air travel levy" was included in a package of government spending cuts introduced earlier this year by Chancellor Angela Merkel, who has maintained that Berlin needs to slash spending by -€80 billion/-$101.5 billion by 2014 to alleviate the nation's shaky fiscal situation. The new tax is expected to raise €1 billion/$1.27 billion annually.

German Finance Minister, Wolfgang Schaeuble said he does not expect that airlines will suffer from the tax. Instead, he said, carriers will pass it on to their passengers. Passengers boarding flights in Germany will be charged €8 for domestic and intra-European short-haul flights, €25 for medium-haul flights and €45 for long-haul flights.

The German Airport Association criticized the new tax, which it believes could mean the loss of thousands of jobs in the country's aviation industry. Lufthansa (DLH) said the fee will weaken Germany's airlines by encouraging passengers to bypass the country. The Netherlands and Denmark both tried similar taxes before dropping them after seeing travelers bypass their airports in favor of lower cost alternatives in near-by countries.

August was a banner month at Frankfurt Airport in terms of traffic, as the month began with a new historical daily record of 184,825 passengers. For the month, 5.2 million passengers, a +6.6% increase,
passed through the Fraport Group’s main airport, the second busiest month in airport history. Moreover, cargo continued double-digit growth, with 185,372 metric tons handled, a +18.4% increase over
August a year ago. Takeoff weights also hit a record high, increasing +6.5% to 2.52 million metric tons year-on-year. Fraport executive board Chairman, Stefan Schulte says Frankfurt traffic has returned to a steady growth pattern.

Lufthansa (DLH) delayed its new 4x-weekly, Munich – Baghdad service that was supposed to start September 30 until further notice, citing weak demand. Subsidiary, Austrian Airlines (AUL) also postponed its Vienna – Baghdad service until further notice.

(DLH)'s third A380 launched its first scheduled service from Frankfurt (FRA) to Beijing. The A380 will operate 1x-weekly service to Beijing and 2x-weekly flights from (FRA) to Johannesburg beginning September 12. (DLH) will launch 2x-daily, Luxembourg - Munich service on October 31 aboard a CRJ-700.

Lufthansa (DLH)’s Supervisory Board has approved the acquisition of 40 Airbus (EDS) airplanes worth approximately US$4.3 billion. These airplanes are destined for Lufthansa (DLH), plus two of the Group’s subsidiary airlines: SWISS (CSR) and Germanwings (RFG). The orders comprise: 20 A320 Family airplanes and three A330-300s for Lufthansa (DLH); four A320 Family airplanes and five A330-300s for Swiss (CSR); and eight A319s for Germanwings (RFG).

According to Airbus (EDS), (DLH) is Airbus (EDS)’ biggest operator worldwide with around 325 of its airplanes currently in service, comprising 227 A320s; 30 A330s; 65 A340s; and three A380s. In addition to this latest decision for 40 airplanes, (DLH) has an order backlog for a further 51 airplanes, comprising 36 A320s, three A330s, and 12 A380s.

October 2010: Lufthansa (DLH) hopes to increase its 1x-weekly Frankfurt – Beijing service to daily from November 19 aboard an A380, pending (CAAC) (CAC) approval.

(DLH) said it will operate an average of 12,218 flights per week this winter, up +3.5% from 11,803 flights in last year’s winter period. Beginning October 31, (DLH) will offer flights to 197 destinations in 85 countries, compared to last year’s 191 destinations in 78 countries.

The three latest additions to the route network are 5x-weekly, Frankfurt (FRA) – Bogota service using A340-300s and 5x-weekly, (FRA) – Pointe Noire service via Libreville with a wet-leased 737-800. It will also operate 2x-daily, Munich – Luxembourg service with CRJ-700s.

Available seat capacity will be increased by +9.1% year-over-year, attributable to (DLH)’s ongoing fleet renewal program. (DLH) said it will operate its four A380s at full capacity this winter.

November 2010: Lufthansa (DLH) increased fuel surcharges. European flights will increase from €21/$29.77 to €24 and on longer routes the surcharge will increase by €5 up to €82, €87 and €97 depending on the distance.

(DLH) will operate seasonal service from Frankfurt on March 27, with 2x-weekly service to Westerland/Sylt, Rostock, Olbia, Palermo, Genova, Split, and a weekly service to Trondheim and Bastia.

(DLH) Chairman, Juergen Weber has proposed that (CEO), Wolfgang Mayrhuber become his successor when Weber retires in 2013. “I could not imagine any better solution,” Weber said at a German aviation press club event in Hamburg. Mayrhuber will step down from his (CEO) job by the end of the year. He cannot move on to become Chairman of the Supervisory Board immediately because of corporate governance standards keeping executives from a direct transfer. Mayrhuber said that he will remain on the board of Lufthansa Technik (DLH) (LTK) and Austrian Airlines (AUL). Weber previously was Lufthansa (DLH) (CEO), and moved over to the Chairman's position upon retirement. Since then, corporate governance standards have been tightened.

The Supervisory Board of Lufthansa Cargo (LUB) announced that Karl Ulrich Garnadt will succeed Carsten Spohr as Lufthansa Cargo (LUB) Chairman & (CEO), effective January 1, 2011. Garnadt, who is currently in charge of Hub Management and Passenger Services on the (DLH) German Airlines Board, will serve for three years. He has been a member of the Board of (DLH) German Airlines since January 15, 2007.

The board also announced that Karl-Rudolf Rupprecht will succeed Karl-Heinz Kopfle as board member-operations at LH Cargo (LUB).

"With these new appointments to the Lufthansa Cargo (LUB) Executive Board, we continue to work with individuals that are leaders in their field," said (DLH) AG Chairman & (CFO), Stephan Gemkow, who added that the two men "know the airline business inside-out."

Lufthansa (DLH) is launching the world’s first scheduled commercial passenger flights using biofuel in the first half of 2011, with an (IAE)-(V2500)-powered A321. In April 2011, (DLH) will begin a six-month trial with an A321 on scheduled commercial flights on the Hamburg - Frankfurt - Hamburg route. Pending certification, one of the airplane’s engines will use a 50-50 mix of biofuel and traditional kerosene. The primary purpose of the project is to conduct a long-term trial to study the effect of biofuel on engine maintenance and engine life.

The daily flights are part of the ‘burnFair’ project to study the long-term impact of sustainable biofuels on airplane performance. Airbus (EDS)’s role is to provide technical assistance and to monitor the fuel properties. The biofuel will be supplied by Finland-based Neste Oil, a fuel refining and marketing company that has cooperated with Lufthansa (DLH) for many years, (DLH) said. Certification of its biofuel is expected in March 2011.

(DLH) Chairman & (CEO), Wolfgang Mayrhuber said that during the six months trial, (DLH) will save around 1,500 tonnes of CO2 emissions. "Lufthansa (DLH) will be the world’s first airline to utilize bio-fuel in flight operations within the framework of a long-term trial. This is a further consistent step in a proven sustainability strategy, which Lufthansa (DLH) has for many years successfully pursued and implemented," he said. The project will cost (DLH) an estimated €6.6 million/$8.74 million.

December 2010: Lufthansa (DLH)’s passenger airline division will be led by four new executives after a wide ranging leadership reshuffle early next year. (DLH)’s incoming (CEO), Carsten Spohr appointed Thomas Kluehr, Kay Kratky and Jens Bischof as new members of the executive board, effective April 1, 2011. Kluehr will be in charge of the Munich hub and the point-to-point routes, while Kratky will take over Frankfurt and Flight Operations. Bischof takes over Sales.

Kluehr, 48, has been running the Munich hub in his last position and was also in charge of the "Climb 2011" project, which aims at cutting costs by -€1 billion/$1.332 billion by the end of 2011. One key element of the Climb effort is to turn around the unprofitable point-to-point operation, an issue that Kluehr will now be dealing with on a permanent basis in his new role.

Kratky started his career as a pilot (FC) at Lufthansa in 1979 and served in senior Flight Operations positions at Lufthansa Cargo (LUB) until 2008. He was then sent to Shenzhen, China, to turn around the group’s Chinese affiliate Jade Cargo (JDC) as Managing Director. Bischof was charged with integrating Swiss International Air Lines (CSR) in 2005 and 2006 before moving to New York as head of the airline’s North and South American Sales organization. The three are replacing Juergen Raps, who will retire as Head of Flight Operations next year when he reaches the mandatory retirement age of 60. Thierry Antinori, currently Head of Sales & Marketing, was promoted to (CEO) of Austrian Airlines (AUL), while Karl-Ulrich Garnadt will become (CEO) of Lufthansa Cargo (LUB). As part of the reorganization, Spohr is introducing an even more stringent separation of the Frankfurt and Munich divisions within Lufthansa (DLH). The two organizations will become effectively separate airlines with Corporate functions, staff, infrastructure, Cabin and Flight Operations departments, as well as Commercial functions. The two hubs will be positioned as internal competition also for the group’s other carriers, such as Austrian (AUL), Swiss (CSR) and Brussels Airlines (DAT)/(EBA).

Starting June 23, Condor Airlines (CDF) on Mondays and Thursdays to and from Frankfurt to Seattle, flying a 767-300. (CDF) has a mileage partnership with Alaska Airlines (ASA). It will compete with Lufthansa (DLH), which has daily non-stops from Seattle to Frankfurt.

Lufthansa (DLH) outlined its vision to reporters in Frankfurt on "a new way to handle irregularity" in travel for its passengers, particularly regarding delays and managing flight transfers. "Our vision is [a] mobile companion" for the passenger, a (DLH) spokesperson said. In the future, (DLH) hopes to introduce an indoor navigation application for airports that customers will be able to access on mobile phones. "With the mobilization of the world, this is really important," (DLH) said.

With the arrival of on board Flynet Internet service, passengers will have real-time access to flight-relevant information and will have the option to seamlessly rebook missed transfer flights while in the air. (DLH) said that relying on on board staff to notify passengers about missed connections is "not something we feel we can rely on 200%."

(DLH) said that "almost a quarter of a million" of its passengers use mobile boarding passes a month, approximately 3% of its passengers, a number (DLH) hopes to double within 10 to 12 months. The service, which was first introduced on routes in Germany in 2008, is currently not offered in the USA, "but it's something that we're working on," an (DLH) spokesperson said, noting that it aims to introduce it to that market by next year. (DLH) is hopeful that by 2015 approximately 80 to 90% of its passengers will be taking advantage of self-service options, it said.

While acknowledging that on board Internet will provide new ancillary options in partnership with Panasonic Avionics, (DLH) said it has no plans to introduce increased advertising on the mobile services. "We are providing the traveler with flight-relevant information," the spokesperson explained. "There is no marketing behind it; it’s about customer satisfaction. We want to have this channel free for the passenger to get the information."

(DLH) restarted its in-flight Internet offering, inaugurating the service on an A330-300. The airplane operated the service from Frankfurt to New York. Initially, passengers will have access to broadband Internet on some of the airline’s North Atlantic routes. Availability will be expanded to cover the entire long-haul fleet and its network by the end of 2011. (DLH) is also looking at including its short-haul fleet at a later stage.

In its new FlyNet service, (DLH) cooperates with Panasonic and Deutsche Telekom, but it uses the old antennas that were installed on the airplanes in 2006. The airline hopes that it will be able to outfit its eight A380s with dual antennas that are also bigger and lighter than the existing equipment. The antennas are expected to provide better coverage for flights in the extreme North and close to the equator, where the single unit reaches its technical limits. As for the incoming 747-8 fleet, (DLH) hopes that the second airplane will be equipped with the new antenna, too.

(DLH) will also allow the use of mobile phones, smart phones or Personal Digital Assistants (PDA)s, but only for text messages, such as (Small Message Service) SMS or email. The airline says its research has shown that customers value quietness in the cabin, so voice communications will be blocked during flight. Passengers have to buy access to the service. One hour will cost €10.95, while 24 hours will be €19.95. The access will also be valid on connecting flights used within the 24-hour timeframe.

According to Christian Koerfgen, VP Product Management & Innovations, a total of five airplanes will be available initially. He claims that Internet access will be as fast as on the ground. Laptops have to be (WLAN) enabled and log on to the Telekom hotspots. Panasonic is in charge of the system technology. (DLH) participates in the revenues generated.

Paul Margis, (CEO) of Panasonic Avionics Corporation, says that “new modems allow us to start with smaller bandwidths” and that “we can add satellite capacity when we need it.” The old Boeing (TBC) system failed mainly because the provider rented too much unused satellite capacity, which made the system uneconomical. According to Margis, other applications could be added to the offering, specifically as far as electronic flight bag (EFB) use or in-flight entertainment options are concerned.

(DLH) said its Electronic Flight Bag (EFB), with the addition of FlyNet connectivity will "enable us to make decisions in a better way," including constant updates to weather forecasts and live satellite pictures, for which pilots currently rely on paper documents, which can be up to 10 hours old on long-haul flights. It will also allow (DLH) to replace handwritten logs with the electronic TechLog system.

The biggest change, with the implementation of FlyNet, is that (DLH) can “enable the pilots (FC) to make better operation[al] decisions that could mean that we have wiser fuel decisions, but it means especially that we have wiser re-routing possibilities," according to a (DLH) spokesman.

(DLH) has been using (ACARS) datalink for more than >20 years, but no (DLH) flight can depart without the large volume of paper, (DLH) said, as it currently has only 80% equipage of the system. The Class 2 (EFB) system software utilizes laptops connected to docking stations in the cockpit.

Approximately 17 million navigation charts are provided in (DLH) cockpits in one year, (DLH) revealed, which translates into 60,000 pieces of paper per flight per day. (DLH) estimates it will save 1,100 tonnes of kerosene a year as well as 19,000 liters of diesel fuel. (DLH) said that live access to volcanic ash charts could have saved money this year.

Lufthansa (DLH) ordered eight more Embraer E195s, in a deal valued at $338 million, based on list prices and January 2010 economic conditions, according to the Brazilian manufacturer. The new airplanes will be operated within the Lufthansa Regional family serving German and European destinations.

The Lufthansa Group ordered a mixed fleet of 30 E190s and E195s for its regional fleet in June 2007, most of which are already in service. Deliveries of the additional eight airplanes are scheduled to commence in the first half of 2012.

(DLH) Executive VP Fleet Management, Nico Buchholz said the EMB-190s and EMB-195s offer “highly modern, more eco-efficient airplanes that increase cost efficiency,” while at the same time offering great benefits to passengers. He noted that as European traffic becoming increasingly competitive, (DLH) looks to maintain a “modern and highly efficient fleet.”

Embraer Executive VP Airline Market, Paulo Cesar de Souza Silva said, “It’s good to see that strength reflected in (DLH)’s confidence to grow its E-Jets fleet. This is an excellent showcase for the flexibility, performance capabilities and passenger comfort of the E-Jets family, particularly in the highly demanding German and Eastern European markets.”

Lufthansa (DLH) said its fifth A380 will commence twice-weekly service February 18 from Frankfurt to New York (JFK), the fourth A380 destination (DLH) has announced and its first USA destination for the A380. Initially operating on Mondays and Fridays, (DLH) said it plans to increase the route's frequency to daily by mid-April. (DLH) has ordered 15 A380s, all scheduled for delivery by 2015. The A380 will replace A330-300s and 747-400s on the route. (DLH)'s A380s are currently flying to Beijing, Tokyo, and Johannesburg. With the service, (DLH) will become the third carrier to fly the A380 to (JFK). Emirates (EAD) and Air France (AFA) are the others.

(DLH) has ordered 32,000 seats for installation on 181 A319, A320, A321 and 737-300/500 airplanes by the end of 2011; eight new A320-family airplanes are to be delivered with the future interior in 2012. The retrofit program will cost approximately €170 million/$225 million, including other upgrades such as (LED) lighting, cosmetic cabin changes and new, more voluminous overhead bins for the 737s. So far, (DLH) has outfitted one A319 with the new relaunched product. At the same time, (DLH) claims that passengers will actually have more legroom because the seat backs are thinner and in-flight magazine storage is moving up behind the tray table. At about 10 kg, the seats are more than >30% lighter than the previous model. The seat manufacturer, Recaro replaced almost all seat padding foam with an elastic, polyester-based netting material underneath the leather cover. Foam is merely used to pad and slightly raise the edges of the sitting area and back rest along the aluminum structure. This has led to a much slimmer back rest and apparently more seat comfort. (DLH) claims that the elastic diaphragm not only accommodates the individual body shape of passengers better - the seat ergonomics have been developed in cooperation with the Technical University Munich - but also it does not wear out like conventional foam. Stress tests suggest that the mesh should retain its tension throughout the seat's entire life cycle of six to seven years. While the average seat pitch has been reduced from 32 inch to 30 inch, passengers will gain 1.6 inch/4cm more legroom at knee level as a net effect of the BL3520 seat. SEE ATTACHED - - "DLH-2010-12-SLIM SEAT."

This allows the installation of up to two additional seat rows per airplane. For example, an A320 will be able to accommodate 168 passengers instead of the current 150. (DLH)'s total capacity is to grow by more than >+2,000 seats or around +8%, equivalent to 12 additional A320s.

A further 6,000 seats have been ordered for Austrian Airlines (AUL), Brussels Airlines (DAT)/(EBA), and Swiss International Air Lines (CSR) subsidiaries. Whether (BMI) will also install the BL3520 seat has not yet been decided, says (DLH).

(DLH) is also reintroducing in-flight meals on almost all flights in economy class (Y). Hot meals are served on flights longer than 2 hours. (DLH) plans to introduce new business-class (C) seats when it takes delivery of its first 747-8. That is planned for late 2011.

Lufthansa (DLH) and Netjets Europe (NEU) are close to announcing a major cooperation agreement. As part of the agreement, Netjets (NEU) will take over corporate jet flying as part of the Lufthansa Private Jet scheme next year replacing Lufthansa (DLH)’s
own fleet of corporate airplanes.

(DLH) has used (NEU) in the past when it originally launched its private jet offering. But the work was taken in-house in 2008 when (DLH) Group subsidiary, Swiss International Air Lines (CSR) bought Zurich-based, Servair Private Charter. The unit (then called Swiss Private Aviation) operated 5 Cessna Citation CJ1s, CJ3s and XLS+ on behalf of Lufthansa (DLH). However, (DLH)’s clients used the service in a different way than expected. While (DLH) saw the offering mainly as hub feeding and de-feeding into secondary airports, passengers instead booked many secondary airport to secondary airport trips that became prohibitively expensive for the operator because they mean a significant amount of positioning flights. As a Swiss company, Swiss Private Aviation also was not allowed to fly German domestic routes. The offering was also limited to Europe.

Industry sources say Lufthansa (DLH) hopes the large European
Netjets (NEU) fleet will make empty positioning flights a much smaller problem and the scheme can be expanded at least to North America through Netjets. Officials say that the Lufthansa Private Jet offering is not in doubt. However, Swiss Private Aviation is expected to shut down with its 60 employees to be transferred to other positions in the group.

January 2011: SEE ATTACHED "DHL-2011-01-2010 WORLD TOP TRAFFIC."

Lufthansa (DLH) said it will create +4,000 jobs for its Germany-based locations in 2011. (DLH) is looking to hire 2,200 flight attendants (CA) in Frankfurt and Munich, as well as 900 ground personnel, 270 student pilots (FC), 300 apprentices and other technical staff. (DLH) CEO, Christoph Franz said (DLH) is expanding because of increased passenger capacity owing to more regional routes and the use of the A380 on long-haul flights. (DLH) said it received about 115,000 applications last year and employs 117,000 staff in 150 nations, with 65,000 of them based in Germany.

Frankfurt airport (FRA) is maintaining its timeline for opening its fourth runway on October. A timer on operator Fraport's website shows the countdown for the first landing on the runway in days, hours, minutes and seconds. The 2,800 m-long runway will allow for parallel takeoff and landing operations and raise (FRA)'s capacity by +50% from 83 to 126 movements per hour. Fraport announced it concluded a new agreement with Lufthansa (DLH) covering ground handling for (DLH)'s operations at its (FRA) hub over the next eight years.

Lufthansa (DLH) and Munich airport (MUN)'s operator (FMG) have approved plans to construct a satellite building to increase the capacity of the Bavarian hub's Terminal 2. The new facility will be built on top of the existing baggage sorting hall on the easterly apron 2, which is employed to sort baggage for airplanes on remote stands. The satellite building will be connected to Terminal 2, which is exclusively used by (DLH) and its partner airlines, by an underground passenger link. The respective tunnel is already in place but has yet to be equipped with an automated railway system.

Munich (MUN) airport's elongated satellite building will have two public levels to separate passengers on flights inside or outside the Schengen agreement area. It will add 52 gates and 27 passenger air bridges, one of which will able to serve the A380. This will double the number of gates in Terminal 2, from which travellers can access airplanes without using an apron bus.

Annual passenger capacity will be increased by +11 million through the satellite. Terminal 2, which was designed to handle 25 million travellers and opened in 2003, is expected to reach its capacity limit next year. If necessary, the new building can be extended eastwards to form a T-shaped footprint in the future. The existing baggage transport system is to be improved as part of the expansion project.

Total costs have been put at €650 million/$850 million and will be shared by (FMG) and (DLH) on a respective 60:40 basis, as in the original Terminal 2 investment. If everything goes to plan, operations in the satellite should begin in 2015. SEE ATTACHED - - "DLH-2011-01-MUN T2."

(DLH) said it will launch daily, Frankfurt - San Francisco (SFO) A380 service on May 10, marking the entry of the large airplane to (SFO). "San Francisco has been a USA stronghold for (DLH) for more than >50 years," VP Americas, Jens Bischof said. "I applaud the airport's management for their dedication in becoming A380-ready."

SEE VIDEO OF WORLD TOP 15 AIRLINE CABIN ATTENDANTS - -

February 2011: (ANA) filed an application with the Japanese Ministry of Land, Infrastructure & Tourism for antitrust immunity (ATI) to launch a joint venture (JV) with Lufthansa (DLH) on routes between Japan and Europe.

The USA Department of Transportation last fall gave final approval for antitrust immunity (ATI) to Oneworld (ONW) alliance members American Airlines (AAL) and Japan Airlines (JAL) and, separately, to (SAL) Alliance members United Airlines (UAL), Continental Airlines (CAL) and (ANA), to operate their respective transpacific joint ventures (JV)s.

The Association of German Airlines forecast the new eco-tax, which took effect January 1, will prevent five million passengers from flying in 2011 and 2012, thus destroying the creation of 15,000 new jobs in the German aviation industry, (BDF) President, Ralf Teckentrup said. Nevertheless, in the long term Teckentrup believes the German aviation industry can expect passenger growth. He said 200 million passengers could depart from Germany this year, up +5% compared to 2010 and by 2020 the number should grow to 300 million. Two of three passengers will board a German-registered airplane, he noted.

Passengers boarding flights in Germany are now charged €8/$10.80 for domestic and intra-European short-haul flights, €25 for medium-haul flights and €45 for long-haul flights. The German government is expected to raise €1 billion annually with the new tax.

Lufthansa Technik (DLH) (LTK) reached a two-year landing gear maintenance contract with Emirates Airline (EAD) to overhaul the center landing gears of its eight A340-300s. Maintenance Repair & Overhaul (MRO) will take place at Lufthansa (DLH)’s landing gear business unit in Hamburg, Germany.

Lufthansa (DLH) will resume its five-times-weekly, Frankfurt - Rio de Janeiro service on October 30, using a 221 seating A340-300. (DLH) has served the route from 1956–2005.

(DLH)'s latest A380 destination will be San Francisco and will begin daily A380 flights between Frankfurt and San Francisco on May 10, replacing its existing 747-400 service on the route.

(DLH) already serves Tokyo, Beijing, and Johannesburg with A380s, and will add New York (JFK) to the list on February 18.

(DLH) will be the first airline to operate A380 flights to San Francisco.

Lufthansa's A380s are configured with 526 seats, including 8F in first class, 98C in business class and 420Y economy class seats.

March 2011: The Lufthansa Group said that based on preliminary figures it ended 2010 with a net profit of +€1.1 billion/+$1.53 billion, significantly improved from a restated net loss of -€34 million in 2009. All of the earnings occurred during the second half of 2010, as the (DLH) Group had a loss through the first six months of the year of -€104 million.

Based on the Group's nine-month results through September 30, fourth-quarter earnings were approximately +€576 million with an operating profit of +€264 million.

Lufthansa Group Chairman & (CEO), Christoph Franz said (DLH)'s turnaround from posting a -$34 million net loss in 2009 to earning a +€1.1 billion/+$1.53 billion net profit in 2010 showed that (DLH) "has quick reactions and responded to market changes with the utmost flexibility in terms of capacities and costs," putting it in a strong position "strategically, financially and operationally."

Franz noted the group's passenger business in 2010 was "defined by the noticeable market recovery, above all in the premium segment. In intercontinental traffic (DLH) again expanded its position and gained additional market share." He said that (DLH)'s first four A380s "entered service just in time for the resurgence."

The group's passenger airlines — including Lufthansa Passenger Airlines (DLH), Austrian Airlines (AUL), British Midland (BMA), and Swiss International Air Lines (CSR) — reported a +24.5% rise in collective revenue compared to 2009 to €20.9 billion. Operating profit was +€436 million, reversed from an -€8 million operating loss in 2009. The carriers' combined 2010 traffic increased +15.2% year-over-year to 187 billion (RPK)s on a +13.3% lift in capacity to 235.84 billion (ASK)s, producing a load factor of 79.3% LF, up +1.4 points.

Despite a successful year in which it rebounded from a -€34 million 2009 loss to earn a +€1.1 billion/+$1.53 billion) net profit in 2010, Lufthansa Group Chairman & (CEO), Christoph Franz conceded that the performance of (DLH) Group subsidiary airlines was "mixed."

Swiss International Air Lines (CSR) posted 2010 operating income of +€298 million, more than triple a +€93 million operating profit in 2009, on a +24% rise in revenue to €3.46 billion. "The success of (CSR) is due largely to effective cost management, but also to strong demand and the upswing in intercontinental and freight business, as well as strong sales in the domestic Swiss market."

Austrian Airlines (AUL), however, incurred a -€66 million operating loss in 2010, narrowed from a -€230.9 million deficit in 2009, while British Midland (BMA) posted an operating loss of -€145 million in its first full year as a (DLH) group carrier. Franz said, "(AUL) and (BMA) are still working flat out at their restructuring."

(AUL) said its improved result is owing to a new market strategy in Europe, restructuring efforts and synergies in the (DLH) Group. (AUL) carried 10.9 million passengers last year, up +9.7% over 2009. Load factor rose +2.2 points to 76.8% LF. "We are moving in the right direction," (AUL) Executive Board Member & (CCO), Andreas Bierwirth said. "However, the restructuring of (AUL) is far from being completed. We have a great deal of work still left to do." (AUL) has cut -1,000 jobs over the last year to reduce its number of employees to 6,000. "The productivity of every employee increased by +23% in terms of turnover," (COO), Peter Malanik claimed.

Bierwirth said (AUL) needs to "sell more business class (C) tickets" and acknowledged its A320s and 737s have not yet reached (DLH) Group productivity standards. Asked if (AUL)'s new cost base can be compared to lower cost carriers (LCC)s such as Air Berlin (BER), he said, "We are starting to close the gap."

Meanwhile, Germanwings (RFG)'s 2010 operating loss of -€39 million was reversed from an operating profit of +€23.9 million in 2009. (RFG)'s full-year revenue lifted +8.6% compared to 2009 to €630 million.

The Lufthansa Group announced that Board Member and Executive VP Marketing & Sales, Thierry Antinori will resign and “shall not be assuming the position as Chairman & (CEO) of Austrian Airlines (AUL)” as planned. Antinori, 49, was to take up his post at (AUL) from April 1. He joined (DLH) in August 1997 as an Area Manager for Western and Southern Europe.

(DLH) said that (AUL) executive board members Andreas Bierwirth and Peter Malanik will continue in their current positions until the company decides on a succession plan for the Chairman & (CEO) position.

The Lufthansa Group has no plans to buy or invest in additional airlines, Chairman & (CEO), Christoph Franz told (DLH)'s in-house employee magazine "Lufthanseat." He said (DLH) will focus on "organic" growth and on bringing subsidiaries Austrian Airlines (AUL) and British Midland (BMA) into a stable financial position.

(DLH) will also work on returning its continental Europe passenger business back to profitability, Franz said. "We have to bring our intra-European flights in the right direction to stop losses," he commented. (DLH) has already reduced operating costs on its non-hub point-to-point flights within Europe by -14%, he said, adding that costs on such routes need to be lowered by a total of -28%.

Despite overall strong earnings growth for the Lufthansa Group in 2010, Lufthansa Technik (LTK) and Lufthansa Systems both reported declines in operating result for the year. (LTK)’s +€268 million/+$188.5 million) operating profit marked a -19% drop from +€331 million earned in 2010. (LTK)'s annual revenue lifted +1.4% to €2.4 billion, but "we were as expected unable to repeat" 2009's operating performance, said (LTK) Executive Board Chairman, August Wilhelm Henningsen, citing pricing pressure and customers postponing or canceling planned maintenance work.

(LTK) (CFO), Peter Jansen noted, "Maintenance Repair & Overhaul (MRO) businesses are late indicators in the aviation industry and as such Lufthansa Technik (LTK)'s revenue initially declined in 2010. But during the second half of the year it rose to exceed the previous year's levels. However, some customer revenue was lost as a result of the [global financial] crisis and that led to shortfalls in our result."

Regarding pricing, Henningsen said, "We can only make a profit at any of our locations if we produce at a competitive cost-per-item. The market remains competitive." He said subsidiaries in Budapest, Manila, and Sophia help (LTK) to operate more cost effectively, but keeping costs low has "challenged us for 20 years," Henningsen said. "If you do (MRO) work on an engine, 75% of your costs are based on material, 25% on man hours. On an airplane frame, up to 85% [of costs are] man hours. That's why we have subsidiaries in" lower cost regions. He continued, "This is one reason why we are expanding our facility in Sophia with [an investment of] €10 million [to] double our (MRO) lines to four." The expanded (LTK) Sophia facility should be operational in two years. It performs (MRO) work on A320s and 737s.

Lufthansa Systems cited "a difficult economic environment and significant one-off costs" for a -37.5% decline in operating result to €10 million/$14.2 million in 2010 compared to 2009. Revenue fell -1.7% to €595 million, while revenue from external customers declined -4.9% to €232 million. "Given our customers' reluctance to make investments, we can be satisfied with this result," CEO, Stefan Hansen stated, adding, "Yet it also documents the fact that we must take strong measures to ensure that Lufthansa Systems (LHS) can continue to develop and safeguard its leading position in the market."

(LHS) launched a cost-cutting and business realignment program in the second half of 2010. Dubbed "Jetzt!" ("Now!"), it aims to trim annual expenses by -€25 million and generate an equal amount of additional revenue by June 30. Also, the company is being reorganized into three profit centers "oriented on its customer groups." (LHS) expects revenues to decline again this year as it "migrates to new technologies, which are more cost-efficient for its customers. Additionally, some contracts will be terminated as [LHS] adjusts its portfolio." However, benefits from the Jetzt! program are expected to result in an earnings turnaround in 2011.

"By realigning Lufthansa Systems, we want to further improve our ability to support our customers in dealing with the challenges of their markets," Hansen said.

Lufthansa (DLH) will operate seasonal weekly service from Munich to Antalya, Ibiza, and Palermo. (DLH) will also operate service from Frankfurt to Bastia (weekly), Genoa (twice-weekly), Olbia (twice-weekly), Split (twice-weekly), Westerland Sylt (twice-weekly), and Rostock Laage (twice-weekly); weekly service from Munich to Dublin and Malta; and weekly, Dusseldorf - Bergen service. (DLH) resumed daily flights from Frankfurt and Munich to Tokyo Narita on March 24. The flights will be routed through Seoul Incheon and operated with A340s.

(DLH) is in the midst of a €2.8 billion/$3.9 billion investment program to upgrade its fleet and improve service quality, with arriving A380s playing a large role. "When we introduce our seventh A380 [during the 2010 summer schedule] we will operate 70 weekly long-haul flights and fly over a half-million kilometers [with A380s]," Board Member & Executive VP Marketing & Sales, Thierry Antinori said. (DLH) will take delivery of its eighth A380 by July.

Meanwhile, 189 (DLH) airplanes will be getting cabin upgrades, including the installation of newly designed, lighter Recaro seats. Some 40 airplanes have already undergone the modification. "With the new lighter seats, we can install +2,000 additional seats, which is equivalent to 12 additional A320s," Antinori explained.

(DLH) said it will expand its Private Jet service offered in cooperation with NetJets Europe (NEU). Bookings in Europe will be accepted "in as little as 10 hours prior to flight departure," and it plans to bring the program to the Middle East and the USA within the year. NetJets Europe (NEU) was (DLH)'s original partner in the venture, which launched several years ago, but (DLH) made the decision to bring the operation in-house in 2007.

(DLH) said it has so far equipped 17 of its long-range airplanes (20% of its long-haul fleet) with FlyNet. It began offering the in-flight broadband connectivity in partnership with Panasonic Avionics and Deutsche Telekom last November. It plans to deploy the service throughout its entire intercontinental network by the end of 2011.

(DLH)'s supervisory board approved orders for 35 new airplanes comprising 25 A320neos, five A321neos and five 777F freighters.

"Besides greater fuel efficiency, all the models on order will help lower operating costs as well as noise levels and emissions," (DLH) said in a statement. It becomes the fifth company to commit to Airbus's re-engined narrow body, following (ILFC), (TAM) (TPR), Virgin America (VUS), and IndiGo (IGO). Airbus (EDS) (COO) Customers, John Leahy noted that the A320neo has "attracted more than 330 commitments."

(DLH) said it will announce an engine selection on the A320neos at a later date. The 777Fs are powered by (GE90)s. (DLH) said the total value of the 35 airplanes is around $4 billion based on list prices.

(DLH) noted that the 25 A230neo family airplanes will be used on continental Europe routes. Deliveries are slated to begin in 2016. The 777Fs are scheduled to start delivering in 2013.

April 2011: (SAS) Scandinavian Airlines, along with Star (SAL) Alliance partners Lufthansa (DLH), Swiss (CSR) and Austrian Airlines (AUL), said it has again won the Swedish government's procurement of air travel, in a contract carried out by Swedish Armed Forces Logistics (FMLOG). The agreement is worth a total of SEK700 million/$111.6 million.

Lufthansa (DLH) said that "too many problems remain unresolved" regarding implementation of airlines' inclusion in the European Union (EU) Emissions Trading Scheme (EU ETS), leaving open the prospect that the initiative will become a "fiasco" when it goes into effect at the beginning of next year. "All of the scheduled deadlines have so far been missed and numerous legal and technical questions remain unanswered — just as 2012 tickets are beginning to go on sale and only eight months before the 'official kick-off'," (DLH) stated in its latest "policy brief." "The aviation industry therefore still has no way of knowing what the major economic parameters will be."

The (EU) directive mandating airlines' inclusion in the (EU ETS) was supposed to be enacted into law by each of the body's member nations by February 2010. "Yet most governments have so far failed to do so owing to the complexity of including the international transport sector in emissions trading," (DLH) pointed out. "It certainly cannot be said that the directive is being implemented in a uniform manner which preserves competition."

One major problem, (DLH) contended, is that (EU ETS) allowances are based on 2010 traffic figures. "However, that year was marked by airspace closures due to the April 2010 volcanic eruption in Iceland. The result will be significant distortions in the allocation process. The European Commission (EC) must urgently abandon this benchmark and present a fair solution once and for all." The issues surrounding the (EU ETS) "are exacerbated by the continued lack of clarity" on whether it is legal to impose the scheme on non-(EU) carriers, (DLH) asserted, adding, "Numerous non-(EU) states have announced that they will withdraw from the (EU ETS) and it is still not known how the (EU) will deal with these [attempts to reject the (EU ETS)]. The (EC) is considering simply revoking the traffic rights of airlines, a highly dubious move."

Lufthansa Systems (LHS) said it will launch a solution transforming iPads into full-fledged Electronic Flight Bags (EFB)s "centered around an advanced version" of its Lido/iRouteManual. The iPad (EFB) is slated to become available in the current quarter. The suite of applications will consist of three modules: The Lido/iRouteManual and a document viewer—both in the form of iPad apps—and a document management system in the form of a Web service. "Further modules are already under consideration," (LHS) said.

Lido/iRouteManual will give pilots (FC) three update options. "Pilots (FC) can either update their entire airport library by the click of one button, only update the charts in their clipboard for their next flight, or update an individual airport — depending on the time and connectivity available," (LHS) stated.

Lufthansa (DLH) took delivery of its sixth A380 on April 4.

May 2011: (DLH) will upgrade its thrice-weekly, Munich - Riyadh - Jeddah service to a three-class A340-300 operation beginning October 31, replacing a wet-leased dual-class, 737-800 from PrivatAir (PTS).
(DLH) will transfer its Frankfurt - Singapore - Jakarta service to Munich - Singapore - Jakarta, beginning October 30 with an A340-300.

Lufthansa (DLH) said it will shut down Italian subsidiary Lufthansa Italia (LHI) and change its focus in Italy to bringing passengers to (DLH)'s major European hubs. "Given the slump in prices on European routes and the competition, it was extremely difficult to establish a profitable European network under a separate brand," stated (DLH) Chairman & (CEO), Christoph Franz. "It therefore makes sense to focus the Lufthansa Group's offering on connecting the Italian market to the group's hubs."

The brand will exist until the end of October. Its eight A319s will then be integrated within the (DLH) Group. (DLH) established the Italian subsidiary in spring 2009 after Alitalia (ALI) significantly shrank, but (LHI) never made a profit.

(LHI) operates to London, Paris and on Italian domestic routes. (DLH) regional subsidiary Air Dolomiti will extend its network, especially between Italy and Germany, to compensate for (LHI)'s demise.

(DLH) Executive Board Member, Carsten Spohr commented, "We are the most successful foreign airline in Italy and we want to consolidate our position. By shifting capacities from (LHI) to our core brand Lufthansa (DLH) and strengthening Air Dolomiti, we will be able to offer our customers an even higher quality network of services via our hubs."

Lufthansa Technik AG (DLH) (LTK) is utilizing (ANSYS) software to simulate wear and tear of airplane components, "to prolong service intervals and to create new ways to repair used parts."

The Hamburg Center of Aviation Training (HCAT) announced the opening of its new, state-of-the-art facility on May 26. (HCAT) is a partnership network of aviation companies, associations, universities and regulatory authorities that provide advanced vocational training in avionics/electronics and modern production processes. The three key players, Airbus (EDS), Lufthansa Technik (DLH) (LTK) and Hamburg Airport, along with more than >300 small and medium-sized enterprises, as well as a variety of scientific and technological institutions, will contribute their expertise,” said (HCAT).

The 3,000 sq m building houses classrooms that simulate airplane sections, such as a 16-m long fuselage section from an A300 to provide a direct exchange of know-how between teaching, research and real-world practice. For example, Airbus (EDS) and Lufthansa (DLH) Technical Training can teach students and trainees about repair and joining techniques, using real airplane structural elements and modern fiber composites in (HCAT)’s new workshops.

(DLH) took delivery of its seventh A380, which was scheduled to begin daily, Frankfurt - San Francisco operations on May 10. (DLH) has ordered a total of 15 A380s. (DLH) will begin to serve its daily Frankfurt - Singapore service with an A380 on October 30, replacing a 747-400.

June 2011: Lufthansa (DLH) is making every effort to bring its European network business back to profitability, (DLH) Group (CEO), Christoph Franz said. "Our European network is loss making and we hope to change this as soon as possible." He added that (DLH) incurred a multi-million euro loss on European routes in the first quarter.

Measures have been taken such as exchanging higher capacity airplanes with smaller airplanes, particularly 50-seat regional jets, on some European routes. In another move aimed at improving European operating efficiency, (DLH) plans to shut down subsidiary, Lufthansa Italia (LHI) by the end of October.

"We see passenger numbers growing," he said. "Our goal is, of course, having all of our business segments profitable" including European network services. Franz noted that (DLH) is impacted by additional cost burdens, such as the new German eco-aviation tax. Fully passing on the tax to passengers would make (DLH) less price competitive, he asserted.

Franz is strongly objecting to airlines' inclusion in the European Union (EU)'s Emissions Trading Scheme (EU ETS) starting next year, calling it "an incentive for [non-(EU) carriers] to bypass Europe, for example [on routes] from the USA to Asia. If [an airline] stops in Europe, they have to pay for the route. Via the Middle East, they pay nothing."

He added that preparing for the (EU ETS) has led to a large amount of administrative work "even though we don't know in which form the (EU ETS) will be started from January 1." He fears the (EU ETS) will distort competition, leaving European carriers at a disadvantage. (DLH) estimates spending €150/$219.6 million to €350 million annually to comply with the (EU ETS).

All Nippon Airways (ANA) and Lufthansa (DLH) won antitrust immunity (ATI) approval from the Japanese Ministry of Land, Infrastructure & Transport to launch a joint venture (JV) operation on Japan - Europe routes. (ANA)/(DLH) plan to coordinate schedules and cooperate on pricing, sales and network planning, while sharing revenue on the routes with the (JV) launching during the 2011 winter timetable. "Customers will benefit from seamless transfers and better connections," (ANA)/(DLH) said.

Lufthansa (DLH) completed upgrading its first 747-400 with new first (F) and economy (Y) sections. A (DLH) spokesperson said that this is just “one part of a total of €2.9 billion/$4.14 billion” fleet restoration program for airplane interiors through 2015. “This does not include airplane orders,” the spokesperson explained.

(DLH) is upgrading 19 747-400s and will decide later this year if the remaining 10 in its fleet will also undergo an upgrade. Otherwise, these airplanes will leave the fleet. Ground time for the cabin retrofit is about 14 days.

The new (Y)-class section features a new 19 kg Recaro Aircraft Seating, which includes personal and individual In-flight Entertainment (IFE) for every passenger. “The new seat offers up to seven cm more living space, especially for the knees,” (DLH) Senior VP Product & Marketing, Reinhold Huber said.

Meanwhile, (DLH) said it is expecting a further important push for its operations and passenger comfort when the new, fourth runway opens at Frankfurt (FRA) later this year. The new (FRA) terminal section, “A+,” which will handle (DLH)’s A380s, will open next year and should deliver additional passenger features.

(DLH) said it has installed FlyNet on 20 long-haul airplanes. "The number of airplanes [with FlyNet on board] should increase to 70 by year end," said (DLH).

Lufthansa Technik (LTK) has broken ground on a new Line Maintenance hangar at the future Berlin Brandenburg International airport. The €14 million/$20 million facility is to be opened in June 2012. Berlin's Tegel airport will then be closed, and (LTK)'s line maintenance operations at Tegel will be moved to Brandenburg. The new hangar will be able to accommodate up to five narrow body airplanes or one wide body up to the size of an A340.

Lufthansa (DLH) launched a new flight-booking iPad app on June 29. The app will also include information on different airports as well as weather updates.

July 2011: Lufthansa (DLH) will launch thrice-daily, Frankfurt - Aberdeen service on October 30 operated by a (DLH) CityLine Embraer EMB-190. (DLH) will launch twice-daily, Frankfurt - London Gatwick 737-500 service on October 30.

(DLH) started its scheduled biofuel flights on July 15, launching a six-month trial in which an (IAE) (V2500)-powered A321 operates on the Frankfurt (FRA) - Hamburg (HAM) route. The A321, uses a 50-50 mix of biofuel and traditional kerosene in one of its engines, and operates eight daily legs between (FRA) and (HAM). (DLH) initially announced the flights last year, but had to wait for certification.

The A321 will be refueled at (HAM), where the biofuel is expected to be delivered from Finland's Nestle Oil. "The biosynthetic kerosene used by Lufthansa is derived from pure biomass and consists of jatropha, camelina and animal fats," (DLH) stated. "In the procurement of biofuel, (DLH) ensures that it originates from a sustainable supply and production process. Suppliers must provide proof of the sustainability of their processes. (DLH) guarantees that the production of its biofuel is not in direct competition with food production and that no rainforests are destroyed."

(DLH) added that "aside from reducing carbon dioxide emissions, the main aim of this long-term operational trial [is] to examine the effects of biofuel on the maintenance and lifespan of airplane engines." (DLH) estimates it will save around -1,500 tons of carbon dioxide emissions over the six months.

(DLH) said the cost of conducting the six-month trial is about $9.5 million. The German Federal Ministry of Economics & Technology has provided $3.5 million toward the project.

(DLH) said that in this fall it will start using new transport containers made of a light plastic material to hold both cargo and luggage on the lower deck of airplanes. "The new containers, up to -15% lighter than their predecessors, are a true benefit for the environment in that kerosene consumption can be lowered by approximately -2,180 tons per year and (DLH) will save -6,867 tons of" CO2 emissions. Some 5,000 containers are slated to be replaced.

Lufthansa Cargo (LUB) and Jettainer, a (LUB) subsidiary, have carried out onboard testing of the new containers, the airline noted.

(DLH)'s recent labor agreement with the Vereinigung Cockpit union, increasing wages for 4,500 (DLH) pilots (FC), is valid until April 30, 2012.

Lufthansa (DLH) ordered 30 A320neo family airplanes, confirming a commitment announced by the airline’s supervisory board in March. The order comprises 25 A320neos and five A321neos, which will be powered by (Pratt & Whitney) (PW1100G) geared turbofan engines.

Airbus (EDS) noted that (DLH) is its biggest operator of its airplanes worldwide with 365 in service, comprising 254 A320 family airplanes, 38 A330s, 65 A340s and eight A380s.

With this latest order, (DLH) has an order backlog with (EDS) of 85 A320 family airplanes, eight A330s and seven A380s.

A340-313X (355, D-AIFB), sold to Federal Republic of Germany (GRF) (Transport Division) and re-registered (16+02).

August 2011: Munich Airport (MUC) received planning approval in late July from the regional Bavarian government for the construction of a third runway, which will allow it to handle up to 120 movements per hour, up from the current 90. The planning permission does come with restrictions, eg: operations are allowed only between 6 am and 10 pm to cut noise pollution at night. The new runway will be 4000 m/13,100 ft long and 60 m wide. It will be located 1,180 m north of the current runway 08L/26R, with its thresholds displaced 2,100 m to the east.

Besides a third runway, (FMG) is also planning a new terminal satellite facility at (MUC) to expand the passenger handling capacity of Terminal 2 and increase the number of gate positions for airplanes from 27 to 52. The satellite facility, which is designed to be built on top of the existing baggage sorting hall on the eastern apron, is scheduled to go into operation in 2015. It will increase the annual passenger capacity of (MUC) by +11 million to more than >50 million. The new satellite building will be financed jointly with Lufthansa (DLH), the airport's largest user.

(MUC) is (DLH)'s second largest hub after Frankfurt. It handled 34.7 million passengers and some 390,000 flights in 2010, maintaining its number seven ranking among Europe's top ten airports. It recorded a +13% year-over-year increase in passenger throughput in the 2011 first half to just under 18 million. The number of takeoffs and landings increased more than >+9% to a new record of 202,000.

September 2011: The (DLH) Group comprises (DLH) passenger airlines ((DLH), (DLH) Regional and (DLH) Italia), Austrian Airlines (AUL), British Midland (BMA), Germanwings (RFG), and Swiss International Air Lines (CSR). The (DLH) Group said it would also adjust further booking trend expectations and reduce scheduled capacity for the 2011/12 winter timetable. The (DLH) Group had previously planned for a +6% winter capacity growth.

The (DLH) Group reportedly is considering selling its loss-making subsidiary (BMA).

The Lufthansa (LH) Group is working with British Midland (bmi) (BMA) management to produce a long-term business plan that will return (BMA) to profitability.

(DLH) executive board member and Group Airline Chief Officer, Stefan Lauer said that (BMA), which is owned by the (DLH) Group, had been affected by the recent North African/Middle East crises as well as the weak UK market. (BMA) reported a €63 million/$91 million first-quarter operating loss, which followed an operating loss of -€145 million in 2010, its first full year as a (DLH) Group airline.

“There is no doubt that (BMA) traffic suffers because the Middle East market has broken down almost completely,” Lauer said. He added that (DLH) Group management was working with (BMA) to identify a business plan. He pointed out that (BMA)’s London Heathrow slots are valuable, but said, “These slots are a real asset, but slots alone don’t make a business plan. There must be a long-term solution.”

(BMA) reported a -€63 million/-$91 million first-quarter operating loss, which followed a -€145 million operating loss in 2010, owing to the crises in North Africa and the Middle East, as well as the weak UK market. Despite the losses, Lauer said he didn’t think it was a mistake to buy (BMA). “The aviation scenario today has changed dramatically compared to 10 years ago,” he said, noting that (DLH) wants to find a solution quickly.

Australian bio-fuel producer, Jatenergy has sold 200 tonnes of crude Jatropha oil to Lufthansa (DLH) for use on (DLH)’s trial using biofuels on its Hamburg to Frankfurt services, according to "BioFuel International." Jatenergy said that the Jatropha is sourced from its plantations in central Java, had been sold at $1,000 per tonne, which equates to around $140 a barrel.

The Jatropha was refined by Finland’s Neste Oil. Jatenergy CEO, Phil Hodgson said the demand from airlines for biofuel had increased significantly after the recent approval by the standards group (ASTM) International for the blending of up to 50% of biofuel with conventional jet fuel. “We can’t produce enough Jatropha oil at the moment to meet demand,” Hodgson said.

Of concern for the airline industry Hodgson said that power generators and traditional biodiesel producers “had also expressed interest” and at prices linked to vegetable oils such as palm oil, which has been priced between $1,000 - $1,250 per tonne during 2011.

Lufthansa (LH) commenced a six-month trial in mid-July between Hamburg and Frankfurt, with a 50:50 biofuel derived from Jatropha, Camelina and animal fats. (DLH) is using an A321 for the trial.

Jatenergy is producing oil from just 2,000 hectares and plans to expand its plantings by 9,000 hectares initially and, over the next five to six years, to more than >100,000 hectares. “Central Java has the potential to be a world scale plant oil producer,” Hodgson said.

Lufthansa Systems (LHS) said it will open a new data center in Welwyn, near London, as part of the Information Technology (IT) service provider’s growth strategy. "Here, we will host the (IT) infrastructure operations for the Thomas Cook Group, while also offering our services to other customers in this region," (DLH) Senior VP Infrastructure, Hannes Pfister said.

The UK customer portfolio also includes British Midland (BMA). (LHS)’s data center network already includes sites in Kelsterbach (near Frankfurt), Dallas, Texas, and Singapore. In this network, the London and Frankfurt data centers act as mutual backup sites. In its first expansion stage, the ultra-modern Tier 3+ data center in London will host around 2,000 server systems. It has a central storage capacity of 600 terabytes and a backup volume of two petabytes.

Star Alliance (SAL) (CEO), Jaan Albrecht was nominated by Lufthansa (DLH) Group's executive board to become Chairman & (CEO), Austrian Airlines (AUL). It is anticipated that Albrecht, who has helmed the Star (SAL) Alliance for a decade, will start his tenure at (AUL) by November.

Lufthansa Technik Sofia, a joint venture (JV) between Germany's Lufthansa Technik (LTK) and the Bulgarian Aviation Group, is expanding its narrow body hangar at Sofia Airport into a new two-bay hangar for heavy checks. A separate lightweight hangar will be constructed and used for line maintenance operations and lighter checks. (LTK) Sofia said it will invest €15 million/$20.7 million in the new facility.

(LTK) Sofia said it will nearly double its Maintenance Repair & Overhaul (MRO) capacities for 737 and A320 families to four airplanes. The first bay of the new 56,000-sq ft hangar will be operational in the 2012 first quarter; the second one will follow a few months later.

The Lufthansa Group ordered seven new Airbus (EDS) airplanes, including four A320s, one A330-300, as well as two A380s, and five Embraer EMB-195 regional jets which will be operated by Air Dolomiti (DLA). (DLA) already operates five and will use the new units to add domestic Italian flights and run more frequencies to Lufthansa (DLH)’s Munich hub. In total, (DLH)’s regional partners, including CityLine and Augsburg Airways, operate 28 EMB-Jets. Once firmed, the order will bring (DLH)’s total number of A380 orders to 17.

The (DLH) supervisory board announced its approval for the deal, saying that the total value of the order, including the EMB-195s, is €1 billion/$1.36 billion. The Airbus (EDS) airplanes will be for (DLH) German Airlines. The Lufthansa Group is already the largest Airbus (EDS) operator in the world with 368 A320s, A330s, A340s and A380s.

October 2011: (DLH) will launch 6X-weekly, Dusseldorf - Tokyo Narita A340-300 service on June 1.

A German court in Hessen ruled that night flights will be banned at Frankfurt Airport (FRA) when the fourth runway opens on October 21.
The ban, which runs from 11 pm and 5 am, will affect 17 movements of mainly cargo flights.

During the summer season, (FRA) operated 4,585 weekly flights to 298 destinations and 250 weekly cargo scheduled flights. In 2010, (FRA) had 464,432 movements and an average of 150,000 passengers per day, for a total of 53 million passengers for the year.

Frankfurt Airport (FRA) officially opened its €1.5 billion fourth runway when German chancellor Angela Merkel touched down on board a government A319 on the new northwest runway. One hour later, its first scheduled flight (a Lufthansa (DLH) A321 from Hamburg with 172 passengers on board) touched down.

Airport operator Fraport AG said that initially the new 2.8 km runway (which connects to the rest of the airport by taxiways crossing a highway and high-speed railway) will increase capacity from 82 to 90 airplanes per hour. At its final stage, 126 movements per hour will be possible, “securing the future of Germany’s leading gateway for international mobility,” said Fraport.

The expansion won government approval despite opposition from local residents, but in a surprise ruling last week, a regional court halted night flights, effective October 30. The ruling forced Lufthansa Cargo (LUB)’s 10 night time flights to reschedule right before the start of the winter season, costing (LUB) “double digit million of euros.”

SEE ATTACHED - - "DLH-2011-10 - FRA 4TH RUNWAY OPENS."

November 2011: The International Airlines Group (IAG) (BAB)/(IBE) and the Lufthansa Group (DLH) reached an agreement for the sale of (DLH)’s loss-making British Midland (bmi) (BMA) to (IAG).

Lufthansa (DLH) announced it is investing €60 million/$81 million to increase its presence at the new Berlin Brandenburg Airport (BER), which is expected to open June 3, 2012.

(DLH) and its partner carriers serve 25% of a total of 21 million passengers who fly annually to/from Berlin’s two airports, Tegel and Schoenefeld, which are expected to close after the new airport opens.

(DLH) and its group airlines will operate a total of 35 airplanes out of the new airport, offering more than> 1,000 weekly flights to/from the German capital.

(DLH) will add Moscow’s Vnukovo Airport (VKO) to its route network beginning March 25, increasing weekly services between Germany and nine Russian destinations to 153. This route is a move that could set the stage for Russia’s third largest carrier, UTair (TYU), to become a future Star Alliance (SAL) member.

(DLH) will transfer two of its six scheduled daily flights out of Frankfurt from Moscow Domodedovo Airport (DME) to (VKO). At the beginning of June, all Berlin - Moscow flights will move to (VKO). (DLH) flights from Munich, Hamburg and Dusseldorf will remain in (DME).

In 2006, Aeroflot (ARO) joined the SkyTeam Alliance (STM), and a year ago S7 Airlines (SBR) allied itself with the Oneworld Alliance (ONW).

(DLH) will begin 3X-weekly, Frankfurt - Shenyang - Qingdao A340 service on March 26.

In 2008, (DLH) announced plans to strengthen relations with Air Union, the alliance of five Russian carriers headed by KrasAir (ZXD). (DLH) moved from (SVO), to which it had been flying for 35 years, to (DME) but the Russian alliance went bankrupt in August 2008.

UTAir (TYU) (which is based in Moscow, Tyumen and Surgut (Eastern Siberia)) has a diverse network in Russia but is not represented significantly in the Far East of Russia. The second biggest Russian carrier, Transaero (TRX), was never rated as a member of an international alliance and works with travel companies flying Russian tourists to worldwide destinations.

(DLH) will freeze investments, including hiring, for six months owing to the weak global economy. However, fleet investments will not be affected, the staff magazine "Lufthanseat" reported.

(DLH) (CFO), Stephan Gemkow has reportedly said that (DLH)’s 747-8 and A380 airplane deliveries will take place as scheduled. The new generation airplanes will lower operating costs, Gemkow said.

(DLH) has 202 airplanes, worth €19 billion/$25.2 billion, on the delivery schedule through 2018 as it phases out older jets.

Lufthansa Cargo (LUB) said it is expecting a -€15 million hit to this year's earnings owing to the night flight ban at Frankfurt Airport.

December 2011: Virgin Atlantic Airways (VAA) and the Lufthansa (DLH) Group (LH) signed a terms and conditions contract on the sale of (DLH’s loss-making UK subsidiary, British Midland (bmi) (BMA).

(DLH) will begin 3X-weekly, Frankfurt - Shenyang - Qingdao A340 service on March 26.

The Lufthansa (DLH) Group’s biggest challenge for 2012 will be (DLH)’s ability to be flexible in adjusting capacity as demand fluctuates.

(DLH) Chairman & (CEO), Christoph Franz said that (DLH) is focusing on where to make capacity adjustments as it heads into next year. He expects the economy in 2012 will continue to be weak, “especially in Europe, which will be hit harder than other areas,” he said.

Franz said (DLH) will not hire as many employees it had planned, because growth will be cut by two-thirds.

The 747-8I is 6 m longer than the 747-400 and, at 76.3 m, will be the world's longest passenger jet. (DLH) has ordered 20 747-8Is, which are due for delivery from the beginning of 2012 through mid-2015.

4 A380S were delivered to (DLH) this year.

January 2012: In 2011, Lufthansa German Airlines (DLH) (passenger) employed 55,361 (4th highest in the world!).

All five Lufthansa (DLH) Group airlines carried a total of 106.3 million passengers in 2011, a growth of+ 7.5% compared to the previous year. The group’s capacity (ASK)s grew by +9.8% overall in 2011, while traffic (RPK)s rose +7%. Average passenger load factor fell by -2.2% to 77.2% LF.

Passenger boardings were 65.5 million, up +11.1% compared to the previous year. Capacity rose by +11.8% in the full year, while sales were up +8.8%. Load factor was 77.2% LF, down -2.2% year-over-year.

Swiss International Air Lines (CSR) carried approximately 16.4 million passengers, up +8% compared to the year before, but load factor dropped slightly by -1.1% to 81.1% LF.

Loss-making Austrian Airlines (AUL) transported 11.3 million passengers, up +3.4% compared to 2010, but load factor fell -3% to 73.8% LF, mainly because it is operating larger airplanes.

British Midland International (BMA), which has been sold to British Airways (BAB) parent (IAG), transported 5.7 million passengers, -7.4% less compared to 2010. Load factor fell -4.6%, to 67.1% LF year-over-year.

Germanwings (RFG) carried 7.5 million passengers, -2.7% less than the year before. Load factor increased slightly by +1%.

Lufthansa Cargo (LUB) recorded a +5% growth in its tonne-kilometers transported in 2011 and carried 1.9 million tonnes of freight and mail. Capacity grew by +8.6% in the full year, while sales were up +6.5%, resulting in a load factor drop by -1.4% to 69.5% LF.

“The trend of decreasing sales that emerged in the autumn continued in the remaining months of the year,” (DLH) said. “Group-wide, it proved not possible to match the level of sales growth recorded at the beginning of the year.” In the light of this development and ongoing economic uncertainty, the Passenger Airline Group plans to achieve a +3% low-level growth in (ASK)s in the full-year 2012. This will be realized by using larger airplanes and introducing the new Europe cabin on (DLH) Passenger Airlines' European routes.

Lufthansa (DLH), the largest foreign carrier in Russia, will transfer its Dusseldorf (DUS) and Hamburg (HAM) flights from Moscow Domodedovo (DME) to Moscow Vnukovo (VKO) beginning June 3.

In November 2011, (DLH) revealed plans to add (VKO) to its network. From March 25, (DLH) will operate two out of six scheduled daily flights from Frankfurt (FRA), and from June 3 it will add 12 flights per week from Berlin.

(DLH) had previously said that flights from (DUS), (HAM) and Munich, as well as four frequencies from (FRA), would remain at (DME). However, (DLH) Regional Director Russia & the (CIS), Ronald Schultz said (DLH) decided to balance its operations in Moscow after the November announcement.

When (DLH) launches (VKO) service, it will operate seven daily frequencies from Germany to Moscow to each of the airports. Some (FRA) and all Munich (MUC) flights are expected to remain in (DME). According to Schultz, it is not unusual for German carriers to operate out of two hubs in (FRA) and (MUC).

This move could help Russia’s third largest carrier, UTair (TYU), to become a future Star (SAL) Alliance member, as (SAL) members are consolidating at (VKO). Turkish Airlines (THY) recently announced it will transfer all Moscow flights from Istanbul (IST), Ankara (ANK) and Antalya (AYT) from Sheremetyevo (SVO) and (DME) to (VKO).

Lufthansa (DLH) will hire 200 cabin attendants (CA) as temporary workers and has told passengers to brace for higher ticket prices as it searches for ways to cut costs and stem the effects of the European Union (EU)’s Emissions Trading Scheme (EU ETS), which took effect January 1.

The use of temporary workers (which come from the Hamburg-based agency, AviationPower) is a first for (DLH). They will be based at (DLH)’s extended hub at the new Berlin Airport and will work aboard (DLH)’s 15 narrow body airplanes, which will also be based there.

According to the German daily "Rheinische Post," this kind of contract is necessary for (DLH) to be more competitive and cut costs. This move could result in a new working model for other (DLH) bases in Germany.

(DLH) previously confirmed that it would announce a cost-savings plan in the 2012 first quarter. (DLH) expects €130 million/$169 million in additional costs this year and is among one of the most affected carriers in Europe owing to the (EU ETS).

This month (DLH) will operate a scheduled 747-400 flight between Frankfurt and Washington Dulles using a biofuel blend. (DLH) noted it will be the world's first scheduled commercial biofuel flight on a transatlantic route. It said the flight is expected to emit 38 tons fewer carbon dioxide (CO2) than a similar flight fully utilizing traditional jet fuel.

The fight is part of the carrier's "burnFAIR" program, which endeavors to determine the feasibility of using biofuel to power regular commercial flight operations. From July 15 - December 27, 2011, (DLH) operated an A321 in scheduled service on the Hamburg - Frankfurt route that had one of its engines powered by a 50-50 blend of traditional fuel and biosynthetic kerosene. "In all, 1,187 biofuel flights were conducted [using the A321], and according to initial calculations, the total consumption of the biokerosene mix amounted to 1,556 tons and CO2 emissions were reduced by 1,471 tons."

(DLH) added, "As a next step, we will focus on the suitability, availability, sustainability and certification of raw materials. But first we must tap into this market. However, Lufthansa (DLH) will only continue this practical trial if we can secure a supply of sustainable, certified raw materials."

Flight LH 418 landed at Washington Dulles on January 12 after an 8-hour and 20 minute flight from Frankfurt (FRA). The 747-400 carried approximately 40 tons of biofuel mix. (DLH) said carbon dioxide (CO2) emissions were reduced by about 38 tons.

Captain Rudolf Seebass and Flight Officer Daniel Rieter commanded the flight and said it was a totally normal revenue flight. Passengers were informed once onboard that biofuel would be used and were given explanatory brochures. “They applauded when the announcement was made,” Seebass said.

“This is the best news we could give the industry because it shows that we really can do normal operations with biofuel,” said (DLH) VP Aviation Biofuel, Joachim Buse. He said the transatlantic flight was particularly important because if (DLH) could use biofuels on all USA flights, it estimates it could reduce CO2 emissions by about 15,000 tons per week. (DLH) operates around 400 weekly flights to 17 USA cities.

The biofuel mix used by (DLH) is mostly based on Camelina oil from the USA with some Jatropha-based oil from Brazil and some animal fat from Finland.

Biofuel-powered commercial flights could become standard operations within five to seven years. Speaking in Washington DC, USA on January 13, (DLH) VP Aviation Fuel, Joachim Buse said (DLH)’s burnFAIR project has proved that biofuels are completely feasible for commercial flights from a technological standpoint. The issue is how to produce sufficient and sustainable feedstocks at a viable cost. “From now on, it’s purely a commercial issue.”

Buse said when the engine was examined at the end of the trials, it looked brand new. He said this showed that biofuels were “fit for purpose and require no changes in operation.”

Government assistance and new commercial practices will be necessary, however. Some of the plants that provide the bases of biofuels take up to four years to establish and their yields must be increased to make them viable because they currently cost about two-and-a-half times the price of conventional fuel.

Buse said that the cost of the (DLH) project was about €6.6 million/$8.4 million; (DLH) received €2.5 million of German government subsidies toward this.

(DLH) has announced a massive amount of new routes, especially from the new Berlin Brandenburg International (BBI) airport opening on June 3 and replacing both Schönefeld and Tegel airports in Berlin. (BBI) is in the same location as Schönefeld but will include a new runway and terminal complex. At Berlin, (DLH) will be cancelling most germanwings (RFG) routes and replacing them with (DLH) mainline services, while doing the opposite in Stuttgart where several routes will be transferred from Lufthansa (DLH) to germanwings (RFG). (DLH) will introduce the following new services over the course of the next six months:
Berlin - Barcelona: daily A319-100/A320-200 service starting on June 3;
Berlin - Bastia: weekly seasonal A319-100 service starting on June 9 (replacing germanwings (RFG));
Berlin - Beirut: 3x weekly A319-100 service starting on June 3;
Berlin - Bergen: 2x weekly seasonal A319-100 service starting on June 6;
Berlin - Bologna Marconi: 6x weekly A319-100 service starting on June 3;
Berlin - Birmingham: daily A319-100/A320-200 service starting on June 3;
Berlin - Bucharest Otopeni: 4x weekly A319-100 service starting on June 3 (replacing (RFG) to Baneasa);
Berlin - Catania: 2x weekly seasonal A319-100 service starting on June 3;
Berlin - Dubrovnik: weekly seasonal A319-100 service starting on June 9 (replacing (RFG));
Berlin - Geneva: 2x daily A319-100 service starting on June 3;
Berlin - Helsinki: daily A319-100 service starting on June 3;
Berlin - Istanbul Atatürk: 4x weekly A320-200 service starting on June 4 (replacing (RFG));
Berlin - Izmir: daily A320-200 service starting on June 3 (replacing (RFG));
Berlin - Lyon: 5x weekly A319-100 service starting on June 3;
Berlin - Malaga: 2x weekly seasonal A320-200 service starting on June 3;
Berlin - Manchester: daily A319-100 service starting on June 3;
Berlin - Moscow Vnukovo: 2x daily A319-100 service starting on June 3 (replacing (RFG) from Schönefeld to Vnukovo and Lufthansa (DLH) from Tegel to Domodedovo);
Berlin - Nice: 5x weekly A319-100 service starting on June 3;
Berlin - Palma de Mallorca: 4x weekly A319-100/A320-200 service starting on June 3;
Berlin - Reykjavik Keflavik: 2x weekly seasonal A319-100 service between June 7 and September 8;
Berlin - Rome Fiumicino: daily A319-100/A320-200 service starting on June 3;
Berlin - Split: 3x weekly seasonal A319-100 service starting on June 5 (replacing (RFG));
Berlin - Stockholm Arlanda: 2x daily A319-100 service starting on June 3 (replacing (RFG));
Berlin - Tel Aviv Ben Gurion: 2x weekly A320-200 service starting on June 3;
Berlin - Valencia: 2x weekly A320-200 service starting on June 6;
Berlin - Vienna: 6x weekly A319-100 service starting on June 3;
Berlin - Westerland: 2x weekly seasonal A319-100 service starting on June 3;
Berlin - Zadar: weekly seasonal A319-100 service starting on June 9 (replacing (RFG));
Berlin - Zagreb: 4x weekly A319-100 service starting on June 3 (replacing (RFG));
Berlin Tegel - London Heathrow: 3x daily A319-100 service has started on November 24 (operated by bmi british midland (BMA)) and replacing (BMA)’s own flights);
Berlin Tegel - Milan Linate: 6x weekly 737-300 service starting on January 9;
Dusseldorf International - Bari: weekly seasonal CRJ-900 service between May 5 and October 20 (operated by Eurowings (EWG));
Dusseldorf International - Bologna Marconi: 6x weekly CRJ-700 service starting on March 26 (operated by Lufthansa CityLine));
Dusseldorf International - Catania: 2x weekly seasonal CRJ-900 service starting on March 25 (operated by (EWG));
Dusseldorf International - Dublin: 2x weekly seasonal CRJ-900/Fokker 100 service between May 6 and September 26 (operated by Contact Air and (EWG));
Dusseldorf International - Helsinki: daily 737-500/CRJ-900 service starting on March 25 (partially operated by (EWG));
Dusseldorf International - Ibiza: weekly seasonal A320-200 service between May 26 and September 15;
Dusseldorf International - Knock: weekly seasonal CRJ-900 service between May 5 and September 29 (operated by (EWG));
Dusseldorf International - Krakow: 6x weekly CRJ-700/-900 service starting on March 25 (operated by (EWG) and Lufthansa CityLine);
Dusseldorf International - Malaga: 2x weekly seasonal A320-200 service starting on April 28;
Dusseldorf International - Tokyo Narita: 6x weekly A340-300 service starting on June 1;
Dusseldorf International - Westerland: 2x weekly seasonal CRJ-900 service starting on April 28 (operated by (EWG));
Dusseldorf International - Zadar: weekly seasonal CRJ-900 service between May 26 and September 22 (operated by (EWG));
Frankfurt International - Ankara Esenboga: daily A321-200 service starting on March 25;
Frankfurt International - Dubrovnik: weekly seasonal EMB-190 service starting on March 31 (operated by Lufthansa CityLine);
Frankfurt International - Klagenfurt: 2x weekly seasonal EMB-190 service has started on October 30 (operated by Lufthansa CityLine);
Frankfurt International - Moscow Vnukovo: 2x daily A319-100/A320-200 service starting on March 25 (in addition to four daily flights to Domodedovo);
Frankfurt International - Salzburg: 4x daily Fokker 100 service has started on October 30 (operated by Tyrolean Airways, route transferred from Austrian Airlines (AUL));
Frankfurt International - Shenyang - Qingdao: 3x weekly A340-300 service starting on March 26;
Frankfurt International - Tripoli International: 3x weekly A320-200 service resuming on February 2;
Hamburg Fuhlsbüttel - Dubrovnik: 2x weekly seasonal CRJ-900 service between May 5 and October 13 (operated by (EWG));
Hamburg Fuhlsbüttel - Jersey: weekly seasonal 737-500 service between June 9 and September 1;
Hamburg Fuhlsbüttel - Naples: weekly CRJ-900 service starting on April 14 (operated by (EWG));
Hamburg Fuhlsbüttel - St Petersburg: 2x weekly 737-300 service starting on March 25;
Hamburg Fuhlsbüttel - Venice Marco Polo: 2x weekly CRJ-900 service starting on March 25 (operated by (EWG));
Munich - Bastia: weekly seasonal CRJ-900 service between May 5 and September 29 (operated by Lufthansa CityLine);
Munich - Jersey: weekly seasonal EMB-195 service between June 2 and September 29 (operated by Lufthansa CityLine);
Munich - Mexico City: daily A340-600 service starting on October 28, 2012;
Munich - Montpellier: weekly seasonal CRJ-900 service starts on March 31 (operated by Lufthansa CityLine);
Munich - Odessa: weekly seasonal CRJ-900 service between May 5 and September 29 (operated by Lufthansa CityLine);
Munich - Pula: weekly seasonal Dash 8-400 service between May 5 and October 13 (operated by Augsburg Airways);
Munich - Valencia: weekly A319-100 service starting on March 31.

Lufthansa (DLH) has given up its routes from Munich to Bursa on October 30 and will terminate routes from Dusseldorf International to Athens on January 21, from Munich to Klagenfurt on February 1, from Frankfurt International to Calgary on February 5, from Dresden to London Heathrow, and from Frankfurt International to Guangzhou and Kolkata on March 24. (DLH) will not resume its seasonal route from Dusseldorf International to Bergen next summer and has already terminated its code share agreement with Jat Airways (JAT) on October 30.

(DLH) has retired seven of its 737-500s. It still operates 33 737-300s and 23 737-500s.

A319-112 (4182, D-AIBB "Aalen"), A321-231 (4994, D-AIDO), and EMB-190-200LR (0464, D-AEBI), for Cityline operations, deliveries.

February 2012: Lufthansa (DLH) is aiming to make cost savings of -€1.5 billion/-$1.9 billion every year until 2014 through a large-scale restructuring program which will entail the "partial dismantling and reconstruction" of the entire group.

(CEO), Christoph Franz presented the three-year efficiency improvement scheme (named "SCORE" - Synergy, Costs, Organisation, Revenue and Execution) to (DLH)'s staff. Apart from slashing costs and reducing overheads "across all divisions and [group] airlines", (DLH) wants increase co-operation between its carriers to avoid duplicated effort, wrote Franz in the company's internal employee newspaper "Lufthanseat."

Traffic in the European "neighborhood", including services operated by (DLH), Austrian Airlines (AUL), Brussels Airlines (DAT)/(EBA), Germanwings (RFG), Swiss International Air Lines (CSR), as well as regional subsidiaries and partners, will be optimized, said Franz.

The group wants to streamline "massively" administration and centralize functions such as purchasing. In future, employees had to stop "thinking and acting according to their individual, segmented interests", he said.

In the face of growing competition from low-cost carriers (LCC)s in Europe and, in the long-haul market, from Emirates (EAD), Qatar Airways (QTA) and Turkish Airlines (THY), (DLH) will need to go undergo deep structural change to improve its profitability, he said. Franz said in three years' time, (DLH) will be radically different from its present incarnation.

Stefan Lauer, Chief Officer Group Airlines & Corporate Human Resources, said the program resembled less a restructuring of the current company and more a "partial dismantling and reconstruction".

(DLH) has targeted savings of at least -€1.5 billion annually until the end of 2014 through "permanent" structural change. The capital this generates will be required to finance new airplane deliveries and products as well as future employment costs.

Franz plans to invest €9 billion over the next three years. In order to generate the required cashflow, however, the airline group had to change, he said. Its current financial position was not strong enough to meet these demands, he said.

Franz said he was not afraid to take "uncomfortable steps" and bring "apparently taboo subjects" to the table. "One thing is sure: we need to get out of our comfort zone," said Franz.

Concrete proposals will now be developed by a team headed by Josef Bogdanski and Jörg Beißel.

Lufthansa (DLH) has responded quickly to the collapse of Malév (HGA) by launching daily flights from Berlin Tegel (TXL) and Hamburg (HAM) to Budapest (BUD). The Hamburg route, on which Malév (HGA) was the only carrier, will see frequency double to twice-daily from the start of the summer season. On the Berlin route, (DLH) will be competing directly with airberlin (BER), which also rapidly introduced a daily flight, and indirectly with easyJet (EZY), which has been offering daily flights from Berlin Schönefeld since June 2004. According to German government statistics, both Berlin routes to Budapest handled around 80,000 passengers in 2010.

(DLH) will resume 3X-weekly, Frankfurt - Tripoli A319 service on February 2.

Lufthansa Technik Malta is carrying out its third installation of a Lufthansa (DLH) first-class (F) cabin in an A340-600. The project includes installing new seats as well as a new in-flight entertainment system. (DLH)'s fleet of 24 A340-600s is scheduled for conversion by 2015.

Lufthansa Technik (DLH) (LTK) Chairman, August Wilhelm Henningsen told reporters at the Singapore Airshow that (LTK) has “a very positive feedback for the introduction of the A380.” It was “one of the smoothest introductions,” of any airplane the company has ever had, he said. While acknowledging the airplane had experienced some “items with the engine,” and “some items on the structural side,” he noted this is to be expected from a new airplane program, and “can be handled It’s nothing which was beyond expectation from the beginning.”

He attributed the smooth transition to (LTK)’s preparation. “We have prepared ourselves very intensely over the last two to three years,” he said, referring to its specialists, engineers (MT) and infrastructure.

On the preparation side, (LTK) has recently opened an 8,500 sq ft A380 maintenance hangar at Lufthansa Technik Philippines, a $30 million investment and a joint venture between (LTK) and the Philippine MacroAsia Corporation and will increase its workforce to 2,700. “This expansion was necessary because we have an increased demand for base services,” Henningsen told reporters. “It is logical that we expand into the A380 capability because this airplane needs many services in the near future.”

(LTK) also recently completed a five-year, $120 million expansion program at Ameco Beijing (BEJ), where its hangar is capable of hosting four A380s simultaneously.

SEE ATTACHED "AIRLINER WORLD" ARTICLE - - "DLH-2012-02 - 747-8I PREPARATION."

March 2012: Lufthansa’s (DLH) operating profit dropped by almost -20% to +€820 million/+$1.07 billion in 2011 and (DLH) expects to see profit shrink to a mid-three-digit million-euro figure this year. The group blamed aviation taxes and high fuel prices for the profit decline.

In addition, (DLH) announced a net loss of -€13 million/-$17 million for 2011 due to a larger-than-expected losses and disposal costs at British Midlands International (bmi) (BMA), which it is selling to British Airways (BAB) parent company, the International Airlines Group (IAG).

The (DLH) Group transported 100.6 million passengers last year, up +8% over 2010. “Some (DLH) Group airlines could not match the difficult environment,” (DLH) Chairman & (CEO), Christoph Franz said during a press conference in Frankfurt. Germanwings (RFG) was hit the most, and was particularly affected by Germany’s ecological tax. “Without being a member within the (DLH) Group, Germanwings (RFG) would not [have] survived the new tax,” he said, adding that 5.4% of (RFG)’s turnover is needed to cover the tax.

Franz said the new German and Austrian aviation tax cost the company €361 million and made up 14% of its overall costs. Fuel prices increased +25% to €5.8 billion. The (DLH) Group’s operative margin is down -1.3% to 3.4%.

“The financial profile of our company remains stable but we need better results to secure the future of Lufthansa (DLH),” Franz said, adding that “ticket prices have to become more expensive.”

(DLH)’s latest cost-reduction program, "Climb" has created -€1 billion in savings over three years. (DLH) plans to cut costs by -€1.5 billion by the end of 2014, sell loss-making (BMA) and inject +€140 million of fresh equity into Austrian Airlines (AUL). “But -€1.5 billion must be the minimum,” he said.

Within the next six years, 170 new airplanes, valued at €17 billion, will be delivered to (DLH). (CFO), Stephan Gemkow said these airplanes will have to be financed. “The aviation market [has] changed completely,” Gemkow said.

Looking forward, (DLH) faces high costs in Germany, pressure from low-cost carriers (LCC)s and strong competition from Middle East carriers. “We have to rebuild our company and make tough decisions,” Franz said, adding that all areas will be affected. For the moment, he ruled out layoffs.

Gemkow expects 2012 passenger growth to be in the single-digit percent numbers. “Our growth in terms of capacity will be reduced to +2%, maybe a zero percentage rate,” he said. Fuel costs in 2012 will increase from €1.2 billion to €7.5 billion, even though 74% is hedged.

Results have been published from (DLH)’s long-term bio-fuels test program, known as the burnFAIR project, and show that fuel burn was slightly less than with conventional jet fuel.

During the burnFAIR research project, a (DLH) A321 flew eight times daily between Hamburg and Frankfurt from July 15 to December 27, 2011. One engine was powered by a 50-50 blend of bio-fuel and conventional fuel.

After testing bio-synthetic fuel on 1,187 scheduled flights, Joachim Buse, (DLH)’s VP Aviation Biofuel, presented in Berlin the initial findings of detailed technical analysis of the long-term trial. “As expected, bio-kerosene can be utilized in flight operations without any problems. All technical investigations were positive and we were able to prove that bio-kerosene does not generate more pollutant emissions than conventional jet fuel,” Buse said.

Manfred Aigner, Director of the German Aerospace Center (DLR) Institute for Combustion Technology, said, “Our measurements have demonstrated that bio-kerosene emissions are at least equivalent to those from conventional fuel.”

During the long-term trial, researchers at the (DLR) Institute for Combustion Technology scrutinized the pollutants in the exhaust gas from the airplane engines. They mounted a probe behind both engines of the A321 and conducted the exhaust gases through a tube to the analysis instruments. “Similar levels of nitric oxide and carbon monoxide were measured in both engines,” noted (DLR) Institute Director, Manfred Aigner.

On conclusion of the test flights, the A321 engines were subjected to boroscopic tests. The findings from detailed analysis of sediment and changes to the seals of both tanks were entirely positive. No sign of any abnormal behavior resulting from the use of bio-fuel was found.

In order to return the airplane to normal scheduled service quickly, the major fuel-bearing parts between tank and engine were dismantled. These parts and the sensors were checked for sediment and functionality in the subsequent weeks. Their behavior, with respect to function and tightness, was perfectly normal, according to (DLH). As expected, the parts were in very good shape. Furthermore, no deposits were found in the inspection of both fuel tanks.

During the test-phase, the routine messages from the airplane on the major engine parameters were increased and the data subjected to additional evaluation. The fuel flow rate of the engine powered by the bio-kerosene mix was about -1% lower than that of the engine powered by conventional fuel. Thus, less fuel was consumed, the reason being that the energy density of the bio-kerosene mix was on average about +1% higher than that of conventional fuel.

Partners on the program included the Federal Ministry for Economics & Technology, which invested approximately €2.5 million in the project as part of its aviation research program (LuFo). Aside from other activities, scientists at the German Aerospace Center (DLR) conducted emission measurements directly at the engines and evaluated all the findings in cooperation with (DLH) experts.

Lufthansa (DLH) will take delivery of five 747-8I Intercontinental airplanes this year as part of its biggest fleet modernization program in its history. The remaining 15 747-8I airplanes will be delivered at a rate of five airplanes per year.

(DLH), the first passenger airline to operate the 747-8I, is expecting its first delivery by the end of April to be used on services from Frankfurt to the USA East Coast and India. (DLH) plans to first fly its new 747-8Is between Frankfurt International (FRA) and Washington Dulles International (IAD) with a service introduction date yet to be finalized.

(DLH) has commented on press reports saying it would have no immediate intention to sell its stake of approximately 16% in jetBlue Airways (JBL).

(DLH) will take delivery of the first of four A330-300s soon.

(DLH) also introduced a new business class (C) seat for its long-haul fleet. The new seat, which features a 1.98 meter-long bed, will be introduced on the first 747-8I. The new seat is a major component of (DLH)’s biggest investment to date in its in-flight product.

Over the next few years, some three billion euros will be channeled into product improvements for passengers. By the end of 2012, around 40% of its long-haul fleet will offer the new "C" class and about 30% will be reconfigured annually.

“Retrofitting the (DLH) entire long-haul fleet of more than >100 airplanes is expected to take four years,” (DLH) board member, Jens Bischof said. “In 2012, all together, we [will] invest €1.8 billion/$2.36 billion this year,” he said, adding that €300,000 will be in new products such as lounges.

The new Berlin Brandenburg International Airport (BER) will open in June. “Our services to and from Berlin will increase fourfold to 50 destinations,” Bischof said, adding that (DLH)’s total investment in (BER) is “more than a half billion euro, which also created 500 additional jobs in Berlin.”

(DLH) will open a new terminal area at Frankfurt Airport in October.

”This give as growth opportunities [that] other carriers don’t have in the next 10 to 20 years,” Bischof said. Growth will happen in Germany, not in nearby hubs like in Madrid or Paris.”

(DLH) plans to open five new destinations to China’s Shenyang and Qingdao, as well 61 new connections, beginning with its summer schedule from the end of March.

China’s opposition to the European Union’s Emission Trading Scheme (EU ETS), has prevented Lufthansa (DLH) from obtaining rights to operate an A380 to Shanghai, (DLH) Chairman & (CEO), Christoph Franz said. “The (EU ETS) is further increasing the already distorted level playing field. We [the European airline industry] cannot accept retaliatory measures against the (EU ETS) in whatever form, landing rights or other. Some days ago, (DLH) once again did not get the authorization to use an A380 to Shanghai,” Franz told the European Aviation Club in Brussels.

“Listening and nodding is not enough,” he warned European regulators. “We are in favor of a global solution [under (ICAO)]; however, in the meantime, there is distortion. This distortion has started for (DLH) in the second half of 2011 when we started hedging and buying CO2 certificates. We are trapped in a corner,” he said.

(DLH) has said it will have to buy at least 35% of the (ETS) certificates it needs this year and has estimated the (ETS) cost on group level this year at €130 million/$171.4 million. It decided to pass on this cost to the passenger and include it in the fuel surcharge.

Christoph Franz, as the (CEO) of Europe's largest airline urged European Union (EU) officials to back down from their steadfast insistence on including airlines in its Emissions Trading Scheme (EU ETS), warning that time is running short to avoid a damaging geopolitical standoff over the issue.

International aviation became part of the (EU ETS) at the start of this year, and carriers will have to make their first payments under the scheme in about a year. Christoph Franz, speaking to a recent International Aviation Club luncheon in Washington DC, said the timeline for solving the (ETS) issue "is very urgent since the system is legally in place" and carriers such as (DLH) are already spending "millions" to comply with it.

"It is imperative to avoid a trade war," he said. "We are already in the middle of the mess [caused by the (ETS)]. In order to avoid a trade conflict, for the time being we should sideline the (EU ETS) and get a commitment [from nations throughout the world] to negotiate through (ICAO). The speed to move ahead and come to a conclusion [on airline carbon dioxide emissions at (ICAO]) has not been sufficient."

Asked to clarify further, he said, "Sidelining [the (EU ETS)] means we do not apply this legislation for the time being, while we negotiate at the (ICAO) level."

Franz emphasized that (DLH) is not opposed to an emissions trading scheme in general, but believes the (EU ETS) is causing "conflict and dissatisfaction" and will potentially lead to a damaging trade war with a range of countries opposing airlines' inclusion in the scheme. "We need to deal with climate change, there is no doubt about it," he said. "Lufthansa (DLH) has always committed to participating in these kinds of cap-and-trade schemes [but] we have to find a global solution for a global problem."

Franz slammed regulators for not addressing other market distortions and for not creating the right regulatory framework for European network airlines to thrive. “There are some indications that [European Commission’s] Director General Competition will analyze subsidies to low cost carriers (LCC)s. It is a scandal that Ryanair (RYR) receives €18 support per passenger at Charleroi airport (CRL), while Brussels Airlines (DAT)/(EBA) [in which (DLH) holds 45%] has to pay €26 in passenger duties and taxes at Brussels airport, which is just 45 km away [from (CRL)].”

He also criticized the inability of European and national authorities to deal with the massive influx of capacity by airlines from the Arabian Gulf states. (DLH) offers some 7,000 weekly seats from Germany, which has 82 million inhabitants, to the Gulf states, whereas the airlines from the Gulf states, which have 6 to 7 million inhabitants, offer 38,000 seats to Germany, Franz said. “This is real distorted market access, today. This is not a forecasted situation for tomorrow. This has to be addressed through bilateral agreements because air transport is not part of the (WTO) and thus the normal instruments of addressing such market distortions are not there.”

(DLH) has announced plans to move some Human Resource (HR) & Administrative functions from subsidiary Swiss (CSR) to its corporate headquarters at Frankfurt International (FRA).

Munich Airport (MUN) allows 30 minutes of free Wi-Fi.

SEE ATTACHED - - "DLH-NEW BUSINESS CLASS SEAT - 2012-03."

April 2012: The Lufthansa (DLH) Group reported its airlines carried 21.9 million passengers in the first quarter, up +4.8% compared to the same period last year. Load factor rose by +1.3 points to 74.2% LF, while capacity (ASK)s increased +2.6%. The (DLH) Group comprises (DLH) and its subsidiaries Germanwings (RFG), Swiss International Air Lines (CSR) and Austrian Airlines (AUL).

(DLH) Group airlines carried a total of 15.8 million passengers, up +4.1% year-over-year. (ASK)s grew +1.6%, from 42.9 million to 43.6 million. Load factor rose +1.3 points to 73.8% LF.

(CSR) transported around 3.8 million passengers, up +4.9%, in the first quarter and load factor rose slightly by +0.7 points to 77.4% LF.

(AUL) carried close to 2.4 million passengers, grew +10.1%, the biggest growth of all (DLH) Group members. Load factor increased +2.1 points.

Lufthansa Cargo’s (LUB) first-quarter traffic decreased -9.3%, compared to the year-ago quarter. (LUB) carried a total of 426,000 tonnes of freight and mail. Capacity decreased -8.2% compared to the year-ago period. Load factor slightly decreased -0.4 points to 69.5% LF.

Lufthansa (DLH) is planning to keep capacity flat this year and will phase out its 737 fleet by 2016 as part of its -€1.5 billion cost-cutting measures, (DLH) Executive Board Member, Carsten Spohr told employees in an internal letter.

Spohr said the move is important to ensure (DLH)’s future as it adds new fuel-efficient airplanes and competes with fast-growing Middle East and low-cost carriers.

(DLH)’s operating 2011 profit dropped by almost -20% to +€820 million/+$1.07 billion. In addition, (DLH) announced a net loss of -€13 million/-$17 million for 2011 due to a larger-than-expected losses and disposal costs at British Midlands International (BMA), which it just sold to British Airways (BAB) parent company, the International Airlines Group (IAG).

(DLH) will increase capacity (ASK)s by a maximum of +4% in 2013 - 2014 as the airline closes unprofitable routes. “We [have] already dropped Hyderabad, Kolkata and Guangzhou,” Spohr said. “We have to do everything to avoid cancellations of routes to Nanking, Madras and Bangkok, which are in danger.”

Lufthansa (DLH) is reportedly considering moving all of its remaining short-haul services from/to Berlin Brandenburg International airport (BER), Dusseldorf International (DUS), Cologne/Bonn Konrad Adenauer (CGN), Hamburg Fuhlsbüttel (HAM) and Stuttgart Echterdingen (STR) to subsidiary germanwings (RFG) as part of a cost cutting plan that would see (DLH) itself concentrating on Frankfurt International airport (FRA) and Munich Franz Josef Strauss International airport (MUC) operations. (DLH) plans to increase cooperation with (RFG) as a result and has recently also announced a code share agreement between Austrian Airlines (AUL) and (RFG) on routes between Austria and Germany.

(DLH) will launch 2X-daily, Munich - Rotterdam CRJ900 service on October 1, operated by (DLH) CityLine.

(DLH) has not been able to find any buyers for bmibaby (BMI) and bmi regional ahead of a deadline that had been agreed to as part of its agreement to sell bmi british midland (BMA) to the International Airlines Group (IAG), the parent of British Airways (BAB) and Iberia (IBE). The (IAG) has announced that it will receive an undisclosed discount on the price paid for (BMA) as the deadline could not be met by Lufthansa (DLH). This discount will cover its expenses to either finance operations at the two (BMA) subsidiaries until a buyer can be found or to close down the carriers if that is not the case. (BMA) has left the Star (sal) Alliance as part of the transaction.

(DLH) will phase out all 55 737-300/500s by 2016. (DLH) is also expected to phase out all 70-seat airplanes, such as the Bombardier CRJ700 and DHC-8-Q400. When these airplanes are phased out, the A320 fleet will be the only narrow bodies in the European network. Spohr said that (DLH) should have no airplanes older than 25 years.

According to Spohr, (DLH) will establish a large long-haul fleet with a two-class configuration (business (C) and economy (Y)), and will axe its first-class product on some routes. All remaining A340-300s and 13 747-400s will be reconfigured in a two-class layout. (DLH) is also considering introducing a premium-economy (PY) class.

(DLH) is delaying a decision on an A340 replacement airplane until after its cost-cutting plan is complete.

“If we can reduce fuel by -5% by phasing out older airplanes more quickly, including a -5% reduction [of] employee costs . . . we could save -€600 million,” Spohr said, adding (DLH) may also renegotiate airport fees and cut personnel costs. Union Verdi said it feared job losses and would fight to prevent this from happening.

1st 747-830I Intercontinental (37827, D-ABYA) delivery. The 747-8I brings double-digit improvements in fuel burn and emissions over its predecessor, the 747-400, while generating -30% less noise. The 747-8I’s Dreamliner-inspired interior includes a new curved, upswept architecture giving passengers a greater feeling of space and comfort, while adding more room for personal belongings.

(DLH) plans to operate its new 747-8Is from Frankfurt International airport (FRA) to Chicago O'Hare International airport (ORD) and Los Angeles International airport (LAX) as the second and third destinations after Washington Dulles International airport (IAD), which it had already previously announced as the first route for the 747-8I in its fleet.

May 2012: The Lufthansa Group (DLH) reported a first-quarter net loss of -€397 million/-$521.9 million, reduced from a -€507 net loss in the year-ago quarter. The Group also announced it would eliminate -3,500 administrative jobs worldwide over the coming years as part of its cost-cutting measures to improve operating results by -€1.5 billion by the end of 2014.

(DLH) said that increased fuel costs, the air traffic tax imposed in Germany and Austria, as well as costs associated with emissions trading (ETS) in force in Germany since 2012, all had an adverse effect on the operating results.

"Higher taxes, fees and charges put a massive strain on our quarterly result. It was well down on last year despite record revenue,” (DLH) Chairman & (CEO), Christoph Franz said. “We cannot wait until politicians also recognize the damage that one-sided taxes and charges do to aviation and to Europe's reputation as a place to do business.”

First-quarter revenue was €6.6 billion, up +5.6% year-over-year, mainly due to higher traffic revenue stemming from a higher sales volume and price increases in the passenger business. Cash flow from operating activities rose to €833 million and made it possible to generate a free cash flow of €540 million.

Traffic revenue improved +5.6% to €5.3 billion. Overall, operating income increased +2.5% to €7.2 billion in the reporting period. Operating expenses rose +6.1% in the first quarter to €7.6 billion, mainly due to a +23% increase in fuel costs.

Concerning the job-cut announcement, Franz said, "We can only safeguard jobs for the long term and create new openings if we reorganize the administrative functions and accept job losses now."

For the full year 2012, the Group expects revenue growth to be similar to the previous year. Operating profit is predicted to be in the mid-three figure million euro range.

The Lufthansa Group (DLH) said it has reached a “mutual agreement” with (CFO), Stephan Gemkow under which he will leave (DLH) on June 30. He will be replaced by British Midland International (BMA) (CFO), Ms Simone Menne, who will become the first-ever female to become a member of (DLH)’s executive board.

Gemkow will become (CEO) of the German investment firm, the Haniel Group after his departure, (DLH) said. Menne’s contract will run for three years, it added. She has been with (DLH) in various positions since 1989, including serving as VP Finance & Accounting at Lufthansa Technik (LTK) from 2004 - 2010. (DLH) recently completed the sale of (BMA) to the International Airlines Group (IAH).

(DLH) executive board Chairman, Jürgen Weber said that Menne is an “experienced (DLH) manager who is fully conversant with the Group and our industry. In the difficult economic and political conditions prevailing in the aviation industry, that is the best prerequisite for further successful stewardship of the important Finance Division.”

(DLH) is now reportedly also considering acquiring (TAP) Portugal according to a report by the "Financial Times."

(DLH) now flies to Pula in Croatia from Munich Airport in Germany’s Bavaria. (DLH) Lufthansa has launched new routes to Dublin, Knock, Bari, Birmingham, Bastia and Odessa from Dusseldorf, Hamburg and Munich. (DLH) launched new routes from Düsseldorf to Malaga and Sylt.

The Lufthansa German Airlines (DLH) Board has created a Human Resources (HR) & Infrastructure Services Division, and has named Peter Gerber to lead the group from June 1. He has been responsible for finance and (HR) on the executive board of Lufthansa Cargo AG (LUB) since 2009.

(DLH) reported a disappointing first-quarter loss and said it would eliminate -3,500 administrative jobs worldwide.

The economic environment has not been kind to Europe over the last couple of years, and in 2011, Lufthansa Systems (LHS) took steps to realign the company not only for significant cost reductions but for an equal amount of revenue growth as well. It reorganized into profit centers that are defined by the customer base.

The commercial division has focused on tools that help airlines boost their own revenues, Stefan Auerbach, Senior VP Airline Solutions, said.

Among them is a new revenue integrity solution that aims to improve airlines’ financial results by +2% to +3% (perhaps more, depending on an airline’s practices) by “cleaning up” bookings made through Global Distribution Systems (GDS)s.

The solution looks for duplicate bookings, fictitious names, un-ticketed bookings and other signs that a booking is not likely to produce revenue. It flags the bookings and gives the airline the opportunity to return the unused seats to the available inventory.

Auerbach noted that as the integrity of bookings increases, it can have a significant impact on forecasting, so its fifth generation of revenue management tools take that into account.

Lufthansa Systems (LHS) foresees a tighter marriage of revenue management and pricing systems, resulting in forecasts that can trigger automatic fare changes, for example. The company also is looking to bolster its position in regions outside of Europe, particularly in Asia, in order to lessen its exposure to regional economic downturns and other variables.

Inside the company, Lufthansa Systems (LHS) has taken an innovative approach to equipping its employees: It has become "device-agnostic," and employees can bring their own.

“We can no longer say, ‘You have to have this or that device,’” Auerbach said. “The biggest game changes in Information Technology (IT) are the cloud and device-flexibility,” he said. The “I’m a Mac” or “I’m a PC” mentality can be accommodated by the virtualized environment in the cloud.

Lufthansa Technik Switzerland (LTSW) will undergo extensive restructuring and reduce its workforce from 304 to 82, (DLH)(LTK) in Hamburg said. "The job cuts associated with the restructuring decision are extremely painful for us," said (CEO), Rainer Lindau. "But only a rigorous focus on one core product will create conditions that ensure the continued existence of (LTSW) in Basel airport (BSL)."

According to (LTSW), the labor-intensive technical maintenance of (VIP) airplanes and the component services and engine services business will all be discontinued. The demand for maintenance of regional airplanes and their engines has declined dramatically, and the company was unable to compensate for these disproportionate losses in capacity utilization through its (VIP) and executive jets maintenance business. In addition, the exchange rate development of the Swiss franc and the very difficult market situation would necessitate extensive restructuring measures, (LTSW) said.

According to (LTSW), the existing under-utilization of capacity means the majority of job cuts will happen before the end of the month. In the future, the company said it will concentrate exclusively on line maintenance, light base maintenance and logistics services at (BSL).

Lufthansa (DLH) on May 22 launched its first scheduled flight with all-new on board products that include first- (F), business- (C), and economy- (Y) class seats as well as FlyNet, the first on board broadband Internet access using a Wi-Fi-enabled laptop or smartphone in every travel class.

The airplane, an A330-300, operating the Munich (MUC) - Washington Dulles service, is the first of three of the type to be delivered to (DLH) this year; two additional airplanes are dedicated to Swiss International Air Lines (CSR).

(DLH) will introduce its first 747-8I Intercontinental Frankfurt - Washington service featuring the all new products June 1.

(DLH) German board member, Jens Bischoff said aboard the Hamburg - (MUC) delivery flight that “when all airplanes have new seats in all classes by 2014, we expect €300 million in additional earnings.” He said that (DLH) this year has invested €1.5 billion/$1.92 billion in new airplanes and €300 million in new service products. “We ordered 7,000 new business- (C) class and 800 new first- (F) class seats, the biggest order of any airline,” Bischoff said.

(DLH) completed reconfiguring narrow bodies this spring and will install new first (F)-, economy (Y)-class and business (C)-class seats on its A380s in 2014.

In this new cabin configuration, the number of business (C)-class seats will shrink from 98 to 92.

Deutsche Lufthansa (DLH) AG Executive Board member, Carsten Spohr said (DLH) is considering adding a premium-economy (PY) class and will make a decision in the next six months.

Comment by Mike Knight:
"Quite amazing that (DLH) took delivery of their A380s before the new products were ready . . . Or, to look at it another way, quite amazing that they didn't have their new products ready BEFORE they took delivery of their A380s! The 168 degree angle seats where you continually slide down in flight are (by far) the worst I've experienced on the four A380 carriers that I've flown so far. The upgrade can't come soon enough.

And in other news: "Considering" adding Premium Economy (PY)? If it wasn't a good idea, Virgin Atlantic (VAA), British Airways (BAB) and others, wouldn't have been doing it for so many years."

Nico Buchholz, Executive VP Group Fleet Management at Lufthansa (DLH), said he is not happy with the weight of the 747-8I jumbo, but that will not restrict its use. “On all our in-service fleet, even those in our fleet 10 years, we are never happy with the weight situation, so we are always trying to reduce weight in order to save even more fuel. We have planned certain missions for this 747-8I and we will do the missions as we planned them. Yes, we are satisfied, otherwise we wouldn’t have signed the acceptance of the airplane.”

The 747-8I is several tonnes heavier than Boeing (TBC)’s original target, which generally increases fuel costs. (TBC) said in February it plans to hit its original weight target by 2014. “Yes, it is a bit overweight, there’s no secret about that, but is that impacting any of our operations? No.” Buchholz told "Reuters." “Certain things are better than Boeing (TBC)promised. When I look at all the elements combined as an airplane, that’s when I say the airplane does what we want it to do and does it the way we want it to do.”

At this time, Boeing has only 36 orders for the 747-8I passenger version, including 20 of those from Lufthansa (DLH). So far, it has delivered two passenger 747-8Is to private buyers and one to (DLH).

The freighter version of the 747-8F has fared better, with 70 orders so far.

June 2012: The Lufthansa Group is implementing several measures to improve the group’s efficiency, including streamlining its fleet and better integrating its business units.

Lufthansa Group Chairman & (CEO) Christoph Franz said (DLH) wants to “retain our position as the aviation powerhouse of Europe.” One measure includes better integration of its business units, he said.

(DLH) will also streamline its fleet, which Franz said has been too complex in the past.

“We operated several different airplane types from several different bases and different (DLH) Group airlines,” Franz said. “In the future, traffic that bypasses our Frankfurt and Munich hubs will be operated by an all [Airbus] A320 fleet. This gives us more productivity and reduces maintenance costs.”

(DLH) CityLine and Eurowings (EWG) will focus on serving hubs from regional airports. “From Stuttgart for example, it makes no sense to operate a big Germanwings [RFG] and Lufthansa (DLH) operation. That’s why (RFG) will be the main carrier there,” Franz said, pointing out the mainline (DLH) learned a lot from its low-cost carrier (LCC) subsidiary (RFG) in terms of efficiency and increasing online bookings.

Franz said he is expecting a further consolidation of European airlines. “That means, big carriers will grow further, [including] (DLH). But we always have to ask ourselves if we can finance it [further takeovers] and where will the growth [will be going],” he said.

Franz said the aviation market remains challenging. “In our business, it depends a lot on reacting quickly when plans have to change,” for example, when (DLH) had to reduce its planned growth for this year to zero. “This is a massive intervention for a big organization like the (DLH) Group.”

Lufthansa (DLH) said its passengers on Germany - Russia routes grew by +5% in the first quarter,

(DLH) Board Member, Jens Bischof said "Lufthansa (DLH) has launched several new routes in Russia and the (CIS) this year.

At the end of March, (DLH) launched service from Hamburg to St Petersburg, and at the beginning of May, it launched the Ukrainian route of Munich - Odessa.

Despite the delay of Berlin Brandenburg International airport’s opening, (DLH) from June 3 doubled the number of weekly flights between Berlin and Moscow to 12 per week.

In 2011, (DLH) carried 1.5 million passengers on Germany - Russia routes and nearly 600,000 passengers from the (CIS). (DLH) operates 243 weekly flights on 17 destinations in Russia and the (CIS).

(DLH) is planning to sell both its catering subsidiary, (LSG) Sky Chefs and its Information Technology (IT) services subsidiary, Lufthansa Systems (LHS) according to a report by the "Financial Times Deutschland."

Lufthansa (DLH) flight LH416 (the first 747-8I passenger service that flew from Frankfurt (FRA) to Washington Dulles (IAD) landed at 12:45 local time, 10 minutes ahead of schedule. Flying time was 7 hours 57 minutes.

During the gate ceremony in (FRA), DLH Group Chairman & (CEO), Christoph Franz said the 747-8I, which uses -15% less fuel and has a -30% noise reduction compared to the 747-400, is “not only in line with our company's commitment to innovation, technology and efficiency, but also offers qualities and features that are sure to maximize our passengers' in-flight experience.”

The (DLH) 747-8I is equipped with 362 seats in a three-class configuration (8F first-, 92C business- and 262Y economy class). The 748-8I also features state-of-the-art wings with improved aerodynamics and raked wing tips; and new fuel-efficient (GE) Aviation (GEC) (GEnx-2B) engines that contribute to a reduction in fuel burn, emissions and noise; and fly-by-wire technology. At (FRA), the airplane passed through the traditional water salute.

Boeing (TBC) will deliver four more 747-8Is to (DLH) this year.

“Next year, Korean Air Lines (KAL) and Air China (BEJ) are the next deliveries of the passenger version beside Lufthansa (DLH).” (DLH) is expecting its second 747-8I within the month.

(DLH) Group Head Fleet Management, Nico Buchholz said that (DLH) has a total of 160 airplanes on order for delivery throughout 2017. “Currently, we are looking at the fleet planning for 2016 through 2025. That includes replacements for [Airbus (EDS)] A340-300, older A340-600s, 747-400s, older A320, as well 767/777s of Austrian Airlines (AUL),” he said, without giving details about future orders. The next new type of airplanes that (DLH) will integrate will be the Bombardier C Series from the end of next year for Swiss International Air Lines (CSR), Buchholz said.

Lufthansa (DLH) is negotiating with Chinese authorities to operate its A380 on the Frankfurt – Shanghai Pudong (PVG) route.

(DLH) Group Chairman & (CEO), Christoph Franz said that (DLH) has “great interest” in flying the A380 to (PVG).

Franz said he is not happy about the ongoing dispute between Europe and China over the European Union Emissions Trading Scheme (EU ETS). “The (EU ETS) is creating international dissatisfaction, which is also creating a trade war,” he said. “Several airlines are already facing problems, such as being denied traffic rights,” Franz said, adding, “The pressure to find a solution increases.”

Local residents have voted against development of a third runway at Munich Airport (MUC), Germany's second-biggest airport. Just over >54% of polled voters were against the new runway and 45.7% in favor, according to preliminary results.

"The fact that a relative majority of Munich residents voted against the construction of a third takeoff and landing strip shows how difficult it has become to make clear the significance of important infrastructure projects in our country," (MUC) Chief, Michael Kerkloh said. “(MUC) is operating already 10 hours a day on runway capacity limits. This is okay during good weather periods like in the summer, but is getting worse in tough winter scenarios. So far, we cannot say if and when we could continue with the €1.2 billion/$1.5 billion project,” the spokesperson said.

(MUC) operator, Flughafen Munchen (FMG) began planning a third runway six years ago. The airport received planning approval in July 2011 from the regional Bavarian government for the construction of the runway, which would have allowed it to handle up to 120 movements per hour, up from 90.

The residential vote has dealt a blow to airlines clamoring for growth in Europe’s biggest economy. “We believe that growth could not go forward as planned without the third runway,” Thomas Kluhr, Lufthansa (DLH) Passenger Airline Board Member Munich & Direct Services, said. (DLH) will continue to operate at (MUC), but Kluehr told "German News TV Bayerische Rundschau," that in the long term, (DLH) could shift investments to other hubs in its system, such as Vienna or Zurich.

German airlines have already been hit by a night-flight ban at Frankfurt Airport (FRA) and delays to the opening of the new Berlin Brandenburg International airport.

(MUC) handled almost 38 million passengers last year and expects more than >50 million in 2015, due to a €650 million/$856.8 million expansion of its Terminal 2, a joint project between (FMG) and (DLH).

Lufthansa (DLH) has said that it would consider moving some of the passenger traffic it had planned to build up at its second largest hub at Munich Franz Josef Strauss International airport (MUC) to Brussels National Zaventem (BRU), Vienna International (VIE) or Zurich Kloten (ZRH) airports, where its subsidiaries Brussels Airlines (DAT)/(EBA), Austrian Airlines (AUL) and Swiss (CSR) operate hubs in case no third runway can be built in Munich. The city itself only owns 23% of the airport with the remaining shares held by the German government and the state government of Bavaria but it has a right to veto any decisions such as the construction of a third runway.

Lufthansa Technik Switzerland (DLH) (LTKSW) in Basel will undergo extensive restructuring. In the future, the company will concentrate exclusively on line maintenance, light base maintenance and logistics services for its customers at EuroAirport Basel. The company’s focus on just one core product will entail personnel reductions from 304 to 82 employees. It is likely that 22 employees will be able to retain their jobs in the engine shop in Basel, though not as employees of (LTKSW).

“The job cuts associated with the restructuring decision are naturally extremely painful for us,” said Rainer Lindau, (CEO) of Lufthansa Technik Switzerland. “But only a rigorous focus on one core product will create conditions that ensure the continued existence of Lufthansa Technik Switzerland in Basel.” The labor-intensive technical maintenance of VIP airplanes and the Component Services & Engine Services business will all be discontinued.

As early as the initiation of the consultation procedure at the end of March, the company announced that the exchange rate development of the Swiss franc and the very difficult market situation would necessitate extensive restructuring measures. The demand for maintenance of regional airplanes and their engines had declined dramatically, and the company was unable to compensate for these disproportionate losses in capacity utilization through its business in the maintenance of VIP and executive jets.

According to (LTSW), the existing underutilization of capacity means that the majority of the job cuts will be need to be initiated before the end of the month. A support plan will be available for the affected employees. As regards the Engine Services business, (LTSW) was able to reach agreement with SWISS (CSR) that the fleet’s engines will continue to be maintained at the engine shop in Basel, although not under the name (LTSW). This measure is likely to result in the retention of 22 current (LTSW) employees.

(LTSW) is establishing a job center in Basel to provide information on job openings at other Lufthansa Technik (LTK) facilities and at external companies as well as individual assistance for employees.

July 2012: Lufthansa (DLH) will cease 5X-weekly, Munich - Singapore - Jakarta service on October 14.

(DLH) will transfer its first long-haul flights to Munich (MUC) following the night-flight ban at Frankfurt (FRA). The (DLH) seasonal 5X-weekly A340-300 service to Cape Town will now be operated from (MUC) from October 29.

Washington Dulles, USA welcomed the arrival from Frankfurt of the first commercial flight of (DLH)'s 747-8 Intercontinental.

(DLH) has been forced to reduce or adjust late evening flights from (FRA) during its summer schedule after a German court in April upheld the night-flight ban at (FRA) between 11 pm and 5 am local time.

(DLH) has had to cancel 120 flights since October when the ban took effect.

Lufthansa (DLH)’s in-house low cost carrier (LCC) germanwings (RFG) has now started non-stop flights between Stuttgart (STR) and Rijeka (RJK) in Croatia. From 30 July until 6 September, (RFG) will operate two weekly flights using an A319. (RFG) started serving Rijeka for the first time earlier this year from Cologne/Bonn (27 March) and Berlin Schönefeld (20 June). Despite being the third largest city in Croatia (after Zagreb and Split), the city’s airport handled less than <100,000 passengers in both 2010 and 2011.

Lufthansa Technik (DLH) (LTK) has elected Christoph Franz as Chairman of the supervisory board and Johannes Bussmann as Chief Executive Human Resources (HR), Engine & VIP services.

Lufthansa Technik (DLH) (LTK) has a seven-year component supply contract with (SAS) Scandinavian Airlines, covering (SAS)'s entire fleet of approximately 140 airplanes. The contract also includes Information Technology (IT)-integration services.

The (IMS) Company has been selected by Lufthansa (DLH) to supply its in-flight entertainment system (RAVE) for at least 80 wide body production airplanes. (DLH) will equip a variety of airplanes, including A330s, A340s and 747s.

A319-112 (5239, D-AIBH), and A320-214 (5203, D-AIZM), and 2 Embraer EMB-190-200LRs (0555, D-AEBQ; 0558, D-AEBR), ex-(PT-TDJ, PT-TDN) for Cityline operations deliveries.

August 2012: The Lufthansa (DLH) Group reported a second-quarter net income of +€229 million/+$288 million, down -23.9% from +€301 million in the year-ago quarter.

The group earned an operating profit of +€361 million for the quarter, up +27.6% from +€283 million in the year-ago period. Revenue increased +6.4% to €7.89 billion compared to €7.42 billion in the second quarter of 2011.

(DLH) said that positive factors included consistent capacity and yield management in passenger and cargo traffic, clear restructuring successes at Austrian Airlines (AUL) and good earnings contributions from the service companies.

(DLH) (CFO), Simone Menne who took over the position July 1, said, “By acting systematically, we want to ensure that we can continue to invest for our customers, secure and create jobs for our staff and maintain our profitable growth. We cannot avoid taking some unpleasant steps . . . the positive earnings performance and the lower unit costs in the second quarter give us confidence that it is worth the effort.”

(DLH) plans to cut capacity (ASK)s by -2.5% year-over-year from its winter flight plan 2012/2013. This means growth will be cut to +0.5% for the full year. (DLH) will continue reducing capacity by phasing out older airplanes ahead of schedule and making seasonal adjustments, as it axes flights from Frankfurt to Casablanca, London Gatwick, Larnaca, Palma de Mallorca and Naples, starting with the winter schedule.

As part of its cost-cutting program "(SCORE)" the (DLH) Group wants to improve operating results by at least +€1.5 billion by the end of 2014.

The (DLH) Group is still forecasting increased revenue and an operating profit in the mid-three figure million euro range for the full year. This forecast does not include restructuring costs in connection with (SCORE) and the planned reduction of jobs. It estimates these savings will be between -€100 to -€200 million for the current year.

The (UFO) union has confirmed that Lufthansa’s (DLH) flight attendants (CA) will strike from the morning of August 31st for eight hours at Frankfurt Airport. During this time, short- and long-haul flights could be disrupted. No other airports should be affected.

The (UFO) union, which represents 18,000 (DLH) flight attendants (CA), rejected (DLH)’s latest pay offer. It has been in dispute with (DLH) for 13 months over pay and conditions.

After the first day of the strike, (DLH) offered to restart negotiations with the (UFO) union. During the August 31st eight-hour strike, (DLH) had to cancel -200 out of 360 flights at Frankfurt Airport (FRA). Some long-haul flights were not able to operate and (FRA) could not give landing clearance for arriving airplanes from domestic European destinations for about 90 minutes due to a lack of parking positions.

Munich has reported 15 (DLH) flight cancellations. Dusseldorf reported one cancellation; Berlin Tegel, three; and Stuttgart, one.

Lufthansa (DLH) will cease 5X-weekly, Munich - Singapore (SIN) and 5X-weekly, (SIN) - Jakarta service on October 14.

Lufthansa Cargo (LUB) will take delivery of the first of five (GE 90)-powered 777F freighters in the fall of 2013, followed by two in 2014 and two in 2015.

(LUB) will decide if it will convert the five options over the next several weeks. “To have [airplane] options gives us flexibility,” (LUB) Executive Board Member Operations, Karl-Rudolf Rupprecht said. It is unclear if (LUB) will use the 777Fs for fleet expansion or replacement of its 19 MD-11F airplanes.

(LUB) and its AeroLogic (AGC) joint venture [with DHL Express (DHK)] operate eight 777Fs. “The 777F saves -17% fuel compared to an MD-11F. If we operate 19 777Fs, the fleet needs the same amount of fuel for 11 months compared to 19 MD-11Fs in 12 months,” Rupprecht said.

The Lufthansa (DLH) Group uses 10 million tons of Jet A1 kerosene annually. (LUB) said it has reduced fuel burn by -4% since 2005, or -1.9 tons per flight.

(LUB) is targeting a -25% reduction in CO2 emissions by 2020 and a -50% reduction in net CO2 emissions by 2050.

The Lufthansa Group phased out the last of its Avro RJ85s at its CityLine subsidiary, after it completed flight LH1985 from Cologne to Munich. The airplanes will be replaced with the Embraer EMB-190/195s.

CityLine has operated up to 18 93-seat Avros on 575,000 flights and transported more than >30 million passengers; the airplane was used mainly on intercity and interregional routes within Europe.

The Embraer EMB-190/195 offers 120 seats, bringing more capacity and better operating performance to the Group’s loss-making European network.

CityLine’s fleet also includes Bombardier (BMB) CRJ700s and CRJ-900s. CityLine operates 350 daily flights to 75 destinations in 24 countries.

September 2012: Lufthansa (DLH) will make Chicago its third destination airport for the 747-8I, for which (DLH) was the launch customer and which entered service in June. Helmuth Schabel, (DLH) Regional Director Operations & Airport Services, Washington Dulles, said that as the 747-8I approached its 100th day of service since its launch flight between Frankfurt (FRA) and Washington Dulles, its performance had been excellent.

(DLH), which ordered 20 748-8Is, will use the airplane on its (FRA) - Los Angeles route from the end of October, and then begin (FRA) - Chicago service in the first quarter of 2013, (DLH) Director Corporate Communications - The Americas, Nils Haupt said.

Updating reporters on the situation regarding (DLH)’s flight attendants (CA)’s strike, Haupt said it was “very possible” that more strikes would follow. August 31st’s eight-hour strike forced the cancellation of 190 flights in and out of (FRA), Haupt said. Some 26,000 passengers were affected. Most canceled flights were short-haul services, but some long-haul flights were also canceled, including services to the USA cities of Atlanta, Boston, Philadelphia, New York (JFK) and Seattle.

On September 4th, (DLH) canceled more than >350 out of 1,800 flights at Berlin Tegel (TXL), Frankfurt (FRA) and Munich (MUC) airports as its flight attendants (CA) launched a second day of strikes in an ongoing dispute over pay and conditions. It estimates about a minimum of 43,000 passengers were affected by the flight disruptions.

The (UFO) union also announced it would carry out a nationwide 24-hour strike on September 7th at every German airport.

On September 4th, the union carried out eight-hour strikes at (TXL) and (FRA). Flight attendants (CA) were on strike for 11 hours at (MUC), (DLH)’s second biggest hub. (DLH) had to cancel every other short-haul flight from (FRA), as well as one-third of its long-haul flights. It canceled 15 flights at (TXL).

(DLH) also began canceling flights for September 5th.

(DLH) was confident it could operate about 75% of its 450 flights scheduled out of (MUC); its highest priority was to operate around 20 intercontinental flights. A (DLH) spokesperson called the strike actions “intolerable.”

(DLH) has canceled about 1,200 out of 1,800 flights for September 7th. “Currently we don’t see the parties coming together for talks,” a (DLH) spokesperson said. “If everything works out well for us, we can operate about 600 flights on September 7th with partners Austrian (AUL) or Swiss (CSR), as well with our regional carriers.”

(DLH) also canceled 13 flights for September 8th. During the first two strike days, (DLH) grounded more than >500 airplanes. About 80% of the (CA)s have participated in the strike action.

At last on September 7th, (DLH) and the (UFO) union have agreed to mediation to settle their dispute after three days of strikes forced the cancellation of more than >1,000 flights, "Reuters" reported.

The move came after (DLH) said it would stop outsourcing flight attendant (CA) jobs at its Berlin hub and offer permanent jobs to the cabin crews it uses.

According to a "Reuters" report, (UFO) union boss, Nicoley Baublies told reporters in Frankfurt, “We have signed a preliminary agreement over a mediation on the wage components. Starting September 8th, there will no longer be any strikes until we agree to or reject an arbiter’s ruling.”

Around 1,000 flights in and out of Frankfurt were canceled September 7th as flight attendants (CA) staged a third day of strikes in the escalating dispute over pay and conditions. (DLH) said 105,000 passengers were affected and that the first two days of strikes cost (DLH) -€10 million/-$12.6 million.

The Japanese Ministry of Land, Infrastructure, Transport & Tourism has issued antitrust immunity (ATI) to Swiss International Air Lines (CSR) and Austrian Airlines (AUL), allowing All Nippon Airways (ANA) to add both to its Japan - Europe joint venture with Lufthansa (DLH).

(ANA) President & (CEO), Shinichiro Ito said the development will “offer improved access to European destinations” and help “to support (ANA)’s international expansion.”

The two (DLH) Group carriers will launch joint sales and products beginning in spring 2013. (ANA) filed the application in July.

Lufthansa (DLH) will merge its direct European services with its Germanwings (RFG) subsidiary to form a new low-cost carrier (LCC) from January 1. The company’s headquarters will be in Cologne.

According to (DLH), the new (LCC) will take over all German domestic and European services outside of (DLH)’s Frankfurt and Munich hubs.

(DLH) said it will decide on the brand name in the coming months. (DLH) said recently it is losing three-digit-million euros annually within its European network.

According to a statement, the new company will operate a fleet of around 90 airplanes and will transport more than >18 million passengers in the first year.

“The future fleet will be created by 35 airplanes from Lufthansa (DLH), 35 [Airbus A319/320] airplanes from Germanwings (RFG) and 20 airplanes from Eurowings (EWG).”

(DLH) Chairman & (CEO), Christoph Franz said: “Combining our domestic German and European point-to-point services has enormous potential to improve efficiency. Our aim is to once again fly these services profitably under the umbrella of a single company.”

Frankfurt Airport (FRA) owner and operator Fraport is set to open the A-Plus pier (which will provide terminal positions for wide body airplanes) on October 10. The new pier is the westward extension of Terminal 1.

“The new A-Plus terminal section will, together with Piers C/D and B, constitute the main focus of Lufthansa (DLH)’s future A380 handling activities at Terminal 1,” according to (FRA).

The pier, which cost €700 million/$918.3 million, offers four A380 parking positions and three parking positions for the 747-8I. It will accommodate an additional six million passengers per year.

(DLH) has announced plans to build a modern logistics center at Frankfurt Airport (FRA). The center, which will replace the existing Lufthansa Cargo Center (LCC), is expected to open in 2018.

“We are investing in the future and in our (FRA) base,” (DLH) (CEO) & Chairman, Christoph Franz said. (FRA) will remain the central hub for the (DLH) Group’s cargo business, despite the night-flight ban.

(DLH) said it has had to “considerably” adjust the original plans due to the night-flight ban at (FRA). “Building of a new logistics center is a major component of our Lufthansa Cargo (LUB) 2020 strategy,” (LUB) (CEO) & Chairman, Karl Ulrich Garnadt said.

Construction of the main building is scheduled to begin in 2014. (DLH) is investing “mid-triple-digit million” euros in the new logistics center, it said.

Two years ago, the (ILA) Berlin Air Show was the stage for a massive Emirates (EAD) A380 order. (EAD) bought another 32 airplanes at the time, by far the biggest single commitment for the type. Of course the setting was no coincidence: Emirates (EAD) wanted more traffic rights into Germany and wanted to demonstrate how much it does to promote the German and the European economy. (EAD) sent one of its A380s that had just been delivered from Hamburg and parked it right next to Lufthansa (DLH), to make a statement. (DLH) executives back then were annoyed at how much time Chancellor, Angela Merkel spent on board of the competitor’s airplane.

Two years on, not much has happened in terms of traffic rights and the Belin Air Show again is the stage for that rivalry – this time without an order. (DLH) sent a new Boeing 747-8I to the show to have it named "Brandenburg" (the German state in which the show ground is located). Of course, (EAD) could not leave that unanswered and sent one of its A380s for two days. It was still here on Wednesday, whereas the 747-8 left on Tuesday evening.

And of course Chancellor Merkel was here again. She helped in the naming ceremony of “Brandenburg,” but she also paid a visit to the (EAD) airplane, which did not remain unnoticed by Lufthansa (DLH).

(EAD) can fly an unlimited number of frequencies into four German markets and has picked Frankfurt, Hamburg, Dusseldorf, and Munich, but it would like to add Stuttgart and Berlin. Earlier this year, (EAD) looked really close to having its way, but when (DLH) publicly launched its "Score" restructuring program, Merkel’s bureaucrats stopped the process at the last minute.

(DLH) deployed their 747-8I Intercontinental on Bengaluru – Frankfurt service, the third destination worldwide to receive the 747-8I and the second Indian destination after New Delhi.

Lufthansa (DLH) has signed a Memo of Understanding (MoU) with Solena Fuels Corporation of Washington, D C, to work towards “a long-term, bankable offtake agreement” for bio-synthetic paraffin kerosene to use as a certified, drop-in fuel for commercial flights.

Solena will locate its first sustainable biofuel facility in Germany at Schwet/Oder, on the Polish border. The refinery will use the Fischer-Tropsch process to convert 520,000 tonnes a year of waste biomass that would otherwise have gone to landfills or incinerators into synthetic jet and diesel biofuels, and electricity.

Lufthansa (DLH) agreed to jointly develop the sustainable alternative fuel supply, including delivery to Berlin Brandenburg Airport. (DLH) has more experience than any in the use of biofuels, having run a prolonged test last year on 1,187 commercial flights between Frankfurt and Hamburg in an A321.

Solena earlier signed a similar agreement with British Airways (BAB) that will produce 50,000 tonnes of biofuel in the UK from 2014 or 2015.

While honeycomb, glass fiber- and carbon fiber-reinforced plastics have found increasing application across airplanes over the past decades, repairing the synthetic material has remained a labor-intensive, manual task for highly skilled mechanics (MT). And it is still the case for much of the metal airframe work too. Nevertheless, manufacturers and maintenance providers are developing automated processes to make composite repairs more efficient and, crucially, to extend their scope for critical parts.

Lufthansa Technik (DLH) (LTK) has been working on an automated repair system for primary composite airframe structures since 2009. The first phase of the six-year research and development program was completed in April, after (LTK) had applied for a patent for a robotic system named "Rapid Repair" earlier this year.

The objective is to repair primary composite structures in the same way as non-critical components, such as fairings and engine cowlings, where it is possible to remove damaged fibers and replace them with a bespoke repair patch. The inherent risks in the labor-intensive manual work (for example inadvertent damage to intact fibers during the material removal or reduced bonding due to surface contamination in the repair area) are not acceptable for primary structures, however. Critical parts are thus typically fixed with bolted doubler repairs, where the damaged section is reinforced with additional composite or titanium material.

SEE ATTACHED - - "DLH-2012-09 - ROBOTIC RAPID REPAIR." FOR MORE DETAILS SEE: http://www.flightglobal.com/news/articles/in-focus-engineers-aim-for-robotic-composite-repairs-in-future-376554/?cp=NLC-FGFIN20120925&attr=editorial

October 2012: Lufthansa (DLH) will operate weekly, Dusseldorf - Cardiff service between May 4 and October 5.

(DLH) has confirmed plans to switch all its non-hub short-haul services to low-cost carrier (LCC) subsidiary, Germanwings (RFG), and said it will release further scheduling and branding details in December.

The short-haul revamp, which was announced last month, will enable (DLH) to focus on its long-haul carrier business and domestic and European services from its Frankfurt and Munich hubs, which are unaffected by the changes.

(DLH) said the new (RFG) will offer “a quality product — reasonably priced but not cheap” from January 2013. As many as 30 (DLH) airplanes will be transferred to (RFG). Regional subsidiary, Eurowings (EWG) will also operate on behalf of the new (RFG).

“With this strategic move, we are establishing an important precondition for restoring our European flight operations to profitability. With an enhanced brand identity and a corresponding product, (RFG) will combine all our point-to-point operations outside our hubs in a separate company. However, in order to achieve sustained success, it is important that we (together with the unions and employee representatives) can maintain the cost-effectiveness of (RFG) operations,” Lufthansa Group Chairman & (CEO), Christoph Franz said.

(RFG)’s management will remain unchanged; board members Thomas Winkelmann, Axel Schmidt and Oliver Wagner will oversee the changes. (RFG)’s extended flight schedule and new brand identity will be unveiled in December, (DLH) said.

Last month, (DLH) revealed its plans to revamp its short-haul activity under a project that has been dubbed internally as “Direct4you.”

Lufthansa (DLH) inaugurated services on the intra-communitarian route from Munich (MUC) to Rotterdam (RTM), the Netherlands’ second-largest city, home to the world’s third-biggest port and gateway to the country’s third-largest city, The Hague. Roland Wondolleck, Rotterdam Airport’s (CEO), said: “Business communities of Rotterdam and Munich alike have long hoped for this service. In addition, Munich is a great starting point for the Alps and a popular area for second home ownership for the Dutch.” Having launched on 1 October, the new twice-daily service is operated by Lufthansa (DLH) CityLine using CRJ900 airplanes.

Lufthansa (LH) is increasing services in Latin America as (DLH) looks to expand its market share in the region. On October 28, (DLH) will increase its 6X-weekly A340-600 Rio de Janeiro - Frankfurt (FRA) service and its 5X-weekly Bogota (BOG) - (FRA) service to daily.

(DLH) Executive board member, Carsten Spohr said that Latin America passenger revenues represent 5% of global passenger revenues for (DLH), while cargo revenues represent 10% - 11% of network cargo revenues. (DLH) expects these numbers to grow to 7% and 15%, respectively, in the next three to four years.

In the past 18 months, (DLH) has increased (ASK)s +40% in the region; in Brazil (its most important single market in the region) (ASK)s grew +70%.

(DLH)’s cargo market is also growing in Brazil. Lufthansa Cargo (LUB) last year increased its MD-11F (FRA) - Campinas Viracopos cargo services to 10X-weekly, up from 6X weekly in 2009.

Also from October 28, (DLH) will operate one daily nonstop 747-400 (GRU) - (FRA), one daily A340-600 (GRU) - Munich service and one daily A340-300 (GRU) - Zurich, using its subsidiary, Swiss International Air Lines (CSR).

(DLH) will launch 1X-daily, Munich - Vancouver A330 service from May 16, 2013. This is the first time it has offered non-stop flights on this route. It already offers Frankfurt - Vancouver 1X daily.

(DLH) began operating the route from Munich (MUC) to Cape Town (CPT) on 28 October. (DLH) previously served the South African city from Frankfurt, but in March 2012 decided to drop the service due to night flying restrictions being implemented at the airport. While another German carrier, Condor (CDF), will begin serving Cape Town from Frankfurt on 3 November, (DLH) decided to move its service to Munich and now offers five weekly flights from the Bavarian capital. Flights will be operated using A340-300s.

Lufthansa (DLH) and Australia-based Algae Tec have signed a collaborative agreement to build a facility that would produce algae on a large scale and convert it to aviation biofuels. The site will be in Europe and located adjacent to an industrial CO2 source, the companies said.

(DLH) will arrange 100% funding for the project, while Algae Tec will manage it and receive license fees and profits. As part of the agreement, (DLH) has committed to a long-term offtake agreement of at least 50% of the crude oil produced at an agreed price. The agreement forms the basis for a long-term cooperation between the two companies for industrial-scale production of crude algae suitable for conversion into aviation kerosene and conventional diesel fuels.

The agreement supersedes a Memo of Understanding (MOU) signed between the two parties in January 2012. It requires final board approval. A final feasibility report will be completed, once the first site has been selected. Algae Tec opened an algae-biofuels conversion facility in New South Wales, Australia in August.

(DLH) conducted an extensive biofuels research experiment, known as the BurnFAIR project, with an A321 on scheduled Hamburg - Frankfurt flights. The project helped (DLH) win the Air Transport World (ATW) media Gold "Eco-Airline of the Year" award.

“We want to introduce 747-8I Intercontinental service into São Paulo next year and A380-800 services in 2014,” Spohr said. He said the idea is to do the same in Mexico City to (FRA) and Munich.

As German corporations are increasing their presence in Brazil, Spohr said he hopes the “infrastructure will improve fast and further,” and not just in the aviation business. He said he was impressed by airport upgrade programs in Panama City and (BOG), and hopes Brazil will catch up.

He also said (DLH) has no intention to acquire equity in local airlines and has no interest in (TAP) Air Portugal.

AirFrance Industries (AFI)/(KLM) (E&M) and Lufthansa Technik (DLH) (LTK) agreed to launch a joint offer for providing Embraer EMB-Jet family component support. The two companies are now developing a business model for the product, which may expand to offer services beyond component support. Their existing (JV), "Spairliners" will develop the project.

Lufthansa Technik (DLH) (LTK) signed a five-year total base maintenance support contract with Norwegian Air Shuttle (NWG) to cover its 737-800 fleet.

Lufthansa Technik (DLH) (LTK) and (GE) Aviation (GEC) signed a long-term comprehensive material service agreement for (CF6-80C2) and (CF34-3, -8 and -10) engines.

The deal encourages (DLH) (LTK) to use more Original Equipment Manufacturer (OEM) parts and material. It also provides (DLH) (LTK) with intellectual property technology transfer so the companies can jointly develop repairs. This means the repairs developed by (DLH) (LTK) will be (OEM), opposed to Designated Engineering Representative (DER), approved.

Brian Ovington, (GEC)’s Director Marketing, says this cooperative agreement should help both parties lower the total cost of ownership for these engines. He also said that (DLH)/(LTK) has an “active pipeline of repairs” in development for these engines.

(DLH) is seeking to unify standards for engines and cockpits across its group of five airlines to boost purchasing power, staff magazine "Lufthansaseat" reported. (DLH) hopes to bundle the interests of its airlines: — (DLH), Austrian Airlines (AUL), Swiss International Air Lines (CSR), Brussels Airlines (DHL)/(EBA) and Air Dolomiti, and find a common denominator to place one single order and negotiate more favorable terms and conditions for airplanes, including the A320neo family, Bombardier CSeries, the 787 Dreamliner or the A350.

Over several years’ time, (DLH) plans to streamline fleets from nine airplane versions on the short- and medium-haul segment to four. For example, it will phase out all 737-300/-500s.

In its long-haul fleet, (DLH) will pare down its six airplane types in 16 different versions to four airplane versions.

(DLH)’s introduction of the 747-8I has been a smooth ride so far, according to Dean Raineri, Director New Aircraft Readiness at Lufthansa Technik (DLH) (LTK).

Raineri said at the (MRO) Europe conference that (DLH) achieved 100% dispatch reliability in the first two months of 747-8 operations – June and July. In August, performance fell to 98.2%, but Raineri notes that with a fleet of only three 747-8Is so far, that is still a significant achievement.

(DLH) currently operates 10 A380s, and they are at just below <99% in terms of dispatch reliability.

Raineri says that “you cannot start too early” in terms of preparing for new airplanes entering the fleet, but that the bulk of the work and the steepest learning curve are in the last 15 - 20 months before entry into service (EIS).

While the 747-8 is a derivative airplane, Raineri points out that a lot of its systems have been updated, so the introduction was similar to getting an airplane that was developed from scratch. He predicts that airlines will have a similar experience when introducing types like the Boeing 737 MAX or the Boeing 777X over the next few years.

November 2012: Lufthansa (DLH) launched 5X-weekly, Munich - Cape Town A340-300 service on October 28. It said the launch marks the first nonstop connection between the two cities. In previous winter seasons, (DLH) has operated the service from Frankfurt.

(DLH) expanded its presence at two German airports, Berlin Tegel (TXL) and Düsseldorf (DUS) in the first days of November. All of the five new routes will be served with low frequencies and operated with (DLH)’s fleet of A320s. airberlin (BER) competes on three routes, although also with low frequency. Notably, Düsseldorf saw the launch of services to Tel Aviv (TLV), which (DLH) also serves from Frankfurt, Munich and Berlin Tegel.

The Lufthansa Group (LH) has raised €307 million/$389.7 million from the sale of a 3.61% stake in Information Technology (IT) firm Amadeus, reducing its total shareholding from 7.61% to 4%.

(DLH) said it sold the 16.2 million shares via an institutional private placement to strengthen its liquidity. “With this step, the Lufthansa Group is further pursuing its active portfolio management. Through the intended partial sale of this financial investment and the realized increase in value, the Lufthansa Group will further strengthen its liquidity position. The shareholding of 4% retained by the Lufthansa Group is intended to be transferred to the Lufthansa Pension Trust,” (DLH) said.

The deal combines with a recent AirFrance (AFA) - (KLM) hedging transaction, which involved the placement of up to 7.4 million shares, equivalent to 1.66% of Amadeus’ share capital. Amadeus’ major shareholders, (DLH), Iberia (IBE) and (AFA) - (KLM), have all agreed to a lock-up period of 90 days for their remaining holdings.

(DLH) Chairman & (CEO), Christoph Franz said recently (DLH) will continue to play an active part in airline consolidation. “We will, where it is purposeful and possible, actively participate [in terms of consolidation], but only if it is possible at eye level, and it must offer advantages for Lufthansa (DLH) and our customers,” Franz said.

(DLH) and (THY) are in talks about a stronger partnership, the two (CEO)s confirmed. (THY) (CEO), Temel Kotil said the discussions are in the early stages.

Earlier this month, several news agencies reported that Germany’s Chancellor, Angela Merkel and Turkey’s Prime Minister, Tayyip Erdogan were in discussions about a possible partnership between Lufthansa (DLH) and Turkish Airlines (THY). Erdogan was quoted as saying he has agreed to a proposal by Merkel to establish joint management of the two carriers.

(DLH) Chairman & (CEO), Christoph Franz confirmed the two airlines are in “ongoing talks to see if there any other possibilities of deepening the cooperation,” but declined to mention specific topics. “We cannot say anything concrete at this point in time,” he said.

Franz said the two carriers have had a close cooperation for “more than >20 years, which have deepened during the period,” such as the SunExpress (SNS) joint venture and (DLH)’s sponsorship of (THY) into the Star (SAL) Alliance.

Asked if (DLH) could team up with one of the Gulf carriers as they begin to join alliances for the first time, Franz said the industry is in a state of upheaval and growth is shifting toward Asia and the Middle East. “Now Gulf carriers [are] increasingly acting as an engine of consolidation . . . we offer a strong network today to Asia. From this perspective, future cooperation with Gulf carriers do not seem profitable enough for us or for our customers.”

“We are not under pressure, and we can and will assess any potential partnerships very carefully,” he said. However, (DLH) feels competition heating up from Gulf carriers. (DLH) passenger airline (CEO), Carsten Spohr recently said that (DLH) is evaluating whether to cut Bangkok from its network, saying the destination has become unprofitable.

The Lufthansa Group’s new business model for its non-hub, short-haul European operations is essential to the health of the overall company and its long-haul intercontinental business, (DLH) Group Chairman and (CEO), Christoph Franz said.

Franz said, “The entire European Lufthansa (DLH) business has been operating at a loss for years. But now we have reached the point where we can no longer have our intercontinental business compensating for losses in our European business.”

(DLH) will present its new point-to-point European business model based on its low-cost carrier (LCC) subsidiary, Germanwings (RFG) in early December and begin those operations from January.

In 2009, (DLH) operated five different airlines and eight airplane types on European routes. Today, three brands ((RFG), Eurowings (EWG) and (DLH)) operate A319/320s, 737-300s/737-500s, and Bombardier CRJ900s.

“We hope, by 2015, with (RFG), and including the integration of the Eurowings (EWG) brand, we will complete the homogenization of the fleet by 2015, operating 90 airplanes, based on A320s and CRJ900s,” Franz said.

(DLH) will remain the largest carrier operating German domestic and European routes connecting through its Frankfurt and Munich hubs. The “new” (RFG) will consist of a highly productive fleet, lean organization and low cost structure, and have a strong online sales focus. “It must be profitable from 2015,” Franz said.

(DLH) will transfers its routes from Stuttgart Echterdingen (STR) and Cologne/Bonn Konrad Adenauer (CGN) to Berlin Tegel (TXL) to subsidiary, germanwings (RFG) as the first of all non-hub routes that will eventually be operated by (RFG). (DLH) currently operates up to six daily services on the Cologne - Berlin route and up to five daily services between Stuttgart and Berlin while (RFG) already operates six times daily from Cologne and three times daily from Stuttgart. From January 1, (RFG) will operate exclusively on the Stuttgart route offering seven daily flights then taking over the Cologne route from January 14 offering a total of ten daily flights.

But (DLH) must first complete rounds of difficult labor talks.

(DLH) and its cabin crew (CA), represented by the (UFO) union, have reached an agreement to resolve a pay dispute that has been ongoing since April. The new pay agreement, negotiated under arbitration, will raise the cabin crew (CA)’s pay by +3.95%.

In addition to the pay increase, all cabin (CA) staff will receive a one-off payment of €320/$406.95. The (UFO) also agreed to other concessions, including allowing (DLH) to offer new employees lower-cost contracts.

In exchange, (DLH) said there would be no layoffs through at least December 31, 2014, and agreed that any employees who work for its Germanwings (RFG) subsidiary would remain (DLH) employees.

(DLH) would not comment on how much the agreement will cost (DLH), especially in light of its cost-cutting program "SCORE" to improve annual earnings by +€1.5 billion.

(DLH) will begin testing hourly schedule intervals from Frankfurt to Hamburg, Berlin Tegel, and Munich in the upcoming winter schedule. (DLH) wants to deliver a more sustainable, easy-to-remember schedule for business travelers.

Lufthansa Technik (DLH) (LTK) Sofia inaugurated its extended (MRO) facility, comprising three additional bays to the existing two, allowing for 60 heavy checks per year.

Regional carrier Augsburg Airways ((IATA) Code: (IQ)) faces an uncertain future if no investor or strategic partnership can be found.
Lufthansa (DLH) has ended its wet-lease cooperation with (IQ) from October 2013, as part of its €1.5 billion/$1.9 billion cost-cutting program "SCORE" to focus its regional feed exclusively on subsidiaries (DLH) CityLine and Air Dolomiti (DLA). But the agreement had been essential for (IQ).

According to several German media reports, (DLH) CityLine could add five additional Embraer EMB-195s, owned by (DLH) and operated by (IQ).
“We cannot say if this transfer (of airplanes) will happen, either, if the company will continue to operate in one year time,” a source close to (IQ) management said. “There are too many open questions.”

(IQ), owned by ATON AG, has operated flights for (DLH) since 1996. It was established 1980 in Augsburg, formerly known as Interrot Airways. (IQ) is running out of time to prepare its future after the (DLH) contract will end in 11 months. German media reports that it is expected that (IQ) will be liquidated.

(IQ) operates six Embraer EMB-190/195s and nine Bombardier DHC-8-Q400s to 37 destinations in Germany and Europe.

December 2012: Lufthansa (DLH) is evaluating measures to reduce costs on its long-haul network. (DLH) is targeting a -10% cost reduction by 2015, compared to 2011 levels. By 2025, costs per passenger kilometer should be reduced -20% compared to 2011 levels.

(DLH) said its high-yield trunk routes of Beijing and Shanghai face strong competition from Gulf carriers and Far East carriers. (DLH) is considering bringing in more fuel-efficient airplanes and optimizing flight routes, as well as reducing routes with first-class cabins, which reduces the number of flight attendants (CA).

(DLH) also said it is in ongoing talks with suppliers and is operating its winter schedule with 32 fewer airplanes.

(DLH) started flying from Berlin Tegel (TXL) to Innsbruck (INN), Austria on 15 December with thrice-weekly services operated using A320-family airplanes in two-class configuration until the end of March 2013. Competition on the 600 km trans-border route comes from airberlin (BER), which also offers three weekly departures.

(DLH) will give a new identity to its low-cost carrier (LCC) subsidiary Germanwings (RFG) next year as it transfers its non-hub routes to (RFG) from July 1. Such a move will create a “new Germanwings,” with an expanded fleet and a new livery.

(RFG)’s fleet will grow from 30 A319s and A320s to about 90 airplanes. Thirty (DLH) airplanes and 23 (RFG) airplanes will be transferred to (RFG).

From July 1, the new airline will officially launch, introducing a new livery.

Lufthansa Chairman & (CEO), Christoph Franz said the move “will make us able to return our non-hub trunk routes to a profitable operation.” He added that costs on the routes will lower 20%.

(DLH) is looking to stop three-million-euro losses across its European network. As part of its cost-cutting program (SCORE), the Lufthansa Group wants to improve operating results by at least +€1.5 billion by the end of 2014.

Germanwings (CEO), Thomas Winkelmann said the changes will introduce a “completely new low-cost carrier (LCC).” Passengers will be able to put together individualized packages ranging from budget, no-frills travel to a more refined passenger experience with more advantages and extra services. In the broader context of economy (Y) class, the “new Germanwings” will have three fare brackets. (DLH) will eliminate its business (C) class on these routes.

As of January 1, the “new Germanwings” will include (DLH)'s decentralized European routes not operating out of Frankfurt or Munich hubs. (DLH) said 800 flight attendants (CA) and 200 pilots (FC) will be affected by the move.

(DLH) said it has began testing the BoardConnect in-flight entertainment system from Lufthansa Systems on an A320 stationed in Munich. The Lufthansa Systems system will enable passengers in business (C) and economy (Y) class on flights from Munich to 34 short- and medium-haul destinations to watch movies, read digital newspapers and look up information about their destinations. The service is available via laptop, tablet computer or smartphones which can connect to the on-board infotainment server.

“Airlines can leverage the BoardConnect technology to distinguish themselves clearly from their competition also on shorter routes,” said Norbert Müller, Program Manager, BoardConnect, at Lufthansa Systems. “By offering a wide range of information and entertainment for their passengers, airlines are setting new service standards.”

BoardConnect works with a regular WLAN based on the established standard, meaning that just a few access points need to be installed in the cabin. This makes it possible for the first time to offer passengers on short- and medium-haul airplanes such as the A320 family and the Boeing 737, an extensive range of information and entertainment. Airlines can install BoardConnect during routine maintenance or night stops without the need for additional ground time.

Lufthansa (DLH) will introduce a new premium-economy (PY) class on its long-haul fleet as first-class (F) demand weakens. (DLH) said the gap between economy (Y) and business (C) class has become too big.

Lufthansa Passage Airlines (DLH) (CEO), Carsten Spohr recently said (DLH) has not been sure if a premium economy (PY) class would cut into its business (C) class. (DLH) will establish a committee, which will start early next year, to design and implement the new product.

January 2013: In 2012, the Deutsche Lufthansa Group carried 103 million passengers and Lufthansa (DLH) passenger airlines carried 75 million.

Lufthansa (DLH) was the biggest airline group in 2012 by airline revenues. The German group generated revenues of just short of $39 billion last year, putting it just ahead of United Airlines (UAL), Delta Air Lines (DAL) and AirFrance (AFA) - (KLM) groups.

The rankings show (DAL) as the largest operator by traffic and passenger number, while (UAL) was the second biggest. American Airlines (AAL), if it completes its merger with US Airways (AMW)/(USA), would be even bigger based on 2012 numbers.

(DLH) will cancel flights from Frankfurt to two Russian cities (Kazan and Perm) from April 1. (DLH) has flown these routes for 15 years, but said increases in fuel prices, airport taxes, and other fees have made these routes unprofitable.

(DLH) plans to increase frequencies on two other routes (from Frankfurt to Samara and Nizhny Novgorod) from four to six per week. (DLH) said the load factor on these destinations has reached 76% LF.

(DLH) will cancel flights from Frankfurt to two Russian cities (Kazan and Perm) from April 1. (DLH) has flown these routes for 15 years, but said increases in fuel prices, airport taxes, and other fees have made these routes unprofitable. Russia’s Perm Airport is losing one out of two international destinations in Western Europe; Prague remains the only route connecting with European cities. Russia’s Tatarstan Airlines (TKI) operates flights from Perm to Prague; Czech Airlines (CSA) will launch flights to Prague March 31. Ak Bars Aero operates flights from Kazan to Munich and plans to increase frequencies from weekly to twice weekly from its summer schedule.

(DLH) slipped further behind European market leader AirFrance (AFA)-(KLM) Group after (DLH)’s disposal of UK carrier (BMI) (BMA) led to a dip in annual traffic, the standard measure for ranking airlines. (DLH)’s passenger traffic (the number of customers carried multiplied by the distance flown) fell about -1% to 206 billion revenue passenger kilometers (RPK)s last year, "Bloomberg" calculations based on data from (DLH) show.

That’s -9% lower than at (AFA)-(KLM), where the total increased 2.1% to almost 224 billion (RPK)s, with the gap between the pair widening from 5% in 2011. The (IAG), parent of British Airways (BAB), posted a gain of +4.4% to 176 billion, aided by its purchase of (BMI) (BMA) from (DLH), even after a drop in traffic at Spanish unit Iberia (IBE).

“(DLH)’s idea was to grow at London Heathrow (LHR) airport but it wasn’t able to get the scale it wanted. The (IAG) straight away rationalized and used (BMA) in an entirely different way.”

(DLH) said that 2012 traffic amounted to almost 205 billion (RPK)s, excluding (BMI), which it sold to the (IAG) on April 20. (BMA), which has since been folded into (BAB), contributed 1.41 billion (RPK)s in the first three months, according to figures from (DLH), which didn’t provide data for the first three weeks of April.

(DLH) transported 103 million passengers last year, up +2.4% on 2011, excluding (BMA) from both years, making it the European No 1 by that measure. (AFA)-(KLM) and the (IAG), now referred to as the International Consolidated Airlines Group SA, lured 77.4 million and 54.6 million travelers, respectively.

(DLH) Passenger Airlines, which includes the namesake brand and discount division Germanwings (RFG), also transported +2.4% more passengers, while the Swiss (CSR) and Austrian Airlines (AUL) units carried +3% and +1.8% more.

(DLH) increased capacity (ASK)s only +0.6 percent in 2012, excluding (BMA), versus a +2.2% traffic (RPK) increase on that basis, so that the load factor, a measure of occupancy, advanced +1.2 points to 78.8% LF.

The (IAG) added +2.8% more seats, barely half the traffic gain, and also lifted occupancy +1.2 points, to 80.3%. (AFA)-(KLM), which has its headquarters in Paris, lifted capacity +0.6%, giving the same increase in occupancy for a load factor of 83.1% LF.

Europe’s major airlines are reviewing their commitment to flights within the region in the face of competition from Ryanair (RYR) and EasyJet (EZJ), especially where services don’t feed traffic onto their long-haul services. “They’re all cutting short-haul where it’s not profitable. Keep capacity discipline and you get that demand squeeze and can push up prices.”

Germanwings (RFG) has taken over all Lufthansa (DLH) short-haul flights except the feeder network into Frankfurt and Munich on January 1. (DLH) (Germanwings' (RFG)'s parent) has finally concluded that it cannot operate short-haul flights profitably while competing against low-cost carriers (LCC)s. The move to allow (RFG) to grow, has been long overdue, many observers believe, but internal group politics and concerns over brand dilution had kept (DLH) from going ahead with it. Now, within a short space of time, (RFG) has to integrate +35 more narrow body airplanes as well as cabin crew (CA) and pilots (FC), and take over dozens of routes. In 2013, it will become clear how the transition is progressing.

German airports Hamburg and Cologne faced more flight disruptions and cancellations on February 15th, the second day of strikes by security staff over pay, Trade union Verdi said. The strike started February 15th and continued through the day.

Dusseldorf Airport said it had to cancel 200 flights, affecting several thousand travelers as 400 workers walked off the job. Hamburg airport announced 103 cancellations.

Verdi called for a +33% increase in pay for around 1,000 security personnel employed by private firms at the two airports. It said talks with the Federal Association of Security Industry had not reached an agreement. German airports were also impacted in January by strike action.

Lufthansa Technik (DLH) (LTK) has announced plans to cut -650 jobs by 2015 as part of an extensive reorganization program. The planned changes are part of the Lufthansa Group’s cost-cutting program, "SCORE," to improve operating results by at least +€1.5 billion/+$2 billion by the end of 2014. It said 400 out of 650 jobs will be eliminated at Lufthansa Technik (LTK)’s home base in Hamburg, which houses 8,000 employees.

“We have already implemented many innovations in production and optimized processes there, and now we intend similar improvements in administration,” (LTK) Executive Board Chairman, August Wilhelm Henningsen said.

According to the SCORE program, engine overhaul costs would reduce -20%.

Henningsen said the company is offering voluntary semi-retirement, early retirement and severance agreements. In addition, positions that become vacant through natural attrition will not be filled.

The company will also centralize its business administration functions by 2015, which include bundling purchasing activities, implementing shared services and regionalizing sales.

Lufthansa Technik (LTK) and its subsidiaries (Lufthansa Technik Logistik Services, Lufthansa Technical Training, Lufthansa Technik Maintenance International and Lufthansa (LEOS)) employ 13,070 people in Hamburg, Frankfurt, Munich, and Berlin.

Lufthansa Technik Switzerland will close its two line maintenance and logistics services businesses on April 30, 2013. It said it was unable to sustain its operations due to a fall in demand and associated decline in its customer base.

(DLH) has canceled one of the 20 747-8Is it has on order. The 747-8I was part of the 747-8 Intercontinental certification flight test program. The 747-8I had been scheduled for delivery to (DLH) last year but Boeing (TBC) said it “needed to retain the 747-8I for additional flight testing associated with the 747-8I Performance Improvement Package,” which would have resulted in a two-and-half year delivery delay.

“We think it is a good solution for both companies, in part because of (TBC)’s need for this airplane for a flight test program in 2013 — and in part because of the chance for (DLH) to adapt to reduced growth plans. Nevertheless we remain absolutely committed to the 747-8.”

(DLH) has taken delivery of four 747-8Is and is scheduled to receive an additional 15. “Boeing (TBC) expects that it will be able to find a new customer for this airplane, but is not in a rush to deliver it as it has meaningful work to do in the flight test fleet to certify future product upgrades. Subsequent to post-flight test refurbishment, we expect the airplane to be available for redelivery to a new customer in early 2015.”

(DLH) began 747-8I passenger service last June.

February 2013: Lufthansa (DLH) and subsidiary, Austrian Airlines (AUL) have announced the suspension of all of their flights to Tripoli International airport (TIP) from February 5 until further notice citing the security situation in the Libyan capital as the reason for the temporary suspension. (DLH) had offered a daily A319-100 service from Frankfurt while (AUL) had been operating to Tripoli five times weekly with Tyrolean Airways Fokker F 100s. No other carriers from Europe, the Middle East and North Africa also serving the country, have so far suspended their flights.

Lufthansa ((IATA) Code: LH, based at Frankfurt International (FRA)) (DLH) will be replaced on the Rostock Laage (RLG) - Frankfurt International route by a new Rostock based start-up that plans to launch operations in August with a fleet of three DHC-8-400s. According to Rostock Airport's Managing Director, Carsten Herget, the new carrier, Rostock Airways (based at Rostock Laage (RLG)), will operate daily services to Copenhagen Kastrup (CPH), Frankfurt International (FRA), Munich Franz Josef Strauss International (MUC) and Vienna International (VIE). (DLH) will continue to operate between Munich and Rostock three times weekly with a mix of Lufthansa CityLine ((IATA) Code: CL, based at Cologne/Bonn Konrad Adenauer (CGN)) CRJ-900s and EMB-195s.

The Lufthansa Group has announced plans to purchase 108 new Airbus (EDS) and Boeing (TBC) airplanes, valued at €9 billion/$12 billion based on list prices. The order will be made up of 100 short- and medium-range airplanes, as well as eight long-range airplanes. Deliveries are scheduled for 2015 to 2025. (DLH) is in ongoing discussions with both manufacturers about specific airplane types.

The Lufthansa (DLH) Group reported a 2012 net profit of +€990 million/+$1.32 billion, reversed from a -€13 million loss in the year-ago period. The company attributed the results to non-recurring effects from the one-off sale of equity investments, including restructuring costs of €160 million for the Group-wide "SCORE" program. The company had forecast an operating profit for 2012 in the mid-three digit million euro range.

Revenue rose +9% to €30.1 billion in 2012, but operating profit dropped -36.1% to +€524 million from +€820 million year-over-year. The partial transfer of Austrian Airlines (AUL)’s Flight Operations to Tyrolean Airways had a one-time positive effect of +€115 million on the operating result.

By the end of 2025, the Lufthansa (DLH) Group said it expects to take delivery of 239 airplanes with an order volume of €23 billion, based on list prices. “The new airplanes will meet the Lufthansa Group airlines’ future growth and fleet renewal requirement for this period, particularly with regard to short- and medium-range airplanes.”

March 2013: Lufthansa (DLH) Chairman & (CEO), Christoph Franz said, “With our "SCORE" [restructuring] program, we have launched a process of change never [before] seen in the history of (DLH).” (DLH)’s cost-savings program "SCORE" resulted in -€618 million savings in the first year, but that was offset by high fuel costs, fees and taxes. Labor strikes cost the company €33 million.

“Without SCORE, it [the results] would be much less,” Franz said. Group revenue rose +4.9 % to €30.1 billion, while expenses (including fuel) increased +4.3 % to €31.7 billion, producing an operating profit of +€524 million, down -36.1 % from +€820 million in the year-ago period.

High fuel prices, which were +€1.1 billion more than in the previous year, impacted Group profits the most. “This year, we expect [to spend] €7.2 billion in fuel costs,” (CFO) Simone Menne said.

“(DLH) is still No 1 in Europe, but (DLH) Passenger Airlines (the Group’s biggest unit) reported an operating loss of -€45 million, which represents a decline of -€161 million on the previous year. And when we look to the current development, our capacity and demand shrinks further,” Franz said. “Our margin went down -1.1% to 2.3%, which [has now] reached a level that is not sustainable for the viability of the Lufthansa Group in the long term,” Menne said.

“SCORE should deliver €740 million this year, eventually €900 million,” Franz added.

Lufthansa Group traffic rose +2.2% on a 0.6% in capacity, producing a +1.2 point higher load factor. Yield rose +3.7%.

(DLH) subsidiary, Swiss International Air Lines (CSR) posted operating revenue of €191 million. Profit fell by -€68 million year-on-year.

The Lufthansa Group expects to achieve a higher operating profit in 2013 than in the previous year. “Our goal remains the same: With an operating profit of at least +€2.3 billion by 2015, which we intend to achieve with SCORE, we will actively promote and shape the process of change in the European airline industry,” Franz concluded.

The Lufthansa Technik Group (DLH) (LTK) reported a 2012 operating profit of +€318 million/+$411.2 million, up +24% from +€257 million in the year-ago period. Group revenue declined -2.4% to €4.01 billion.

(DLH) (LTK) Executive Board Chairman, August Wilhelm Henningsen told reporters and analysts, “We reached our target for 2012 because also many cost-reducing measures are taking effect. Also our sales teams were successful with numerous contracts being signed.”

(DLH) (LTK) added +45 new customers and +513 new contracts in 2012, representing a contract volume of €484 million. The number of supported airplanes increased +5.8%. “Considering the strained situation of many airlines, especially in Europe, the overcapacity in the maintenance, repair and overhaul (MRO) market and heavy pressure on price levels, the Lufthansa Technik (DLH) (LTK) Group has developed very positively,” Henningsen said.

“The measures we have taken as part of the "SCORE" program have already had a positive influence on the fiscal year 2012 results; however, we are dealing with rising personal and material expenses as well as high price and cost pressure in the market,” (CFO), Peter Jansen said.

“Together with Lufthansa Passenger Airlines (DLH), we have set the target of reducing technical costs per flight hour for the (DLH) fleet by -5% by 2015 compared to 2011,” Henningsen said. With the SCORE cost-cutting measures, (DLH) (LTK) hopes to improve its operating results by +€100 million by 2015.

Earlier, (DLH) (LTK) announced it would cut -650 jobs by 2015, shut down Lufthansa Technik Switzerland and ended its engine overhaul joint venture (JV) with Qantas (QAN).

(DLH) has suggested it may look to a long-haul, low cost solution to meet its future Southeast Asian growth goals. (DLH)'s historically strong position on Europe - Asia Pacific is steadily being eroded by competition from Gulf carriers and others with more competitive cost bases. An additional player, low cost carrier (LCC) Norwegian Air Shuttle (NWG), is also about to enter the fray over the pole, with a Bangkok service. It is suggested that the Lufthansa Group may need to cut its unit costs on long-haul by as much as -30% in order to be competitive and to secure its long term future in the region.

(DLH)’s major European Big Three rivals, after years of sulking, are meanwhile now cuddling up to the Gulf carriers; the (IAG) (BAB)/(IBE) has brought Qatar Airways (QTA) into the Oneworld (ONW) Alliance and AirFrance (AFA)-(KLM) is code sharing with Etihad (EHD). Unfortunately, the toughest Gulf competitor, Emirates (EAD), wants to continue to stand alone. And China, still largely dormant internationally, is starting to stir.

Given Asia Pacific’s position as the biggest air passenger market and one of those with the highest forecast growth rates, (DLH) needs a new direction. It is apparently considering whether to form a partnership with another carrier or start its own new low cost carrier (LCC). The latter is a big ask. There is a host of potential partners though; but (DLH) would have to be careful how many toes it stands on, with such an option.

(DLH) will unveil a new premium-economy (PY) class in 2014, board member, Jens Bischof said. Bischof said, “The introduction of the new class on board a first airplane is also most likely planned next year and will add “above >10% capacity” on every long-haul airplane that offers the new product. He said (DLH) has invested a “high double-digit million euro amount in the new product.” Details will be announced later in the year.

German regional carrier, Augsburg Airways (IATA) Code: IQ) will discontinue operations on October 31. Augsburg will cut -360 cockpit and cabin crew, as well as -100 technical and administrative jobs. Augsburg Airways (IQ), which is owned by (ATON) AG, has operated flights for Lufthansa (DLH) since 1996. It was established in 1980 and was formerly known as "Interrot Airways."

Lufthansa (DLH), which has restructured its regional airline business, ended its cooperation with (IQ). The European regional operates six Embraer EMB-190/EMB-195s and nine Bombardier DHC-8-Q400s to 37 destinations in Germany and Europe.

(DLH) Chairman & (CEO), Christoph Franz said that changes for its regional carriers Lufthansa CityLine and Air Dolomiti (DLA) are to be announced soon, and will include the elimination of 70-seat regional jets.

Lufthansa Technik (DLH) (LTK) will build a new 6,000 sq m facility at its Hamburg base in which it will invest €20 million. The new section, slated to be completed in spring 2014, will house workshops, offices and facilities for the Central Materials Technology department.

Lufthansa Technik (DLH) (LTK) will perform some A380 wing rib feet repairs, Chairman, August Wilhelm Henningsen said. “We have taken on new responsibilities in terms of A380 support and carrying out the wing rib feet repairs mandated by AirFrance (AFA),” Henningsen said.

Henningsen expects one A380 wing rib repair to take between 40 to 50 days. About 40 maintenance technicians (MT) will work on the airplane at the same time. The first airplane, a (DLH) A380, is already undergoing repair.

Lufthansa Technik will handle 10 (DLH) A380 repairs at its base in Frankfurt. It will work with (AMECO) Beijing (BEJ) to carry out wing rib feet repairs on nine Emirates Airline (EAD) A380s.

Twelve Qantas (QAN) A380s will undergo the repair work at the Lufthansa Technik Philippine (MRO) facility. “A year ago, we opened our third wide body hangar at Lufthansa Technik Philippines. Now we are also able to provide technical support for the A380s. Among one of the first customers in Manila is (QAN) with A380 cabin modifications,” he said.

Currently, (DLH)’s long-haul fleet is undergoing a re-configuration, featuring a new business (C) class product. So far, just four 747-8Is and four A330-300s offer the new business (C) class. “This number should rise to 30 airplanes and the total long-haul fleet will be completed by 2015,” he said. (DLH) is investing €50 million/$65.2 million in its long-haul fleet to complete the reconfiguration as fast as possible.

(DLH), which has 19 747-8Is on order, will take delivery of its fifth of the type this month.

(DLH) will also extend its Internet onboard services, FlyNet, to most of its long-haul airplanes, except the A380s.

Bischof said that (DLH) is further restructuring its European regional airplanes. “We are currently evaluating [whether] to exit from the 70-seat airplanes. This includes the Air Dolomiti ATR72 fleet as well as the [Bombardier] CRJ700s from Lufthansa CityLine,” he said.

Bischof added that using bigger airplanes will bring a better cost structure to the regionals, which will also bring changes. “When and in which form we replace these fleets we don’t now, but a decision is expected this year,” he said.

(DLH) transported 75 million passengers last year, 60 million of them within Europe.

(DLH)’s supervisory board has confirmed the acquisition of 108 airplanes from Airbus (EDS) and Boeing (TBC), bringing (DLH)’s current order book to 236 new airplanes, with an overall list price of €22 billion/$28.6 billion.

The Airbus (EDS) acquisition comprises the finalization of orders for 35 A320neos and 35 A321neos. It also includes orders for an additional 30 A320ceos and two A380s. The total value of the (EDS) order is approximately $11.2 billion at list prices.

Swiss International Air Lines (CSR) will receive six 777-300ERs, making it the first carrier in the Group to operate the type. The order, which is valued at $1.9 billion at list prices, is for its long-haul fleet renewal.

(DLH) Chairman & (CEO), Christoph Franz said, “We know the technical performance of the 777-300ER very well,” he said when asked if the 777 order was a test for the Group to order more of the type. He said the airplane was necessary for Swiss trunk routes, including Hong Kong and Bangkok, “to take advantage of growth. I hope this airplane will deliver good results when it is in service.”

“The [Airbus (EDS) airplanes] purchases focus all on the modernization of our fleet and not expansion,” Franz said. This year, (DLH) will take delivery of 34 airplanes, which will almost exclusively replace older airplanes. “In the second part of this year, we also be making a decision on ordering additional long-haul airplanes, but not in the big airplane size like A380s or 747-8Is; it will be in the category of the A340-300 and A340-600,” Franz said.

Franz also said that the 70-seat airplane segment, which will be operated by Lufthansa City Line and its Italian subsidiary, Air Dolomiti (DLA), may not have a long-term future. “Currently we have made no decision for a possible replacement,” but the company is considering its options, “which will not take too long,” he said.

SEE ATTACHED - - http://www.wimp.com/approachlanding of Lufthansa (DLH) A380 Landing at San Francisco.

April 2013: Lufthansa (DLH) began Frankfurt - Hong Kong, 747-8I service. (DLH) will add summer service: Munich, Düsseldorf, Hamburg and Berlin to Menorca in the Balearic Islands; from Düsseldorf and Frankfurt to Jerez de la Frontera, Spain; Düsseldorf - Varna; Düsseldorf - Cardiff. (DLH) will add year-round service Düsseldorf - Glasgow. It adds daily, Munich - Vancouver May 16 with A330s.
Beginning with summer timetables, (DLH) is withdrawing Perm and Kazan service.

Austrian Airlines (AUL) and Swiss International Air Lines (CSR) have joined Lufthansa (DLH)’s joint venture (JV) with Japanese carrier, All Nippon Airways (ANA).

(DLH) and (ANA) began their cooperation on flights between Japan and Europe in April 2012 and now, as anticipated, (AUL) and (XSR) have also joined, effective April 1. “We will benefit from the strong sales of (ANA) in Japan in future, and (ANA) will do from ours. Becoming part of the joint venture (JV), therefore, is another important building block on the way to a healthy (AUL),” (AUL) (CEO), Jaan Albrecht said.

(DLH) is considering new long-haul options on routes to India and Southeast Asia to offset competition by Middle East carriers.

(CFO), Simone Menne said that (DLH) is working on new concepts to profitably run operations to these regions. Menne has been quoted by several media as saying this could include a strategic partnership, a joint venture (JV) with a major carrier or a lower-cost unit.

(DLH) Executive board member, Carsten Spohr said earlier that (DLH) has “to do everything to avoid cancellations of routes like Bangkok, which are in danger.” (DLH) has dropped service to Hyderabad, Kolkata, and Guangzhou.

Turkish Airlines (THY) (CEO), Temel Kotil said that there is no “solid” news about an enhanced partnership with (DLH).

Lufthansa Technik (DLH) (LTK) will supply Deutsche Lufthansa AG (DLH) with its "niceview" moving map system for all its long-range airplane types. Installations on (DLH) A380s and 747-8s have begun and (DLH) will now outfit its large A330/A340 fleet and the remaining 747-400s this year.

(DLH) Chairman & (CEO), Christoph Franz said (DLH) will be “making a decision on ordering additional long-haul airplanes (but not in the big airplane size such as the A380 or 747-8I) in the second part of this year. It will be in the category of the A340-300 and A340-600,” Franz said.

Menne said (DLH) would likely place an order for either the A350 or 787 airplane in September.

Separately, the German airline industry could again be affected by new strikes from the second week in April as the Verdi union continues actions over pay and job security. Menne had been quoted as saying that (DLH) would take the burden of strike actions to move forward with its strict cost-cutting program "SCORE."

Verdi, the union representing 33,000 Lufthansa (DLH) Group ground workers, has rejected (DLH)’s latest contract offer as “unacceptable.”
The union said (DLH) offered to increase salaries +1.2% from October and a further +0.5% next year. The offered labor deal would run for 29 months, but would not guarantee jobs, according to Verdi.

Verdi is demanding a +5.2% pay raise for (DLH) ground workers. It also wants a commitment to safeguard jobs. No strike dates were given. (DLH) is in the midst of a cost-saving program, "SCORE," which aims to improve annual earnings by at least €1.5 billion/$2 billion by 2015. The program includes eliminating 3,500 jobs.

(DLH) employees represented by Verdi held a one-day strike March 21, forcing (DLH) to cancel 700 flights. The parties will continue negotiations April 29 - 30.

Later, on April 22, (DLH) canceled nearly 1,700 flights after the Verdi union called for ground workers to strike after rejecting (DLH)’s latest contract offer. Only 32 out of 1,720 flights were scheduled to operate, affecting 150,000 passengers.

Pilot (FC) Training Network GmbH, a subsidiary of Lufthansa (DLH) Flight Training GmbH, will train 100 young pilot (FC) cadets for Turkish Airlines (THY).

In addition to 15 months of basic training, the package includes a type rating on the Airbus A320 or Boeing 737NG. This will take a further two months and will be conducted by (DLH) Flight Training. The first training course will start in April.

Since the founding of Pilot Training Network GmbH in 2001, more than >800 trainee pilots (FC) have completed their ab initio training here. More than >200 cadets are currently undergoing training, which is conducted in Frankfurt, Vero Beach, Florida. and Rostock-Laage.

(DLH) Flight Training GmbH, a wholly owned subsidiary of (DLH), operates 39 cockpit simulators and numerous emergency training devices in Frankfurt, Berlin, Munich, Essen, Vienna, and Zurich.

Lufthansa (DLH) has received permission from Chinese authorities to fly its 526-seat A380 on 5X-weekly, Frankfurt - Shanghai Pudong service from September 26. Shanghai will be its second A380 destination in China.

In the past, China’s opposition to the European Union Emission Trading Scheme (EU ETS) prevented (DLH) from obtaining rights to operate an A380 to Shanghai, (DLH) Chairman & (CEO), Christoph Franz said last year. Ongoing negotiations with Chinese authorities have led to the allowance.

(DLH) also flies daily, A340-600 Frankfurt - Shanghai service and daily, Munich - Shanghai flights.

By this summer, (DLH)’s A380s will be in operation to Johannesburg, Houston, San Francisco, Singapore, and Tokyo Narita.

May 2013: The Lufthansa Group posted a first-quarter net loss of -€459 million/-$605.1 million, widened -16.5% from a net loss of -€394 million in the year-ago period. The company cited expenses for severance pay and compensation as part of the "SCORE" job cuts, as well as impairment losses and valuation effects, for the results. Its full-year earnings outlook for the year remains unchanged.

(DLH) continues to increase its UK offering, as it inaugurated services to its seventh destination in the country from its Düsseldorf (DUS) hub on 4 May. (DLH), which recently commenced flights to Glasgow, started flying to Cardiff (CWL) in Wales. Saturday flights are scheduled to operate using CRJ-900s on seasonal basis. In addition, (DLH) has resumed weekly (Saturday) flights between Berlin Tegel (TXL) and Ibiza (IBZ), a route it last operated over four years ago. The new service will operate until mid-October using A320s.

(DLH) which already serves Montreal in Canada with daily flights from Munich (MUC), added Vancouver (YVR) as a second destination in the country from (MUC). Beginning on May 16th, (DLH) offers daily departures on the 8,400 km route, which it operates using A330-300s until October 5th.

(DLH) and (SAS) Scandinavian Airlines will discontinue their network cooperation on routes between Germany and Scandinavia. (DLH) will gradually transfer all European routes that bypass its Frankfurt hub and Munich to its low-cost carrier (LCC) subsidiary, Germanwings (RFG) by the fall of 2014.

(DLH) is to transfer further flights to its subsidiary, Germanwings (RFG) as a part of its restructuring program "SCORE." (DLH) is transferring non-hub routes to (RFG) to bring European flights back to profitability. From October 27, (DLH) will transfer flights to (RFG) from Berlin Tegel to Birmingham, Bologna and Geneva. Also from October 27, (RFG) will operate Hamburg - Moscow Vnukovo flights. From November 13, routes to Nurenberg and Rome Fiumicino will be transferred; flights to Bucaresti Otopeni will follow on November 14. Starting November 27, (RFG) will take over (DLH)’s Helsinki, Milan Malpensa and Vienna routes.

The code share agreement between (SAS) and (DLH) remains unchanged as both airlines are Star Alliance (SAL) members.

Lufthansa (DLH) is considering transferring the head offices of its regional subsidiary, Lufthansa CityLine from Cologne to Munich as part of its €1.5 billion ($1.3 billion) cost-cutting program "SCORE."

Several German media outlets have reported that around 340 jobs will be affected. So far it is unclear if all employees will accept the move. About 125 technical staff should remain in Cologne. The carrier operates 60 regional jets and transported 7.6 million passengers in 2012.

Cost-cutting measures have affected other regional partners, including Augsburg Airways and Contact Air.

Pilots (FC) at Lufthansa Italian subsidiary, Air Dolomiti (DLA) went on a four-hour strike to voice concerns about (DLA)’s future. The pilots (FC) are represented by Ugl Trasporti. (DLA)expected delays or cancellations.

As part of its cost-cutting measures, (DLH) is expected to phase out Air Dolomiti (DLA)’s fleet of four ATR72-212s and will operate (DLA)’s 10 Embraer EMB-190 regional jets only.

(DLH) and the Verdi union, which represents (DLH)’s ground staff, have struck a new 26-month pay deal ending bitter tensions between the two sides.

The agreement, which runs for 26 months, will result in a +4.7% pay increase for staff working at subsidiaries Lufthansa System (LHS), Technik (LTK) and Cargo (LUB). Employees at (DLH) itself will get a +3% rise in a deal that affects 33,000 staff in total.

Services union Verdi had demanded a +5.2% rise for all staff over a 12-month period, but expressed satisfaction at the outcome. “The result of these negotiations can be put down to the combative nature of the staff and their significant strike action,” said Verdi’s Christine Behle. A strike on April 22 crippled (DLH) operations and forced (DLH) to cancel all but a handful of flights from its Frankfurt hub, Europe’s third busiest. That came a month after (DLH) was forced to cancel nearly 700 of a total of 1,800 flights because of warning strikes.

Former Lufthansa (DLH) (CEO), Wolfgang Mayrhuber has been elected to chair the supervisory board. He succeeds the retiring Jürgen Weber.
Christine Behle was named his deputy.

Deutsche Lufthansa AG’s supervisory board appointed two new members to the Group’s executive board. Effective July 1, Bettina Volkens will be the Group’s Director Industrial Relations Corporate Human Resources (HR) & Legal Affairs. Volkens currently heads the Group’s (HR) division. Harry Hohmeister joins the executive board as Chief Officer, Group airlines & Logistics. Hohmeister has been Swiss International Air Lines (CEO) since July 2009.

The two new board members succeed Stefan Lauer, who will step down June 30 after serving on the Deutsche Lufthansa AG Executive Board for 13 years. Both new members will continue in their previous positions in addition to taking on their new responsibilities.

(DLH) appointed Barbara Schädler as Head Corporate Communications of the Lufthansa Group. She will take over July 1 from Jürgen Homeyer, who has been in charge of Corporate Communications on an interim basis since December 2012.

Lufthansa Flight Training (LFT) is feeling the effects of the European aviation downturn and reduced pilot (FC) demand.

June 2013: Lufthansa (DLH), took delivery of its seventh 747-8I last month, and it was Boeing's 50th delivery of the 747-8. For more than a year-and-a-half, airlines have benefited from the 747-8's excellent schedule reliability, utilization, performance and operational advantages. Schedule reliability, an industry measure of departure from the gate within 15 minutes of scheduled time, is 98.8% for the 747-8 fleet.

(DLH) is considering introducing the airplane on its daily, Frankfurt - Chicago O’Hare services. It may also use it on the Frankfurt - Miami route as a seasonal exchange with the A380. A spokesperson said that 747-8I routes to Mexico City and Sao Paolo are also under consideration.

(DLH) currently operates the airplane type to Los Angeles, Washington Dulles, Hong Kong, Bangalore, and Delhi. (DLH) introduced 747-8I services last year.

(DLH) is considering eventually replacing its 747-8 fleet with the proposed 777-9X some time in the next decade, (DLH) (CEO), Christoph Franz indicated. Franz pointed out that once a twin becomes available in the 747-8 size category, any airline would have to take a close look at such an airplane because it is likely to be more efficient.

(DLH) is currently the only passenger airline operating the latest 747 version. It has 19 747-8s on firm order, seven of which have been delivered. (DLH) is studying the proposed new 777 family as part of its replacement plans for the A340-300 and A340-600. (DLH) plans to order around +50 additional long-haul airplanes later this year.

(DLH) is looking at the A350-900/1000 or a mix of 787-9/10X and the proposed 777-8X and 777-9X. (DLH) plans to take delivery of the airplanes from around the turn of the decade to about 2025. The 777-9X could also be used as a replacement of the smaller 747-400, some of which, (DLH) has already retired. Franz said the decision-making process is already far advanced, but the deal won’t be decided within the next few weeks.

(DLH) is also critical of the general design trends for long-haul airplanes. Because of pressure mainly by the fast growing Gulf carriers, both Airbus (EDS) and Boeing (TBC) are being pushed to design airplanes with more range capabilities and engine power than needed by most other operators. European airlines therefore have to deal with over-designed airplanes that carry additional unneeded weight, Franz argued.

2 747-830s (37833, D-ABYI, "Potsdam;" 37834, D-ABYJ), and 2 A320-214s (5635, D-AIZU; 5658, D-AIZV), deliveries.

July 2013: Lufthansa (DLH) increased its seasonal offering from its Frankfurt (FRA) hub on July 5, when it commenced thrice-weekly services to Antalya (AYT) in Turkey, and twice-weekly services to Jerez de la Frontera (XRY) in southern Spain. While flights to both destinations are carried out using A321s, the market to Antalya is the more competitive out of the two with Condor (CDF) (13 weekly flights), SunExpress (SNS) (13), TUIfly (HAP)/(HLX) (seven) and SunExpress Germany (SXD) (two) offering their services. Jerez in contrast, presents Lufthansa (DLH) with competition from Condor (CDF) (four weekly frequencies) and TUIfly (HAP)/(HLX) (two).

(DLH) increased its seasonal offering from Düsseldorf (DUS) with the launch of services on the 1,300 km route to Menorca (MAH) on July 20. Twice-weekly, A320-operated services face competition from TUIfly (HAP)/(HLX)’s twice- and airberlin (BER)’s single-weekly frequencies. (DLH) plans to terminate operations on the route on August 31. In addition, on the same day, (DLH) commenced operations from Düsseldorf to Jerez (XRY) in south-western Spain. Thrice-weekly, A320-operated flights are offered until September 2. Competition on the route comes from airberlin (BER), Condor (CDF) and TUIfly (HAP)/(HLX), which each offer twice-weekly flights.

Lufthansa (DLH) will introduce the 747-8I on its daily, Frankfurt - Mexico City services from September. (DLH) operates eight of the type on routes from Frankfurt to Los Angeles, Washington Dulles, Hong Kong, Bangalore, Delhi, and Miami, Florida.

(DLH) also plans to operate the 747-8I to Chicago O´Hare and Sao Paolo Guarulhos. (DLH) Chairman & (CEO), Christoph Franz said recently that (DLH) is in ongoing talks with Boeing (TBC) to improve the performance requirements of the 747-8I.

Lufthansa Technik (DLH) (LTK) is adding warehouse capacity to its narrow body maintenance facility in Budapest. The German Maintenance Repair & Overhaul (MRO) group has leased 2,000 m²/21,500 ft² of warehouse space from the Hungarian capital's Ferenc Liszt International airport. Its operator has a 15% stake in the maintenance joint venture (JV) while (DLH) (LTK) holds the remaining shares.

A seven-year leasing contract has been signed. There is an option to extend the arrangement for another five years. Budapest airport says it has invested "more than >€1 million/$1.3 million" in providing the additional storage space, while (DLH) (LTK) is reorganising the existing workshop for business growth. The maintenance provider has taken on 15 newly graduated airplane technicians (MT) at its Budapest facility. Such graduate recruitment had not happened for several years, says the airport. (DLH) (LTK) employs a staff of 315 at the site. This includes 215 mechanics (MT).

August 2013: The Lufthansa Group reported a first-half net loss of -€204 million/-$270.3 million, reversed from a net profit of +€50 million in the prior-year period. Operating results were down -69.4% to €72 million from a +€235 million profit in the year-ago period.

Lufthansa (DLH) increased its seasonal offering from Düsseldorf (DUS) on July 26 and a day later also from Munich (MUC) with the launch of one and two new destinations, respectively. Flights from Düsseldorf will terminate on August 30, while the seasonal services from Munich are scheduled to operate until September 7.

On July 6, Dusseldorf (DUS) to Varna (VAR), 1x weekly, A320, vs Germania (GER) 4x wkly;

On July 27, Munich (MUC), to Menorca (MAH), 1x wkly, A321, vs TUIfly (HAP)/(HLX), 2x wkly; airberlin (BER), 1x wkly;

On July 27th, (MUC) to Tunis (TUN), 1x wkly, A319, vs Tunisair (TUN), 3x wkly.

September 2013: Lufthansa (DLH) (CEO), Christoph Franz is planning to leave by May 2014 to take up a new position as Chairman of Swiss healthcare firm, Roche, where he is a board member. Franz, who is committed to (DLH) until May 31, 2014 under his current contract, has told (DLH) Chairman, Wolfgang Mayrhuber that he will not be seeking a further term. “After a total of nearly 15 years in the Lufthansa Group, this was not an easy decision for me to make,” Franz said. “However, for professional reasons, I have decided to call time on my activities for the Lufthansa Group, once I have completed my contract in May 2014. By then, the SCORE program and important investment decisions will have laid the groundwork for the Lufthansa Group to continue its successful development. This is a suitable time for a management handover.”

Franz began his career at Lufthansa (DLH) in 1990. He moved to Deutsche Bahn in 1994 and returned to the group in 2004 when he was appointed (CEO) of Swiss International Air Lines (CSR). In 2009, he became (CEO) of Lufthansa German Airlines (DLH), alongside the role as Deputy Group Chairman and (CEO). He held these positions until January 2011 when he became Group Chairman & (CEO).

The news of Franz’s departure comes as (DLH)’s board prepares to meet on September 18. It is expected to approve an order for 50 long-haul airplanes, comprising a mix of Boeing 777Xs and Airbus A350s.

Mayrhuber said he regretted, but respected, Franz’s decision. “I trust that in the remaining months, he will be able to bring his work for our company to a successful conclusion. Under Franz’s leadership, the Lufthansa Group has built on its position as a leading European aviation group. His forward-looking decisions form the basis for our company to continue its successful development.”
Implementation of Lufthansa’s SCORE cost-cutting program was one of Franz’s key achievements during his two years’ of leadership.

It is unclear who could follow Franz, but a solution will be most likely found internally. German media outlets have speculated that Carsten Spohr, head of Lufthansa Passenger Airline (DLH), or Karl Ulrich Garnadt, (CEO) of Lufthansa Cargo (LUB), could be Franz’s successor.

Basel-headquartered Roche, which is the world’s largest biotech company, issued a statement confirming that Franz has been nominated as its new Chairman and will stand for formal election during a board meeting on March 4, 2014. Roche Chairman, Franz Humer said: “With Christoph Franz, Roche is getting a Chairman with outstanding personal qualities and an impressive record as head of a major global company. I am sure that his extensive experience, exceptional global network and strong links to Switzerland will be great assets.”

Lufthansa (DLH) is likely to face another bruising labor disagreement after unilaterally terminating pensions and early retirement provisions for pilots (FC) and cabin crew (CA). The move affects around 60,000 employees based in Germany. (DLH) argues that it can no longer afford to spend up to €400 million/$527 million annually to address a widening pension deficit that is created by the difference between expected and actual interest rates, and improved life expectancy.

(DLH) and its pilot (FC) union Vereinigung Cockpit (VC) historically have agreed on a mandatory retirement age of 60 for pilots (FC). Pilots (FC) can retire at 55, but on average, flight crew (FC) leave the airline at 58. (DLH) and its pilots (FC) have contributed to a transition fund that bridges the time between the actual retirement and 63, which is the earliest possible general retirement age in Germany.

However, (DLH) argues that the fundamentals for this arrangement no longer exist after a high court ruled that the mandatory retirement at 60 is discriminatory. (DLH) now wants to phase out the bridge financing arrangement over time, saying the employees closest to retirement should be affected the least. New hires likely will have to fly much longer, unless they accept lower pensions.

(DLH) said that contributions already made to the pensions will not be lost and will be counted against future pay-outs with no deduction. (VC), however, says it is “disgusted,” and that it will do everything to defend the status quo. The union argues that because pilots (FC) have started to retire later, (DLH) already saves money.

According to German news magazine "Der Spiegel," the current system offers flight attendants (CA) who have worked for many years with Lufthansa (DLH) an extra pension of up to €1,000/$1,320); captains (FC) can earn up to €4,000 in extra pension. “The current pension system will end by the end of this year. We have to cancel this system three months in advance, which means we [must] do it now in September,” (DLH) added.

Lufthansa (DLH) is again eyeing a possible stake in (SAS) Scandinavian Airlines, according to several media reports in Scandinavia and Germany. However, a (DLH) spokesperson said in Frankfurt: “First, (DLH) [must] concentrate on its cost-cutting program SCORE and currently we have no intention [to consider] airline acquisitions. On this focus, nothing has changed,” the spokesperson said, adding that this goes for (LOT) Polish Airlines and other [possible] candidates.

This statement is in line with what (DLH) Chairman & (CEO), Christoph Franz said. “We [have] always said that we like to play our part in the consolidation of European aviation. And we always look [around] at what is going on [regarding airline acquisition]. But first, we have to bring our house in order,” Franz said.

As part of its cost-cutting program SCORE, the Lufthansa Group wants to improve operating results by at least €1.5 billion/$2.02 billion by the end of 2014.

(SAS) President & (CEO), Rickard Gustafson said that “first we have to restructure ourselves. Then we can look for a possible investor.”
The spokesperson added that Franz explained during a press meeting that he is impressed with the restructuring of (SAS).

(DLH) is facing uncertainty over the restructuring of its Austrian Airlines (AUL) subsidiary, after a Vienna first instance court ruled that last year’s transition of operations and employment from Austrian to its former regional subsidiary, Tyrolean Airways was illegal. Should that decision hold, (AUL)’s restructuring and future would be in limbo. (CEO), Jaan Albrecht said (AUL) is “surprised” by the court ruling, and will appeal the decision.

Air China (BEJ) is planning to amalgamate its maintenance arm with the group’s (MRO) joint venture (JV) with Lufthansa (DLH), (AMECO) Beijing, during the first half of 2014.

(BEJ) has been planning to merge Air China Technics and (AMECO) for a number of years, but uncertainty about the effects on the German partner’s standing in the business has been an obstacle. Now, (AMECO) says that the merger will be completed during the first half in 2014.

What will happen to Lufthansa (DLH)’s 40% shareholding in the business and whether the (AMECO) name will be retained, are still unclear, however.

If (DLH) does not increase its stake, the merger with Air China Technics would likely lead to a reduced shareholding by (DLH) in the overall business.

Air China (BEJ) and (DLH) signed a 40-year contract, when (AMECO) was established in 1989. (AMECO) is China’s largest Maintenance Repair & Overhaul (MRO) provider, with half of its business coming from Air China (BEJ).

While (AMECO) operates as a partner in Lufthansa Technik (LTK)’s (MRO) network today, (LTK) is not the shareholder in the business. (LTK) was established five years after (AMECO)’s formation, when (DLH) reorganised its Engineering division as a wholly owned standalone company.

Meanwhile, Air China (BEJ) set up its in own (MRO) unit, Air China Technics, in 2004. This mainly conducts Line Maintenance for the parent fleet, but (BEJ) wants to expand the business to a full-service (MRO) provider and attract third-party customers, thus becoming a competitor to (DLH) (LTK).

(DLH) (LTK) says that it is discussing the shareholding, but declined to provide any detail before a conclusion has been reached.

August Wilhelm Henningsen, (DLH) (LTK)’s (CEO), said in 2011 that the group’s engagement with (AMECO) was a long-term investment aimed at gaining presence in the Chinese market.

Munich Airport has marked the topping-out for the new satellite facility for Terminal 2, which the airport jointly operates with Lufthansa (DLH). The ceremony took place September 12.

The Terminal 2 expansion project, which started in April 2012, is expected to be completed by 2015. The €650 million/$856.8 million investment will be shared 60% - 40% between airport owners (FMG) and (DLH).

(DLH) said the new passenger facility is essential for keeping Terminal 2 on track with the outstanding growth it has achieved since opening in 2003. Terminal 2, which was designed to handle 25 million passengers per year, is now stretched to the limit. It will have gate positions for 27 airplanjes and provide added capacity for 11 million passengers per year, but also can be expanded in a second phase. Munich Airport (CEO), Michael Kerkloh said, “This is a built-in option of the satellite, and would increase the total annual passenger capacity to 17 million. With that order of magnitude, we cannot overstate the importance of the satellite for the future development of our airport.”

The facility offers 125,000 sq m/1.3 million sq ft of floor space. The pier will have a length of more than >600 m and 52 departure gates. Two buildings will be linked via an underground personal transportation system.

Work on the satellite is proceeding on schedule: At present, the facade is under construction, and the interior work and installation of technical equipment is also underway. Seven connecting structures for the new passenger bridges have already been installed, according to (DLH).

(DLH) has selected BoardConnect to introduce wireless in-flight entertainment (IFE) on its narrow body fleet. In summer 2014, 20 (DLH) A321 airplanes will be equipped with BoardConnect, installed by Lufthansa Technik (DLH) (LTK).

(DLH) will be the first mainline carrier in Europe to use the service on selected routes. German leisure carrier, Condor Airlines (CDF) launched the (IFE) system on its 767-300 Frankfurt - Rhodes, Greece service in September 2012.

(DLH) announced the largest airplane order in its company history, an $18.9 billion order for 34 Boeing 777-9Xs and 25/30 Airbus A350-900s, to renew its future long-haul fleet.

The launch of the 777X family is targeted for later this year and entry into service (EIS) around the end of the decade. Advanced technology, including a new composite wing, all-new engines and superior aerodynamics will result in the incredible fuel efficiency promised by the 777X family. The 777-9X, with around 400 seats, will be the largest and most efficient twin-engine commercial jet in the world with the lowest operating cost per seat of any commercial airplane and no competitor in its market segment.

“We are focused on developing and delivering a superior airplane that ensures the 777 remains the unequivocal long-haul leader,” said John Wojick, Senior VP Global Sales, Boeing Commercial Airplanes. “With its new engines and an all-new composite wing design, the 777X will be the largest and most-efficient twin engine jet in the world with -20% lower fuel consumption and -15% lower operating costs than today’s 777. Boeing (TBC) is delighted that (DLH) is continuing its longstanding partnership with (TBC) by selecting the 777X for its future fleet development.”

“(TBC) and (DLH) share more than >50 years of partnership and innovation and a tradition of launching new airplane models: – starting with the original 737s, and most recently, the efficient 747-8I Intercontinental,” said Nico Buchholz, Executive VP & Head of Fleet, (DLH). “(DLH) is demonstrating its legacy of innovation and market leadership again with its selection of the 777X. We look forward to many years of partnership with Boeing (TBC), as we make air travel more efficient, comfortable and environmentally sustainable with airplanes such as the 777X.”

Earlier this year, the Lufthansa Group ordered six 777-300ERs for the fleet of Swiss International Airlines (CSR). Boeing (TBC) will deliver the first of Lufthansa Cargo (LUB)’s five new 777F Freighters later this year.

Lufthansa (DLH) today operates 93 Boeing (TBC) airplanes within its group fleets.

The Supervisory board of Lufthansa (DLH), Airbus (EDS)’ biggest airline customer and operator, has decided to expand and modernize its long-haul fleet with a commitment for up to 55 A350-900 airplanes (25 firm and 30 options). (DLH) also has the flexibility to convert some of the order to the larger A350-1000.

This landmark A350 order comes just six months after (DLH) made the strategic decision to become an all-Airbus (EDS) operator for its single-aisle fleet. So far in 2013, (EDS) has won more firm orders from (DLH) (125) in a single year than ever before. Taking all commitments (firm and options) into account, the figure rises to 232 airplanes (one more than the 231 (EDS) airplanes currently in operation with (DLH)).

"The A350 XWB suits (DLH)’s entire network regarding size and range, and will be key to modernizing our fleet, while significantly reducing operational costs and our environmental footprint,” said Nico Buchholz, Executive VP, Lufthansa Group Fleet Management. “These quiet and fuel-efficient airplanes will fit nicely into our existing (EDS) fleet, and our passengers will be able to enjoy seamless service and comfort levels throughout our entire product range.”

(DLH)’s decision underpins the Group’s status as Airbus (EDS)’ largest airline customer and operator, with to date 535 airplanes ordered and 397 currently in operation within the Group. The latter include: 282 A320 Family, 42 A330s, 63 A340s, and 10 A380s. (DLH) has recently announced an order for 100 A320 Family airplanes to switch its Single-Aisle Fleet in the 150 - 230 size category entirely to Airbus (EDS).

Lufthansa (DLH) has selected (RRC) (Trent XWB) engines worth $1.5 billion, including TotalCare® service support, to power 25/30 orders A350-900 airplanes. The (Trent XWB) is the fastest-selling member of the (RRC) (Trent) engine family, with more than >1,400 ordered prior to its entry into service (EIS) next year.

The announcement continues a close relationship between (RRC) and (DLH). (DLH) has 60 (Trent)-powered Airbus A380s, A330s and A340s, either in service or on order. (RRC) is also a joint-venture (JV) partner with Lufthansa Technik (DLH) (LTK) in the N3 Engine Overhaul Services maintenance business.

The (Trent XWB), specifically designed for the A350 XWB, powered the first test flight of the A350 XWB at Toulouse on June 14 this year.

October 2013: The Lufthansa Group reported a net profit of +€247 million/+$340 million for the first nine months ended September 30, down -64.6% from the year-ago.

Lufthansa (DLH) launched 5x-weekly, Frankfurt - Shanghai A380 service.

Solena Fuels hopes to enter negotiations with Qantas after completing a joint study showing the feasibility of building a waste-to-biofuel facility in Sydney. Solena already has a long-term offtake and investment agreement with British Airways to build its first waste-to-biofuel plant, planned to be operational by 2016 in Tilbury, east of London. The company is also close to completing negotiations with Lufthansa to build a waste-to-biofuel facility in Berlin, (CEO), Robert Do said.

Lufthansa Technik (DLH) (LTK) subsidiary, Lufthansa Engineering & Operational Services (LEOS) plans to deploy electrically powered hybrid towbarless airplane tugs made by Kalmar Motor of Sweden. The electrically powered tug, eSchlepper, can move airplanes with a maximum take-off weight of up to 600 tons. The first prototype is planned for delivery at the end of 2014 and will be used for repositioning and hangar towing of long-haul airplanes, towing them over distances up to seven kilometers. eSchlepper tugs will be powered by lithium ion batteries.

Lufthansa (DLH) is ending turboprop services October 26 with Italian subsidiary Air Dolomiti (DLA)’s final ATR72-500 flight from Munich to Triest, Italy, as (DLH) moves ahead with its restructuring program "SCORE." Lufthansa (DLH) said it is important to consolidate its European fleet.

Lufthansa regional carriers will operate Embraer EMB-190/EMB-195s and Bombardier CRJ700/900s.

(DLH) has confirmed its supervisory board did not approve three A380 orders, based on the current lower growth rate of the Lufthansa Group.

(DLH) will modify 157 of its A320 family airplanes (which connect its Frankfurt and Munich hubs with the European route network) to make them quieter. In April 2012, a German court in Leipzig upheld a night-flight ban at Frankfurt Airport, which resulted in significant changes to daily airplane operations and schedules for (DLH).

Airbus (EDS) has developed vortex generators especially for the A320 family, based on the findings of research carried out by (DLH) and the German Aerospace Center. Flyover measurements show the vortex generators eliminate two unpleasant tones and therefore reduce the total noise generated by the approaching airplanes by up to two decibels. They can be fitted both to airplanes already in service as well as to the new A319, A320 and A321 models, which are yet to be delivered. “By fitting these vortex generators to our Airbus (EDS) short- and medium-haul fleet, we are continuing to invest in active noise protection, (DLH) board member, Kay Kratky said.

Modification of (DLH)’s existing fleet will begin in early 2014. All new A320 and A321 deliveries will be fitted as standard with the vortex generators in the future.

November 2013: Lufthansa (DLH), which is transferring flights to its subsidiary, Germanwings (RFG) as a part of its restructuring program "SCORE," has announced (RFG) will launch new routes from Hamburg in summer 2014.

Lufthansa (DLH) and its Group subsidiaries, Austrian Airlines (AUL) and Swiss International Air Lines (CSR) will end their code share with Star (SAL) Alliance partner, Turkish Airlines (THY) next year, saying the agreement no longer makes commercial sense.

Germanwings (RFG) will begin 3X-weekly services from Hamburg to Rome Fiumicino from March 30, 2014, as well to Thessaloniki (3X-weekly), Rijeka (2X-weekly), Prague (5X-weekly), Toulouse (4X-weekly) and to Klagenfurt (2X-weekly).

(DLH) is transferring non-hub routes to (RFG) to bring European flights back to profitability.

(DLH) will add routes from Frankfurt to Montreal and Valencia as part of its summer 2014 schedule. Between May 16 and October 12, (DLH) will operate a five-times-weekly service from its main hub to Montreal. (DLH) will deploy A330-300s and A340-300s on the route. First class will not be available.

Starting March 30th, (DLH) will conduct daily flights from Frankfurt to Valencia in Spain.

Lufthansa (DLH) is to expand its routes to Asia in 2014 by introducing five flights a week to Jakarta. From March 30, (DLH) will run flights from Frankfurt, with a short stop in Kuala Lumpur (KL) before flight LH 782 continues to the Indonesian capital.
Direct flights to (KL) will also now take place, as until now travellers could only travel four times a week with a stopover in Bangkok. (DLH) will run five weekly non-stop flights Thursdays to Mondays to the Malaysian capital. This will bring its total number of flights to Asia from Germany to 127 weekly flights and 22 different destinations.

Kay Kratky, a member of the Lufthansa German Airlines (DLH) Board for operations & hub Frankfurt, said: “Indonesia and Malaysia are important countries for business and leisure travel and we are confident that our customers will appreciate the new travel opportunities to south-east Asia and enjoy using them.”

Lufthansa Technik (DLH) (LTK) has become the newest member of the Latin American and Caribbean Air Transport Association (ALTA), the latest step for the Deutsche Lufthansa group subsidiary's goal of expanding its presence in the Latin American aviation market.

Panasonic Avionics Corporation (Panasonic) and Lufthansa Technik (DLH) (LTK) have won the right to retro-fit all in-service A380s with Panasonic’s advanced Global Communications Services. The joint agreement allows in-service A380s to be equipped and certified with Panasonic’s broadband connectivity and mobile phone services. It is the first time that Airbus (EDS) has allowed this type of communications hardware to be retrofitted onto this unique airframe type. With Panasonic’s Global Communications Services, passengers will be able to access the internet, log into their favorite social networks and watch live, global television content with Panasonic’s eXTV service, which includes BBC World News, BBC Arabic, CNBC, CNN International, NHK World, Euronews, and IMG Media’s Sport 24. They will also be able to use their mobile phones to send and receive phone calls or text messages and to use (GPRS) services.

The first customer will be Lufthansa (DLH), with the installation being undertaken by Lufthansa Technik (DLH) (LTK).

David Bruner, VP for Global Communications Services at Panasonic Avionics, said: “With this agreement we have made great progress with Lufthansa Technik (LTK) towards providing this very important service to our airline customers and their passengers. We can now provide our broadband services on every aircraft type, which has always been our goal.” Bernd Freckmann, VP, Base Maintenance Services for (LTK), said: “We are very pleased to partner with Panasonic Avionics as they have an established wide A380 Customer base of high-quality in-flight entertainment and communications services.” With installations beginning in 2014, the developed platform complies with current manufacturer and industry standards allowing full commonality with a concurrent line fit installation.

Lufthansa Technik (DLH) (LTK) has become a member of the Latin American & Caribbean Air Transport Association.

December 2013: Lufthansa (DLH) begins 5x-weekly, Munich - Mexico City A340-600 service April 3, 2014 and daily, Munich - Toronto A340-300 service on June 5.

(DLH) will close its Frankfurt - Russia’s Yekaterinburg service from January 21, 2014, due to the route’s un-profitability. Yekaterinburg was the only (DHL) destination in Russia beyond the Ural Mountains.

Russia’s UTair (TYU) announced it will offer transfer flights from Yekaterinburg to several points in Europe, including Dresden and Hannover via Moscow.

In April, Lufthansa (DLH) closed two Russia destinations, Kazan and Perm. It also increased frequencies on routes from Frankfurt to Samara and Nizhny Novgorod. (DLH) is the biggest foreign carrier in Russia. In 2012, it transferred some destinations from Moscow Domodedovo to Vnukovo Airport, which included Hamburg and Dusseldorf.

(DLH) will launch new services to Tokyo Haneda from March 30, 2014, when (DLH) will transfer its daily, Frankfurt - Tokyo Narita and daily, Munich - Narita service to Haneda.

Narita will stay in the (DLH) network and will be served from Frankfurt through Osaka from March 30. No details have been given which airplanes will be operated into Haneda. Currently, (DLH) operates one 747-400 on its Frankfurt - Narita service and one A340-600 from Munich.

“The inclusion of Haneda Airport in our flight schedules is for our passengers a tangible outcome of the strategy we pursued together in our strategic joint venture (JV) with our partner airline, (ANA). It also distinctly improves and grows the services we offer in Japan through vastly better flight connections into the Japanese domestic network,” Lufthansa (CEO) & Chairman, Christoph Franz said.

(DLH) said passengers can choose connecting flights to more than >40 Japanese destinations via Haneda. In addition, (ANA) is rearranging and expanding connections between Japan and Germany at the start of the 2014 summer flight schedules. In the future, (ANA) will service Frankfurt twice a day from Haneda. Up to now, (ANA) has offered one 777-300ER flight from Narita and one 787 service from Haneda to Frank­furt.

In the future, (ANA)’s 787 Narita - Munich flights will be served out of Haneda. From March 30, 2014, (ANA) will launch 787 Narita - Dusseldorf services.

(DLH) is evaluating new strategies for its frequent flyer program, "Miles & More," to generate more turnover and increase customer numbers. Miles & More is part of Lufthansa Passenger Airline (DLH).

According to some German media reports, (DLH) plans to transfer the system into a separate company next year. “There are no concrete talks [on whether] we will transfer it [Miles & More] into a separate company. We are looking through all [options] for our Miles & More program like we do for every part of the group regarding our reorganization. The program should become more efficient and should get more independence as well as responsibility to be able to create more value,” the spokesperson said.

By the end of the year, (DLH) will unveil the updated frequent flyer program, but it is unclear if the program will be outsourced. “We don’t want to sell our loyalty program like Air Berlin (BER) or Air Canada (ACN) did. Miles & More has 25 million customers and is the biggest program of its kind in Europe and should become even more profitable,” the spokesperson added.

According to several German media reports, Miles & More delivered €700 million/$960 million in profit to the Lufthansa Group in 2012.

Swiss Aviation Software’s (AMOS) Maintenance Repair & Overhaul (MRO) software has been chosen by Lufthansa CityLine, which will do a lean (AMOS) implementation for its 60-jet fleet.

Lufthansa Technik (DLH) (LTK) will provide total component support (TCS) for Air Canada (ACN)’s Boeing 787s for 12 years.

January 2014: SEE ATTACHED - - "DLH-2014-01-TOP 2013 WORLD AIRLINES-A/B."

Deutsche Lufthansa (DLH)'s shares rose more than +6% after (DLH) said it expects lower fuel and restructuring costs this year. In an investor presentation on its website, (DLH) said it sees 2014 fuel costs of EUR6.9 billion/US$9.38 billion, down from an estimated EUR7.1 billion in 2013. Restructuring costs are also seen waning. For 2013, (DLH) expects costs of EUR200 million, for 2014 EUR80 million and for 2015 EUR20 million. Restructuring costs include charges for the company's cost-saving program known as "SCORE," such as provisions for headcount reductions and severance payments.

(DLH) reiterated its 2013 outlook, including operating profit of between +EUR600 million and +EUR700 million, and flat revenue on the year. As previously forecast, (DLH) said it expects an operating profit of +EUR2.3 billion in 2015.

The Lufthansa Group boosted the load factor of its airplanes to nearly 80% LF and sold more passenger-kilometers on the market in 2013 than ever before.

Last year, the Lufthansa Group set a new record for sales in passenger traffic. Traffic in the passenger business (measured in revenue passenger-kilometers (RPK)s) came to more than >209 billion in 2013. This represents an increase of +2.3% compared with the previous year. The Group also beat its previous record of more than >207 billion passenger-kilometers set in 2011. The main reasons for this positive performance were the use of larger airplanes and better overall load factors for flights. In 2013, the Lufthansa Group airlines increased this figure year over year by 1% point to a high 79.8% (the highest in Europe). Last year Lufthansa (DLH), Germanwings (RFG), Swiss (CSR) and Austrian Airlines (AUL) carried more than >104 million passengers, an increase of +1% on the previous year. Overall capacity (measured in seat-kilometers) was +1% higher than in 2012, and the Lufthansa Group reduced the number of flights by -3.7%.

Some 76 million passengers flew with Lufthansa (DLH) and Germanwings (RFG) last year (a rise of +1.4%. The two airlines added +1% to capacity and lifted sales disproportionately by +2.3%). (DLH) and (RFG) also edged up the load factor for their flights by +1% point to 79.1% LF. Swiss (CSR) carried 17 million passengers last year, +0.5% more than in 2012. Capacity was increased by +2.7% and sales by +3.8%. The load factor climbed accordingly by 0.9% points to a high 83.3% LF. Roughly eleven million passengers flew with Austrian Airlines (AUL) between January and December, -1.6% fewer than the year before. The airline reduced capacity by -2.7% and limited the fall in sales to 1.4%. The load factor edged up by +1.1% points to 78.6% LF.

Capacity utilization in the freight business was good last year, with the airplanes at Lufthansa Cargo (LUB) reporting a cargo load factor of 69.9% LF (+0.2% points) despite sluggish demand on global freight markets. The company transported 1.7 million tonnes of freight and mail, -1% down on last year. Capacity (in cargo tonne-kilometers) was cut slightly by -0.3%, while sales remained on par with the previous year. In the Logistics segment, the Group carried a total of 1.9 million tonnes of freight and mail (-0.9%). Across the Group, capacity was +1% higher than in the previous year and sales were +0.4 percent higher. In the Group's freight business, the load factor came to 69.1% LF overall (-0.3% points).

Lufthansa (DLH) will set the flight times of three more existing connections at fixed hourly intervals. Vital routes from Frankfurt to Vienna, London Heathrow, and Brussels will get regular hourly departure times starting March 30, except during times of lower traffic.

(DLH) planned the hourly rhythm on the Vienna route in conjunction with Austrian Airlines (AUL). Both carriers alternate services between their hubs, with a departure every 60 or, at times, 120 minutes, for a total of 13 flights a day. (AUL) is increasing the number of flights on this route from five to six a day.

There are 12 hourly (DLH) departure times a day from Frankfurt to London Heathrow, and 10 departures to Brussels. In October 2012, (DLH) introduced hourly departures from Frankfurt to Berlin, Hamburg, and Munich.

germanwings (RFG), has assumed flying responsibilities on January 13th for two more Lufthansa (DLH) routes, namely its connections from Berlin Tegel (TXL) and Hamburg (HAM) to London Heathrow (LHR). The former route will be flown with 20 weekly services, while the latter with 19; both are flown by (RFG)’s A319s. British Airways (BAB) provides competition on both routes, flying from its main hub to Berlin 31 times weekly and to Hamburg 26 times weekly. The germanwings (RFG) operations are replacing double-daily services on both routes which were previously operated by its mother airline, Lufthansa (DLH). The two new routes join (RFG)’s existing services from Stuttgart (started February 2012) and Cologne Bonn (March 2012) to (LHR), also transferred from Lufthansa (DLH).

Deutsche Lufthansa (DLH), Germany's largest airline, will appoint management board member Carsten Spohr, currently in charge of its passenger airline business, as Chief Executive Officer (CEO), a German newspaper reported on Friday, January 17th.

Citing company sources, German mass-circulation tabloid "Bild" reported an "internal" decision had been made in favor of Spohr and that the company's supervisory board would rubber-stamp the appointment at a meeting in March.

Under Germany's two-tier board structure for listed companies, top managers including the (CEO) are appointed by the non-executive supervisory board. Current (CEO), Christoph Franz is set to leave (DLH) when his contract expires at the end of May to join Swiss drugmaker Roche as board Chairman.

German media have highlighted several Lufthansa (DLH) veterans as possible candidates to succeed Franz, including Spohr and fellow management board member Harry Hohmeister, as well as Lufthansa Cargo (LUB) divisional head, Karl Ulrich Garnadt and catering unit (LSG)'s Chief, Walter Gehl.

A Lufthansa (DLH) spokesman told "Reuters" the process to pick a new (CEO) was ongoing and that there was no time pressure because the incumbent had a contract until May 31.

Lufthansa German Airlines (DLH) has appointed Heike Birlenbach, presently Head of Cabin Management Munich, as VP Sales & Services Europe, effective March 1.

Lufthansa Technik (DLH) (LTK) has appointed Burkhard Andrich as President & (CEO) of Lufthansa Technik Philippines. Lufthansa Technik Phillippines is a joint venture between Lufthansa Technik and aviation service provider MacroAsia. Currently serving as Senior VP Aircraft Component Services at Lufthansa Technik in Hamburg, Andrich will succeed Gerald Frielinghaus. Gerald Frielinghaus who was acting as President & (CEO) of the Lufthansa Technik Philippines will return to Germany to manage LHT’s paperless maintenance project in Frankfurt.

Lufthansa Technik (DLH) (LTK) has appointed Harald Gloy as Senior VP Aircraft Component Services at parent (DLH) (LTK).

UK-based flight training provider, the (CTC) Aviation Group has signed a cooperation agreement with Phoenix, Arizona-based Airline Training Center Arizona (ATCA) to use its facilities for pilot (FC) training. (ATCA) is a 100% subsidiary of Lufthansa (DLH) Flight Training.

(CTC) Aviation’s first pilots (FC) will start their flight training in April. (CTC) Aviation has flight training operations in the UK and New Zealand. The company will initially station a fleet of 11 new trainer airplanes in Phoenix, while (ATCA) will support (CTC) by providing flight instructors, planning and dispatch services, trainee accommodation office space as well maintenance of the (CTC) Aviation airplane fleet.

Lufthansa (DLH) Flight Training (LFT) is a wholly owned subsidiary of Deutsche Lufthansa (DLH). Alongside (DLH) itself, over >200 airlines and flight schools are clients from (LFT), one of among the largest European training sites for Flight (FC) and cabin crews (CA).

(LFT) operates 37 flight simulators plus cabin simulators in Frankfurt, Berlin, Munich, Essen, and Vienna.

Lufthansa (DLH) is preparing for Airbus A380-800 operations into India following the recent decision by the Indian government to lift restrictions on A380 flights into the country.

The A380s will be allowed into the country’s four largest airports at Mumbai, Delhi, Hyderabad, and Bangalore, which have infrastructure in place for very large airplane. Flights will be subject to overall traffic entitlements within the bilateral air service agreements with different countries.

(DLH) spokesperson, Boris Ogursky said (DLH) “does not have a concrete plan on when and where it will conduct A380 service, but we [will find out] which requirements are necessary [for A380 operations].”

Traffic rights between Germany and India will also have to be adjusted for the new airplane type. In addition, the number of frequencies is limited.

“It is not possible to give a timeframe when we will be able to operate the A380-800 to India,” Ogursky said. However, "Reuters" quoted (DLH) Chairman & (CEO), Christoph Franz as saying it would likely be “for the winter schedule of 2014 - 2015.”

February 2014: The Supervisory Board of Deutsche Lufthansa AG (DLH) has appointed Carsten Spohr as Chairman & (CEO), succeeding Christoph Franz effective May 1. Spohr currently oversees the business segment of Lufthansa Passenger Airlines as a board member.

Franz is under contract until May 31. He will complete his term before taking up his new position as Chairman of Swiss healthcare firm Roche, where he is a board member.

(DLH) supervisory board Chairman, Wolfgang Mayrhuber called Spohr an “excellent choice” for the position of (CEO), “thanks to his extensive experience in the industry, his outstanding management skills and his passion and loyalty to Lufthansa (DLH). We know that the future of (DLH) will be in good hands with Carsten Spohr.”

Spohr said he is “convinced the company is on the right track. The cornerstones for the future success are in place. Together, we will meet the challenges confidently, willing to embrace change and be prepared to deliver on our strategy in order to make our company resilient and ready for the future also beyond 2015.”

Spohr also holds a Lufthansa Captain’s license for the Airbus A320 family airplanes.

In October 2004, Spohr was appointed to the management board of Lufthansa Passenger Airlines where he was responsible for service and staff. In 2007, he was appointed Chairman of the executive board of Lufthansa Cargo AG (LUB).

Spohr has been a Lufthansa AG executive board member and (CEO) of the Lufthansa Passenger business since 2011.

The Lufthansa Passenger Airlines (DHL) (CEO) position will be refilled, when Spohr assumes responsibility as (CEO) of the Group. “This decision will not be taken by the supervisory board until the end of April 2014,” (DLH) said. One possible candidate for this position could be Harry Hohmeister, (CEO) of Lufthansa (DLH) subsidiary, Swiss International Air Lines (CSR).

The Lufthansa Group will benefit from a new agreement between Russian and German authorities, which last week approved Russia’s AirBridgeCargo (ABC) to operate fifth freedom flights 3x-weekly from Frankfurt to the USA.

AeroLogic (AGC), a joint venture (JV) of Lufthansa Cargo (LUB) and (DHL) Express, will also benefit from the agreement.

Lufthansa Cargo (LUB) spokesperson, Matthias Eberle confirmed “Lufthansa Cargo (LUB) will add 14 weekly crossings over Siberian airspace. Its joint venture (JV), AeroLogic (AGC), will add +13 additional weekly frequencies,” which results in cutting flying time and saving fuel burn.

Lufthansa Cargo (LUB) will be able to operate up to 30 roundtrips between Europe and the Far East per week by the shortest possible route. Lufthansa (DLH) Passenger Airline can also benefit from 13 additional weekly frequencies for its Asian routes.

Lufthansa Cargo (LUB) executive board member Andreas Otto said the Russian side receives traffic rights for two weekly Frankfurt - USA flights and one charter flight.

AirBridgeCargo (ABC) can take advantage of these 3x-weekly transatlantic cargo flights on basis of fifth freedom rights from a number of German airports.

The agreement could be seen as a long-awaited compromise after a several years of traffic rights discussions. In 2007, Russian authorities suspended Lufthansa Cargo (LUB)’s right to fly over Russia.

Otto said that Lufthansa Cargo (LUB) is expecting a +5% tonnage growth in 2014 even though the air freight business remains challenging. “We see ourselves as well positioned,” Otto said.

Lufthansa (DLH) has taken delivery of its first Airbus A320 with vortex generators, which will reduce the noise produced by A320 during its final approach by up to two decibels. (DLH) said it is the first airline in the world to use an airplane with this modification.

According to (DLH), all new airplanes of this type will be equipped with vortex generators standard. Its current A320 fleet, which is already in operation, will also be equipped with the noise-reducing technology. It said 157 airplanes in its existing fleet will receive the new component, so that more than >200 airplanes in total (including new deliveries) will be quieter.

“This will enable us to implement a key aspect of the ‘Noise Protection Alliance’ initiative (comprising Lufthansa, Fraport, the Board of Airline Representatives in Germany e.V. association, German air traffic control (ATC), the Airport and Region Forum (FFR) and the state government of Hesse) and will particularly benefit local residents near our hubs in Frankfurt and Munich,” (DLH) board member Kay Kratky said.

Lufthansa (DLH), which is accelerating its fleet modernization program, has taken delivery of its 10th Boeing 747-8I Intercontinental, slated to go into service by the end of February. It will replace an older Boeing 747-400, which will be taken out of service.

The new 747-8I is one of seven new airplanes that will be joining the Group in February and March. Alongside three 747-8Is, (DLH) has acquired one Airbus A380, one A330 and two A320s.

In addition, its low cost carrier (LCC) subsidiary, Germanwings (RFG) will receive one A319 and Lufthansa Cargo (LUB) will take delivery of a 777F.

The Group expects to receive 23 new airplanes this year.

The deliveries are part of Lufthansa’s comprehensive fleet modernization program. The company, which was the launch customer for the 737 in 1965, will phase out its last of the type by the end of 2015.

Lufthansa has 261 airplanes on order, which will be delivered by 2025.

See video - - "DLH-747-8I 1ST CLASS BEJ - FRA" - -

March 2014: More than >95% of Lufthansa (DLH) pilots (FC) have voted in favor of going on strike, union Vereinigung Cockpit (VC), which represents about 5,400 (DLH) pilots (FC), recently announced. The union is seeking better pay and working conditions for pilots (FC) at Lufthansa (DLH), Lufthansa Cargo (LUB) and Germanwings (RFG). The vote allows for strike action to begin now, but it was said 48 hours advance notice would be given.

The (VC) said it had not set a date for labor to give (DLH) time for a new offer, but did not plan, for now, to strike during the Easter holidays. Easter this year runs from April 18 and is a major travel and vacation period in Europe. "If (DLH) challenges us, we will reconsider [strikes over Easter)", the (VC) warned. The union said there were no negotiations being held with (DLH) management, but labor leaders were “ready any time” to start talks. The dispute concerns pay increases and so-called “transition contracts” given to pilots (FC) who retire before the legal pension age officially kicks in. The retirement age for pilots (FC) following a European court ruling stands at age 65.

(DLH) terminated a previous transition agreement effective December 31. The (VC) says pilots (FC) should be given the option of retiring early; the average age of pilots (FC) leaving (DLH) is 59.

(DLH) Chairman & (CEO), Christoph Franz said that even the threat of a strike affects bookings. (DLH) said that the company was open to negotiation. "We are confident that we will find a consensus and (DLH) is working swiftly to present a new solution. This could also include offering [a model] for early retirement for cockpit (FC) and cabin crews (CA).”

Lufthansa (DLH) pilots’ (FC) last strike action was in 2010, causing the cancellation of hundreds of flights. (DLH) has since agreed pay deals with ground staff and cabin crew (CA).

(DLH) is in the middle of a cost-savings program, "SCORE" to improve operating profit by +€1.5 billion compared with 2011.

The Lufthansa Group reported 2013 annual net income of +€313 million/+$434.2 million, down -75% from a +€1.22 billion profit in the year-ago period.

Lufthansa (DLH) presented its new premium-economy (PY) class at the (ITB) tourism fair in Berlin. The new seats are part of a €3 billion/$4.13 billion service investment (excluding new airplane orders). “The new premium-economy (PY) class seat offers +50% more space compared to economy (Y) class. It offers a seat pitch of 38 inches and includes a 12-inch monitor for in-flight entertainment. We have invested €170 million in this new product and are expecting to generate €1 billion in additional revenue,” (CCO), Jens Bischof said. He called the new product “Lufthansa (DLH)’s biggest service initiative in recent years.” The first flight with the new product will be in October.

A total of 3,600 new premium-economy (PY) class seats should be installed on all 106 long-haul airplanes next year. The first installation will be on the Boeing 747-8I fleet, which will be completed by November 2014, followed by the Airbus A340 and A380 fleet. SEE ATTACHED - - "DLH-2014-03-PREMIUM ECONOMY CLASS."

“The number of premium-economy (PY) seats will vary between 21 on the A330 and 52 seats on the A380. On the A380, premium economy (PY) will be located on the lower deck,” Bischof said. In all, 10% of seats on (DLH)’s long-haul fleet will be premium-economy (PY) class.

The installation of 7,000 business (C) class seats in the long-haul fleet will be completed during the summer of 2015.

Lufthansa Technik Group (DLH) (LTK)) reported a 2013 operating profit of +€404 million/+$562 million, up +23.2% from +€318 million the previous year. Lufthansa Technik (DLH)/(LTK), which is made up of 23 consolidated companies, continued its track of producing solid and stable results.

(DLH) (LTK)’s global market share in the maintenance, repair & overhaul (MRO) business was between 12% and 13%.

Group revenue rose +4.2% to €4.2 billion compared to €4.01 billion the year before. “This included €1.6 billion in revenues from Lufthansa group companies and €2.6 billion from customers outside,” Lufthansa Technik (DLH) (LTK) Executive Board Chairman, August Wilhelm Henningsen said.

External customers grew +7% in 2013 and the share of non-group sales rose to 62%. The European (MRO) market performed weaker, but was countered by stronger markets in the Middle East and Asia. “The global (MRO) market will expand +4.5% each year until 2018, reaching a value exceeding >$80 billion. Our target is to grow at least with the market, or even more,” Henningsen said.

(DLH) (LTK) generated an operating margin of 10.9% in 2013. “The target is to continue at least with a 7% to 8% margin level,” Henningsen added. Total operating costs grew +2.5% to €4 billion.
“Considering the strained situation of many airlines, especially in Europe, the overcapacity in the (MRO) market continues and heavy pressure on price levels remain,” Henningsen said.

For (DLH) (LTK), 2013 was also a year of service portfolio expansion, particularly with the Boeing 787. “This is an airplane for the next 30 years. It is important in setting the course for the future,” Henningsen said.

(DLH) (LTK) is also forging more partnerships with Original Equipment Manufacturers (OEM)s and preparing for the service introductions of the Boeing 777-9X and Airbus A350XWB.

Lufthansa (DLH) is launch customer for the 777-9X, which is expected to be delivered in 2021.

Lufthansa Technik (DLH) (LTK) added 47 new customers and 461 new contracts in 2013, representing a contract volume of €3.4 billion. The (MRO) group now has 770 customers with 2,800 airplanes. (DLH) (LTK) previously announced it will shut down Lufthansa Technik Switzerland in April and it closed Lufthansa Technik Airmotive Ireland late last year, but the company will continue to invest in other regional facilities such as those in Budapest, Manila, and Malta. “The measures we have taken as part of the [Lufthansa (DLH) cost savings program] "SCORE," reached a volume of €210 million in 2013 and also helped us achieve these outstanding results,” (DLH) (LTK) (CFO), Peter Jansen said

For 2014, (DLH) (LTK) expects an operating profit of between +€320 and +€330 million, which will reflect planned investments. “Within the next five years, we want to invest €200 million in our innovation activities,” Henningsen said.

In terms of revenue, “we want to add +€3 billion [on top of the current revenue numbers) in the next five years],” Jansen said.

(DLH) (LTK) has more than >30 subsidiaries and associates and over >26,000 employees worldwide.

Frankfurt and Munich airports were most affected by German public services trade union Verdi March 27th strike over wages. The strike also had a minor impact on Hamburg, Düsseldorf, Cologne, Stuttgart, and Hanover airports. Frankfurt, Germany’s biggest airport, canceled 554 flights until 2:30 pm local time. Lufthansa (DLH) canceled every third flight from 1,800 flights scheduled for March 27th. During the strike, Frankfurt had about 20 airplane movements per hour, down from more than >90.

Munich Airport canceled 133 flights, most of them by Lufthansa (DLH).

Lufthansa (DLH) said that all Flight Operations were again on schedule and no further delays were expected.

Later, however, (DLH), represented by the Vereinigung Cockpit (VC) union, said they would strike for three days from April 2 - 4. The union, which represents about 5,400 pilots (FC), is seeking better pay and working conditions for pilots at Lufthansa Passenger Airlines (DLH), Lufthansa Cargo (LUB) and Germanwings (RFG).

The dispute is over transition contracts awarded to pilots (FC) retiring before the legal pension age. (DLH) is also negotiating with the pilots (FC) on a pay agreement for the contract period from May 2012. (DLH) has called on the (VC) union to resume joint talks as soon as possible. “We still have four-and-a-half days to avoid further disruptions for our customers,” (DLH) Chief Officer Human Resources & Legal, Bettina Volkens said, adding that a constructive offer to (DLH) had not been accepted. “We are willing to continue the discussions at any time and have laid the groundwork for negotiations with the new offer for the wage settlement and the offer concerning early retirement from Flight Service. With the goodwill of everyone involved, we should be able to avoid a strike,” Volkens said.

Although (DLH) continues to hope for a solution, it is working to keep the effects of a strike on its customers to a minimum. The pilot (FC) strike comes on the heels of a strike by German public services trade union Verdi over wages last March 27, which disrupted operations at seven German airports, including Frankfurt and Munich. (DLH) had to cancel every third flight of the 1,800 flights scheduled for that day.

Hamburg Airport began construction work on its new air cargo center March 17. The 60,000 sq m Hamburg Airport Cargo Center (HACC), which replaces the existing facility, is expected to begin operations from summer 2015. “We, the airport, are investing around €45 million/$62 million from our own funds. The money is a good investment for the site and the region. The new (HACC) will further strengthen the already successful aviation sector in Hamburg, bringing security for the future,” Hamburg Airport (CEO), Michael Eggenschwiler said.

The (HACC) design was planned in close cooperation with freight forwarding companies already based at Hamburg. Cargo handling halls and offices are based on a concept that allows for an annual capacity of up to 150,000 tonnes of air freight. 6,000 sq m is assigned to office buildings, while 20,000 sq m is assigned to logistics operations for freight forwarding agents and freight handling companies. Cargo airplanes, such as the widebody Antonov An-124, can taxi to a loading and unloading point directly in front of the cargo center.

April 2014: Lufthansa (DLH) has strengthened its Munich (MUC) hub again, following on from the start of thrice-weekly operations to Mexico City on April 3RD, this time with a weekly (Saturdays) service to Lamezia Terme (SUF) in Italy. Starting on April 12th, the seasonal service (operating until November 1st) will become the Star (SAL) Alliance carrier’s twelfth destination in Italy. The route will face no direct competition and will be flown by a variety of equipment.

Lufthansa (DLH) economy (Y) passengers, who reserve a specific seat at the time of booking will incur a €25/$34.50 extra charge on long-haul flights from April 28. The new long-haul fees apply to booking classes W, S, T, L and K. For remaining booking classes, the economy (Y) class advanced seat reservation remains free of charge.

(DLH), which launched its new premium-economy (PY) class in March at the (ITB) Tourism Fair in Berlin, said it remains free of charge. The first flight with the new product will be in October.

(DLH) announced it would introduce an early reservation system for its short-haul flights last November. (DLH) charges €10 on short-haul services, but passengers have to pay €20 to sit by an emergency exit, a fee that increases to €60 on long-haul flights.
(DLH) added that guests may choose preferred seats at no extra charge when checking in up to 23 hours before departure.

Lufthansa (DLH) is to begin 2x-weekly, Frankfurt - Lublin, Poland A319 service on July 3.

Lufthansa (DLH) and subsidiary, Austrian Airlines (AUL) have stopped flights to Libya indefinitely, due to security concerns after a bomb exploded in March at Tripoli International Airport, damaging the main runway. The situation has highlighted the deteriorating security situation in the country.

Alitalia (ALI) and British Airways (BAB) have also suspended flights. According to "Reuters." Alitalia (ALI) will suspend flights until April 15, when it will review the situation.

All carriers continue to monitor events, but are unable to make a final decision regarding restarting flights. Several media outlets have reported that two missiles were fired at the airport on March 21, causing surface damage to the runway. Although this was quickly repaired, a second incident provoked further concern about security at the airport.

The Lufthansa (DLH) pilot (FC) strike, called by the union Vereinigung Cockpit, has caused major disruptions and affected 425,000 passengers as the strike entered its second day. The three-day strike impacted (DLH) and low-cost carrier (LCC) Germanwings (RFG) flights. The union, which represents about 5,400 pilots (FC), is seeking better pay and working conditions for pilots (FC) at Lufthansa Passenger Airlines (DLH), Lufthansa Cargo (LUB) and Germanwings (RFG).

(DLH), which cut its flights by around -90%, said its significantly scaled back Flight Operations are on schedule. (DLH) expects the impact on earnings to be in the mid-double-digit millions of euros. Before the strike began, (DLH) canceled 3,800 flights.

The situation at German airports (especially at (DLH)’s Frankfurt and Munich hubs) is very quiet. Around 20,000 customers were able to take the train instead, and (DLH) switched others to the remaining members of the airline group, Star (SAL) Alliance airlines or external carriers. More than >25,000 tickets were rebooked on its website; call centers were experiencing long wait times.

“We aim to be a competent partner even in these exceptional circumstances,” (CCO), Jens Bischof said. “We will continue to devote all our efforts to finding alternative travel arrangements for every passenger.”

By April 11th afternoon, preparations will began in Asia for resuming intercontinental flight operations. First flights took off at 5 pm (CET) from East Asia and arrived in Europe early on April 5th morning.

Flight operations at both Lufthansa (DLH) and Germanwings (RFG) were back to normal on April 5th. (DLH) said the swift return to normal operations was possible because airplanes and crews ((FC) - (CA)) had been stationed where operations were to resume upon conclusion of the strike.

Lufthansa (DLH) said a three-day walkout by its pilots (FC), which effectively grounded Germany's largest airline (DLH), could cost it up to EUR75 million/US$103 million as it called on their union to return for talks over pay and retirement conditions. (DLH) canceled a total of 3,800 flights over the strike period.

"(DLH) estimated it at between EUR5 million and 75 million," said Kay Kratky, Chief Operating Officer (COO) of Lufthansa German Airlines (DLH).

Lufthansa (DLH) has taken a -€70 million/-$97 million hit from several strikes in Germany this year, outgoing Lufthansa (DLH) Chairman & (CEO), Christoph Franz said at his last (AGM). He said the three-day pilot (FC) strike in early April cost the company -€45 million. In addition, (DLH) was affected by strikes by airport security staff and public service employees.

Negotiations between (DLH) management and pilot (FC) union Vereinigung Cockpit (for better pay and working positions for Lufthansa (DLH) Passenger Airlines, Lufthansa Cargo (LUB) and Germanwings (RFG) pilots (FC))are ongoing; additional strikes are possible.

In his nearly three years at the helm of (DLH), Franz implemented the company’s cost-savings program "SCORE." He expects (DLH) to generate an operating profit in 2014 between +€1.3 billion and +€1.5 billion.

From May 1, Carsten Spohr (formally in charge of (DLH) Passenger Airline) will succeed Franz as Chairman & (CEO). Franz will take up a new position as Chairman of Swiss healthcare firm Roche, where he is a board member.

(DLH) is to restructure its Information Technology (IT) subsidiary, Lufthansa Systems (LHS), into three separate units (Infrastructure, Airline Solutions, & Industry Solutions) with plans to sell-off Infrastructure. The Airline Solutions & Industry Solutions divisions will be retained as independent companies operating within the Lufthansa Group. (DLH) has already held talks with parties interested in acquiring its Infrastructure unit.

"The Lufthansa Group will then contract out its Infrastructure Services to the new partner as part of a long-term agreement to create growth opportunities for the business and new prospects for the employees. It is planned to finalize the project by the end of 2014," (DHL) said.

Infrastructure provides data centers, networks and telephony, generating 40% of Lufthansa Systems (LHS)' total turnover of EUR640 million/USD864 million.

The Lufthansa Group said its passenger airline fleet reported a decline in fuel consumption for 2013. (DLH)’s average fuel consumption per passenger per 100 km dropped to 3.91 liters of kerosene in 2013, beating the four-liter mark for the first time, an improvement of 3.8% over 2012. The aviation group said it achieved over twice the annual efficiency target increase of 1.5% set for the airline industry.

Absolute fuel consumption of the group fell for the second time since 2012, by 1.3% year-over-year, despite a production increase of +2.3%. In absolute terms, the group’s fuel use decreased -114,152 tons compared to 2012 and carbon dioxide (CO2) emissions dropped by more than >359,587 tons. “The new record is a clear sign that all our efforts to increase fuel efficiency have taken hold,” Lufthansa (DLH) outgoing Executive Board Chairman & Group (CEO), Christoph Franz said. “Ecologically and economically, we have a great interest in making the most efficient use possible of the fuel we need to carry our passengers. That is one reason why we are investing billions every year in next-generation airplanes.”

The Lufthansa Group is undergoing its biggest fleet renewal program, which focuses on more efficient airplanes. As of December 31, 2013, it had 261 airplanes on order for delivery by 2025, representing a capital expenditure of €32 billion/$44 billion at list prices.

Lufthansa (DLH) recently announced it inked an agreement with Gevo Inc to evaluate its renewable jet fuel with the goal of approving Gevo’s alcohol-to-jet fuel for commercial aviation use. (DLH)’s testing is being supported through work with the European Commission (EC). Gevo is the world’s only commercial producer of renewable isobutanol.

Lufthansa Group Senior Manager Aviation Biofuel, Alexander Zschocke said, “(ATJ), like the Fischer-Tropsch pathway, has the potential to use lignocellulosic waste as feedstock, but promises to do so at less cost than Fischer-Tropsch. In 2012, Lufthansa (DLH) concluded a long-term biofuel study by operating the world’s first biofuel-powered transatlantic commercial flight to the USA. Flight LH 418 landed at Washington Dulles on January 12, 2012 after an 8-hour and 20 minutes flight from Frankfurt. The Boeing 747-400 carried approximately 40 tons of biofuel mix. (DLH) said its carbon dioxide (CO2) emissions were reduced by about -38 tons.

(Gevo) (CEO), Patrick Gruber said, “By using isobutanol as a renewable raw material for producing jet fuel, the resulting jet fuel has the mixtures of molecules typical of petro-based jet fuel making it directly compatible with engines and infrastructure. Renewable jet embodies the potential of cleaner, greener (and as we scale up) cost competitive drop-in fuels. Through initiatives like this, the commercial airlines are seeking to prove out (ATJ) and move it towards commercialization,” he said, adding, “(ATJ) from Gevo’s isobutanol is a clean burning, homegrown, drop-in jet fuel, and we have a potential route to deliver aviation biofuels at scale and at competitive cost.”

Lufthansa Technik (DLH) (LTK) and the Commonwealth of Puerto Rico announced on April 10th an agreement to create a Maintenance Repair & Overhaul (MRO) facility in Puerto Rico, which will service short- and medium-haul airplanes - - SEE ATTACHED PHOTO - - "DLH-3-AUGUST HENNINGSEN-2014-04." The new company, Lufthansa Technik Puerto Rico (LTPR), will be based at Rafael Hernández International Airport in Aguadilla, a former US Air Force base. Construction is expected to begin in the next three months.

(DLH) (LTK) said the company will employ up to 400 workers and run five overhaul lines. Initially it will operate two lines for Airbus A320 "C" and "D" checks. The first layover is due to take place in 2015.

(DLH) (LTK) said the project leader is Elmar Lutter, who is currently Managing Director at Lufthansa Technik Budapest.

JetBlue Airways (JBL) and another unidentified USA carrier have committed to be launch customers for overhauls at the new site.
“Lufthansa Technik Puerto Rico will be an important element in the long-term strategy of Lufthansa Technik’s presence in the American market, (DHL) (LTK) (CEO), August Wilhelm Henningsen said.

USA Commerce Secretary, Penny Pritzker said the new facility was the result of "SelectUSA," a USA government-wide program housed within the Commerce Department, coordinating with several federal agencies to provide the needed assistance to secure the agreement. “Clearly, Lufthansa Technik (DLH) (LTK) knows what a growing number of global companies are realizing: There has never been a better time to invest in America,” Pritzker said. “This deal between the Commonwealth of Puerto Rico and Lufthansa Technik provides an excellent case study for building strong partnerships. Governor, García Padilla and his team put a tremendous amount of work into winning this investment, and I’m confident they’ll continue to be a great partner for Lufthansa (DLH).”

The Lufthansa Group has placed an order worth more than >€1 billion/$1.37 billion at list prices for (CFM) International (LEAP-1A) engines for 40 Airbus A320neo airplanes it ordered last year. Delivery of the new airplanes with the new engine will begin in 2021.

Lufthansa (DLH) has also selected Pratt & Whitney (PRW) PurePower (PW1100G-JM) engines for an additional 30 A320neo family airplanes, scheduled for delivery from 2019 through 2021, according to Pratt & Whitney (PRW). The new (CFM) engine is “significantly quieter than conventional (CFM) engines of the type (CFM56-5B),” according to (DLH), and “halves the noise footprint produced by an airplanes during take-off and landing.”

Lufthansa Group Head Group Fleet Management, Nico Buchholz said: “The (LEAP-1A) engine brings us a great step further in our efforts to keep reducing noise and environmental pollution. In aviation, investing in new technologies is the best strategy for protecting the environment and people.”

Buchholz also said (DLH) was "very pleased with the testing to date on [Pratt & Whitney (PRW)'s] Geared TurboFan engine family. "Our early A320neo deliveries will benefit from the technologies in this engine providing us with significant improvements in overall environmental performance and operating cost," he said.

The Lufthansa Group has placed firm orders for 100 Airbus A320neo family airplanes over the last few years, with 60 of the type, ordered in 2011, to be equipped with Pratt & Whitney (PRW) (PW1199G) engines, which promise comparable operational and environmental performance to the (LEAP-1A). (DLH) said its A320neo family fleet will then be operating “the two best and most efficient engines on the market.”

May 2014: The Lufthansa Group posted a first-quarter net loss of -€252 million/-$351 million, narrowed from a net loss of -€458 million in the year-ago quarter.

The company said the results were due to continued progress with its SCORE results-enhancement program.

In what is traditionally the weakest quarter of the year, the company posted operating losses of -€245 million, narrowed from a -€359 million operating loss in the first quarter of 2013.

First-quarter revenue fell -2.5% to €6.5 billion and operating income was €7 billion, down -2.5% year-over-year. At the same time, total first-quarter operating expenditure was reduced -6% to €7.2 billion compared to the year-ago period.

According to Lufthansa (DLH), the revenue results were achieved with a -1.2% reduction in total flights operated, owing mainly to fleet modernization and the use of larger airplanes. It said the improved quarterly operating results could be largely attributed to an increase in profits at Lufthansa Technik (DLH) (LTK) and the positive impact of the revised depreciation policy for airplanes and spare engines, which was adopted at the beginning of the year.

Lufthansa (DLH) (CFO), Simone Menne said, “We have improved our cost structures and have taken various actions to enhance the quality of our revenues. And we will continue with our consistent efforts to further raise our efficiency.”

The Lufthansa Group confirmed its previous expectation of posting an operating profit of between +€1.3 billion and +€1.5 billion for 2014 as a whole, unchanged despite the Verdi strikes at German airports in March and the three-day strike at Lufthansa (DLH), Germanwings (RFG) and Lufthansa Cargo (LUB) by the Vereinigung Cockpit pilots (FC)’s union in April, which reduced Group earnings by over >€70 million.

The Group’s Passenger Airlines business segment reported a first-quarter operating loss of -€332 million, a +€31 million improvement over the same period last year.

Among the Group’s member airlines, (DLH) and Germanwings (RFG) posted quarterly operating losses of -€286 million (up €6 million year-over-year); SWISS (CSR) reported an operating profit of +€6 million (up +€22 million year-over-year); and Austrian Airlines (AUL) posted an operating loss of -€54 million (up +€2 million year-over-year).

Lufthansa Technik (DLH) (LTK) reported a first-quarter operating profit of +€97 million, a +€16 million year-over-year improvement. Lufthansa Cargo (LUB)’s first-quarter operating profit was +€21 million, down from +€28 million in the prior-year period.

The Lufthansa (DLH) supervisory board has approved an updated distribution of responsibilities within the executive board. Most changes became effective May 1.

According to Lufthansa (DLH), Chairman & (CEO), Carsten Spohr will place a greater focus on the airline group with its multi-hub and multi-brand strategy comprising the Lufthansa (DLH), Germanwings (RFG), Austrian Airlines (AUL), SWISS (CSR) and Brussels Airlines (DAT)/(EBA) brands. Spohr will also be responsible for Centralized Network Development, while Network Planning & Management will be the decentralized responsibility of the airlines.

Lufthansa Cargo (LUB) (CEO), Karl Ulrich Garnadt will be responsible for Group Infrastructure in addition to Lufthansa German Airlines (DHL). He will also be responsible for airport and air traffic control (ATC) charges for the entire Lufthansa Group.

The executive board’s Finance & Aviation Services division will assume responsibility for Group Purchasing. Simone Menne will be responsible for the activities of Lufthansa Global Business Services GmbH (LGBS), which includes Purchasing.

Chief Officer Human Resources & Legal, Bettina Volkens will also become a member of the Lufthansa German Airlines board, where she will be responsible for Human Resources.

Effective January 1, 2015, SWISS (CSR) Executive board member, Harry Hohmeister will also be responsible for Group Information Technology (IT) & Process Management. Hohmeister will continue to serve as SWISS Executive board Chairman.

Lufthansa (DLH) has made Montpellier (MPL) its seventh destination in France from its Frankfurt (FRA) mega-hub, adding to (DLH)’s existing services to Bastia, Paris (CDG), Lyon, Marseille, Nice, and Toulouse. Started on May 3rd, the weekly rotation (Saturdays) faces no direct competition and is operated by (DLH)’s 120Y-seat 737-500s. (DLH) begins 2x-weekly, Frankfurt - Lublin Airbus A319 service on July 3. (DLH) also began 5x-weekly, Frankfurt - Montreal Airbus A330-300/A340-300 service.

(DLH) is planning to transfer around 1,500 German airports ground staff who work at check-in desks and ticket sales counters into separate companies this year as part of its cost-cutting program.

Lufthansa Technik (DLH) (LTK) will expand its South Florida regional office in Miramar, creating 24 new jobs. (DLH) (LTK) has opened its third USA location for airplane production inspection of Boeing airplanes at North Charleston in South Carolina. The new location will support inspections of Boeing 787s assembled in North Charleston.
It mirrors two similar airplane production inspection locations in the USA, which are located in Everett and Renton, Washington State. Boeing (TBC) assembles wide bodies in Everett and the 737 in Renton.
“We are now offering production inspection at all Boeing sites and for all Boeing airplane types currently in production,” said Marcus Motschenbacker, Director Network Sales & Customers Service at Lufthansa Technik (DLH) (LTK). As marketed under the Aircraft Production Inspection Program, Lufthansa Technik (DLH) (LTK) inspects newly-assembled airplanes as a service for airlines and leasing companies.

Lufthansa (DLH) and Air China (BEJ) are in talks that could lead the German and Chinese carriers to forming a revenue-sharing joint venture (JV) similar to those that (DLH) has with United Airlines (UAL), Air Canada (ACN) and All Nippon Airways (ANA).

The joint venture (JV), if agreed, would deepen the relationship that (DLH) already has with fellow Star (SAL) Alliance partner, Air China (BEJ). Lufthansa Group (CFO), Simone Menne confirmed the talks during the release of the Group’s 2014 first quarter financials.

(DLH)’s transatlantic (JV) with (UAL) and (ACN) and its Japan (JV) with (ANA) provide important boosts to those markets and a similar arrangement with Air China (BEJ) could do the same for the fast-growing China market.

Lufthansa (DLH), which presented a new premium-economy (PY) class in March, has announced its first routes with the new reconfiguration. Its Boeing 747-8I Intercontinental fleet will be the first to offer the new product, followed by its Airbus A340 and A380 fleets.

Depending on the size of airplane, between 21 and 52 (PY) premium-economy seats will be installed on each airplane. The 747-8I reconfiguration should be completed by December. New premium-economy (PY) class services will be available on routes from Frankfurt to Buenos Aires Ezeiza, Chicago O’Hare, Hong Kong, Mexico City, São Paulo Guarulhos, Seoul Incheon, Beijing, and Washington Dulles.

Starting from January 2015, (DLH)’s first Airbus A340-600s will be reconfigured for premium-class on flights from Munich to Hong Kong, Shanghai Pudong and Tokyo Haneda.

Beginning at the end of April 2015, (DLH)’s A380-800 will offer premium-economy (PY) class from Frankfurt to Johannesburg, New York (JFK), Miami, Houston, San Francisco, Shanghai and Singapore. (DLH) expects that within one year more than >1.5 million passengers will be using the new product.

(DLH) is considering operating a separate Airbus A340-300 unit on selected long-haul routes to be able to offer lower fares. (DLH) spokesperson, Andreas Bartels said “According to our fleet plans, the A340-300s will be phased out, especially from 2016, when our first Airbus A350 arrives.” The unit could operate up to nine A340-300s, which have been written-off. The A340-300s were delivered to (DLH) between 1994 and 2001.

Boeing [TBC] and Lufthansa (DLH) celebrated the delivery of (DLH)'s 75th 747. “(DLH) is proud to share this milestone with Boeing (TBC),” said Nico Buchholz, Executive VP, Lufthansa Group Fleet Management. “The 747 is an amazing airplane and will continue to delight our passengers for many years to come, and provide them with the ultimate in comfort and efficiency.”

Lufthansa is the launch customer for the 747-8 Intercontinental jetliner and took delivery of the first one in April 2012. The 747-8I delivered is (DLH)’s 13th 747-8I Intercontinental. (DLH) currently flies the 747 to 22 destinations in 10 countries. Over the years, (DLH) has ordered a total of 81 747s. (DLH)’s first 747 (a 747-100) was delivered in 1970. (DLH) was also the first to order the 747-200F Freighter.

The 747-8 has accumulated 120 orders for passenger and cargo versions, 68 of which have been delivered.

SEE LUFTHANSA FIRST CLASS SFO-MUC VIDEO - -

June 2014: Lufthansa (DLH) is adjusting its earnings forecast to better match revenue predictions for the passenger and cargo businesses, which are falling below original expectations. The company’s executive board is projecting an operating profit for the current financial year of approximately +€1 billion/+$0.75 billion or about +€1.3 billion after adjustments.

Previously, the company had forecast an operating profit for 2014 of +€1.3 billion to +€1.5 billion. “The revenue risks mentioned when we presented the quarterly figures in early May, have unfortunately materialized,” Group (CFO) Simone Menne said. The Group’s American and European businesses have suffered from increasing excess capacity, leading to falling prices on these routes. “We will therefore noticeably reduce our capacities during the winter timetable period,” Menne said.

Strong capacity growth by Gulf carriers was a major concern, she added. They are advancing further into the European market and also investing in European airlines, she explained.

The major Gulf carriers have prompted a sea change in the global air transport landscape, but legacy airlines must learn how to compete with them, new Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said. Gulf carriers are a "new element of change" in the industry and competition from them continues to grow, he added.

A strike by (DLH) pilots (FC) union in early April, had a negative impact of -€60 million on the company, and booking activity has only recently returned to normal. Additionally, impairments on receivables denominated in Venezuelan currency have impacted results by €60 million so far. Frankfurt - Caracas has always been one of Lufthansa (DLH)’s most profitable routes.

The executive board no longer believes the earnings target for 2015 of €2.65 billion, set as part of the company’s cost-savings "SCORE" program, can be achieved. The company nonetheless intends to substantially increase its operating profit compared with the current year. The basis for this will begin with capacity reductions during the winter timetable period.

Additionally, in order to boost the competitiveness of the Lufthansa Group, structural measures will be implemented at a faster pace. The details will be presented by Spohr in July. The executive board has set a new target of an approximate +€2 billion operating profit for 2015, provided that conditions remain stable. “The current development underlines the importance of SCORE for the group. We are achieving a sustainable reduction of our unit costs and now aim to stabilize the revenue trends, in order to counteract an ever intensifying competitive situation,” Menne said.

New Continuous Descent Operations (CDO) developed by Lufthansa (DLH) and German Air Traffic Control in Munich are proving to save around -100 liters of fuel on a long-haul flight and around -50 liters per short-haul flight in tests at Munich Airport.

The (CDO) trials, which have been ongoing since October 2013, enable jet airplanes descending into Munich from the north to optimize their descent within the framework of certain altitude and speed windows. In conventional approaches, an early descent means that flight segments are flown at a lower altitude, which is uneconomical because the denser lower layers of air result in higher fuel burn.

The aim of the (CDO) trials is to prove the everyday suitability of the procedure and analyze the extent to which these new approaches are feasible even when traffic is heavy. (DLH) believes the procedure will help all airlines save fuel and protect the environment. So far, the trials have proved successful, and will continue until the end of 2014. Over the course of this year, the trials will also be extended to approaches from the south.

The new process, co-developed by Munich’s Lufthansa (DLH) Fleet Management, is part of the Group-wide "SCORE" project “Fuel Efficiency.” This involves experts from Lufthansa Group Airlines and Lufthansa Technik (DLH) (LTK) identifying proven and successful practical solutions to help increase the efficient use of kerosene, which represents the largest operating cost item for (DLH).

July 2014: Lufthansa (DLH) Passenger Airlines will reduce its 2014 capacity (ASK) growth by more than -50% and will remove five airplanes from its European network and three from intercontinental routes in the 2014/15 winter timetable period.

(DLH) Chairman & (CEO) Carsten Spohr said the move is part of a series of actions needed to achieve its 2014/2015 financial goals.
Spohr said the airplanes to be removed “includes our oldest Boeing 747-400 and oldest Airbus A340-300 on the long-haul fleet.”

Lufthansa Cargo (LUB) will reduce its winter capacity by withdrawing two McDonnell-Douglas MD-11Fs. “In general, cargo capacity is not growing,” Spohr said. “Also, airplanes like the Boeing 747-8I or Boeing 777-300 can carry much more cargo in their bellies.”

The Lufthansa Group remains confident of its revised business projections for 2014 and 2015. The executive board expects to report an operating profit of +€1 billion/+$0.75 billion or about +€1.3 billion after adjustments.

July 2014: The Lufthansa Group reported a first-half net loss of -€79 million/-$106 million, narrowed from a net loss of -€203 million in the year-ago period. The airline group said the improved results were due to the positive impact of the new depreciation policy for airplanes and spare engines, which was adopted at the beginning of the year, and enhanced cost structures in the passenger business segment.

First-half revenue fell -2.1% to €14.2 billion; the group reported a first-half operating profit of +€114 million, up +41% year-over-year.

Lufthansa (DLH) (CFO) & Executive Board Member, Simone Menne said, “For the full year 2014, we are confirming our profit guidance, despite the unusual adverse developments in the second quarter. This quarterly performance was shaped by a number of one-off effects, such as strikes and currency devaluations.”

(DLH) said pilot (FC) strikes cost more than >€60 million and the devaluation of the Venezuelan bolívar cost (DLH) €61 million. (DLH) had already responded to declines in passenger and cargo revenue by reducing (ASK) growth from 5% to 3%. In addition, the group increased investments to modernize and maintain its airplan fleet to €1.3 billion.

The passenger airline group posted a first-half operating loss of -€96 million, a -€32 million decline on the prior-year period. Subsidiary, Austrian Airlines (AUL) posted a first-half operating loss of -€44 million, down -€9 million year-over-year.

(DLH)'s Swiss International Air Lines (SWISS) (CSR) subsidiary reported a first-half operating profit of +€92 million, a +€29 million improvement on the prior-year period.

Looking forward, the Lufthansa Group said it “expects markets to remain weak in the second half of 2014, though with the capacity reductions already initiated, the situation is expected to ease somewhat compared to the first-half period.”

For the full year, the group “remains confident of posting an operating profit of around +€1 billion, or +€1.3 billion excluding non-recurring items. For 2015, the group currently expects to achieve an operating profit of around +€2 billion.”

Lufthansa Passenger Airlines (DLH) will reduce its 2014 capacity (ASK) growth by more than >-50% and will remove five airplanes from its European network and three from intercontinental routes in the 2014/15 winter timetable period.

(DLH) Chairman & (CEO), Carsten Spohr said the move is part of a series of actions needed to achieve its 2014/2015 financial goals.
Spohr said the airplanes to be removed “includes our oldest Boeing 747-400 and oldest Airbus A340-300 on the long-haul fleet.”

Lufthansa Cargo (LUB) will reduce its winter capacity by withdrawing two McDonnell-Douglas MD-11Fs. “In general, cargo capacity is not growing,” Spohr said. “Also, airplanes like the Boeing 747-8I or Boeing 777-300 can carry much more cargo in their bellies.”

The Lufthansa Group remains confident of its revised business projections for 2014 and 2015. The executive board expects to report an operating profit of +€1 billion/+$0.75 billion or about +€1.3 billion after adjustments.

Lufthansa (DLH) is considering establishing new low-cost carriers (LCC)s for intercontinental and European air services as it looks for ways to increase profitability.

Air China (BEJ) and Lufthansa (DLH) have signed a memorandum of understanding (MOU) to extend their existing partnership and form a commercial joint venture (JV). The (JV) will enable the two Star (SAL) Alliance carriers to cooperate on some routes between China and Europe to take advantage of the growing demand for trade and passenger travel between the markets.

“The (MOU) should pave the way for the creation of a commercial joint venture (JV) between (DLH) and (BEJ). The new partnership agreement should come into force as early as the start of the winter flight timetable in late October 2014.”

(DLH) (CEO), Carsten Spohr said the agreement will lead to better flight connections and services between Europe and China. It is not difficult to see this (JV) enhancing the position of each airline, assuming it meets (EU) competition requirements. Competitors will seek to grow existing (JV)s, while establishing new ones. In some instances, they will be responding to the Air China (BEJ) - Lufthansa (DLH) (JV), and in other instances, they have been ready but held off due to an uncertain regulatory environment. Allowing another (JV) potentially increases the pressure for more to follow.

But more immediately, and closer to the purposes of Air China (BEJ) and (DLH), the (JV) will at least partly remove lingering tensions between (BEJ) and the Lufthansa Group, the two largest carriers between Europe and China. (BEJ) has overshadowed (DLH), with more growth to come as Air China (BEJ) sits astride what will be the world's single largest aviation market. But (BEJ) requires precious beyond traffic that (DLH) can control, as well as more extensive international experience. Between them, the two account for 35% of Europe - China flights, and 84% of Germany - China flights.

For (DLH), a China (JV) adds to those in Japan and North America, while this is the first long-haul (JV) for Air China (BEJ). Meanwhile Gulf carriers are not this (JV)'s primary target; their access in China is relatively restricted and routes to Europe via the Gulf are circuitous.

The Air China (BEJ) and Lufthansa Group (JV) will be implemented as early as the start of the northern winter 2014/2015 schedule, to commence in October 2014. The (JV) will provide "even better flight connections and services in the future" including greater flexibility to combine flights. But beyond these generic and non-specific details, there is no other public information. Presumably details are being worked through with European Commission (EC) competition authorities, but there are also a variety of commercial deals to be concluded between the parties. Each airline has pretensions for market dominance and achieving a suitable commercial balance will not be simple.

In October 2013, then-Lufthansa Group (CEO), Christoph Franz remarked: “In the future, we will not only link our mutual hubs, but it will be important to also have direct links between major European markets and Air China (BEJ)’s hubs, and the other way round. It’s imaginable we could create a joint venture (jv), but that takes time to develop and create a commercial balance.” Since Mr Franz's October 2013 comments, the situation has publicly progressed from a possibility to reality, albeit with details to be worked out, of an (MoU) to establish a (JV), with details to be worked out. No doubt behind the scenes, there have been significant negotiations and these are ongoing. The announcement was timed to coincide with German Chancellor Dr Angela Merkel's visit to China. Ms Merkel was present at the (MoU) signing.

(JV)s by now have forged a well-trodden path of joint pricing (allowing different carriers' flights to be combined more flexibly), schedule coordination (enabling more connections and reducing connection times while also opening new routes), joint marketing and customer experience (such as through loyalty program). These are guidelines and not definitive; the Japanese - North American (JV)s feature higher pricing from Japanese carriers than their North American counterparts, a response to market demand. (JV)s can also differ in how (and if) they embrace financial performance (revenue or profit).

Achieving a full (JV) would bring (BEJ) and (DLH) closer together. Air China (BEJ) has already grown in Europe, surpassing (DLH) in the China - Europe market, with clear ambitions for more. But what must be apparent to (DLH) is (BEJ)'s need for beyond traffic and overall international help. Chinese airlines are still on a steep learning curve in customer service and foreign distribution matters. These factors, while perhaps seemingly minor, can have a disproportionate impact on overall performance. Indeed, they can make or break an operation.

Air China (BEJ) recognizes that it may have scale but (DLH) has quality with superior premium revenues, as well as experience in running multiple hubs and airlines (something that Air China (BEJ) would like to know more about as it attempts the same in China).

In these terms, the benefits perhaps appear to be on (BEJ)'s side, but (DLH) cannot simply ignore its partner. To take, there needs to be give. A strategy that excludes Air China (BEJ) could impact (DLH) in anything from bilateral access to slot times, to more subtle nuances that would make its operation in China difficult. And (DLH) has literally invested decades in relationship building with Air China (BEJ). The benefits it derives, are arguably more opaque, but not necessarily less important. Provided there is a financial component to the (JV), (DLH) should in theory benefit from what (BEJ) gains from (DLH).

Like any marriage, there will be disagreements, and even the pre-nuptial agreement will be hard fought. Undoubtedly (DLH)'s (JV) with (BEJ) will take more time to bed down than its previous (JV)s in North America or Japan. With financially sustainable growth still to emerge from China, this initiative is one for the long run.

Lufthansa (DLH) has demonstrated this with its (MRO) (JV) with Air China (AMECO) Beijing (40% owned by Lufthansa (DLH), 60% by Air China (BEJ)). This (JV) has experienced up and downs and an airline (JV) is unlikely to be different. Part of the (BEJ) - (DLH) announcement states that (MRO) cooperation will be expanded, but without any elaboration.

In theory, at least a (JV) will build on a long history of Air China (BEJ) - (DLH) cooperation, dating back to an extensive code share relationship, as well as (BEJ)'s entry into the Star (SAL) Alliance.

As (CAPA) previously wrote:
"The two carriers have a code share agreement, dating back to 2000, on routes between Germany and China. The code share agreement initially covered nine weekly Air China (BEJ) flights and 13 weekly (DLH) flights on routes between Frankfurt and Beijing, and Shanghai. (DLH) is now (BEJ)’s biggest long-haul code share partner, measured by the number of (BEJ)-coded flights that it operates.

The code share agreement now covers 36 weekly (DLH) flights and 27 weekly (BEJ) flights from Germany to China. In addition, Austrian Airlines (AUL) operates five weekly flights from Vienna to Beijing with the Air China (BEJ) code. The code shares also cover short-haul flights operated by (DLH) in Europe and by (BEJ) in China.

Of the Lufthansa Group's approximately 1,500 Europe - China flights in the second half (2H) 2014, 87% (accounting for 89% of (ASK)s) fly to Beijing or Shanghai. These are large population centers (and catchment areas) where incomes are high, with plenty of international business activity, allowing Beijing and Shanghai flights to largely sustain themselves with limited onward traffic to elsewhere in China (or other points in Asia, an attractive target, should the (JV) include that).

Air China (BEJ) has a broader spread in Europe, flying from 13 European cities to China, mostly Beijing. ((BEJ) also operates a Chengdu - Frankfurt service). 38% of Air China (BEJ)'s European flights are from Germany (23% from Frankfurt alone), while 54% are from Lufthansa Group hubs. Premium traffic on secondary European cities is limited, while even economy (Y) passengers on prime routes consist largely of low-yielding tour groups. Air China (BEJ) has more to gain in the medium term from improved connections in Europe. There is even scope for improvement in European cities, that are not Lufthansa Group hubs.

The Lufthansa Group meanwhile, has limited exposure to secondary cities in China; but, with greater Air China (BEJ) cooperation, this could expand in the long term. In the short and medium term, connecting traffic will not be sufficient to support what are low-yielding flights.

The (BEJ) (JV) will immediately overtake in capacity size (DLH)'s (JV) with All Nippon Airways (ANA), which exclusively covers Japan. The Lufthansa Group in second half (2H) 2014 will operate 1,478 flights to China compared to 1,232 to Japan, according to (OAG) data. Seat deployment to China is disproportionately higher (approximately 320 seats per Chinese flight compared to 293 per Japanese flight) as Chinese flights use larger airplanes. Revenue levels, however, may be similar, as the Japan market can sustain rich yields.

In the medium term, there will likely be no flow on impact on (ANA). The (ANA) - (DLH) (JV) covers the Europe - Japan market, while (BEJ) - (DLH) can be expected to cover only China and, at best, limited beyond markets. There is potential for the (BEJ) - (DLH) (JV) to allow Air China (BEJ) to better market sixth freedom itineraries between Europe and Japan, via China, but this is relatively minor. Should this change, there would then be a more obvious impact on (ANA).

The bigger impact is arguably on Cathay Pacific (CAT), whose backyard of mainland China provides a large amount of feed for its European network, even with backtracking through Hong Kong. (CAT)'s position is unusual, as a Oneworld (ONW) Alliance member, but also a close partner of Air China (BEJ)'s, with mutual cross shareholdings. But (BEJ) tends to pursue its own agenda, independently of (CAT), even where the Hong Kong based airline might be disadvantaged. (BEJ) already offers more destinations from Asia, and from Lufthansa Group bases in continental Europe, it also has a wide range of onward destinations.

A substantial Air China (BEJ) - (DLH) (JV), Air China (BEJ) is likely to work to Cathay (CAT)'s detriment, although (CAT) will not walk away empty handed, thanks to its stake in Air China (BEJ). In its favor, Cathay (CAT) has a very high quality brand and premium product, with a faithful following. Wresting the eastern seaboard premium market away from it will not be a pushover.

Asiana (AAR) and Korean Air (KAL) will also be impacted, as they transport Chinese passengers to Europe, but in lower volumes than to North America. Taiwanese airlines are prevented by bilateral restrictions from carrying outbound China passengers beyond Taiwan.

Chinese routes account for 6.0% of the Lufthansa Group's second half (2H) 2014 (ASK)s, more than Japan's 5.2%, but well below the 29% in North America, covered under Lufthansa (DLH)'s trans-Atlantic (JV).

An Air China (BEJ) - Lufthansa Group (JV) will account for 35% of flights in the Europe - China market, based on (2H) 2014 schedules filed with (OAG). This also represents 36% of available seats.

Air China (BEJ) is the largest carrier between China and Europe, while (DLH) passenger airlines is the third largest (China Southern (GUN) is second). SWISS (CSR) and Austrian (AUL) are smaller players, but together help the Lufthansa Group be larger than China Southern (GUN).

When viewed as a group, AirFrance (AFA) - (KLM) is the second largest entity between China and Europe and is larger (14%) than the Lufthansa Group. However, the Air China (BEJ)- Lufthansa Group combination has a slight edge over a (theoretically) combined (AFA) - (KLM), China Eastern (CEA)/China Southern (GUN) grouping (33%).

Germany is the largest European country to receive Chinese airline flights. 25% of Chinese carriers' European flights, and 27% of (ASK)s, are bound for Germany. This is largely supported by Air China (BEJ)'s overwhelming presence in Germany. A combined (BEJ) and (DLH) will thus gain a significant presence in the Germany - China market.

Germany is China's largest European trading partner, while China is Germany's third largest. (BEJ) and (DLH) will account for 84% of flights and 88% of seats. Although this is a significant majority, it is lower than what All Nippon Airways (ANA) and (DLH) have in the Japan - Germany market.

The (BEJ) - (DLH) (JV) is likely to be misconstrued as having Gulf carriers as its primary target. Gulf carriers have heavily restricted bilateral access to China, much to their frustration. Gulf carriers have fewer weekly flights to all of China (87) than they have to just Bangkok (91). Further, Europe - China routings via the Gulf to northern Europe, are more circuitous and thus less desirable than Europe - Southeast Asia routings via the Gulf, for example. While an advantage over Gulf carriers may be a nice benefit from the (JV), that can hardly be a major motivation for it. (DLH) was investing in the (BEJ) relationship long before the Gulf carriers became a force.

The passenger profile on Gulf carriers' China routes is clearly different. On Emirates (EAD)'s China routes, six of its 20 largest beyond markets (representing 16% of transfer traffic) are European. On (EAD)'s Bangkok and Singapore routes (which are less circuitous via the Gulf), European markets comprise 53% of transfer traffic and 17 of the top 20 transfer markets.

Interestingly, the two largest European markets for (EAD)'s China routes are Madrid and Rome, two hubs whose local airlines have failed to capitalize on Asian growth; Iberia (IBE) serves no Asian points at all, while Alitalia (ALI) serves only Japan. (Alitalia (ALI) can be expected to grow in Asia (and China specifically) following Etihad (EHD)'s recent investment). This is traffic, local airlines have not capitalized on. It can most certainly not be called traffic Gulf carriers have "stolen," to use the word of detractors. If Alitalia (ALI) and Iberia (IBE) have not exploited this demand, there is no justification for (DLH) (for example) being more "entitled" to it than a Gulf carrier.

Nonetheless, a (JV) with Air China (BEJ) would put (DLH) (for once) at the vanguard of change. Gulf carriers would need to obtain an amount of Chinese traffic rights they are unlikely to achieve in the medium term, if they are to change the market the way they have in Southeast Asia or India. Leading the change in China could help (DLH) begin to make up for what it has lost elsewhere.

The (BEJ) - (DLH) deal is not the first Euro - Chinese (JV), but is likely to be the largest. Air China (BEJ) has a revenue and cost sharing agreement with Cathay Pacific (CAT) on Hong Kong - mainland China routes, while China Eastern (CEA) and AirFrance (AFA) have a (JV) between Shanghai and Paris.

China Southern (GUN) and (AFA) have a (JV) between Guangzhou and Paris, while (GUN) and (KLM) have a (JV) between Beijing and Amsterdam.

So although there are already (JV)s with Chinese carriers, the Air China (BEJ) - (DLH) (JV) is significant, since (BEJ) is the country's largest international carrier. This not only gives the (JV) considerable size, but by having a (JV) with China's largest international carrier, and one intrinsically linked to Beijing, China is signalling it will welcome further (JV) developments.

Air China (BEJ) is the largest carrier in China's two key long-haul markets of Europe and North America. China Southern (GUN) is the largest in the smaller Australian market.

Competitive pressure will urge China Eastern (CEA) and China Southern (GUN) to expand their respective (JV)s with (AFA) - (KLM), although in these scenarios (AFA) - (KLM) will share (DLH)'s concerns about unduly empowering a competitor, who will one day (quite soon) be much bigger than they are. Yet with (AFA) - (KLM) already having a larger Chinese presence than (DLH), and not being optimistic in the near future about secondary city growth, they may find it acceptable (with little to lose) to maintain the status quo.

Beyond supporting the big three, Beijing's regulatory expansiveness will be tested if (JV)s are proposed amongst other airlines. British Airways (BAB) and Finnair (FIN) for example, might find a favorable combination to China, just as they have done jointly to North America and more recently Japan. The internationally ambitious and privately-owned Hainan Airlines (HNA) may look for its own partners.

(JV)s with China will emerge from other regions. North America is the obvious pick, but since the USA requires an "open skies" agreement as a precondition for a (JV), these developments will take longer. In the interim, closer partnerships are likely, although once again, prospective suitors like Delta (DAL) are wary over empowering large competitors. (DAL), via its Northwest (NWA) heritage, arguably comes from a stronger position when negotiating a (JV).

There are details about a (JV) still to emerge from Air China (BEJ) and Lufthansa (DLH), and this will shape the timeframe of (JV)s in China; but no doubt the path is now being established for more partnerships involving Chinese airlines. While these bring opportunities, they also bring challenges (both perhaps on an unprecedented scale). (DLH)'s patient steadiness, as opposed to speedy competitive reactions, may prove to be the more successful course.

Over the summer, Air China (BEJ) and Lufthansa (DLH) will have a joint capacity input of 81 flights per week on the Sino-German routes. The two carriers currently code share on all flights between China and Germany, enabling them to expand network access to nine points in China and Germany, as well as destinations in Zurich, Spain, and Brazil.

(BEJ) currently operates 23 routes between China and Europe with 194 daily flights to 19 destinations in Europe—including London, Paris, Frankfurt, Vienna, Rome, Moscow, and Madrid. In 2013, (BEJ) transported 1.95 million passengers between China and Europe with an average load factor of over >80% LF.

Both sides will expand their collaboration in (MRO) services. (BEJ) and (DLH) established a 60:40 airplane maintenance (JV) (AMECO) Beijing in 1989. (BEJ) President & Executive Director, Song Zhiyong said the new (JV) “will facilitate (BEJ)’s efforts in expanding international route network while enabling us to achieve win-win results and provide more travel choices and convenience to our passengers.”

(DLH) already has transatlantic joint ventures (JV)s with United Airlines (UAL) and Air Canada (ACN), as well as a (JV) with (ANA) on services between Europe and Japan.

On June 28th, Lufthansa (DLH) took delivery of a 747-8I which was Boeing's 1,500th 747 produced. (DLH) will launch Boeing 747-8I services from Frankfurt to New York (JFK) during the summer.

The Airbus A350-900 developmental airplane (005) visited Lufthansa (DLH)’s Frankfurt hub on July 25 - 26th, as part of a three-week global route proving tour. The A350-900 arrived from Iqaluit, Canada.

(DLH) and Airbus (EDS) tested all relevant processes and procedures with their system partners to make sustainable optimizations to the entire process chain (from arrival and handling through to departure) focusing on adjusting all workflows to (DLH) standards.

(DLH) has 25 A350-900s on order, which will be delivered from 2016.

According to Airbus (EDS), (005) is one of five A350 prototypes used to perform comprehensive flight test and development trials. (EDS) said the A350-900 must fly a representative airline schedule, demonstrating its maturity for airline operations. This route proving exercise is the last of the trials required for Type Certification, which is expected in September. The A350-900 will be operated by Airbus (EDS) flight crews (FC).

On July 28, (005) landed at Hong Kong International Airport and will carry out crucial hot and humid tests similar to normal airline operations in the region. The A350-900 will perform a series of high-frequency flights between Hong Kong and Singapore over three days before returning to Toulouse on July 31. The A350-900 will then depart for Johannesburg, South Africa, on August 2. It will visit Moscow and Finnair (FIN)’s Helsinki hub in mid-August.

The A350 World Tour began July 24 and involves a series of tests on four different trips. It will visit 14 airports around the world and will end August 13.

August 2014: Lufthansa (DLH) will roll out its new long-haul budget subsidiary in autumn of next year with tentative initial operational bases to focus on Munich, Dusseldorf, and Cologne/Bonn. “The internal project name for the low cost carrier (LCC) long-haul carrier is "Intercont-Wings" or "Cont-Wings”."

(CEO), Carsten Spohr has stated the project will initially use either seven 767s or A330s with plans to phase in additional airplanes should the venture prove viable. Thereafter, A350 and 787s will also be considered, he said.

Along with proposed Basle/Mulhouse/Freiburg-based European (LCC), Eurowings (EWG), (DLH) intends to use its two new subsidiaries to recapture market share lost to the likes of Ryanair (RYR), Wizz Air (WZZ), and easyJet (EZY) on the regional European front, and Emirates (EAD), Qatar Airways (QTA), and Etihad Airways (EHD) on the international front.

Effective on August 1, 2014, Karl Ulrich Garnadt, the member of the Executive Board of Deutsche Lufthansa Aktiengesellschaft and (CEO) of Lufthansa German Airlines (DLH), succeeded Stefan Lauer to be the Vice-Chairman of (AMECO) Beijing.

The Lufthansa Group has named former SWISS (CSR) spokesperson, Myriam Ziesack as its new Head of Communications in Asia-Pacific.

747-830I (37840, D-ABYP), and A320-214 (6225, D-AIUH), ex-(D-AVVM) deliveries.

September 2014: Lufthansa (DLH) on Friday September 5th canceled more than >200 flights, affecting 25,000 passengers, due to a six-hour strike called by the Vereinigung Cockpit (VC) pilot (FC) union over an early retirement scheme.

(DLH) said the Friday afternoon strike was announced after 5:00 pm Thursday, leaving (DLH) with very little lead time to prepare. The strike impacted short- and medium-haul flights from Frankfurt Airport.
“We had been able to rebook 14,000 passengers to other flights,” a (DLH) spokesperson said in Frankfurt.

(DLH) is expecting additional costs of several million euros resulting from the strike, which comes at the end of the school holidays in three German states, one of the busiest travel days of the year. “We have been working flat out since yesterday evening to give our customers all the available information and, whenever possible, to rebook them on other airlines or other means of transport,” (DLH) board member Kay Kratky said.

As a precaution, 14,000 text messages had been sent to registered customers, 2,200 hotel rooms were booked in the Rhine-Main area, and 500 field beds were set up as a precautionary measure for transit passengers who are not allowed to enter Germany for visa reasons.

(DLH) low-cost carrier (LCC) subsidiary, Germanwings (RFG) had to cancel 116 out of 164 flights last week due to a strike over transitional benefits. The strike affected 15,000 passengers.

Lufthansa Group pilots (FC) will strike for eight hours Wednesday September 10th at Munich Airport, which will affect 13,500 passengers. Lufthansa (DLH) has canceled 110 flights and has rebooked 2,000 passengers via Frankfurt, Vienna, Zurich, and Brussels.

The pilots (FC), represented by the Vereinigung Cockpit (VC) union, are continuing to protest Lufthansa (DLH)’s early retirement scheme. This is the union’s third strike over the issue. (VC) said the strike will be in effect between 10 am and 6 pm local time.

Even though (DLH) is expecting flight delays during the strike, several pilots (FC) are not participating and it is expected all long-haul service can operate from Munich.

Last Friday, September 5th, (DLH) was forced to cancel 218 flights at Frankfurt Airport during a six-hour strike, which affected 25,000 passengers and cost €5 million/$6.5 million.

On August 29, (DLH) low-cost carrier (LCC) subsidiary, Germanwings (RFG) canceled 116 out of 164 flights due to strike action, which affected 15,000 passengers.

A three-day pilot (FC) strike in early April, which was over better pay and working conditions, cost (DLH) €45 million. In addition, (DLH) was affected by strikes by airport security staff and public service employees earlier this year.

The (VC) union later called off an eight-hour strike scheduled for September 16th, after receiving a new offer from (DLH) for transition payments for early retirees. This would have been the fourth strike over the proposed reforms to the early retirement system in three weeks.

All five strike actions have canceled a total of 4,300 flights and affected 480,000 passengers.

Lufthansa Technik (DLH)/(LTK) announced that August Wilhelm Henningsen, the venerable leader who is Chairman of the Executive Board of the global Maintenance Repair & Overhaul (MRO) operation, plans to retire and Dr Johannes Bussman will succeed him on April 1, 2015.

August Wilhelm, who succeeded Wolfgang Mayrhuber in 2001, when Wolfgang became Chairman of Lufthansa (DLH)'s passenger airline, has overseen the (MRO) through many developments (from Engineering innovations to global expansion). August Wilhelm joined (DLH) in 1979 and worked his way up in Engineering management positions (including serving as General Manager of (AMECO Beijing (BEJ), the joint venture (JV) with Air China (BEJ)) before being promoted to the Executive Board, responsible for Products & Services.

Johannes joined (DLH) in 1999 in Product Development & Sales, and has been a board member responsible for Human Resources (HR), Engine & (VIP) services for (DLH) (LTK) for the past two years.

Lufthansa (DLH) will launch its new premium-economy (PY) class service on its Boeing 747-8I fleet on December 10th.

Lufthansa (DLH)’s executive board has presented plans for its new long-haul low-cost carrier (LCC) to the supervisory board. The yet-to-be-named subsidiary, which is part of the "Wings" concept, would operate up to seven Airbus A330-300s. It will begin operations in fall 2015 with three airplanes in Munich, Düsseldorf or Cologne to take advantage of above-average growth in the leisure travel segment and round out the Lufthansa Group of airlines’ current route networks.

The airplanes could come from either the Lufthansa Group or the free airplane market, Chairman & (CEO), Carsten Spohr said recently.

Lufthansa (DLH) is building on a new strategy to expand its (LCC) platform, Wings, which could include Germanwings (RFG), Eurowings (EWG) and the new long-haul (LCC) returning to A320 operations to focus on direct point-to-point flights within Europe.

In August, Spohr said Lufthansa (DLH) had been in talks with Turkish Airlines (THY) about operating its joint venture (JV) SunExpress (SNS) as a (LCC) on long-haul routes, but no agreement has been reached.

October 2014: News Item A-1: The Lufthansa Group has reported nine-month net profit of +€482 million/+$613.4 million, a +€235 million improvement on the year-ago period.

Despite eight pilot (FC) strike actions since April, which cost the carrier -€170 million in a difficult third quarter, the Lufthansa Group remains confident it will achieve its 2014 target of around €1 billion in operating profit (excluding the impact of any further strike action).

(DLH) expected its 2015 operating profit to be only “significantly above” the +€1 billion seen for 2014, compared with a previous forecast of +€2 billion. “We are currently working flat out to implement our work program with its seven strategic action areas, to ensure that we remain competitive in the longer term,” Deutsche Lufthansa AG Executive Board Chairman & (CEO), Carsten Spohr said. “Quality, efficiency and innovation are our prime focuses here and we’re adopting new structures and innovative business models to tap into new growth opportunities and new customer groups.”

While -2.2% fewer flights were operated in the period, total revenue fell -0.6% to €22.6 billion and total operating income declined -0.6% to €24.2 billion. The Lufthansa Group achieved an operating profit of +€849 million for the first nine months of 2014, a +€186 million improvement compared with the same period last year.

In the passenger airline segment, the costs and lost revenues caused by pilot (FC) strikes weighed heavily on operating results. “We must find solutions (in the interests of all our employees, our customers and our shareholders) that will ensure the long-term viability of our company for the decades ahead,” Carsten Spohr said. “And we cannot afford to overlook this vital priority in our current collective labor agreement negotiations.”

“I am confident that Vereinigung Cockpit [pilot (FC) union] will sooner or later realize that their current attitude does more harm than good,” he said. “We will move on with structural changes even without agreement,” Spohr was quoted in several German media outlets as saying.

In addition to the strike actions and their repercussions, the (DLH) passenger airline segment was also negatively affected by strong competitive pressures and associated yield declines.

Operating expenditures for the first nine months fell -1.9% to €23.3 billion; fuel costs declined -4.9%.

Lufthansa (DLH) said a combination of buoyant demand, flexible demand-based capacity management and traffic revenue increased in the third-quarter. Seat load factors for the Group’s passenger airlines reached record highs in the summer. “Our results for the first nine months of 2014 represent a sound achievement. It enables us to confirm our current projections for the year as a whole,” (CFO), Simone Menne said.

“When we look ahead, though, we can see that the economic slowdown and the continuing declines in our passenger yields, in the face of such fierce competition, will affect our operating scope in the year ahead. This is why we need to modify our projections for 2015, even though we expect it to produce an operating result that is significantly above this year’s.”

To enhance profitability, the Lufthansa Group currently envisages a fleet modernization that will keep its airplane numbers broadly at their present level in 2015. All in all, the Group invested €2.2 billion, some +€339 million more than in the same period last year.

News Item A.2: The Vereinigung Cockpit (VC) union called a 12-hour pilot strike on Thursday October 16th for Lufthansa (DLH)’s low-cost carrier (LCC) subsidiary, Germanwings (RFG), the latest in a series of ongoing protests over transition payments for early retirees.

On October 15th, (RFG) said it would be able to operate 80% of all 500 scheduled flights on October 16th. About 100 flights, mostly domestic flights within Germany, have been canceled.

The (VC) union, which represents 5,400 (DLH) pilots (FC), said that (DLH) has not accepted the (VC) union’s compromise for an early retirement scheme. The dispute involves retirement age changes on pilot (FC) benefits. Currently, (DLH) pilots (FC) are allowed to retire at 55 with 60% of their salary. However, the (EU) ruled pilots (FC) can now fly until age 65. (DLH) wants pilots (FC) to agree to retire at around age 61, which compares to the current average of 59 years. It also wants to move the earliest possible retirement age up to 60, instead of 55.

This is the (VC) union’s seventh strike since April and the second one to affect Germanwings (RFG). The first six strikes forced (DLH) to cancel 4,300 flights, which affected 500,000 passengers.

On August 29, (RFG) pilots (FC) staged a strike, which resulted in 116 cancellations out of 164 scheduled flights.

A three-day pilot (FC) strike in early April cost (DLH) -€45 million/ -$60 million. In addition, (DLH) was affected by strikes by airport security staff and public service employees.

Recently, Lufthansa Cargo (LUB) pilots (FC) went on a two-day strike, but this action did not have a big impact on (DLH) operations.

In its first-half financial statement released July 31, the Lufthansa Group had said pilot (FC) strikes cost it more than >-€60 million.

The pilot (FC) strikes have damaged (DLH)’s image and have hit long-term bookings for passengers, (DLH) Executive Board Member & (CEO) of (DLH), Karl Ulrich Garnadt said recently, adding (DLH) may have to adjust its financial outlook for 2015 and further reduce capacity.

As the Vereinigung Cockpit (VC) union called another pilot (FC) strike for Monday October 20th and Tuesday October 21 for (DLH)’s short- and medium-haul operations, (DLH) is holding firm in its commitment to work on a sustainable long-term cost structure.

(DLH) has canceled about 1,450 flights, affecting more than >200,000 passengers. It will be able to operate about 700 flights.

This is the eighth strike in a series of ongoing protests over transition payments for early retirees since April.

Lufthansa Chairman & (CEO), Carsten Spohr said on the sidelines of the Association of European Airlines (AEA) summit in Istanbul that (DLH) will continue to work on to reach a competitive and sustainable cost-structure for the group’s future and it will have to take the burden of strike issues. “Today, we have to balance out a short-term problem for our customers and employees, as well to our image, [in order to] find a long-term sustainability for our cost structure,” Spohr said.

“This [move] is necessary. I very much regret the problems caused to our passengers and staff, but there is no room for compromises for a short-term solution [to its pilots (FC) to find a sustainable solution] for (DLH)’s future. This issue is too important.”

Spohr said the solution will have to be found on the negotiating table, not with strikes.”

New Item A.3: The Lufthansa (DLH) Pension Trust (LPT) has raised gross proceeds of €388 million/$491 million from the sale of a 3% stake of Spanish travel technology company, Amadeus (IT) Holding through a private placement to institutional investors. The pension fund said the disposal of the Amadeus shares was by way of “a portfolio management transaction to ensure a balanced asset allocation.”

The sale of the shares reduces from 4% to 1% the (LPT)’s stake in Amadeus. However, there is already a long-term forward sale agreement in place for the Pension Fund’s remaining 1% share of Amadeus (IT) Holding, although as part of the current sale, (LPT) has agreed to a lock-up period of 90 days for its remaining stake.

In September, co-shareholder Air France (AFA) - (KLM) sold 1% of the share capital of Amadeus (IT) holding, and settled the entire derivative transaction it entered into in 2012, representing 2.68% of the share capital of the company. These transactions raised €339 million in cash and leave (AFA) - (KLM) with a 4.4% stake in Amadeus (IT) Holding. (AFA) committed to a lock-up period of 30 days on its residual position in Amadeus.

In November 2012, (DLH) transferred a 4% stake in Amadeus (IT) Holding to (LPT) and sold 3.61% of the shares, generating gross proceeds of €307 million.

News Item A.4: Lufthansa (DLH) started a weekly (Sundays) flight between Munich (MUC) and Las Palmas (LPA) on October 26th. (DLH) will operate the route with its 200-seat A321s. The 3,256 km sector will face competition from four incumbents: airberlin (BER) (five times weekly), Condor (CDF) (thrice-weekly), Norwegian (NWG) (twice-weekly) and TUIfly (HAP)/(HLX) (twice-weekly).

News Item A.5: Lufthansa (DLH) said flight modes on personal electronic devices (PED)s could soon become obsolete, enabling passengers to keep smartphones, tablets and laptops switched on from gate-to-gate. The initiative has been introduced by the European Aviation Safety Agency (EASA) in Cologne. “We welcome this logical step and hope that it will get a green light soon from the airplane manufacturers and the German Federal Aviation Authority,” (DLH) board member, Jens Bischof said.

(DLH) is also working to offer Internet on short- and medium-haul routes; it has already put out an international call for tenders.
It has not yet been determined exactly when and for which airplane types the new regulations would apply.

According to (DLH), the board systems in commercial airplanes have proven to be well shielded, which provides the technical basis for the global easing of restrictions on the use of electronic devices.

However, (DLH) passengers have said they do not want on board telephone conversations, even over the Internet.

News Item A.6: Lufthansa (DLH) flew its first revenue service with a premium-economy (PY) cabin on Wednesday October 8th, on a Boeing 747-8 Intercontinental from Frankfurt to Washington Dulles.

(DLH) continues to increase utilization of its narrow body airplanes on leisure routes during the low-demand winter season to reduce overcapacity. (DLH) launched a weekly, Airbus A321 Munich - Las Palmas, Canary Islands service from October 26, which runs through April 12, 2015. The A321 offers business (C)- and economy (Y)-class seating.

Lufthansa German Airlines board member, Thomas Kluehr said (DLH) operates to 12 tourist destinations during the winter season from (DLH)’s second hub (Munich). This also includes Split and Valencia, which are two further additions to the winter schedule, and will be served all year round.

News Item A.7: Lufthansa (DLH)’s supervisory board will decide on the details of its long-haul, low-cost carrier (LCC) subsidiary in the first week of December, according to (DLH) Chairman & (CEO), Carsten Spohr.

News Item A.8: Lufthansa Consulting has established a new advisory committee that includes the following members: Lufthansa (DLH) executive board member & (CFO), Simone Menne as Chairperson; Senior VP Corporate Strategy, Sadiq Gillani as Deputy Chairman; (CEO) Austrian Airlines (AUL), Jaan Albrecht; Lufthansa German Airlines (DLH) board member, Thomas Kluhr; Lufthansa Group, Executive VP & (CIO), Christoph Kollatz; former executive board member, Stefan Lauer; former Virgin American (VUS) (CEO) & President, Frederick Reid; and Lufthansa Techik (LTK) (CEO) Products, Services & (IT), Thomas Stuger.

New Item A.9: Deutsche Lufthansa (DLH) is realigning its Information Technology (IT) activities and will enter into a seven-year partnership with (IBM), which it expects will reduce its (IT) infrastructure costs by at least €70 million/$89.4 million per year.

The (IT) group is also expected to take over the Infrastructure division of the current Lufthansa Systems (LHS).

(DLH) said it will incur €240 million in one-time charges due to restructuring and effects from the purchase price in the financial year 2014. The impact won’t be recognized in (DLH)’s operating result, which is relevant for its financial guidance, the company said.

The plan is to split Lufthansa Systems (LHS) into three companies and sell the Infrastructure division as part of the outsourcing process. In the future, the Airline Solutions and Industry Solutions divisions of the Lufthansa (DLH) (IT) subsidiary will operate as independent companies in their respective markets.

(DLH) said the cooperation with (IBM) should strengthen the competitiveness of the Lufthansa Group, directly improve cost base and allow access to the latest (IT) technologies.

The split-up of Lufthansa Systems (LHS) and formal launch of the new companies are due to take place in the first quarter of 2015. The completion of the Infrastructure sale is planned for March 31, 2015.

November 2014: News Item A-1: Germany's largest airline, Deutsche Lufthansa (DLH) has won a bigger slice of its domestic market in recent months, its (CEO) told newspaper "Sueddeutsche Zeitung."

News Item A-2: Lufthansa (DLH) began to modify its Airbus A320 family fleet last month with vortex generators to reduce noise. The first modified airplane was an A319.

Vortex generators will come standard on all future A320 and A321 deliveries from Airbus (EDS). Nine of the newly delivered airplanes are already in service.

(DLH) will modify 157 of its Airbus A320 family airplanes (which connect its Frankfurt and Munich hubs with the European route network) to make them quieter. Airbus (EDS) has developed vortex generators especially for the A320 family, based on the research findings by (DLH) and the German Aerospace Center. Flyover measurements show the vortex generators eliminate two unpleasant tones, reducing the total noise generated by the approaching airplanes by up to -4 decibels.

(DLH) expects that modification to all 157 airplanes to be complete within 12 months.

News Item A-3: Maintenance provider Lufthansa Technik (DLH) (LTK)has opened an inflatable hangar at its facility in Budapest to temporarily increase Maintenance Repair & Overhaul (MRO) capacity during the winter 2014/2015 period.

The 4000 m²/43,000 ft² textile structure can accommodate a single narrow body airplane. It was erected in partnership with Budapest airport in October as Lufthansa Technik (DLH) (LTK)’s existing five-bay hangar has “proved insufficient” to accommodate the demand for base maintenance during the winter months, said the gateway’s operator.

Airlines tend to use the quieter winter months for maintenance to ensure maximum capacity for the busier summer schedule.

Budapest airport said the inflatable hangar is “currently foreseen” to be employed until April.

Its manufacturer, Spain-based Buildair, says that the project is an opportunity to test the structure’s durability in “more demanding” winter conditions. Thus far, such a hangar has only been used by Airbus (EDS)’s military division at Getafe air base on the outskirts of Madrid.

The hangar is in principle similar to more common inflatable covers for swimming pools and tennis courts. “But our product is much bigger and is capable of withholding significantly stronger loads,” says Buildair Commercial Director, Jose Antonio Sanz.

Shortly after it was erected, the facility in Budapest had to withstand wind speeds of up to 80 km/h/50 mph.

Lufthansa Technik (DLH)/(LTK) provides base maintenance for Airbus A320s and Boeing 737s in Budapest. Among its customers are low-cost carrier (LCC) Norwegian (NWG) and Wizz Air (WZZ).

December 2014: News Item A-1: Germanwings (RFG) took over 9x-daily Düsseldorf - Berlin Tegel flights from parent Lufthansa (DLH) for a total of 57 weekly flights. Lufthansa CityLine begins 4x-weekly, Frankfurt - Bydgoszcz Embraer EMB-190 summer service on March 29.

News Item A-2: Lufthansa (DLH) resumed flights to the Florida hot-spot of Miami (MIA) from its Munich (MUC) hub. Operated five times weekly with (DLH)’s 217-seat A330-300s, the service was suspended in May 2011. The 8,058 km sector will face no direct competition and becomes its ninth USA destination from the airport, joining Boston, Charlotte Douglas, New York Newark, Washington Dulles, New York (JFK), Los Angeles, Chicago O’Hare, and San Francisco.

(DLH) will begin Frankfurt - Tampa A340-300 services September 15, 2015 with 5x-weekly service in summer and 4x-weekly in winter.

News Item A-3: Pilots (FC) at Deutsche Lufthansa (DLH) extended their latest two-day stoppage on December 2nd, grounding long-haul flights in addition to domestic and European routes and stranding thousands of travelers.

The strike, the ninth this year in a dispute over an early retirement scheme, has forced Germany’s flagship airline to cancel close to half of all scheduled flights for December 1st and 2nd, affecting about 150,000 passengers. “We cannot keep doing this for the next year or two, we need to sit down and find a solution,” (DLH) spokeswoman Barbara Schaedler told "Reuters TV."

Pilots (FC), however, showed no sign of backing down, with pilots (FC)’s union Vereinigung Cockpit (VC) board member, Joerg Handwerg telling "Reuters" it could continue its walkouts into next year.

(DLH) is trying to squeeze its cost base to compete with low-cost carriers (LCC)s like Ryanair (RYR) and easyJet (EZY), as well as Gulf airlines, but has met resistance from workers.

(VC), representing about 5,400 (DLH) pilots (FC), is fighting to retain a scheme allowing pilots (FC) to retire at 55 and still receive up to 60% of their pay, before regular pension payments start at 65. (DLH) has said it would not accept a demand that new pilots (FC), as well as those already with the company, should be able to retire at 55.

(DLH) pilots (FC)'s 10th strike to affect long-haul, cargo flights was held on December 4th affecting long-haul and cargo flights. (DLH) expected to be able to operate half of its long-haul flights.

The strikes are part of a series of ongoing protests over transition payments for early retirees.

(VC) pilots (FC) staged its ninth strike action December 1st and 2nd, which affected (DLH)’s short- and medium-haul flights, forcing (DLH) to cancel around 1,400 flights, affecting 150,000 passengers.

Several media outlets are reporting that (DLH) is working on a solution through arbitration. (DLH) said so far, the strikes have cost the company -€160 million/-$199 million).

News Item A-4: Lufthansa (DLH)’s supervisory board has formally approved the “Wings” long-haul, low-cost (LCC) concept and the lease of up to seven Airbus A330-200 airplanes for the new low-cost carrier (LCC)’s intercontinental routes.

The new yet-to-be named (LCC), which will be based at Cologne-Bonn Airport, will initially launch operations from the end of 2015. It will serve destinations in Florida, Southern Africa and the Indian Ocean.

The new airline will operate under a revised Eurowings (EWG) brand, but will be flown under the SunExpress (SNS) (a joint-venture (JV) company of Lufthansa (DLH) and Turkish Airlines (THY)) air operator’s certificate (AOC), using (SNS) cockpit (FC) and cabin crews (CA).

It will initially operate a fleet of three 310-seat Airbus A330-200 airplanes, but will gradually expand to up to seven A330-200s over the next few years. “The ‘New Eurowings’ (EWG) is our response to one of the major challenges confronting Europe’s airline industry,” Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said.

“For several years now, we’ve been facing fierce competition from the rapidly growing low-cost carriers (LCC)s in the point-to-point travel segment, not only in Germany but throughout Europe too,” Spohr said, adding he is sure this competition will extend to the long-haul travel segment in the years ahead.

The “New Eurowings” concept follows the transfer of Lufthansa (DLH)’s non-hub routes to Lufthansa Group subsidiary, Germanwings (RFG). The program of transferring all (DLH) routes not serving its Frankfurt and Munich hubs should be completed in early January 2015.

In an initial step, Germanwings (RFG) and Eurowings (EWG) will continue to fly with their current networks and crews, under the umbrella of the new concept.

For the new European operations, the present Eurowings (EWG) fleet, which consists of 23 Bombardier CRJ900 jets, will be replaced with up to 23 Airbus A320s between February 2015 and March 2017. Ten new A320s have been ordered to this end, while up to 13 A320s will be reassigned to Eurowings (EWG) from existing orders held by the Lufthansa Group.

Further routes will also be added to the Eurowings (EWG) network, operated from a new (EWG) base outside Germany, in 2015. Earlier plans included Swiss airport Basel, which should become the first airport outside Germany.

News Item A-5: Lufthansa Technik (DLH) (LTK) has appointed Antonio Schulthess as (CEO) Human Resources (HR).

News Item A-6: Lufthansa Technik (DLH) (LTK), the airplane maintenance wing of (DLH), is strengthening its presence in the Americas with a new overhaul facility, Lufthansa Technik Puerto Rico. The company recently broke ground on the 215,000 square foot facility located in Aguadillo, Puerto Rico, which will be ready to start providing base maintenance for Airbus A320s in July 2015. Spirit Airlines (SPR) will be Lufthansa Technik (DLH) (LTK)'s first customer next year, followed by JetBlue (JBL).

JetBlue (JBL) is already the dominant carrier in the Caribbean, with a strong hub in Puerto Rico," Lufthansa Technik Puerto Rico (CEO), Elmar Lutter told "Avionics Magazine." “Spirit (SPR) flies into Aguadilla as well, what makes exchanging airplanes between operations and maintenance extremely easy. (SPR) has been an (DLH) (LTK) customer for a long time. Puerto Rico is as ideal a location as Florida without the upward pressure on prices and wages there."

Initially, the facility's five maintenance lines will provide service for A320 airplanes, according to Lutter. Eventually though, it will look to start providing service for the Boeing 737NG, he added. The services offered at the new facility will include "avionics installation and troubleshooting, related to all repairs and modifications on the airplane available for the A320," according to Lutter.

The Puerto Rico announcement is the latest in a series of 2014 moves by (DLH) (LTK), Germany's largest airplane maintenance company, which included appointing a new chairman for its executive board; a renewed business jet cabin interior design agreement with Airbus; the introduction of its new e-configuration tools for pre-customized cabin designs; and an announcement that the company plans to invest more than >$247 million toward the development of production technologies, measurement technology, improved (MRO) services, fault diagnosis and prognosis, robot-assisted repair processes, and automated test procedures.

Miramar, Florida based Spirit Airlines (SPR) is looking forward to the opening of the new facility in a city that it flies to three times per week, Charlie Rue, VP of (SPR)’s supply chain, said during an interview with Avionics Magazine.

"As far as dropping in airplanes, having the (DLH) (LTK) team do the maintenance and then ferrying the airplane out, we can basically ferry live airplanes in and live airplanest out by just swapping what airplane is on the schedule with the one that’s in heavy maintenance," said Rue.

Currently, (SPR) has a fleet of 63 Airbus A320 family airplanes, which the new facility will reportedly specialize in. "What we think is going to happen in Puerto Rico is we’re going to get an efficiency factor that is the number of hours it will take to complete our heavy checks, that will be materially different than what we have seen before. Some of that will be better than what were doing in the USA and certainly better than competing locations in Central America," said Rue. "Right now, we have our maintenance done in Tampa with (PEMCO) (ASC). We’ll probably still do some work there, but our core heavy maintenance will be done in Aguadilla."

The next big overhaul process that (SPR) will undergo, will be the installation of NextGen-compliant Automatic Dependent Surveillance Broadcast (ADS-B) Out avionics, some of which Rue said will be done in Puerto Rico.

News Item A-7: In an effort to assist with air transportation of aid workers and patients infected by the recent outbreak of the Ebola virus, Lufthansa (DLH) has donated one of its A340-300 airplanes, originally scheduled for retirement, to the German Foreign Office. With on board communications provided by Panasonic Avionics, the three entities ( Lufthansa (DLH), Panasonic Avionics and the German Foreign Office) are now using a reconfigured Airbus A340-300 airplane to fly aid workers and patients to Germany for treatment of the disease.

According to the German Foreign Office, work to convert the former A340-300 passenger jet into an airborne hospital was carried out in late November in close cooperation with the Robert Koch Institute, Germany’s federal institute for infectious and non-communicable diseases. Seats and luggage compartments have been replaced with a number of airlocks and a hermetically sealed isolation tent, allowing patients to be transported and treated with subdued risk of infecting aid workers on board. The German government has leased the airplane from Lufthansa (DLH) for an initial period of six months.

"This is probably the only (DLH) airplane that we hope will never or only very rarely need to be deployed," German Foreign Minister, Frank Steinmeier said during a press conference announcing the new operation at Berlin Tegel airport.

To aid in the relief efforts, Panasonic Avionics is providing the latest generation of its eXConnect system for the A340-300, allowing the on-board crew and medical staff to access Wi-Fi Internet and email service for air-to-ground communications during emergency flights. Lufthansa was actually Panasonic's first air transport exConnect customer, David Bruner, Executive VP Global Communications Services at Panasonic, told the "Avionics Magazine." The reconfigured A340-300 was also one of the first to be equipped with the first generation version of the exConnect system, and is now being used for a larger purpose.

"They do need some help here when they’re flying patients in and out of these locations where they would need special communications from the aircraft," said Bruner. "We’re working with them to make sure they have enough bandwidth, and they can perform all the services that they want to on board the plane. Really, our contribution to this humanitarian effort is just a great story in terms of how to take this asset that might have otherwise been retired and now it’s actually being used for a very cool purpose."

Flights with the converted A340-300 will be operated by volunteer pilots (FC) and flight attendants (CA) and will be made available for any country that needs assistance transporting Ebola patients. Lufthansa (DLH) said more than 700 pilots (FC) and flight attendants (CA) have volunteered to work as crew aboard the flying hospital. Inside the specially designed airtight cabin tent, an Ebola patient can effectively receive treatment under the same conditions as an intensive care unit at a hospital. With Panasonic providing the connectivity, the crew can stay in constant contact with ground-based personnel to provide updates on the patient’s conditions allowing hospitals to immediately be prepared for the patient's condition when they arrive.

According to Bruner, the crew will also be able to perform in-flight calling if necessary, a capability that he said is built into the exConnect system. The Panasonic executive said the use of the system for this operation is just one example of how operators are starting to expand the use of airplane connectivity well beyond cabin Wi-Fi usage for passengers.

“Today it’s seen as mainly passenger Wi-Fi, but that’s really just the beginning. Once airlines start to really understand the value of this to access their own (IP) systems, while the airplane is airborne, now you’ve got something really valuable,” Bruner added.

News Item A-8: SriLankan Airlines (LNK) and Lufthansa Systems (LHS) have signed a three-year contract to use Lufthansa (DLH)’s Lido/(FMS) database for its Flight Management System (FMS).

January 2015: News Item A-1: Germany’s Lufthansa Group has completed the transfer to low-cost carrier (LCC) subsidiary, Germanwings (RFG) of European point-to-point routes that do not operate from Lufthansa (DLH)’s Frankfurt or Munich hubs.

The final route to be transferred (Düsseldorf to Zurich) was switched to (RFG) on schedule. The Group described it as one of the largest structural projects it had ever undertaken.

The concept of the new Germanwings (RFG) was presented in December 2012, followed by its market launch on July 1, 2013. (RFG) has now taken over 115 routes from Lufthansa (DLH), with the biggest component (52) at Düsseldorf.

“The first Germanwings (RFG) flight from Düsseldorf to Zurich marks the successful completion of what is to date the biggest project to make the Lufthansa Group more competitive,” said Carsten Spohr, Chairman of Deutsche Lufthansa’s executive board. “The positioning of the new and significantly larger (RFG) has been a resounding success. As a result of low costs in the "WINGS" business model, we combine favorable prices with the punctuality, quality and safety of the Lufthansa Group.

“This combination meets with a positive response among our passengers and also finds favor in many European markets. At the same time therefore, the success of the project will bolster our confidence for the creation of our new Eurowings (EWG) which will be launched before the year is over.”

“We have never been bigger, and have never been a market leader at so many German airports,” Germanwings (RFG) spokesman, Thomas Winkelmann added. “Of much greater importance, however, is the fact that we are once again enjoying success in commercial terms.”

The new (RFG) service between Düsseldorf and Zurich will comprise 24 flights per week, making it one of the highest-volume routes from the North Rhine - Westphalian capital.

News Item A-2: Qatar Airlines (QTA) & the (IAG): "Shifting sands in the global reach of the Gulf carriers" January 30, 2015 by Karen Walker in (ATW) Editor's Blog:

The announcement that Qatar Airways (QTA) has acquired a 9.99% stake in (BAB)/(IBE) parent company, the International Airlines Group (IAG) is an interesting development in the ongoing change in the international airline landscape prompted by the growth of the Gulf carriers.

(QTA) (CEO), Akbar Al Baker describes the taking of a stake in the (IAG), worth about $1.7 billion, as an “excellent opportunity to further develop our Westward strategy.” (IAG) (CEO), Willie Walsh said he was “delighted” about the investment, and opportunities to work more closely with (QTA).

There’s an interesting history to the (IAG) and (QTA) connection. Al Baker and Walsh are long-time, firm friends who each hold the other in high respect. In October 2013, (QTA) joined the Oneworld (ONW) global alliance, becoming the first of the major Gulf carriers to join a global alliance. British Airways (BAB), a founding (ONW) member, was (QTA)’s sponsor and Walsh spoke very enthusiastically about the importance of having (QTA) join. My understanding is that his enthusiasm was not matched by every (ONW) member (CEO).

Dubai-based Emirates (EAD), meanwhile, remains alliance-independent, but in 2013 it entered a five-year alliance with Qantas (QAN), another Oneworld (ONW) Alliance founding member. And Abu Dhabi-based Etihad Airways (EHD) owns a 29% stake in airberlin (BER), another (ONW) airline. (EHD) has its own version of an alliance, taking stakes in relatively small carriers and creating a constellation of airline equity partners that includes airberlin (BER), Air Serbia (JAT), India’s Jet Airways (JPL), Virgin Australia (VOZ), Air Seychelles (ASY) and Aer Lingus (ARL). Interestingly, the (IAG) wants to buy Aer Lingus (ARL), a move, which if it happens, would further tangle the (IAG)-Oneworld (ONW)-Gulf carrier web.

(EHD), of course, is also now a 49% owner of Alitalia (ALI) (to keep you on track with the alliance matings here, (ALI) is a SkyTeam (STM) Alliance member). But (QTA)’s stake in the (IAG) is the first time that one of the “Big Three” Gulf carriers has invested in one of the “Big Three” European airline groups of the (IAG), the Lufthansa Group and Air France (AFA) - (KLM).

It will be fascinating to see if the (QTA) - (IAG) deal marks the beginning of more such equity partnerships (within the caps of the (EU) airline ownership rules) between Gulf carriers and their European counterparts. The fact is that it’s becoming increasingly challenging for the “traditional” global hubs of Amsterdam, Frankfurt, Heathrow, and Paris to compete with the “modern” world hubs of Abu Dhabi, Dubai, and Qatar.

In the USA, meanwhile, there is growing awareness that what happened in Europe regards Gulf competition could happen in America. A campaign is being run by North America’s “Big Three” (American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL)) to try and get lawmakers to review "Open Skies" policies and the international air transport competitive landscape to take account of the rise of the Gulf carriers.

Flying under the radar so far in the shifting sands of air transport power houses is Turkish Airlines (THY), which is a Star (SAL) Alliance carrier and which has developed an extensive network, very large and modern fleet and highly successful global hub in Istanbul. It will be interesting to see whether that continues to be the case if, as Al Baker described it, a “Westward strategy” by Gulf carriers begins, in some eyes at least, to look more like a "Westward" invasion.

News Item A-3: Lufthansa (DLH) has announced plans to hire 1,650 new employees in 2015, who will work at several points in Germany. Of those, 800 will become flight attendants (CA) based in Munich and Frankfurt, (DLH)’s two major hubs. Some flight attendants (CA) will be working for the Lufthansa Group’s new pan-European low-cost carrier (LCC) Eurowings (EWG).

In September, the Group ordered 10 Airbus A320ceos for Eurowings (EWG), which is being repositioned as an (LCC) and should be based at airports outside Germany, such as Vienna.

An additional +400 new staff members will be used for its Lufthansa Technik (DLH) (LTK) subsidiary, and will be based at several airports in Germany.

News Item A-4: The Lufthansa Group will be fueling its airplanes at Oslo Airport with a bio-kerosene mixture, becoming the first airline group to sign this kind of contract with Norwegian oil company, Statoil Aviation.

Beginning in March, Statoil will feed 2.5 million gallons of sustainably produced, certified bio-fuel into the tanks at Oslo Airport for one year. The Lufthansa Group (Lufthansa (DLH), SWISS (CSR), Austrian Airlines (AUL), Germanwings (RFG), and Brussels Airlines (DAT)/(EBA)) operates approximately 5,000 flights from Oslo.

Oslo is the world’s first large commercial airport to offer continuous provision of bio-fuel over a long period, and to fuel airplanes with bio-kerosene directly from its hydrant system.

The Lufthansa Group said this is the next step from its previous test flights, made as part of the recently concluded "burnFAIR" project, toward the use of alternative fuels in regular flight operations.

In 2011, Lufthansa (DLH) became the first airline to run regular flight operations with a bio-kerosene mixture by operating an Airbus A321 between Frankfurt and Hamburg as part of the project. The A321 flew 8x-daily, between Hamburg and Frankfurt from July 15 to December 27, 2011. One engine was powered by a 50/50 blend of bio-fuel and conventional fuel.

The long-term testing was accompanied by detailed emissions measurements and research into production processes and biomass availability.

The Lufthansa Group is investing in modern, low-consumption airplanes and is continuously improving the fuel efficiency of its flights.

News Item A-5: Hamburg and Stuttgart airports were affected by strike action January 23rd by security staff belonging to the German public services trade union Verdi. Hamburg airport strike action was scheduled for between 11 am and 4 pm local time, while Stuttgart airport was affected between 3 am and 2 pm.

However, both airports reported that most operations continued without major interruptions, although Lufthansa (DLH) warned passengers to expect longer waiting times. The action is an attempt to increase pressure on long-running negotiations over wages for about 19,000 security employees.

German public services trade union Verdi called on security personnel to strike at Cologne and Düsseldorf airports on January 29th. Cologne Airport said it had to cancel 64 out of 190 flight movements, affecting 7,000 passengers. The strike started at midnight for 24 hours. Düsseldorf canceled 205 from 530 scheduled flights. The strike was planned from 4 am to 10 pm local time.

Separately, Lufthansa pilot union Vereinigung Cockpit said it is planning more strikes in 2015. Lufthansa (DLH) saw 10 pilot (FC) strikes last year.

Separately, (DLH) pilot (FC) union, Vereinigung Cockpit said recently it is planning more strikes in 2015. (DLH) saw 10 pilot (FC) strikes last year.

News Item A-6: Lufthansa (DLH) announced that its regional carrier Eurowings (EWG) has reached a new five-year wage agreement with its 300 pilots (FC), represented by the Vereinigung Cockpit (VC) pilot union.

The collective bargaining partners agreed to a wage increase of +2.5% for 2015 and at least +2% for subsequent years, depending on the rate of inflation. “Signing the wage agreements means the forthcoming renewal of the Eurowings (EWG) fleet with Airbus A320 airplanes, and thereby the safeguarding of (EWG) and its future prospects, is being aided and supported,” (DLH) said. This move is essential, as (DLH) wants to use (EWG) as a low-cost carrier (LCC) platform spread over several European bases.

The Lufthansa Group said three sustainable settlements with various pilots (FC) unions have also been reached for Swiss International Air Lines (CSR), Austrian Airlines (AUL) and Lufthansa CityLine, which reached an agreement with the (VC) at the end of 2014. The agreement lays the foundation for the deployment of the Airbus A340-300 airplanes on long-haul services at the regional carrier.

Still outstanding, however, are wage agreements for Lufthansa (DLH) passenger, cargo and Germanwings (RFG) units.

In December 2014, (DLH) offered further talks on unresolved topics, along with a concrete plan for arbitration, which the (VC) turned down.

(DLH), Lufthansa Cargo (LUB) and Germanwings (RFG) staged 10 separate strikes last year. The (VC) said recently that further strikes are possible.

(DLH) also faces turmoil with its flight attendant (CA) union (UFO), which represents 18,000 employees. Both sides have agreed to mediate their dispute over retirement benefits. Mediation between the airline and cabin crew could begin in the second half of February several German media outlets reported.

News Item A-7: 737-530 (24815, D-ABIA) transferred to Lufthansa Technical Training for use as a ground trainer. 747-830 (37842, D-ABYR), A320-214 (6423,D-AIUK), ex-(D-AZAQ), A321-231 (6415, D-AIDW), ex-(D-AZAO) deliveries to (DLH) and 2 CRJ900s (15229, D-ACNA; 15230, D-ACNB) for Lufthansa CityLine operations.

February 2015: News Item A-1: German public services trade union Verdi called for a one-day strike Monday February 9th of security personnel at Hanover, Hamburg and Stuttgart airports, causing canceled flights and delays for several thousand passengers.
Hamburg Airport said 40,000 passengers would be affected by the strike. The airport had planned 400 takeoffs and landings.
Lufthansa (DLH) canceled 18 flights, affecting 2,000 passengers.

All three airports handle about 80,000 passengers per day.

Later, Lufthansa (DLH)’s pilot union Vereinigung Cockpit (VC) did not rule out further strikes over transition payments for early retirees, after a two-day strike neared its end for its Germanwings (RFG) low-cost subsidiary.

“After a complete year that (DLH) blocked [(VC) suggestions], a spokesperson said they were forced to set the measures, adding that (VC) fully understood the tough environment of the airline business and that (DLH) has to be competitive for the future. “But there are always two sides [to the dispute] and they asked (DLH) to negotiate with them.”

Asked if (VC)’s public image and that of (DLH) pilots (FC) had been damaged after so many strikes, the spokesperson said, “Of course passengers are disappointed when they are affected by a strike. And we are sorry for that. But we don’t accept that our social system will be reduced further.”

During the last strike, around 900 Germanwings (RFG) flights were affected. The company said it had been able to operate around 60% of its flights over the two days. (RFG) had to cancel 180 flights, following 160 flight cancellations.

“Regarding the strike, we are satisfied that most of our union members joined them at a very high percentage rate,” the (VC) spokesperson said.

Since the dispute began last year, (DLH) faced 10 pilot (FC) strikes and had to cancel 7,000 flights. Last October, (DLH) Chairman & (CEO), Carsten Spohr said that (DLH) would continue to work on reaching a competitive and sustainable cost-structure for the group’s future and it would have to take the burden of strike issues.

“Later, they would have to balance out a short-term problem for our customers and employees, as well as to our image, [in order to] find a long-term sustainability for our cost structure,” Spohr said.

“This [move] is necessary. I very much regret the problems caused to our passengers and staff, but there is no room for compromises for a short-term solution [to its pilots (FC) to find a sustainable solution] for (DLH)’s future. This issue is too important.”

Spohr had said the solution would have to be found “on the negotiating table, not with strikes.”

News Item A-2: Lufthansa ((DLH) will not pay a dividend for 2014 after its full-year earnings were affected by the sale of the (IT) Infrastructure segment, an increase in pension liabilities and losses from fuel-hedging activities.

In addition, (DLH) said pilot (FC) strikes in 2014 cost the company €232 million/$264.4 million; in November and December alone the strike actions cost €62 million.

(DLH) reported a 2014 after-tax loss of -€732 million, reversed from a profit of +€407 in 2013. According to a company statement, it also posted an operating profit of +€954 million for the year, against a target for €1 billion before the November and December strikes. Full-year revenue remained flat at €30 billion.

Deutsche Lufthansa AG said it will publish results for the financial year 2014 on March 12.

News Item A-3: Lufthansa (DLH), which is transforming its Eurowings (EWG) subsidiary into a pan-European platform to operate low-cost flights from several bases outside Germany, will launch its first foreign base in Vienna, Austria.

The move follows close consultation with Austrian Airlines (AUL) and at the carrier’s request. Two 162-seat Airbus A320s will be initially stationed in Vienna and will offer point-to-point connections on European routes. The A320s will fly in the colors of the new Eurowings (EWG) and will be staffed with crews ((FC) - (CA)) from Austrian Airlines (AUL).

This partnership is possible as a result of Austrian Airlines (AUL)’s new collective agreement, reached in December 2014, and offers additional prospects to the 900 pilots (FC) and 2,300 flight attendants (CA). "It is logical to operate Eurowings (EWG) from airports that are located within the Lufthansa Group,” Austrian Airlines (AUL) (CEO), Jaan Albrecht said recently. “Since we have now reached a new collective wage agreement, we can evaluate operating (EWG) with Austrian Airlines (AUL) crews ((FC) - (CA)) from Vienna (VIE).” Albrecht said, “It means that we will be able to further strengthen the base after the restructuring phase. It will complement our existing range perfectly.” He added the agreement also means employees are making an important contribution to the future viability and competitiveness of Austrian Airlines (AUL).

Albrecht estimated the number of airplanes to be based in Vienna could increase to up to four, serving between eight to 10 destinations. It is estimated that every additional airplane creates up to 50 new jobs in Vienna.

Albrecht said operating Eurowings (EWG) airplanes, would be similar to what it is now doing for Swiss International Air Lines (CSR). Austrian (AUL) operates two Bombardier DHC-8-Q400s on a wet-lease contract, which will increase to four airplanes.

Building on the new strategy, Lufthansa(DLH) announced in July, Eurowings (EWG) will return to Airbus A320 operations and focus on direct point-to-point flights within Europe. With the new (EWG) brand, the Lufthansa Group is entering new markets in the price-sensitive leisure travel sector, thereby safeguarding its leading position in its home markets of Germany, Austria, Switzerland, and Belgium.

By the end of 2015, Eurowings (EWG) and Germanwings (RFG) (along with other European airlines) are to be united on a joint platform and should acquire new customers by offering low-cost short- and long-haul services.

The Lufthansa Group has ordered 10 Airbus A320ceos for Eurowings (EWG).

The first A320 took off February 1 in the new Eurowings (EWG) livery for its maiden flight.

News Item A-4: German rail operator Deutsche Bahn (along with several other unnamed companies) is set to file a billion-euro lawsuit seeking damages from 11 air cargo carriers, including Lufthansa Cargo (LUB) and British Airways (BAB), for allegedly operating a price-fixing cartel from 1999 - 2006.

News Item A-5: Lufthansa (DLH) subsidiary, Austrian Airlines (AUL), which is in the final stages of replacing its aging Fokker F 70/F 100 fleet, is considering transferring 16 Embraer EMB-195s from Lufthansa CityLine to (AUL).

News Item A-6: A350 (MSN2), one of Airbus’ five A350 XWB test airplanes, landed the evening of February 26 at Munich International airport for the first time. Munich is one of the biggest Lufthansa (DLH) and Star (SAL) Alliance hubs worldwide. Lufthansa (DLH) has 25 Airbus A350 XWB airplanes on order. SEE PHOTO - - "DLH - A350 XWB AT MUNICH - 2015-02."

See video on Lufthansa 747-8: - -

March 2015: News Item A-1: The Lufthansa Group has reported a +€55 million/+$58.5 million net profit for 2014, down -82.4% from +€313 million in the year-ago period.

Full-year revenue remained flat at €30 billion, down -0.1% from 2013, while capital expenditures increased +11.1% to €2.27 billion, producing an operating profit of +€954 million, up +36.5% from a +€699 million operating profit in 2013.

(DLH) said strike actions by pilots (FC) and security personnel reduced the 2014 operating result by €232 million (€62 million in December alone). The adjusted operating result, which excludes the non-recurring effects of "SCORE"-related restructuring costs and project costs, amounted to €1.2 billion (compared to €1 billion for 2013). Investments of €2.8 billion were largely concerned with fleet renewals and cabin interior enhancements.

“For this result, there is no reason to celebrate,” Deutsche Lufthansa Chairman & (CEO), Carsten Spohr told analysts and reporters. “We have a 3.2% margin, slightly up +0.9% points compared to 2013 [target was +7% for 2014]. That is not enough, of course, but we are working to bring it up to a competitive level.”

(CFO), Simone Menne said a 1% point margin is equivalent for about €300 million.

The Group’s (ASK)s rose +2.1% to 268 billion, (RPK)s were up +2.4% to 214.6 billion, producing a load factor of 80.1% LF, up +0.3 points over the year-ago period. “Our results for 2014 show us clearly where we currently stand. This is a year where the company is changing,” Spohr said. “On the one hand, all the business segments of the Lufthansa Group are profitable and, with an operating profit of almost +€1 billion, we achieved our projection in a far-from-easy year.”

Spohr said the company has high investments in modern airplanes and premium services. “We simply have to further increase our operating profit,” he said, adding, “For this, we need competitive structures and that’s what we continue to consistently work on.”

The Passenger Airline business, the main business of the Group, contributed +€553 million to the group operating result, a +€40 million increase over the previous year.

Despite substantial assistance in the form of lower fuel costs and the changes in depreciation policy, Lufthansa German Airlines (DLH)’s +€252 million operating profit fell short of the +€282 million in 2013.

Swiss International Air Lines (CSR) is the only carrier within the Group that met expectations with an operating profit of +€289 million.

Austrian Airlines (AUL) posted an operating profit of +€10 million, substantially down from +€25 million in 2013. The decline is partly the result of falling yields on numerous routes and competitive pressures. Austrian (AUL) results for 2014 also included one-off costs incurred with the conclusion of a new and more competitive collective labor agreement with its personnel.

For 2015, the Group expects to report an adjusted (EBIT) of over >€1.5 billion, a substantial improvement on the 2014 group operating result. Adjusted (EBIT) for 2014 was €1.2 billion.

Menne expects revenues of €32 billion for 2015. Group-wide investments are planned to total €2.9 billion in 2015, but will be limited to €2.5 billion each year for 2016 and 2017.

News Item A-2: ACCDT: A Germanwings A320-211 (CFM56-5A1) (147, /91 D-AIPX), (DLH) leased 2003-07, Flight 4U9525 crashed in the French Alps (in a hard to reach mountainous area) on a flight from Barcelona (took off 9:55 am local time) to Dusseldorf. 150 on board including 6 crew (2 (FC); 4 (CA)) are presumed dead. Most of the people on board were from Spain, Germany and Turkey. One of the "black boxes," the Cockpit Voice Recorder (CVR) has been retrieved.

Based on the (CVR), which gives the sound of the pilot Captain banging on the cockpit door and being refused entry, and passengers screaming, as the airplane continues to descend towards the French Alps mountain range, Carsten Spohr, the Chief Executive Officer (CEO) of Lufthansa (DLH) has declared the crash was "a deliberate intent by the co-pilot (FC)." Germanwings (RFG) is a subsidiary of parent company, Lufthansa German Airlines (DLH).

Stunned Lufthansa Group (CEO), Carsten Spohr said the German airline company is coming to terms with the fact that a Germanwings (RFG) pilot (FC) apparently intentionally crashed an Airbus A320 into the French Alps on March 24.

Germanwings (RFG) is a subsidiary of the Lufthansa Group (DLH). “We are forced to come to the conclusion that [flight 4U9525] was deliberately crashed,” Spohr said at a press conference after French Prosecutor, Brice Robin outlined evidence from the A320’s cockpit voice recorder (CVR) indicating 28-year-old co-pilot (FC), Andreas Lubitz intentionally descended the A320 with 150 people on board into the French Alps. Spohr added, “The co-pilot (FC), according to the audio recordings, took advantage of the momentary absence of the commander from the cockpit and then prevented him from coming back into the cockpit.”

Spohr said Lufthansa (DLH) allows one pilot (FC) to leave the cockpit temporarily during cruise, and that a touchpad enables a pilot (FC) to re-enter the cockpit if, for example, the pilot (FC) remaining in the cockpit becomes incapacitated. But a pilot (FC) on the flight deck can prevent the touchpad from opening the cockpit door.

Spohr said Lufthansa (DLH) officials were “stunned” by the “shocking” evidence of a deliberate crash by the flight’s first officer, calling it “the darkest chapter in the history” of Lufthansa (DLH). “I could not imagine after the crash happened that the situation could become even worse,” he told reporters. “We could never imagine that [a deliberate crash] could happen to our Group. Lufthansa (DLH) has excellent pilot (FC) training. We have always been very strict about the selection of our future pilots (FC). We have implemented one of the leading pilot (FC) training programs worldwide. What happened here (this was not possible for us to imagine).”

Spohr said Lubitz, who started flying for Germanwings (RFG) in September 2013, passed all medical evaluations and never provided any reason to doubt his competence. Spohr expressed confidence in Lufthansa Group’s pilots (FC) and called the 4U9525 crash “a dramatic, singular case.”

News Item A-3: "Cockpit Doors: No Silver Bullet Solution" by (ATW) Aaron Karp in his AirKarp Blog, March 26, 2015.

There is still much more to learn about Germanwings (RFG) flight 4U9525, but, according to French officials, information from the cockpit voice recorder (CVR) indicates the co-pilot (FC) intentionally descended the Airbus A320 into the French Alps and refused to allow the flight’s Captain (FC) back into the locked cockpit. The apparent scenario that led to this tragic crash demonstrates that there is almost never a "one-size-fits-all" silver bullet solution in aviation.

After "9/11," cockpit doors were made incredibly strong and were mandated to be locked (at all times) from the inside. While this was meant to prevent hijackers from entering cockpits, it unfortunately opened up the possibility for the frightening scenario that may have played out aboard this A320 over the French Alps: The person sabotaging the airplane is one of the pilots (FC) and he is alone in the cockpit, when the other pilot (FC) leaves temporarily. The lone pilot (FC) in the cockpit can override a touchpad installed on many commercial airplanes that is meant to allow the pilot (FC) who left temporarily to re-enter the cockpit. Again, the idea is to have the flight deck highjack-proof at all times by keeping a super-strong door always locked from the inside.

In the USA, many airlines’ standard operating procedure is for a flight attendant (CA) to enter the cockpit when one of the pilots (FC) leaves temporarily. This would help if the remaining pilot (FC) were to, say, pass out, but what if the remaining pilot (FC) is mal-intentioned and incapacitates the flight attendant (CA)?

In a January 11, 2002 (FAA) press release, the (FAA) laid out new cockpit door rules. One is: “The door will be designed to prevent passengers from opening it without the pilot (FC)’s permission. An internal locking device will be designed so that it can only be unlocked from inside the cockpit.”

I’m not saying strengthened cockpit doors and revamped flight deck entry protocols weren’t a good idea after "9/11." (I remember a flight as a child in the late 1970s or early 80s, when my father and I walked up to the cockpit mid-flight, and were invited in by the pilots (FC), who happily showed a wide-eyed little boy the wonders of a flight deck.) But solving one problem created another potential problem.

[UPDATE NOTE: The FAA-approved standard operating procedure for USA airlines is to have a flight attendant (CA) or a relief pilot (FC) enter the cockpit when a pilot (FC) temporarily leaves the flight deck. Lufthansa (DLH)/(RFG) did not have this policy in place, but the German government is reportedly mandating that German airlines have two crew members in the cockpit at all times going forward. Airlines around the world, including EasyJet (EZY), Norwegian Air Shuttle (NWG), Air Canada (ACN) and Air Transat (AIJ) have announced changes to their cockpit procedures in the aftermath of the Germanwings (RFG) crash].

News Item A-4: Lufthansa (DLH)’s pilot union Vereinigung Cockpit (VC) has called for a strike March 18 and March 19, the latest in a series of ongoing protests over transition payments for early retirees.

The March 18th strike will affect (DLH)'s short- and medium-haul flights; March 19th's strike will include the complete long-haul network of Lufthansa airlines (DLH) as well as all Lufthansa Cargo (LUB) flights. However, short- and medium-haul flights should operate on March 19th schedule.

Germanwings (RFG) and Eurowings (EWG) flights are not included in the strike. Lufthansa (DLH)’s long-haul flights should operate as scheduled.

The company said it has implemented an interim schedule and expects to operate about two-thirds of its 3,000 scheduled flights on mARCH 18th.

Since the dispute began last year, (DLH) has faced 10 pilot (FC) strikes and had to cancel 7,000 flights.

The Lufthansa Group said its 2014 net profit was down -82.4% to €55 million ($58 million) due to the strikes. The airline said strike actions by pilots (FC) and security personnel reduced its 2014 operating profit by -€232 million (-€62 million in December alone).

(DLH) had said it offered (VC) a good solution on transition payments and called on the union for immediate talks. However, (DLH) rescinded its offer after the strike announcement.

Lufthansa Group (CEO), Carsten Spohr said they had been able to make preparations to minimize the effects on passengers of March 18th’s strike. He said he did not want to underplay the seriousness of any impact on customers, but “it is not ruining us.”

Spohr said only half of (DLH)’s 10,000 pilots (FC) were still in dispute with the company. “They are at a turning point,” he said. “It’s difficult, but we absolutely must stand up for what is right for the future sustainability of (DLH). That’s more important than short-term compromises,” he said.

News Item A-5: Lufthansa Group’s low-cost subsidiary (LCC) Eurowings (EWG) will begin long-haul flights to Dubai, Bangkok, Phuket, Varadero, and Punta Cana from October 25. (EWG) performed its maiden flight February 1 from Hamburg to Prague, with a 162Y-seat A320.

Eurowings (EWG) will begin long-haul operations with two (GECAS0 (GEF) leased Airbus A330-200s, which will be based in Cologne, and its fleet will grow to seven of the type by 2017. Two will join the fleet in the summer 2016, two in winter 2016/17 and one in 2017.

The 310-seat A330-200 features 21C premium seats (BEST), 46PY economy SMART class seats and 243Y economy seats (BASIC).

The airplane will be operated by SunExpress (SNS) on a wet-lease contract. “We expect these long-haul operations to have -40% lower [operating] costs compared to mainline Lufthansa (DLH),” Lufthansa German Airlines (DLH) (CEO), Karl Ulrich Garnadt said. He expects Eurowings (EWG) to become profitable within 12 to 24 months after starting operations.

“The environment in our industry has changed in the last years and conditions are not easy. We are realizing that more growth is coming from private travelers, less from business travelers.”

Garnadt said that 95% of traffic within Europe is based on point-to-point routes. “The consequence is that, in the future, (DLH) will offer two systems (a hub and network carrier, and a high-quality product carrier on point-to-point traffic),” he said.

Asked what makes him confident this intercontinental (LCC) will be a success, Garnadt said, “We have the right airplane, the right combination of quality and price, but also a huge catchment area in Cologne. All this makes this project different from other long-haul-(LCC)s.”

Garnadt would not rule out that more A330s could be based in Cologne, to be used on routes such as the US West coast or the Indian Ocean.

(EWG) also bases two Airbus A320s outside Germany in Vienna, which Garnadt called “the first step,” without revealing the next base.

(EWG) is also considering establishing an air operator’s certificate (AOC) in Austria, which Garnadt described as a kind of “master (AOC)” for further (EWG) operations within Europe.

He said (EWG) management will be announced later this year.

(DLH)’s (LCC) Germanwings (RFG) will also be integrated into Eurowings (EWG) by the end of 2015.

News Item A-6: Lufthansa (DLH) begins 5x-weekly, Frankfurt - Panama City Airbus A340-300 service on November 15, pending government approval.

News Item A-7: Lufthansa (DLH) does not plan to significantly reduce flights to Russia for (IATA)’s 2015 summer season, despite a decrease in Russia’s international traffic.

(DLH) Director of Russian Federation & (CIS), Axel Hilgers said frequency or volume changes are possible, but they will not be considerable as Airbus A319s can be used for some flights instead of A320s. “The market may come back, and if it comes back, it will be very quickly,” Hilgers said.

Russia’s international traffic did not grow at the end of 2014 and was down -15.3% in January year-over-year. The decrease in international traffic is due to political sanctions and the change of currency exchange rates, which are expected to continue falling this year.

Last year, (DLH) closed its Frankfurt - Yekaterinburg route. In 2013, (DLH) stopped flying from Frankfurt to Kazan and Perm. It had flown these routes for 15 years, but said increases in fuel prices, airport taxes and other fees have made these routes unprofitable.

News Item A-8: EasyJet (EZY) signed with Lufthansa Systems (LHS) for its Lido/Flight Management System. This (FMS) database contains route information including altitude data, airways and airport data used for optimizing navigation and supporting autopilot information. Nav data is updated every 28 days. EasyJet (EZY) had migrated to a paperless cockpit with Lufthansa Systems (LHS) software in May.

News Item A-9: The Lufthansa Group will base its first Airbus A350-900 at its second major hub in Munich from 2016, Executive Board Chairman & (CEO), Carsten Spoh.

News Item A-10: The (FAA) granted 330-minute Extended Twin-engine OPerationS (ETOPS) approval for the Boeing 747-8I Intercontinental, marking the first time a four-engine commercial passenger airplane has gained 330-minute (ETOPS) approval.

Boeing said 747-8I operators will now be able “to fly long-distances more directly on virtually any worldwide city pair routing.” Boeing (TBC) noted that (ETOPS) has been a requirement for twin-engine airplanes since the 1980s, and (FAA) (ETOPS) regulations have recently been applied to four-engine passenger airplanes.

Boeing 747 Program VP & General Manager, Bruce Dickinson said, “Flying long-distance routes directly helps our customers fly even more efficiently, saving fuel and emitting less carbon dioxide.”

According to Boeing (TBC), there are now 83 747-8s in service with 11 customers.

April 2015: News Item A-1: Lufthansa (DLH) has called off its 60th anniversary celebrations as a mark of respect for the victims of Germanwings (RFG) Flight 4U 95245, which crashed on March 24 killing all 150 people on board.

(DLH) was due to celebrate its anniversary on April 15. “Instead of the originally planned anniversary event, Lufthansa (DLH) will provide a live broadcast for its employees, of the official state ceremony in the Cologne Cathedral on April 17, 2015, where the bereaved families and friends will gather to remember the victims,” (DLH) said.

The Germanwings (RFG) Airbus A320 was operating a scheduled flight from Barcelona to Düsseldorf, when it crashed into the southern French Alps on March 24.

News Item A-2: INCDT: A Lufthansa Airbus A330-343X (D-AIKQ) performing Flight LH-638 from Munich (Germany) to Dubai (United Arab Emirates), was enroute at FL370 about 100 nm northwest of Bucharest (Romania) when the flight crew (FC) decided to return to Munich due to a hydraulic failure. The A330-300 landed safely back in Munich about 3 hours after departure (and past curfew).

Passengers reported the flight crew (FC) announced a hydraulic failure. After landing, the passengers were taken to hotels near the Airport, and the flight was postponed to April 3.

A replacement Airbus A340-642 (D-AIHQ) reached Dubai with a delay of 18 hours.

News Item A-3: August Hennigsen, Chairman of the board of Lufthansa Technik (DLH) (LTK) has retired after 14 years at the helm. He is succeeded by Dr Johannes Bussman - see attached "DLH-3-Dr Johannes Bussman-R-2015-04.jpg. Read Aviation Maintenance's exclusive interview of August Hennigsen, below under Management.

News Item A-4: Lufthansa Technik’s (DLH) (LTK)'s new Puerto Rico Maintenance Repair & Overhaul (MRO) facility at Rafael Hernández International Airport in Aguadilla is set to open in July - - See photo - - "DLH-2015-04 - Puerto Rico MRO.jpg."

News Item A-5: Construction of Frankfurt Airport’s (FRA) Terminal 3 (T3) will begin in late 2015, Fraport AG owner and operator has announced. The new terminal is expected to open in 2022.

The decision comes after a comprehensive and detailed analysis of an audit study commissioned by the Hesse state government to assess the airport’s future capacity requirements.

With an investment volume of between €2.5 billion/$2.66 billion and €3 billion, (T3), which will be located in the southern part of the airport, will be one of Germany’s largest infrastructure project.

Studies forecast that passenger volumes at (FRA) will rise to between 68 million and 73 million passengers by 2021. Thus, the airport’s current terminal capacity of 64 million passengers per year will be exceeded by 2021.

“Frankfurt Airport is Germany’s largest place of employment to accommodate the forecast traffic growth, it is now necessary to commence construction for the third terminal during the current year,” Fraport Executive Board Chairman, Stefan Schulte said.

Fraport will award targeted multiple contracts to various companies performing specific tasks related to the project. This method proved successful with the new Pier A-Plus at Terminal 1 that was inaugurated in 2012 on schedule and on budget. Fraport will soon issue a European Union (EU)-wide notice and invitation to tender for the first phase of the excavation works on the site of the future of (T3).

Frankfurt Airport is served by 98 passenger airlines flying to some 250 destinations in 105 countries. About 60 million passengers used (FRA) in 2014.

News Item A-6: Lufthansa (DLH) has offered its pilot union Vereinigung Cockpit (VC) general arbitration of all open collective wage agreements, as a concession to avoid new strikes. The union has repeatedly demanded general arbitration. (DLH) has offered to start discussions with (VC) to select an arbitrator. “We would have liked to negotiate on open issues with (VC) before submitting these complex issues to an arbitrator. In order to finally settle this long wage dispute, we are willing to take this step,” (DLH) Chief Officer Corporate Human Resources (HR) & Legal Affairs, Bettina Volkens said.

(DLH) previously rejected general arbitration because many collective wage agreements have not yet been negotiated and because not all (VC) claims on some contracts, which the union itself had terminated, have been formulated. In March, (VC) pilots (FC) staged a four-day pilot (FC) strike, the 12th strike in a series of ongoing protests over transition payments for early retirees. In 2014, (VC) called for pilots (FC) to strike for 10 days. (DLH) said earlier strike actions by pilots (FC) and security personnel reduced its 2014 operating results by -€232 million/-€62 million in December 2014 alone.

News Item A-7: See attached "DLH-2015-04 - TOP 25 WORLD TRAFFIC.jpg."

May 2015: News Item A-1: The Lufthansa Group reported a first-quarter net profit of +€425 million/+$474.4 million, reversed from a -€252 million loss in the year-ago quarter.

Lufthansa (DLH) said the net result was boosted by a JetBlue (JBL) stake sale, which gained +€503 million. “Above all, Swiss International Air Lines (CSR) and Lufthansa Cargo (LUB) have done better than in the previous year. But Lufthansa German Airlines (DLH) has also shown a positive development, although it was worse hit by strikes and other one-off effects than in the previous year,” Lufthansa (CFO), Simone Menne said.

First-quarter revenue rose +8% to €6.97 billion.

The Group closed the traditional difficult first quarter with an adjusted (EBIT) of €-167million, narrowed from €-240 million in the year-ago period.

“The result was once again overshadowed by the consequences of the strike called by the trade union Vereinigung Cockpit among the pilots (FC) of Lufthansa German Airlines (DLH), Lufthansa Cargo (LUB) and Germanwings (RFG) on a total of six days between January and March 2015,” Lufthansa (DLH) said. “Flight cancellations caused by strikes led to a burden on the result €42 million. Due to weaker advance bookings in the following quarters as a consequence of the strike, Lufthansa (DLH) expects a further burden on the result of €58 million.”

(DLH) said fuel costs were -€209 million lower than the year-ago quarter, while expenses on fees went up by nearly +7%, despite the lower number of flights and passengers. The weak euro and the rise in pension expenses also led to an increase in staff costs of nearly +7%. “We see positive developments in the result and in cash flow. This shows we are on the right course. At the same time, we continue to see great pressure to act. The enormous pension burdens are putting considerable pressure on our equity . . . Great efforts remain to be made here in order to strengthen the international competitiveness of all the business segments of the Group,” Menne concluded.

News Item A-2: The Lufthansa Group’s passenger airlines operated more efficiently in 2014, using an average of 3.84 liters of kerosene in 2014, to carry a passenger 100 km, a +1.6% improvement over the previous year (2013: 3.91 l/100pkm).

tHE Lufthansa Group’s passenger airlines include Lufthansa (DLH), Swiss International Air Lines (CSR), Austrian Airlines (AUL), and Germanwings (RFG).

The Group said it has again met the “demanding aerospace industry target of annual efficiency gains of +1.5%.”

The company also said Lufthansa Cargo (LUB)’s Boeing 777F and MD-11F fleet were more efficient than ever, with 0.183 liters/tonne km (a +5.2% improvement over 2013). In 2014, Group-wide efficiency in cargo transportation increased +0.8%.

In 2014, the Group’s absolute fuel consumption increased +0.7%, with an increase in transport capacity of +1.9%, continuing the trend toward the decoupling of transport capacity and fuel consumption.

According to a company statement, the further reduction of specific fuel consumption is foreseeable through the investment in new, more efficient airplanes.

Lufthansa (DLH) took recently delivery of its last of 19 Boeing 747-8 airplanes, which is +15% more fuel efficient than its predecessor model 747-400.

In September 2013, (DLH) ordered 34 Boeing 777-9Xs and 25 Airbus A350-900s, plus 30 options. Lufthansa (DLH) will base its first A350 at its second major hub in Munich from 2016.

By 2025, the company will receive 272 airplanes at a list value of €38 billion/$42.3 billion, its biggest fleet modernization program. In 2015, 17 airplanes will be delivered to the Group.

News Item A-3: The Lufthansa Group, which had planned to retire its low-cost carrier (LCC) subsidiary Germanwings (RFG) brand by integrating it into Eurowings (EWG) by the end of the year, will keep it until the dispute with pilot (FC) union Vereinigung Cockpit (VC) is resolved.

News Item A-4: Lufthansa (DLH) pilot union Vereinigung Cockpit (VC) has agreed to arbitration of all open collective wage agreements, which would avoid new strikes through the end of July.

The union said that a conciliator must be selected soon to clarify details of the arbitration process. In the meantime, (VC) said it will plan no further strike action through the end of July. During that timeframe, it should become clear if the arbitration process will be successful, the union said.

In the past year, (VC) has called for 12 strike actions over transition payments for early retirees, overshadowing Lufthansa (DLH)’s operations among the pilots (FC) of Lufthansa German Airlines (DLH), Lufthansa Cargo (LUB), and Germanwings (RFG).

(DLH) said in its first-quarter results presentation: “Flight cancellations caused by strikes led to a burden on the result €42 million/$48 million. Due to weaker advance bookings in the following quarters as a consequence of the strike, (DLH) expects a further burden on the result of €58 million.”

Last year, strikes called by (VC) cost Lufthansa (DLH) €230 million.

News Item A-5: Lufthansa (DLH) is considering setting up a task force to evaluate implementing random medical checks of pilots (FC) to improve safety in the cockpit, (DLH) spokesperson, Barbara Schaedler said in an email.

The move comes in the aftermath of the March 24 crash of a Germanwings (RFG) Airbus A320 into the southern French Alps, while on a scheduled flight from Barcelona to Düsseldorf, which killed all 150 people on board. The investigation revealed the co-pilot (FC) intentionally downed the airplane.

Germanwings (RFG) is a fully owned subsidiary of the Lufthansa Group.

Schaedler said the task force would analyze to what extent unannounced drug tests (such as for psychotropic drugs) could further improve safety in the cockpit.

In addition, Lufthansa Group (CEO), Carsten Spohr told the German daily, "Frankfurter Allgemeine Zeitung" that drug tests could be one measure to reduce uncertainties of a pilot (FC)’s mental health. Spohr also said he wanted to check on which cases, flight doctors could be released from confidentiality.

Spohr said in the interview that the Germanwings (RFG) crash created the first state of emergency within Lufthansa (DLH) in its 60-year history.

News Item A-6: Lufthansa (DLH) has confirmed its first Airbus A350-900 will be based at its second major hub in Munich at the end of 2016.

In September 2013, (DLH) ordered 25 of the type, plus 30 options, and will operate them from both major hubs of Frankfurt and Munich.

“The A350 marks our entry into the two-liter class and is an important step towards active noise protection. The airplane generates a 30% smaller noise footprint,” Thomas Klühr, Lufthansa board member said.

This summer, (DLH) will operate 26 long-range airplanes, including 17 Airbus A340-600s and nine A330-300s, from Munich.

(DLH) Chairman & Group (CEO), Carsten Spohr said recently the A350 delivery will go hand-in-hand with the opening of the terminal extension, the new satellite facility at Munich Airport.

News Item A-7: The Terminal 2 expansion project at Munich Airport started in April 2012. The €650 million/$856.8 million investment will be shared 60:40 between airport owners (FMG) and Lufthansa (DLH).

(DLH) said the A350-900 uses 2.9 liters of kerosene per passenger per 100 km, roughly -26% less compared to a Boeing 747-400, or -24% less compared to an A340-300.

Lufthansa Group (CFO), Simone Menne confirmed recently that two A350-900s are expected in 2016, with +5 more due to arrive one year later. “In 2017, (DLH) expects to have seven A350s in its fleet,” she said.

June 2015: News Item A-1: "Lufthansa (DLH) to Reduce Operations in Russia" by (ATW)'s Polina Montag-Girmes, June 5, 2015.

Lufthansa German Airlines (DLH) will cancel services from Frankfurt to Samara, Nizhny Novgorod, and Moscow Vnukovo, as the routes have become unprofitable.

Lufthansa (DLH) will operate the last flights to Samara and Nizhny Novgorod September 6 and 7, respectively. The last Frankfurt - Moscow Vnukovo service is planned for August 30. (DLH) will continue to operate to Moscow Domodedovo only; it currently operates 4x-daily, Frankfurt - Moscow Domodedovo services.

Since the end of 2014, Russia’s international traffic has continued in a downward trend. Lufthansa (DLH) launched Samara and Nizhny Novgorod services in 1996. (DLH) said it will re-evaluate resuming flights, when the economic situation stabilizes. “It was a hard decision for us, but we have to keep our routes all over the world profitable. We are sure the economic situation will change and the growth will follow after the drop,” (DLH) Director Russian Federation & (CIS), Axel Hilgers said. In March, Hilgers said (DLH) had not planned to reduce its Russian network in the (IATA) 2015 summer season.

In September, (DLH) subsidiary, Germanwings (RFG) plans to cease Cologne - Moscow services; in August, it will stop Dusseldorf - Saint Petersburg flights. (RFG) will operate only Berlin - Moscow Vnukovo flights.

In 2013, (DLH) canceled flights from Frankfurt to the two Russian cities of Kazan and Perm.

News Item A-2: Lufthansa (DLH), which is transforming its Eurowings (EWG) subsidiary into a pan-European platform to operate low-cost carrier (LCC) flights from several bases outside Germany, will place (DLH)’s two air operator’s certificates (AOC)s in Austria.

News Item A-3: SWISS (CSR) is the first carrier to launch the Lufthansa Group’s branded fares across all channels, effective immediately. (CSR) will use the "Amadeus Fare Families" solution to maximize exposure of its Light, Classic and Flex fares and increase multichannel merchandizing opportunities.

News Item A-4: Lufthansa (DLH) appointed Josef Bogdanski as its new Chief Information Officer (CIO)/Chief Process Officer. Bogdanski joined (DLH) in 1984 and has held leading positions in several areas of management, including sales in Germany, and global key account management/online sales. Prior to his current appointment, he was responsible for the "SCORE" Change for Success program, which will be completed this year.

News Item A-5: Lufthansa (DLH)’s flight attendant (CA) union (UFO) has agreed to postpone any further strike action until mid-July after receiving concessions on pay and pensions from (DLH).

(DLH) had faced a June 30 deadline to make concessions or be hit with one-day strikes by cabin crew (CA) over the busy summer travel season.
(UFO) union represents (DLH)'s 19,000 flight attendants.

(DLH) Chairman & (CEO), Carsten Spohr said on the sidelines of the Star (SAL) Alliance meeting in Warsaw he was hopeful a deal could be reached.

In 2014 and early 2015, (DLH) was hit with 12 pilot (FC) strikes called by the Vereinigung Cockpit (VC) union. (DLH) said in its first-quarter 2015 results presentation that flight cancellations caused by pilot (FC) strikes led to a burden of -€42 million/-$48 million. Last year, strikes called by (VC) cost (DLH) -€230 million.

July 2015: News Item A-1: Lufthansa Group delivered a net profit of +€954 million/+$1.04 billion, reversed from a loss of -€79 million a year ago.

(DLH) noted that more than half of the net profit (€503 million) was “attributable to an accounting effect resulting from the appreciation in equity capital . . . following the redemption of the JetBlue (JBL) convertible bond in the first quarter.”

Even allowing for this, however, the Group (which includes Lufthansa (DLH), Swiss International Air Lines (CSR), and Austrian Airlines (AUL), as well as low-cost carrier (LCC) brands such as Germanwings (RFG) and Eurowings (EWG)) described its half-year figures as a “solid business development” with “improved results in all operating segments.”

First-half revenue rose +8.5%, to €15.4 billion, compared to €14.2 billion for the year-ago period. Yields for the group’s airlines rose +2.4%, mainly due to exchange rate fluctuations.

Currency fluctuations (notably the weakness of the euro against the USA dollar) had an adverse effect of €158 million. However, this was more than offset by a drop in fuel costs of €309 million. “Our first-half results are solid,” said Simone Menne, Chairman of Financial & Aviation Services at Deutsche Lufthansa (DLH). “Aside from the positive development of our business operating areas and, in particular, our passenger airlines, which gained extra momentum in the second quarter, the fall in fuel costs is largely responsible for the improvement in our results. We will therefore continue to work consistently on the competitive focus of the Lufthansa Group.”

Improvements were particularly marked at Lufthansa Airlines (DLH) and Swiss (CSR). Budget carrier Germanwings (RFG) also had a successful first half and will make a profit this year for the first time, the group said.

“Our strategic focus is right,” Menne said. “On the one hand, our premium brands—Lufthansa and Swiss—are very successful, and at the same time Germanwings and Eurowings are also showing good business developments as secondary brands.

“We are focusing on the premium quality of our hub airlines and the high level of competitiveness of our secondary brands in point-to-point traffic. This approach makes us profitable and fit for the future within the airline market.”

On the freight side, Lufthansa Cargo (LUB) faltered after a good first quarter, with competing airlines substantially increasing capacity at the start of the summer season, placing prices under increasing pressure.

News Item A-2: "Lufthansa Reports Near-miss with Unmanned Aircraft" by (ATW) Graham Warwick, July 21, 2015.

Polish Air Navigation Services Agency (PANSA) said air traffic controllers changed landing direction for more than >20 flights into Warsaw Chopin Airport (WAW) on July 20 after a Lufthansa (DLH) crew (FC) on approach reported a near-miss with an unmanned aircraft.

The Embraer EMB-195 with 108 passengers on board was arriving from Munich (MUC), on approach at about 2,500 ft altitude, when the crew (FC) reported an unmanned aircraft coming within 100 meters/330 ft of the airliner. The Embraer landed safely, (PANSA) said.

“Prompt intervention by air traffic controllers allowed for the safe conduct of further landings,” (PANSA) said. Police helicopters were scrambled, but failed to locate the unmanned aircraft or its operator, (PANSA) added.

Lufthansa (DLH) has confirmed the incident, telling, "The cockpit crew (FC) of flight LH 1614 from (MUC) - (WAW) on July 20 spotted a black unidentified object during its approach to (WAW). The object passed the aircraft in near distance on the right-hand side of the aircraft. The crew notified (WAW) tower about this immediately. The plane landed safely at (WAW) at 14:09 (UTC). On board were 108 passengers."

News Item A-3: "(ALPA): Mandate Collision Avoidance Technology on Unmanned Aerial Vehicles (UAV)s" by (ATW) Aaron Karp, July 22, 2015.

The Air Line Pilots Association (ALPA) is calling for Traffic Collision and Avoidance Systems (TCAS) technology to be mandated on unmanned aerial vehicles (UAVs).

Speaking Wednesday, July 22, 2015 at the "(ALPA) Air Safety Forum" in Washington DC (two days after a Lufthansa (DLH) Embraer EMB-195 reported a near-miss with a (UAV) on approach to Warsaw) (ALPA) President, Tim Canoll said language requiring that (TCAS) or similar technology be installed on (UAV)s should be included in (FAA) re-authorization legislation that USA Congress is expected to take up later this year. “It’s important that active collision avoidance [technology] be mandated on [UAVs], otherwise these aircraft are invisible to our pilots (FC),” Canoll said, adding that (UAV)s must be required to “use the same rules as we do.”

USA Representative, Peter DeFazio (Democrat-Oregon), delivering a keynote address at the (ALPA) conference, also called for (UAV) regulations to be included in the (FAA) bill. DeFazio is the ranking Democrat on the House of Representatives Transportation & Infrastructure Committee, and a key player in the upcoming (FAA) re-authorization debate.

“Basically, you should say nobody should fly a drone that isn’t pre-programmed to avoid restricted airspace,” DeFazio said. “We should register [UAVs] so we can track them back [to owners and operators]. We need to institute a system of meaningful fines and penalties for people who do operate them in restricted airspace.”

DeFazio said there are “a lot of legitimate uses” for (UAV)s, but he expressed concern about the impact unmanned aircraft will have on the safety of commercial aircraft. He said he has requested that the (FAA) do tests on (UAV)s “being sucked into aircraft engines” similar to bird ingestion tests, and has been informed the (FAA) will conduct these tests in the near future.

News Item A-4: Lufthansa (DLH) is considering selling its 13% stake in Luxair (LUX) and has been in touch with other shareholders, including the Luxembourg government, to discuss the matter.

(DLH), which has held a 13% stake in flag carrier, Luxair (LUX) since 1993, sounded out the possibility of a sale of its stake with the other shareholders as part of a regular portfolio review, a spokesman for (DLH) said on July 1st.

Luxembourg Infrastructure Minister, Francois Bausch said in a public session of parliament he had received a letter from Lufthansa (DLH) stating the company's intention to sell, confirming comments he made in an interview with newspaper "Luxemburger Wort."

He declined to comment on what a sale would mean for Luxair (LUX), saying he would not discuss matters of a privately run company in public. "There is currently no decision as to the next step," the (DLH) spokesman said.

Luxembourg owns a 39% stake in Luxair (LUX), with Luxembourg's state savings bank holding almost 22% and private bank (BIL) holding just over >13%.

The remaining 13% is held by "LuxairGroup and others," according to (LUX)'s website.

News Item A-5: "Lufthansa (DLH) Pilots (FC) May Call for New Strikes after Mediation Fails" by (ATW) Kurt Hofmann, July 6, 2015.

(DLH)’s pilot (FC) union, Vereinigung Cockpit (VC) (which had agreed to arbitration of all open collective wage agreements in May) said July 6th that mediation has failed, raising the possibility of new strike action at the height of the summer travel season.

According to (VC), (DLH) did not want to discuss all disputed topics and that an agreement to hold off on strikes until the end of July was no longer valid.

(DLH) said it regretted the union’s move and called on pilots (FC) to re-enter talks.

The pilots (FC) had also hoped mediation would resolve other outstanding issues, including the expansion of pan-European low-cost carrier (LCC) Eurowings (EWG).

In April, (DLH) had said it would be willing to enter mediation on a range of issues, except the expansion of its Eurowings (EWG) (LCC) brand. (DLH) Chairman & (CEO), Carsten Spohr said recently in Warsaw that the expansion of Eurowings (EWG) is essential for the group to be competitive in the long term.

(VC) has not yet announced a strike date.

In 2014 and early 2015, (VC) called 12 strikes in ongoing protests over transition payments for early retirees.

(DLH) said in its first-quarter results presentation that flight cancellations caused by pilot (FC) strikes led to a burden of -€42 million/-$48 million. Last year, strikes called by (VC) cost (DLH) -€230 million.

In June, (DLH)’s flight attendant (CA) union (UFO) agreed to postpone any further strike action until mid-July after receiving concessions on pay and pensions from (DLH).

Later, on July 29, Lufthansa’s pilot union Vereinigung Cockpit (VC) offered new concessions to end the ongoing dispute, which has resulted in 12 strikes over the past 15 months. The concessions include raising the average retirement age to 60 from 58 and reducing cockpit crew (FC) costs.

The concessions, valued at €400 million/$441.3 million, have been offered after mediation failed nearly a month ago, which could have led to more strikes.

The union also hopes a deal can be reached by September 1. The (VC) said it wants to work with (DLH) management to secure growth and employment within the group.

Lufthansa German Airlines (DLH) (CEO), Karl Ulrich Garnadt previously said that one of (DLH)’s projects is to reduce costs on selected long-haul flights operating from Frankfurt by at least -20%. (DLH) is expected to continue talks after it reviews the proposals.

This latest development is important for (DLH) because the European summer is one of its heaviest travel seasons. “We have strong bookings throughout our entire network for this summer,” Chairman & (CEO) Carsten Spohr said.

(DLH) said in its first-quarter results presentation that flight cancellations caused by pilot (FC) strikes led to a burden of €42 million/$48 million. Last year, strikes called by (VC) cost (DLH) €230 million.

News Item A-6: The Lufthansa Group is implementing a new economy (Y) class fare concept on European flights this summer for three of its 11 airlines, Chairman & (CEO), Carsten Spohr said in Warsaw. Spohr said the new concept (which affects Lufthansa (DLH), Austrian Airlines (AUL), and Swiss International Air Lines (SWISS) (CSR)) could be seen as a commercial consolidation.

The three different economy (Y) class fare options include Economy Light (lowest option, for travelers with hand baggage only); Economy Classic (includes checked bags and seat reservation); and Economy Flex (re-booking flexibility).

News Item A-7: Lufthansa Technik (DLH) (LTK) will be equipping the 100th airplane of the Lufthansa (DLH) Airbus A320 family fleet with sound-reducing vortex generators in the next few weeks. The project started in November 2014.

In total, 157 short- and medium-haul aircraft are being equipped with a vortex generator. The noise-reducing components are located on the underside of the wings. Newly built Airbus (EDS) aircraft have already been delivered to Lufthansa (DLH) with the sound-reducing technology since the beginning of 2014.

Another initiative to reduce aircraft noise will be intensively tested in the next few weeks in flyover measurements over several days at Magdeburg-Cochstedt Airport with two MD-11Fs from Lufthansa Cargo (LUB).

Modified sound suppression has been installed on the engine intakes of the General Electric (CF6-80C2) engines. In addition, (DLH) expects to reduce landing gear noise by covering the cavities in the aircraft’s landing gear.

News Item A-8: Lufthansa (DLH)’s executive board has appointed new managers responsible for hubs in Frankfurt and Munich.

Effective September 1, Klaus Froese will succeed Kay Kratky and manage operations at Lufthansa’s Frankfurt hub. Kratky has been appointed as Austrian Airlines (AUL) executive board Chairman from August 1, and will be moving to (AUL) subsidiary in Vienna.

Froese, who started as a pilot (FC) and had several positions within (DLH), was promoted to the position of Managing Director of Lufthansa CityLine GmbH in 2006; in 2013, he moved to Austria to become Managing Director of Tyrolean Airways, followed by (COO) of Austrian Airlines (AUL).

From November 1, Germanwings (RFG) executive board spokesman, Thomas Winkelmann will move to (DLH) to manage its southern hub in Munich. He will also be responsible for finances and controller. Winkelmann started his career at (DLH) in 1998 and was assigned responsibility for North and South America at the airline’s New York office in 2000.

Thomas Kluehr, who is currently responsible for the Munich hub, will take on a new executive board position within the Lufthansa Group. Further details on this change will be announced in September. A decision on the composition and structure of the executive board of Eurowings (EWG)/Germanwings (RFG) will also be made in the fall.

Lufthansa Technik (DLH) (LTK) has named Thomas Kuhn President & (CEO) of its subsidiary, BizJet International.

News Item A-9: German airline group Lufthansa (DLH) reported a 4.3% increase in sales on the passenger side in June but was unable to sell the extra freight space it offered during the month, it said in its monthly traffic report on July 9.

Global air freight demand has been slowing in recent months as economies stutter, after a promising start to the year, figures from air industry association (IATA) show.

(DLH) said that in June, freight capacity at its Lufthansa Cargo (LUB) unit rose by +2.9%, driven by space in the bellies of its passenger planes, but sales dropped by -0.9%. Cargo load factors, or how full its planes are, dropped -2.5% points.

On the passenger side, capacity growth was slower than sales at +3.2% and the load factor increased +0.9 percentage points to 83% LF.

News Item A-10: Germany’s Munich Airport has won approval to build a third runway after a federal court rejected the remaining appeals against it.

In 2014, a Bavarian environmental group and five individuals filed a complaint against a prior decision from a Munich court. The Leipzig-based federal court had already rejected a similar complaint brought by local municipalities in February. It said the Munich court decision is now fully binding and the airport has the right to build the runway.

“Ten years after we started this project, the highest German federal court ultimately decided that all our planning had been professional and included legal requirements,” airport operator (FMG) (CEO), Michael Kerkloh said.

However, Munich residents voted against the runway in 2012, and the airport owners (the state of Bavaria, the German government and the city of Munich) are in disagreement over the expansion.

Lufthansa (DLH) said that it welcomed the decision to build a third runway, which also affirms the carrier’s long-term growth strategy. Munich is (DLH)’s second hub in Germany after Frankfurt.

Munich Airport will open a new satellite facility in April 2016, the first midfield terminal at a German airport. Like Terminal 2, the satellite facility will be operated jointly by (FMG) and Star (SAL) Alliance member, (DLH), which hold 60% and 40% ownership, respectively.

(DLH) will also base its first Airbus A350-900 in Munich from 2016.

Munich Airport serves 40 million passengers a year, which is expected to increase to 58 million by 2025.

Kerkloh said the final decision to add urgently needed capacity by building a third runway is based on its three shareholders (the state of Bavaria, the German government, and the city of Munich).

News Item A-11: Worldwide Flight Services (WFS) will acquire a 51% stake in Fraport Cargo Services (FCS) as part of a strategic partnership with Frankfurt Airport operator and owner Fraport AG. The transaction is expected to close by September.

The joint goal of this partnership is to expand the global reach of (FCS) in the rapidly moving and highly competitive air cargo industry, as well as strengthening Frankfurt Airport’s role as a major air cargo hub, both companies said.

By entering into this partnership, Fraport is retaining a major 49% stake in (FCS), while maintaining a substantial role in the company’s management. (FCS) employs more than >600 people.

“This is a major transaction that positions our joint company as the leading cargo handler at one of the biggest cargo airports in the world,” (WFS) Executive Chairman, President & (CEO), Olivier Bijaoui said.

(WFS) has annual revenues of €700 million/$764 million, serves 50 million passengers and handles more than >4 million metric tons of cargo per year for 300 airlines.

At its Frankfurt Airport home base, Fraport handled about 60 million passengers and some 2.2 million metric tons of airfreight and airmail cargo in 2014.

News Item A-12: Lufthansa Technik (DLH) (LTK) is to begin maintenance work on its first aircraft from Spirit Airlines (SPR) at its newly opened Maintenance Repair & Overhaul (MRO) location at Rafael Hernández International Airport in Aguadilla, Puerto Rico on July 21 - - see attached Spirit "C" check "DLH-2015-06 - Puerto Rico MRO C Check.jpg."

News Item A-13: Lufthansa (DLH)’s fleet ranks as the second largest in Western Europe with 275 airplanes, as of July, and it should reach 282 airplanes by the end of the year. (DLH) offers domestic and international destinations to 78 countries throughout Africa, the Americas, Asia, and Europe. In the last decade, (DLH) retired the Airbus A300B4-600, A300 B4-600R and the Airbus A330-200 from its fleet. Its new airplane purchases included the Airbus A380-800 and the Boeing 747-8. Although (DLH) only has added 41 airplanes to its fleet in the last 10 years (from 234 airplanes in 2005 to 275 airplanes in 2015) the types of airplanes have changed. (DLH) operates both Airbus (EDS) and Boeing (TBC) planes with a diverse fleet of 10 different types of airplanes, including Boeing 737s and 747s and Airbus A320s and A321s.

August 2015: News Item A-1: The Business Travel Coalition (BTC) is hitting back hard against the Lufthansa Group’s €16/$18 surcharge for tickets booked through global distribution systems (GDS).

News Item A-2: Lufthansa Technik (DLH) (LTK) and Air Europa (ARE) have signed a comprehensive long-term component supply agreement for (ARE)’s future fleet of up to 22 Boeing 787s. The contract starts with the arrival of the first 787 in March 2016. The Total Component Support agreement covers airframe and engine-related component overhaul, engineering services, pooling, and home-base lease. It will be supported by (DLH) (LTK) facilities in Frankfurt and Hamburg.

News Item A-3: The Lufthansa Group will take delivery of its first Airbus A320neo (6801, D-AINA) towards the end of 2015 and not in early 2016 as previously anticipated. A further six of the type are due to arrive before the end of 2016.

September 2015: News Item A-1: "Lufthansa Group Reorganizes to Enhance Synergies" by (ATW) Kurt Hofmann, September 16, 2015.

The Lufthansa Group has approved a reorganization plan to enable member airlines and service companies to align their structures and processes. The realignment also aims to raise the group’s overall efficiency, reduce complexity and increase decision-making speeds. The group expects the reorganization to eventually add +€500 million/+$65.3 million a year to its earnings results.

According to Lufthansa (DLH), the new structure will reduce the current four management levels below the group executive board to three. Overall management positions will be reduced -15%, the company said. “We are making good progress in all seven fields of action of our ‘7 to 1: Our Way Forward’ program,” Lufthansa Group Chairman & (CEO), Carsten Spohr said. “The new alignment of the Lufthansa Group that we have today resolved to adopt, will strengthen our airlines and our service companies. And our customers will feel the tangible benefits of this, because a process-oriented organization will be focused even more closely than before on their specific needs. Our new group organization should make us more efficient and more responsive, too; and this in turn should sustainably strengthen the position of the Lufthansa Group in its various markets and business segments.”

According to (DLH), this further refinement of the group’s organizational structure will entail changes in the division of duties on the executive board.

From January 1, 2016, the following changes will take effect for board members:

* Swiss International Air Lines (CSR) (CEO), Harry Hohmeister will step down to lead the Commercial Management of the group’s hubs and premium airlines Lufthansa (DLH), Swiss International Air Lines (CSR), and Austrian Airlines (AUL).

* Thomas Kluehr, currently Head of Hub Munich & Finance, has been appointed new Swiss (CSR) (CEO) from February 1, 2016.

* Lufthansa Passenger Airlines (DLH) (CEO), Karl Ulrich Garnadt will head the Eurowings (EWG) Group Executive board. He will also be responsible for the development of further airlines and service companies. According to (DLH), the Eurowings (EWG) Group will be developed as independently as possible to ensure its strategic and operational flexibility in the particular markets it serves. A new Executive Board will be established from November 1 onward to provide overall management of the Eurowings (EWG) Group.

* (CFO), Simone Menne will continue to head group finances. He also assumes responsibility for the group’s Information Technology (IT) in the new organization.

* Dr Bettina Volkens continues to handle Human Resources (HR) & Legal Affairs.

* Detlef Kayser, currently a partner at management consultants McKinsey, will be Executive VP Strategy & Fleet. He will head up the “7 to 1: Our Way Forward” program.

* (CCO), Jens Bischof will take over Frankfurt hub management. Bischof will also bear global responsibility for the worldwide distribution of all three network carriers.

* Austrian Airlines (AUL) (CCO), Andreas Otto will assume commercial responsibility for the Vienna Hub and take over responsibility for product management of Lufthansa (DLH)’s hub carrier.

* Swiss (CSR) (CCO), Markus Binkert will be in charge of the commercial steering in Zurich and the “Distribution & Revenue Management” process for all network airlines.

* The Lufthansa Group-Asia-Pacific Head of Sales, Steffen Harbarth will assume commercial responsibility and (CCO) for Lufthansa (DLH)’s Munich hub, along with responsibility for the Marketing of all three network airlines. He will also be responsible for further developing the Lufthansa (DLH) brand.

News Item A-2: The Lufthansa Group’s low-cost carrier (LCC) subsidiary, Eurowings and UK (LCC) easyJet (EZY) reportedly could become partners, Lufthansa Group Chairman & (CEO), Carsten Spohr told German magazine "Der Spiegel."

“We can cooperate with other airlines very actively. EasyJet (EZY) had also shown interest in the past, to cooperate with the Lufthansa Group,” Spohr had been quoted as saying.

It is understood Eurowings (EWG) is able to offer new partnership possibilities for the group, even with non-Star (SAL) Alliance members. However, Lufthansa (DLH) ruled out the possibility of feeder services to its hubs from a carrier like easyJet (EZY).

“We also need consolidation in the European low-cost carrier (LCC) market and Eurowings (EWG) should become an important part of that,” Spohr said.

Spohr said in June that (DLH) will remain a driving force for consolidation within Europe. “The big five airlines in Europe have a 43% market share,” he said. “The big five carriers in the USA have 90%. I definitely think there are too many airlines in Europe.”

However, Spohr sees Lufthansa (DLH) at a turning point. For the first time in (DLH)’s history, it has not shown growth for several years. With its current cost structure, it has become nearly impossible to find a new cost-efficient route for the German-based carrier, he said.

“Good pay [for employees], good working conditions and good career perspectives. All these don’t fit together anymore [with (DLH)’s current cost-structure],” he said.

Spohr said that airlines must offer several different platforms (ranging from premium segments to low-cost carriers (LCC)s.

Eurowings (EWG) operated its maiden flight February 1 from Hamburg to Prague, with its first 162-seat Airbus A320.

(DLH) has also established Eurowings Europe GmbH, which was established in Austria on August 10. The company will serve as the starting point for further growth, which will create several more operating bases throughout Europe.

Eurowings (EWG) will also launch intercontinental services October 25, which will use two Airbus A330-200s. These aircraft will be wet-leased from the Lufthansa (DLH)/Turkish Airlines (THY) (50/50) joint venture (JV) SunExpress (SNS). The (EWG)’s long-haul fleet will gradually expand to seven A330s.

Separately, the spokesperson confirmed (DLH) will launch 5x-weekly Frankfurt - Tampa Airbus A340-300 services on September 25, which will operate 4x-weekly during the winter season.

News Item A-3: Lufthansa (DLH) pilot (FC) union Vereinigung Cockpit (VC) has threatened further strikes after negotiations again failed with management over retirement benefits and cost cuts.

In July, (VC) offered new concessions to end the ongoing dispute, which has resulted in 12 strikes over the past 15 months at a cost of €300 million/$333 million. The concessions included raising the average retirement age from 58 to 60 and reducing cockpit crew (FC) costs.

(VC) offered the €500 million in concessions after mediation failed.

“Lufthansa (DLH) needs new products and new brands, like our low-cost carrier (LCC) Eurowings (EWG),” Chairman & (CEO), Carsten Spohr said at the Austrian Aviation Association symposium in Vienna. “We believe as the Lufthansa Group, we can make this happen [operating an (LCC)]. “But it is not possible to fly low cost and pay high-cost wages.”

Lufthansa (DLH) employs 5,400 pilots (FC) across all its airlines.
“Our challenge is that (DLH) needs a new structure. This is a painful process,” Spohr added. “We had 13 strikes and (DLH) management has not changed its mind. This mindset will also remain after a 14th strike happens, which I hope will be not the case,” he said.

News Item A-4: "Lufthansa Pilots Stage Walkout September 8 - 9; 140,000 Travelers Affected" by (ATW) Victoria Moores, September 8, 2015.

Lufthansa (DLH) pilots (FC), represented by the Vereinigung Cockpit (VC) union, started a two-day walkout, which affected operations September 8 to 9. (DLH) said that 140,000 travelers were affected as it canceled 1,000 flights.

The first day affected long-haul and cargo flights, while the second day targeted (DLH)’s short- and medium-haul network, including Germanwings (RFG).

(VC), which staged the walkout in a dispute over pay and conditions, said (DLH)’s Airbus A330, A340, A380, and Boeing 747 departures from Germany between 0800 and 2359 on September 8 were affected, along with all Lufthansa Cargo (LUB) departures.

During normal operations, (DLH) would have operated 1,500 passenger and seven cargo flights on September 8. (DLH) said it had brought in volunteer pilots (FC) and it only canceled 84 of 170 long-haul flights. It maintained 90 intercontinental and all seven scheduled cargo flights. “With a relatively large number of cockpit (FC) personnel indicating their willingness to fly, (DLH) was able to operate more than half of its intercontinental passenger services despite the (VC)’s strike call. All in all, 84 long-haul services from or to Frankfurt, Munich or Düsseldorf had to be canceled, while 90 such flights were operated,” (DLH) said.

On September 9, the short- and medium-haul strike ran from 0001 until 2359. (VC) said all A320, 737 and Embraer departures from Germany were affected.

(VC) spokesman, Markus Wahl said the walkout was a “last resort” after the two sides failed to reach agreement in their collective labor negotiations, which are focused on growth, cost control and the Eurowings (EWG) project.

News Item A-5: "Court Ruling Ends Lufthansa Pilot Strike" by (ATW) Victoria Moores, September 9, 2015.

Lufthansa (DLH) expected its flights to be “virtually back to normal” from September 10 after its pilots (FC)’s strike was declared unlawful by a local labor court. In its ruling, Frankfurt’s Hessen Labor Court said the two-day strike on September 8 - 9 was a protest against (DLH)’s “Wings” long-haul low-cost plan, as well as a failure to agree on a new collective labor agreement (CLA). According to the court, the inclusion of "Wings" went beyond the union’s mandate; therefore, Judge Dr Michael Horcher ordered an immediate end to the action.

“The strike was clearly motivated not only by the official reason stated, i.e. pilots (FC)’s transitional retirement provisions, but also by the Wings Concept of the Lufthansa Group. This was not, the court found, a valid strike objective. The court further noted that the (VC) was not prepared to enter into overall mediation unless the Wings Concept was included,” (DLH) said, welcoming the injunction.

(DLH) said its reduced timetable for September 9 would remain in effect, with flights returning to normal on September 10.

The (VC) union had called on (DLH)’s long-haul and cargo pilots (FC) to stage a walkout on September 8, followed by a short- and medium-haul strike on September 9, which also targeted (DLH)’s Germanwings (RFG) subsidiary.

With this latest action, (DLH) has lost its patience with (VC). (DLH) claims that, in the past, it has been willing to negotiate issues “far beyond” the union’s official responsibility. Claiming that “constructive negotiations” are now “evidently impossible,” (DLH) said future talks with the (VC) will be limited to issues within the union’s mandate. It has also frozen its pilots (FC)’s existing rights and benefits under their existing (CLA) until a new agreement is reached and is refusing to hire any new pilots (FC) under the current deal, which it claims is uncompetitive.

“(DLH) will carefully consider whether all the agreements between the company and the (VC) Group Collective Labor Agreement Committee on which notice has not yet been served, can be meaningfully maintained,” it said. “(DLH) is considering what possibilities, if any, the German Collective Bargaining Act offers to prevent further harm to the company and its customers.”

Furthermore, (DLH) said it will seek damages for the union’s April 2014 strike, which it claims cost around €60 million/$67 million. “With the strike plans outlined by the (VC) for the time between now and the end of this year, the financial damage to our company would exceed >€100,000 per pilot (FC). It is high time we sat down and found a solution here,” (DLH) Human Resources Chief, Bettina Volkens said.

News Item A-6: The Lufthansa Group has begun adding a new “distribution cost charge” of €16/$18 for bookings made through a global distribution system (GDS) as of September 1. This trend is causing a stir in the travel industry with other airlines potentially following suit and critics pushing back against the new charges.

“This is a trend that no one can avoid,” Lufthansa Group Chairman & (CEO), Carsten Spohr said at the Austrian Aviation Association Symposium in Vienna. “But it is also not easy to be the driving force [behind it], to be the first one in the industry to implement this. We are convinced as ever that offering advanced booking solutions [will also] allow us to better present our products.”

The efforts to develop and establish new “direct connect” booking channels are generating strong interest among industry partners, (DLH) said. “The market is clearly ready for innovations and developments of this kind,” Chief Commercial Officer (CCO), Jens Bischof said, conceding the realignment of our distribution “has had its share of controversy.”

For example, the Business Travel Coalition (BTC) has been hitting back hard against the (GDS) ticket surcharge. The (BTC) is urging the governments of Brussels, Germany, and the USA to investigate the (GDS) surcharge and to prevent (DLH) from imposing it until it is determined the surcharge is not anti-competitive.

“We see that travelers have different travel needs, “Spohr added. “The website is the interface between customers and the airline and this is changing rapidly. Passengers should only pay what they use from the airline.”

Lufthansa Group customers can obtain their tickets without having to pay the new surcharge by booking through member airlines’ websites, via an airline service center, or at an airport ticket desk. The group comprises Austrian Airlines (AUL), Brussels Airlines (DAT)/(EBA), Lufthansa (DLH), and Swiss International Air Lines (CSR).

News Item A-7: Lufthansa (DLH) has completed a cabin modernization program of its short- and long-haul airplanes.

Over the past three years, 106 Lufthansa (DLH) long-haul airplanes have been fitted with new business (C) and economy (Y) class cabins. Seventy-six airplanes (out of 106) have been upgraded with a new first-class (F) cabin.

The program to install the new premium economy (PY) class and will also be completed on all 106 long-haul airplanes by this fall.

“The modernization of our airplane fleets and their cabins are being well received by our customers,” Lufthansa Group Chairman & (CEO), Carsten Spohr said. “We have seen record load factors and record results for July and August. The unit revenues continue to be above the level of the second quarter.”

Spohr said (DLH) is optimistic it will compensate for the strike costs of the first three quarters and still achieve its full-year guidance of more than >€1.5 billion/$1.7 billion comfortably.

News Item A-8: Lufthansa Systems (LHS) has developed a small, portable version of its BoardConnect In-Flight Entertainment (IFE) system that gives airlines the option of bringing on a low-cost, entry-level on board entertainment system.

Italian airline, Air Dolomiti (DLA) is launch customer for the system and will start taking deliveries of the portable units later this year, Lufthansa Systems (LHS) Senior VP BoardConnect, Norbert Muller said at the (APEX) Expo in Portland, Oregon, this month.

The portable (IFE) systems weigh about two kilograms, or around 3.5 lbs, with rechargeable batteries, and can be locked to secure movie content and stored in overhead bins. One server unit can provide streaming to 50 passengers and an airline can place two or three units on an aircraft to provide coverage for a typical narrow body jet.

“This makes for an easy transition, low-risk (IFE) system for an airline that otherwise could not afford a traditional installed system. All the software is already there and it’s highly flexible,” Muller said.

Lufthansa Systems (LHS) also announced that it has entered into a strategic partnership with the National Research Council of Canada (NRC). Under the agreement, the aviation Information Technology (IT) specialist will make BoardConnect available for use in the research facility’s cabin simulator being constructed in Ottawa. At the same time, specialists from both organizations will collaborate on the further development of the (IFE) system.

The (NRC) is building a brand new cabin comfort and environment research facility designed to simulate the entire airport and aircraft environment, from check-in to cabin (including vibration, noise and (IFE)). It will assist airlines, aircraft manufacturers and other aviation industry suppliers to investigate the passengers’ travel experience and develop new technologies.

The research center will open in summer 2016; BoardConnect is expected to be installed by the end of this year.

News Item A-9: "Lufthansa to Launch New Internet Technology on European Flights" by (ATW) Kurt Hofmann, September 2015:

Lufthansa (DLH) will offer high-speed Internet access on its short- and medium-haul European flights from early summer 2016. The new technology is in partnership with Inmarsat and Deutsche Telekom, which is providing a new, combined Long-Term Evolution (LTE)-based ground and satellite network.

“(DLH) has always been a pioneer of Internet services on board its airplanes,” (DLH) Chairman & (CEO), Carsten Spohr said. “Having equipped all (106) planes in the Lufthansa (DLH) intercontinental fleet with our "FlyNet" system, we are now providing Internet on board our short- and medium-haul flights. We are therefore the first airline in Europe able to offer its guests an Internet surfing experience boasting the same quality and speed as they are used to at home.”

(DLH) operated the world’s first scheduled flight with broadband Internet access on January 15, 2003, but had to suspend wireless services between 2006 and 2010 because the necessary satellites were no longer in operation.

The new service is based on the broadband satellite technology from Inmarsat’s Global Xpress network (Ka-band). Inmarsat recently launched the third satellite in this global constellation. (DLH) will be its first aviation customer.

Lufthansa Technik (DLH) (LTK) will integrate all necessary systems and components in its Airbus A320 family fleet. Lufthansa Systems (LHS) will provide the technical infrastructure needed to establish a well-functioning, onboard Internet connection. In addition, Lufthansa Systems (LHS) and Lufthansa Technik (DLH) (LTK) are planning a long-term global partnership to be able to offer other airlines a modern onboard Information Technology (IT) platform (BoardConnect) with broadband Internet.

As a next step, (DLH) said it is also committing to a flight trial program for a new hybrid network being developed for Europe from 2017 onward. The European Aviation Network combines an S-band satellite from Inmarsat with a complementary (LTE) ground network provided by Deutsche Telekom, which will offer multi-beam pan-European coverage in all 28 European Union member states. Once the aircraft reaches 10,000 ft, Deutsche Telekom’s ground network will combine with satellite connectivity. The cabin systems will automatically manage switching between the satellite and ground, which will not impact or create interference with the onboard service.

Austrian Airlines (AUL) will install the new technology in its A320 family fleet beginning in autumn 2016.

News Item A-10: Technology specialist (WIN) is expanding its e-booking system to connect independent forwarders to 16 airlines. (WIN) already connects to over 90 airlines for electronic Air Waybill (e-AWB). The carriers available for e-bookings include British Airways (BAB), Iberia (IBE), Etihad Airways (EHD), (SAS), Singapore Airlines (SIA), Jet Airways (JPL), Swiss (CSR), American Airlines (AAL), Air France (AFA), Finnair (FIN), Korean Air (KAL), (KLM), Lufthansa (DLH), United Airlines (UAL), Emirates (EAD), and Gulf Air (GUL). The all-in-one tool includes the ability for customers to look up flight schedules, create and manage bookings in real-time, transmit (e-AWB) data, and receive full (e-AWB) tracking automatically.

October 2015: News Item A-1: The Lufthansa Group delivered a nine-month net profit of +€1.75 billion/+$ 1.97 billion, up +262.7% from +€482 million in the year-ago period. Lufthansa attributed the significant improvement to its strong summer business to the group’s passenger airlines, low oil prices, and a €500 million profit from its equity stake sale in JetBlue (JBL) in the first half.

It also identified a cost savings of -€1 billion for 2016 to remain competitive.

Lufthansa Group Chairman & (CEO), Carsten Spohr said the results “confirm we are on the right track, and that our chosen strategy is having its desired effect. But we cannot expect to fly for too long with a tailwind of low oil prices.”

Lufthansa refined its forecast for the full year to an adjusted (EBIT) of +€1.75 to +€1.95 billion. This forecast does not incorporate any strike-related costs that might be incurred between now and year-end.

Revenue rose +7.4% to € 24.3 billion, while investments declined -13.6% to €1.93 billion. Operating income was +€1.55 billion, up +62.2% from +€954 million in the prior-year period. The group’s operating cash flow stood at €3.2 billion after the first nine months, some +€1.1 billion up year-on-year.

Favorable exchange rates, as better capacity utilization, drove the positive results. “We have deliberately refrained from further growth, and currently have 25 fewer aircraft in service than we planned to have at this time back in 2012,” Spohr said.

The group generated traffic revenue of €19.4 billion, up +5% from €18.46 billion. Its nine-month adjusted (EBIT) margin amounts to 7%, some +2.6% points above previous year’s level.

“If we exclude the fuel cost and currency factors, our unit costs saw a further increase in the third quarter. And we cannot be satisfied with this trend,” (CFO), Simone Menne added.

The group saw improvement at Austrian Airlines (AUL), which reported a positive (EBIT) of +€61 million for the period, reversed from a -€4 million loss in the year-ago period. Swiss International Airlines (CSR)’s nine-month earnings rose by +€163 million to +€375 million.

Germanwings (RFG) has not just reached breakeven, but clearly exceeded its target, according to the group. “So we must continue to work hard on the competitiveness of our cost structures. And here we have already identified cost savings of around -€1 billion for 2016,” Carsten Spohr said, adding, “Our aim here is not to have to further adjust our network to our costs, but to give ourselves a competitive cost structure that will enable us to once again open up new routes and tap new markets.”

News Item A-2: Lufthansa (DLH) offers 5x-weekly, Frankfurt - Tampa Airbus A340-300 service through October 25, when 4x-weekly services begins for the winter schedule.

Lufthansa (DLH) used the first week of the W15/16 season to start four new routes from its two biggest bases (Frankfurt (FRA) and Munich (MUC)). The average sector length of these routes was 3,229 km (with the longest route being the 6,310 km Frankfurt to Nairobi (NBO) service, while the shortest was the 175 km Frankfurt to Luxembourg (LUX) hop). The latter city pair was recently dropped by the previous incumbent Luxair (LUX).

Routes:
Frankfurt (FRA) to Luxembourg (LUX) EMB-195 28x, to Nairobi (NBO), EMB-195 3x;
Munich (MUC) to Fuerteventura (FUE) A321 1x, vs TUIfly (HAP)/(HLX) 3x, SunExpress Germany (SNS) 2x, airberlin (BER) 1x, Condor (CDF) 1x, to Tenerife South (TFS) A321 1x, vs (CDF) 3x, Norwegian (NWG) 2x, (HAP)/(HLX) 2x, (ber) 2x.

News Item A-3: Lufthansa (DLH) aims to make progress on a joint venture (JV) deal with Air China (BEJ), in the making for more than a year, during Chancellor Angela Merkel's visit to China this month.

Karl Ulrich Garnadt, head of (DLH)'s passenger business, will accompany Merkel on the trip, which will include meetings with Premier Li Keqiang and President Xi Jinping.

(DLH) signed an agreement in principle on a partnership with Air China (BEJ) in July 2014, seeking to improve its position in China, the world's second-largest aviation market.

But (DLH) cautioned later in 2014 that it could take until 2016 before the joint venture (JV) is fully up and running, due to the time needed for antitrust approval.

Under the deal, the two partners plan a (JV) that will allow them to share revenue on certain routes by selling tickets for each others' flights. Such arrangements allow airlines to work together on routes and pricing, while sidestepping foreign ownership rules that keep them from merging.

(DLH) has similar agreements with United Airlines (UAL) (part of United Continental Holdings, and Air Canada (ACN), on links between Europe and North America, and with (ANA) on routes to Japan.

News Item A-4: "Lufthansa Cabin Crew Negotiations Fail, - Strike Possible" by (ATW) Kurt Hofmann, October 20, 2015.

Lufthansa (DLH)’s flight attendant (CA) union, the (UFO), has announced the latest round of talks between (DLH) and cabin crew (CA) workers have failed, and further strike actions could be possible.

The (UFO), rejecting (DLH)’s latest offer, said that elementary points such as job security were missing and negotiations “failed completely.”

The (UFO) represents around 19,000 flight attendants (CA). It said that further negotiations with (DLH) are impossible and the aim of reaching an agreement by November 1 will not occur.

According to several media reports, (DLH)’s offer, presented October 19, allows for cabin crew (CA) members to stop working, when they reach 55 years of age, but said they could receive significantly higher pensions, if they stayed on the job until the age of 65. In addition, all cabin crew (CA) would receive a one-time payment of €2,000 each, and those who had been with the company since 2012 would also get wage increases of +1.7% in 2016 and again in 2017.

(DLH) has been affected by 13 pilot (FC) strikes since April 2014. In September, a local labor court declared its latest pilots (FC)’s strike unlawful.

News Item A-5: Global mobile satellite communications services provider Inmarsat has signed a contract to provide high-speed in-flight connectivity services to Lufthansa (DLH)’s European continental fleet.

The contract, which follows the memorandum of understanding (MOU) announced between Inmarsat and Lufthansa (DLH) last month, formalizes a ten-year strategic partnership between the Lufthansa Group and Inmarsat. It also provides a framework to extend the service to other airline brands in the Group.

(DLH) announced in September it will offer high-speed Internet access for passengers onboard its short- and medium-haul European flights from early summer 2016. The new technology is in partnership with Inmarsat and Deutsche Telekom, which is providing a new, combined Long-Term Evolution (LTE)-based ground and satellite network.

Under the agreement, Inmarsat will equip more than >150 (DLH) aircraft with Global Xpress ka-band satellite service, with additional Lufthansa Group aircraft being added in due course. The first of these aircraft will be equipped and tested in early summer 2016. (DLH) will additionally be trialing the European Aviation Network in 2017.

“As part of this agreement, we will be working with Lufthansa Technik (DLH) (LTK) and Lufthansa Systems (LHS) for the integration of our services on board the aircraft,” Inmarsat Aviation President, Leo Mondale said.

(DLH) operated the world’s first scheduled flight with broadband Internet access on January 15, 2003, but had to suspend wireless services between 2006 and 2010, because the necessary satellites were no longer in operation.

(DLH) equipped all 106 planes with broadband internet connection on its intercontinental fleet.

News Item A-6: Lufthansa Systems (LHS) has entered into a strategic partnership with the National Research Council of Canada (NRC). Under the agreement, the aviation Information Technology (IT) specialist will make its BoardConnect in-flight entertainment (IFE) solution available for use in the research facility’s cabin simulator. At the same time, specialists from both organizations will collaborate on the further development of the innovative (IFE) system.

News Item A-7: Lufthansa Technik (DLH) (LTK) Maintenance International and Wizz Air (WZZ) have extended a contract for line maintenance in Romania and Slovakia. The new agreement runs for eight years from November 2015.

November 2015: News Item A-1: Lufthansa (DLH) plans to begin 5x-weekly, Frankfurt - San Jose (SJC) Airbus A340-300 service beginning April 29.

News Item A-2: "Lufthansa Cabin Crew Could Strike by Friday" by (ATW) Kurt Hofmann, November 2, 2015.

Lufthansa (DLH) cabin crew (CA), represented by the (UFO) union, has threatened a week-long strike to begin as early as November 6 after the latest round of talks failed.

(UFO), which represents 19,000 cabin crew (CA), rejected (DLH)’s latest offer. It had given (DLH) until November 1 to put a better offer on the table in long-running (December 2013) talks over pay, retirement benefits and working conditions. The ultimate date to avoid strikes would be November 5, 5 pm local time.

Last week’s negotiations were difficult from the beginning, (UFO) said on its website. Differences between both parties became much more clear and detailed during the discussion last weekend.

(DLH) said late October 31 that it submitted to (UFO) a far-reaching proposal to resolve the labor conflict. Thus, (DLH) said it reaffirms its willingness to come together with the union to find a solution. “A solution can only be achieved together at the negotiating table,” (DLH) Chief Officer Corporate Human Resources (HR) & Legal Affairs, Bettina Volkens said.

(DLH) said issues eligible for arbitration should be transferred to an arbitrator. “We have offered substantial opportunities [to the union] and [they] are by far one of the best [offers] in our industry. Therefore, (UFO)’s announcement to call for strikes so soon is incomprehensible,” Volkens said.

(DLH) has been affected by 13 pilot (FC) strikes since April 2014. In September, a local labor court declared its latest pilots (FC)’s strike unlawful.

"Lufthansa Files Injunctions to End Cabin Crew Strike" by (ATW)
Kurt Hofmann, November 10, 2015.

Lufthansa (DLH) has filed injunctions at Düsseldorf and Darmstadt labor courts to stop the unprecedented strike (which began November. 6 over pay, retirement benefits and working conditions. On November 10, a Düsseldorf court said the (UFO) is not allowed to strike in Düsseldorf on November 10.

(DLH) has also offered to go to arbitration with the (UFO) cabin crew (CA) union in an effort to end the week-long strike, which is in its fourth day, a (DLH) spokesperson confirmed.

On November 10, (DLH) canceled 136 intercontinental flights, affecting 27,300 passengers. The (UFO) plans to continue its action and called for a nonstop strike from November 11, from 4 am until Friday, November 13 at midnight 12 pm.

The strike will affect all (DLH) fleets based in Munich, Düsseldorf, and Frankfurt.

Lufthansa Group subsidiaries Germanwings (RFG), Eurowings (EWG), Lufthansa CityLine, Swiss International Air Lines (CSR), Austrian Airlines (AUL), Air Dolomiti (DLA) and Brussels Airlines (DAT)/(EBA) are not part of the strike action.

The (UFO) called for the strike after long-running (December 2013) talks failed last week.

On Monday evening, November 9, (DLH) said it made the flight attendants (CA) a better offer. According to a (DLH) statement, it is ready to begin negotiations immediately on all further issues, including mediation. “Improving our offer again is a difficult step for us” Lufthansa German Airlines (DLH) (CEO), Karl Ulrich Garnadt said. “It is clear to us, that with this new concession, the urgent and necessary improvements in our cost and competitive position cannot be reached, and the gap between us and our relevant competitors will get larger.” Garnadt said, “After this improved offer for all 19,000 flight attendants (CA), we now expect a clear signal from the (UFO). We are calling on the union to end the strike immediately.”

Under the circumstances, (DLH)’s board of directors has unanimously decided to re-evaluate capacity development and routes for 2016 forward. In view of the as-yet-unsolved structural cost problems, (DLH)’s low-yielding routes (especially to Asia, Africa and South America) will be subject to review.

A source from the (DLH) management said recently that if the flight attendant (CA) and pilot (FC) disputes continue, (DLH) will be forced to enact a “Plan B,” which will mean (DLH) must reduce its network permanently step-by-step over the next years and transfer more business to other partner airlines.

Lufthansa (DLH) was forced to cancel approximately 4,700 flights due to this week’s cabin crew (CA) strike, after two German labor courts denied a request to end the action. (DLH) said 550,000 passengers were affected during the week-long strike, the longest strike in the carrier’s history.

On Friday, November 13, the last day of the strike, Lufthansa (DLH) canceled 941 out of 3,000 flights. According to Lufthansa, 111,000 passengers were affected on Friday.

(UFO) union head, Nicoley Baublies said further strikes could be possible at any time over pay, retirement benefits and working conditions. (UFO) represents 19,000 (DLH) cabin crew (CA).

(DLH)’s operations are expected to return to nearly normal by November 14, when all scheduled long-haul connections will be able to operate. Long-haul connections from Frankfurt to Hong Kong, Singapore, Rio de Janeiro, and Sao Paolo, which were scheduled to take off late Friday evening, will be delayed until Saturday morning. Short- and medium-haul flights should also return to nearly normal on November 14.

News Item A-3: "Lufthansa (DLH) Management Invites Unions to Discuss Unresolved Issues" by (ATW) Kurt Hofmann, November 20, 2015.

Lufthansa (DLH) management has invited all three unions representing its staff to a round table discussion on December 2 to talk about retirement and pension schemes. It will also discuss job prospects at (DLH).

The three (DLH) unions: — ((UFO), which represents cabin crew (CA); Verdi, which represents ground staff (MT); and pilot (FC) union, Vereinigung Cockpit (VC)) have been having ongoing negotiations over unresolved issues focused on growth, cost control and the Eurowings (EWG) project, resulting in costly strikes for the company.

The Lufthansa Group board said it is confident an agreement can be reached concerning the company’s growth perspective, when all unions accept competitive cost structures. The company is trying to introduce newly defined contribution pension schemes, restructuring an old program that allows crews to retire at age 55.

“Growth within Lufthansa Classic [mainline] can only happen if a solution with the unions of flight crews (FC) can be found. Otherwise, we don’t have in our core-brand Lufthansa (DLH) a cost structure that allows growth opportunities for the future,” Lufthansa Passenger Airlines (DLH) (CEO), Karl Ulrich Garnadt said.

Lufthansa (DLH) is trying to cut costs to better compete with low-cost European and Gulf carriers, as well as North American and Far Eastern carriers on long-haul routes. It is pushing the expansion of low-cost subsidiary Eurowings (EWG). “We have three very strong brands in the Group: —(Lufthansa (DLH), Austrian Airlines (AUL), and Swiss International Air Lines (CSR). These carriers remain as premium airlines and are focusing on becoming No 1 as hub-business carriers,” according to Garnadt.

However, growth in today’s European airline business is happening in other areas as well. “95% of all business in Europe is focused on point-to-point connections,” he said. “Lufthansa (DLH) has not had the right instrument so far to be part of that business. With Eurowings (EWG), we are entering into a new area at a time when Lufthansa (DLH) is undergoing a fundamental change.”

Garnadt explained the need to grow a low-cost carrier (LCC) unit within the Lufthansa Group. “50% of all passengers [in Europe] can decide on the price [they will pay on which airline they choose]. We, as a group, have not had the right answer for that, especially with our old cost structure it was impossible to compete against it. The answer is Eurowings (EWG), especially when the total market share of (LCC)s in Europe (like Vueling (VUZ), Wizz Air (WZZ), and others) will grow to 50%,” he said.

Recently, Lufthansa (DLH) was forced to cancel 4,700 flights due to a week-long cabin crew (CA) strike, after two German labor courts denied a request to end the action, costing the company tens of millions of euros, and damaging the image of the carrier dramatically. Lufthansa (DLH) said 550,000 passengers were affected during the week-long strike, the longest strike in (DLH)’s history.

(UFO) union Head, Nicoley Baublies said further strikes could be possible at any time over pay, retirement benefits and working conditions. The (UFO) represents 19,000 (DLH) cabin crew (CA).

On September 9, 2015, a court ruling ended a two-day, pilot (FC) strike called by the (VC) union.

News Item A-4: Lufthansa cabin crew (CA), represented by the (UFO) union, threatened to hold yet another strike on November 26 - 27, on the heels of a week-long strike earlier this month. The (UFO), which represents 19,000 cabin crew (CA), said it was ready to call yet another strike November 30, if necessary.

Earlier this month, an unprecedented week-long strike resulted in the cancellation of 4,700 flights and affected 550,000 passengers, as the long-running dispute over pay retirement, benefits and working conditions continued.

On November 20, Lufthansa (DLHY) management said it invited all three unions representing its staff to a round table discussion December 2 to talk about retirement and pension schemes as it tries to cut costs to better compete with low-cost European and Gulf carriers, as well as North American and Far Eastern carriers on long-haul routes. It is also pushing the expansion of its low-cost carrier (LCC) subsidiary, Eurowings.

No details had been made available on which flights would be affected by the strikes, which made planning and preparations for an emergency schedule even more difficult, (DLH) said.

According to the (UFO), it wants to avoid strikes during December so “our passengers and colleagues can secure their planning for December.” It also added that if no solution is found with (DLH), further strikes can be expected by year-end.

However, at very late notice, Lufthansa (DLH)’s Independent Flight Attendant’s Organization (UFO) lifted this particular threat of yet another bout of industrial action.

It has agreed with management at (DLH), the German flag carrier to call off strikes due to take place November 26 - 27 and November 30 after progress was made in talks with the company. Cabin crew (CA) have only just ended a week-long strike that brought considerable disruption to Lufthansa (DLH)’s schedules.

(UFO) has agreed to forgo strikes until at least December 2, when an employment summit will take place.

Lufthansa (DLH) has been plagued with industrial disputes involving cabin crew (CA), pilots (FC) and ground staff (MT), and has invited representatives of all three staff groups to the December 2 round table discussion to discuss the thorny problems of retirement and pension schemes.

(DLH) is trying to reduce its costs so it can compete more effectively with European low-cost carriers (LCC)s and the Persian Gulf full-service airlines, as well as North American and Far Eastern carriers on long-haul routes.

News Item A-5: "Lufthansa (DLH) Sells 13% Stake in Luxair (LUX) to Luxembourg Government" by (ATW) Kurt Hofmann, November 16, 2015.

The Luxembourg government has acquired Lufthansa (DLH)’s 13% stake in national carrier Luxair (LUX). “The deal was completed November 6. To our understanding, the government will take these shares temporarily.”

The Luxembourg government said the shareholding will be placed on the market, when all regulatory requirements have been met, according to several media reports.

In 1992, (DLH) bought a 13% stake in (LUX), in which the Luxembourg government holds 39%, along with several banks including Banque Internationale à Luxembourg.

The LuxairGroup, parent of Luxair (LUX), reported a 2014 net profit of +€9.7 million/+$11.8 million, a more than fivefold increase compared to the year-ago period.

(LUX) operates three Boeing 737-800s, three 737-700s, seven Bombardier DHC-8-Q400s and five Embraer EMB-145s. It has six Bombardier DHC-8-Q400 NextGen aircraft, plus three orders. The first two aircraft should be delivered by the end of 2016. From 2018 to 2020, (LUX) plans to evaluate a new generation of midsize jets with reduced passenger-seat costs, it said.

News Item A-6: "EasyJet (EZY) (CEO): Lufthansa (DLH) Partnership Not a Top Priority" by (ATW) Victoria Moores, November 20, 2015.

EasyJet (EZY) (CEO), Carolyn McCall has acknowledged an approach from Lufthansa (DLH) about a potential partnership, which she believes will be one of many.

In September, Lufthansa Group Chairman & (CEO), Carsten Spohr said Eurowings (EWG) and easyJet (EZY) could potentially become partners, consolidating the European short-haul market.

However, speaking at the release of (EZY)’s full-year results, McCall did not place much emphasis on the discussions. “This is not top of our list at the moment, but I think you will see more conversations like this, because low-cost carriers (LCC)s are driving profitability here in Europe. Low fares will always win on short-haul European routes, so I expect legacy carriers to do more on their efficiency and that the legacy carriers will be talking to all the low-fare carriers (LCC)s,” she said.

News Item A-7: GoAir (GOZ) has substantially expanded its relationship with Lufthansa Technik (DLH) (LTK), adding 18 (CFM56-5B) overhaul events to the prior 16 events.

News Item A-8: China Southern Airlines (GUN) plans its flights with Lufthansa Systems (LHS)’ Lido/Flight. (GUN) has been a Lufthansa Systems customer since 2007 and is also using the NetLine/Plan and NetLine/Sched solutions from the airline Information Technology (IT) specialist for its medium- and short-range flight planning.

A380-841 (177, D-AIMN "Deutschland"), delivery.

December 2015: News Item A-1: "Lufthansa (DLH), Ground Staff Sign Labor Agreement" by (ATW) Kurt Hofmann, December 3, 2015.

Lufthansa (DLH) and German trade union Verdi have signed a collective labor agreement on pay increases for about 30,000 staff from Lufthansa (DLH), Lufthansa Cargo (LUB), Lufthansa Technik (DLH) (LTK) and (LSG) Sky Chefs. The agreement is effective through the end of 2017.

The comprehensive labor package also included a new corporate pension scheme.

From April 2015 through December 2015, the two parties agreed to a one-off payment of €2,250/$2,386. Apprentices will receive a one-off payment of €600. In 2016 and 2017, the remuneration for employees and apprentices will increase by +2.2% on January 1 of each year.

As of January 1, 2016, newly recruited staff will receive an employer contribution amounting to 5.2% of their salary; in addition, employees will contribute a co-payment of 1%.

“In cooperation with Verdi, we succeeded in agreeing on a comprehensive collective labor agreement package for our biggest staff group, which represents a fair compromise between the interests of the employees and the necessity to enter into more competitive cost structures,” said Bettina Volkens, Deutsche Lufthansa AG (DLH) Executive Board Member & (CCO) Human Resources (HR) & Legal Affairs.

The bargaining parties have agreed to a cooling-off period.

(DLH), which invited all three unions representing its staff: (UFO), which represents cabin crew (CA); Verdi, which represents ground staff (MT); and pilot union Vereinigung Cockpit (FC) to a December 2 round table discussion, said negotiations were completed “in a constructive atmosphere.”

All involved parties realized that working together is a must, but also trust in each other and communication must be improved. In addition, all participants agreed that discussions will stay private and not be released to the public. As a result, it was agreed not to disclose further details about the meeting to support the process of further discussions.

(DLH) has been plagued with industrial disputes involving a week-long cabin crew (CA) strike, 13 pilot (FC) strikes as well as industrial action involving ground staff.

Lufthansa Group (CEO), Carsten Spohr said that 30 days of strikes over the past 24 months have cost (DLH) -€500 million/-$543 million.

News Item A-2: "The Lufthansa Group is to Centralize Flight Operations in Vienna" by (ATW) Kurt Hofmann, December 8, 2015.

The Lufthansa Group, which is aiming to reduce overall management positions by -15%, has assigned Austrian Airlines (AUL) (CEO), Kay Kratky to take over responsibility for Lufthansa Group’s Flight Operations in Vienna, as of January 1, 2016.

The move is part of Lufthansa (DLH)’s new organizational structure to reduce the current four management levels below the group’s executive board to three.

Kratky will act as process domain owner and (CEO)/(COO) of Austrian Airlines (AUL), including flight operations processes, safety, training, ops standards and ops control.

“This includes Lufthansa Passenger Airline (DLH), Swiss International Air Lines (CSR) and Austrian (AULO). The number of aircraft under Kratky’s responsibility will be around 490,” (DLH) spokesperson Andreas Bartels said on the sidelines of the Star (SAL) Alliance (CEO) meeting in Chicago.

The Lufthansa Group expects the new structure to harmonize and streamline Flight Operations.

“This decision outlines once again that Vienna and Austrian Airlines (AUL) play an important part of the entire Lufthansa Group,” Bartels added.

In September, (DLH) announced (AUL) (CCO), Andreas Otto will assume commercial responsibility for the Vienna Hub and take over responsibility for product management of Lufthansa (DLH)’s hub carrier.

The Lufthansa Group has approved a reorganization plan to enable member airlines and service companies to align their structures and processes. The realignment also aims to raise the group’s overall efficiency, reduce complexity and enable faster decision-making. The group expects the reorganization to eventually add +€500 million/+$65.3 million a year to its earnings results.

News Item A-3: The Thomas Cook Group (JMA)/(GUE) is considering teaming up with Deutsche Lufthansa (DLH) as (DLH) expands its Eurowings (EWG) discount operation into long-haul flights.

News Item A-4: "Lufthansa, Fraport & (DFS) Test Drone Technology at Frankfurt Airport" by (ATW) Kurt Hofmann, December 18, 2015.

In a test of remote-controlled camera drone technology, Lufthansa Aerial Services (LAS), Fraport airport operator and Deutsche Flugsicherung (DFS) gathered initial operational experience for the potential use of drones at Frankfurt Airport.

Test flights were carried out during a two-hour time frame in the area of the north runway of Frankfurt airport in early December. The area was temporarily not in use for operational air traffic, while the test flights were being conducted.

(LAS) is a project currently being expanded with the help of Lufthansa Consulting, with the aim of establishing itself on the market as a commercial operator of unmanned aircraft for large infrastructure clients, a dynamically growing market.

For Fraport, the possible use of drone technology to check the runways and taxiways for unauthorized foreign objects, instead of by automotive means, is of great interest. In addition, drones could be deployed for the surveying of airport topography.

(LAS) said possible areas of deployment include inspection, measurement and surveillance, as well as the corresponding data processing of various infrastructure facilities and equipment.

(DFS) has been active in research projects relating to drone technology since 2006. These projects include, for example, the establishment of safe air-space corridors to be used by unmanned aviation systems. This recent test investigated the extent to which the drone, equipped with a transponder, is visible on air and surface movement guidance systems, to help ensure its safe integration with air traffic.

(LAS), (DFS) and Fraport are analyzing the results of the successful test run. The next test phase will expand upon these results; further tests should provide insight for the development of market-capable solutions and areas of application for implementation in sensitive airport environments.

News Item A-5: Lufthansa Systems Lido/Flight planning system is being used by 100 airlines. The Information Technology (IT) specialist is also working on the new generation of the solution, Lido/Flight 4D.

News Item A-6: "Lufthansa (DLH), not Qatar Airways (QTA), to be Airbus A320neo Launch Operator" by (ATW) Jens Flottau, December 9, 2015.

Airbus (EDS)is making a last-minute swap and now plans to deliver the first Airbus A320neo to Lufthansa (DLH), not to Qatar Airways (QTA).

According to industry sources, the change was made because of operational restrictions that are still in place for the Pratt & Whitney (PRW) (PW1100G) engine, pending some hardware and software changes. (PRW) is working on hardware changes to the bearing of the engine shaft and a software update. Until those changes are made, the engine has to run in idle for 3 minutes following startup. The aircraft cannot taxi under its own power until the 3 minutes have elapsed.

Qatar Airways (QTA) has told Airbus (EDS) that it is not prepared to take the aircraft under these circumstances, and will not do so until the restrictions are lifted. Changes are expected to be implemented within a matter of weeks.

Lufthansa Group (CEO), Carsten Spohr confirmed that (DLH) has agreed, in principle, to take the first A320neo. Some regulatory issues have to be sorted out and (DLH) expects to be financially compensated for the operational restrictions that are in place for now. The negotiations could, therefore, still fail. However, if the two sides come to an agreement, the first A320neo is now expected to be delivered to (DLH) from Hamburg-Finkenwerder on December 22, which would enable (EDS) to stick to its target of delivering the first aircraft before the end of the year.

(DLH) plans to introduce the first A320neo into revenue service on January 6. Because of the limitations to the engine, it plans to deploy it on the Frankfurt - Hamburg route initially (it has large maintenance bases on both ends of it. (DLH) plans to take five A320neos in 2016).

Qatar Airways (QTA) is now planned to become the second A320neo operator, followed by Indian low-cost carrier Indigo (IGO).

(DLH) has ordered 101 A320neo-family aircraft. (QTA) has ordered a combined 50 A320neos and A321neos. Indigo (IGO) is the largest single customer for the aircraft, with orders for 430 aircraft.

While Pratt & Whitney (PRW) did not address the specific engine issues directly, it says both it and (EDS) “are working very closely with (QTA). We are excited that (QTA) selected the Geared Turbofan engine to power their A320neo aircraft and we appreciate their business. Along with Airbus (EDS), we are continuing to work with early customers on the first delivery of the aircraft. The team is on track to deliver the first A320neo this year.”

(PRW) added that “our engines and the aircraft are certified and are ready for delivery to customers this year. Our (GTF) engine’s technology is meeting or exceeding performance requirements on fuel burn, noise and emissions and is ready to enter service at this time.” The three (PW1100G)-powered A320neo flight-test aircraft accumulated over 1,070 flight hours in more than >350 flights prior to aircraft certification.

The (PW1100G)-powered A320neo was certified close to schedule at the end of November, despite a number of engine-related issues during the flight-test program. Following the start of flight tests in September 2014, the first known issue developed in April 2015, following a bird strike on the first aircraft, (MSN6101). Post-incident inspections unearthed a problem with a seal-retaining snap ring component buried so deep in the core that it required engine removal and replacement. The aircraft was subsequently grounded for four months, and only resumed flights in September.

The second test-aircraft, (MSN6286), meanwhile joined the program in March 2015 but was also grounded through May, June and the majority of July, while the same engine issue was corrected. Despite the recent certification, the second aircraft continues to fly, most recently conducting test and training missions around northern and western France. A third test aircraft (which was largely dedicated to building up hours on simulated airline-type operations) is also continuing to fly. Through early December, it has been flying medium-range flights from France to Spain and Finland.

Additional issues hit the (PW1100G) in October, when the first (PRW)-powered aircraft was completing hot-weather tests in Al Ain in the United Arab Emirates (UAE). Although the aircraft performed well during the tests, (PRW) made the decision to remove one of the engines as a precautionary move, after borescope inspections showed evidence of minor rubbing between the blades of the high-pressure compressor and the compressor wall. The aircraft diverted to Sharm el-Sheikh in Egypt, and remained there for 11 days, while a new engine was fitted. This aircraft also continues in test and is currently conducting high altitude takeoff and landing performance work in El Alto, Bolivia.

News Item A-7: "First A320neo Delivery Postponed to 2016" by (ATW) Editor Karen Walker, December 30, 2015.

First delivery of the Airbus A320neo has been postponed until 2016 because of documentation issues. The delay means the neo misses a long-planned delivery target of late 2015.

As recently as last week, Airbus (EDS) and launch customer, Lufthansa (DLH) insisted the first delivery of the re-engined, more efficient narrow body would take place at the end of this year. But on December 30, both issued statements confirming the delivery date had slipped to January.

A Pratt & Whitney (PRW) spokesperson said the (PW1100G) geared turbofan engine was “ready to enter service and meeting or exceeding all performance requirements” and that the reason for the postponement was “primarily a documentation issue.”

An Airbus (EDS) spokesperson said all three partners “continue working with all efforts and full focus towards bringing the fuel-efficient A320neo into service within the next weeks.” He added that “some more documentation items need to be addressed by Pratt & Whitney (PRW) and by (EDS) in its role as the overall manufacturer of the aircraft” and the priority was to deliver “a service-ready A320neo from day one.”

A (DLH) spokesperson said in an email: “(DLH) and (EDS) have come to the joint agreement to postpone the delivery of the first (DLH) A320neo to the beginning of 2016 due to greater technical complexity that is part of the handover. We are confident that we will have a flawless delivery of the aircraft in January 2016.”

In early October, the first (PW1100G)-powered A320neo suffered minor damage during an incident during hot-weather testing in the Middle East. Airbus (EDS) (CEO), Fabrice Brégier later said the engine incident was not technical and was more about the life of the engine. However, after that incident, there was a switch of launch customer from Qatar Airways (QTA) to (DLH).

The (EDS) spokesperson said that (DLH) would remain the launch customer and that everyone was confident that the delivery would take place in one to five weeks. “We were just a little ambitious with the documentation and the paper work that needs to be closed, given this is also the holiday season,” he said.

Asked if this would be a compensation issue, he said “of course there are negotiations, but those are commercial talks and they are not in public.”

There is a choice of engines for the neo, with the new (CFM) International (LEAP) being the other option. The (PW1100G)-powered neo and the (LEAP-1A), the variant for the neo, were each (EASA) and (FAA) certified in November.

More than >4,400 orders have been logged for the neo, which Airbus (EDS) said will deliver -15% fuel-savings over the A320ceo and -20% by 2020. It competes with the re-engined Boeing 737 MAX, which is sole-sourced powered by the (CFM) (LEAP-1B).

News Item A-8: "Lufthansa (DLH) Lashes Out at Gulf Carriers" by (ATW)
Alan Dron, December 23, 2015.

German flag carrier, Lufthansa (DLH) has taken another swipe at the “Big Three” Gulf carriers, warning that Europe’s civil aviation infrastructure risks being damaged by the Arabian airlines.

(DLH) (which has said its business has also been damaged by the Gulf carriers) has been a persistent critic of Emirates Airline (EAD), Etihad Airways (EHD), and Qatar Airways (QTA)) arguing they are heavily subsidized by their respective governments, charges that all three carriers deny.

In a briefing document in which it sets out the importance of passenger and cargo air services to the German economy, (DLH) notes that airlines in Germany employ nearly 325,000 people and pay taxes and social insurance benefits of €23 billion/$25 billion annually.

It adds that, although air cargo is responsible for 2% of exports by volume, they constitute 30% of exports by value. Other airlines in the Lufthansa Group: Austrian Airlines (AUL), Swiss International Air Lines (CSR), and Brussels Airlines (DAT)/(EBA), also play significant roles in their respective nations’ economies, it notes.

“Airlines like Lufthansa Cargo (LUB) (with their experience, their network, and commitment to location) are decisive partners for Germany’s globally active industrial enterprises.”

However, it says: “It is becoming ever more apparent that these structures are being massively undermined Europe-wide by the mega hubs along the Persian Gulf.”

On the tourism front, it notes that over the past 20 years, the number of tourists from China and Hong Kong has risen by a factor of +7, to 2 million annually.

“Germany and the Lufthansa Group together will participate in this growth if better access to infrastructure is created in the Asian source markets and direct flights to Asia are not inhibited by the highly government-supported carrier Emirates (EAD).”

All three major Gulf carriers are expanding rapidly, deploying their fast-increasing fleets ever more widely overseas.

It is “absolutely necessary to pursue an aviation policy that enforces fair competition more than it has up to now,” Lufthansa (DLH) said, adding that European politicians can also help even the playing field against non-European competitors by not “saddling them with additional levies and regulations.”

The European Commission (EC) unveiled its new aviation strategy earlier this month. While not directly commenting on competition from Arab carriers, it said it was considering “new measures to address unfair practices” from third countries.

News Item A-9: "Lufthansa Technik (DLH) (LTK) to Provide Technical Component Support (TCS) for SWISS (CSR) 777 Fleet"
by Avionics Today, Juliet Van Wagenen, December 28, 2015.

Swiss International Air Lines (SWISS) (CSR) has contracted Lufthansa Technik (DLH) (LTK) to provide component support for its future Boeing 777 long-haul fleet. The corresponding Total Component Support (TCS) contract will run for a period of 10 years and includes nine 777s.

Lufthansa Technik (DLH) (LTK) is currently working on preparations for supplying components for SWISS (CSR), which includes the basic stocking of the home base with spare parts at the airline's base airport in Zurich, Switzerland. The start date for supply is January 1, 2016.

January 2016: News Item A-1: The Lufthansa Group will hire more than >4,000 workers in 2016, which includes nearly 2,800 flight attendants (CA), 240 pilots (FC) and 150 service staff (MT) at Munich Airport.

According to the Lufthansa Group, it will focus on hiring 1,400 (CA) flight attendants for Lufthansa (800 in Frankfurt and 600 in Munich); 800 for Swiss International Air Lines (CSR) in Zurich; 360 for Eurowings (EWG) in Vienna, Dusseldorf and Hamburg; 200 for Austrian Airlines (AUL) in Vienna; and 30 for Lufthansa CityLine in Munich.

More cabin crews (CA) are needed as it introduces its first Airbus A350-900 into service this year. Lufthansa (DLH) has 25 A350-900s, plus 30 options, on order. Two A350-900s are expected to be delivered in 2016, with five more due to arrive one year later. The Lufthansa Group will base its first A350-900 at its second major hub in Munich from 2016.

The Lufthansa Group is also hiring 240 pilots (FC), of which 140 will be for Eurowings (EWG) in Austria and Germany and 100 for Austrian Airlines (AUL). Further pilots (FC) are needed for SunExpress (SNS) in Germany. This joint subsidiary of Lufthansa (DLH) and Turkish Airlines (THY) operates long-haul flights on behalf of Eurowings (EWG).

The Lufthansa Group said it will also offer further vacancies and apprentices this year.

News Item A-2: "Lufthansa (DLH), (UFO) Union Sign Arbitration Agreement" by (ATW) Kurt Hofmann, January 22, 2016.

Lufthansa (DLH) and the Independent Flight Attendants (CA)’s Organization (UFO) have agreed on arbitration talks, which will continue until June 30, 2016. During this period, “industrial peace will be obligatory,” (DLH) said.

Prior to the arbitration, the social partners had already agreed on a new collective wage settlement as well as a new agreement for the future pensions and transitional benefits of (DLH) cabin (CA) staff.

The collective wage agreement will be valid until September 30, 2016. For 2015, 19,000 cabin (CA) staff will receive a single payment of €3,000/$3,263. As of January 1, 2016, wages have been increased +2.2%.

(DLH) said agreements have already been signed regarding the future pensions and transitional benefits. Details that are still in dispute must be negotiated by February 15, 2016. Should no agreement be reached on these details, the pending issues will be brought to arbitration. “In parallel to the arbitration, pending issues will be discussed which do not form part of the arbitration, such as the conditions under which cabin staff within the Lufthansa Group may switch to another airline in Germany,” (DLH) said.

Talks have also begun between the management of Eurowings (EWG) and (UFO) regarding work conditions in the low-cost segment.

In 2015, (DLH) has been plagued with industrial disputes involving cabin crew (CA), pilots (FC) and ground staff (MT).

According to (DLH), 30 days of strikes in 2014 and 2015 have cost (DLH) -€500 million.

News Item A-3: "Lufthansa (DLH) to Increase e-journal Options" by (ATW) Jeremy Torr, January 15, 2016.

Lufthansa (DLH) is to expand its in-flight entertainment options with a new e-journal download service at the end of January. The new offering allows passengers to access and download from a digital library direct to their phones, tablets and readers.

The eJournal service enables passengers to log on to a dedicated website using their name and reservation code prior to departure, and then download up to two e-publications into their device, free of charge.

The service has been available in first (F) and business (C) lounges at selected airports since 2015, but has now been extended to all passengers using (DLH) airplanes.

(DLH) says the benefits extend beyond convenience to passengers who no longer need to wait for a specific publication to be made available. It said that digitizing a wide range of in-flight newspapers and magazines enables a broader selection of on board reading material in more languages, and also saves paper, ink and overall takeoff weight, enabling more efficient aircraft operations.

(DLH) said that from March it will expand the system to offer more variety and download options, although some classes of travel would be required to pay an extra fee for more than two downloads.

The move comes on the heels of an industry-wide push to digital in-flight offerings, and (DLH)’s September 2015 agreement with Global mobile satellite communications services provider Inmarsat to offer high-speed in-flight Wi-Fi broadband access on some 180 Airbus A320 aircraft from mid-2016.

News Item A-4: "Lufthansa (DLH) to Develop Commercial Applications for Drone Technology," by (ATW) Kurt Hofmann, January 28, 2016.

Lufthansa Aerial Services (LAS) has signed an agreement with Chinese drone manufacturer, (DJI) to develop commercial applications for unmanned aerial vehicle (UAV), or drone technology, for key customers.

Using (DJI) drones and open on board systems, (DLH) will integrate hardware and software, manage technology operations, and facilitate data analysis.

The growing civil drone market includes a variety of commercial applications, such as infrastructure inspection, and measuring and monitoring purposes. For example, (LAS) recently completed a pilot project with a wind-turbine manufacturer, using (DJI) equipment to inspect rotor blades on wind turbines.

(LAS), a division of Lufthansa Consulting, is also involved in aviation industry projects at and around airports, as demonstrated through tests with Fraport and (DFS) at Frankfurt Airport last December. In a test of remote-controlled camera drone technology, (LAS), Fraport and (DFS) gathered initial operational experience for the potential use of drones at Frankfurt.

(LAS) is also carrying out joint inspections of (DLH) aircraft surfaces with sister company Lufthansa Technik (DLH) (LTK).

“(DLH) will also offer clients a one-stop (UAV)-shop,” Lufthansa Consulting Managing Director, Andreas Jahnke said. This includes everything from application consulting and drone operation with data analysis, to training and certification of drone pilots at Lufthansa Flight Training, including providing drone insurance solutions.

News Item A-5: Lufthansa Technik (DLH) (LTK) has contracted with Swiss International Air Lines (CSR) to provide component support for its future nine Boeing 777s. The Total Component Support contract will run for 10 years, from January 1, 2016. Also, (DLH) (LTK) appointed Constanze Hufenbecher to its executive board with responsibility for finance for three years, beginning February 1, 2016. She succeeds Peter Jansen, who stepped down December 31, 2015. She is formerly (CFO) of (BE) Printers & Prinovis Ltd & Co KG, Hamburg.

News Item A-6: Lufthansa Technik (DLH) (LTK) and Philippine Airlines (PAL) have signed a five-year Total Component Maintenance contract for Airbus A320s and A340s and, after 2016, A320s. (DLH) (LTK) will support (PAL) in Manila, while Maintenance Repair & Overhaul (MRO) will be done in Hamburg and Shenzhen, China.

News Item A-7: The Lufthansa Group will take delivery of 52 new aircraft in 2016, marking the highest number of new aircraft in one year in the company’s history, Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said.

February 2016: News Item A-1: "Carsten Spohr: Lufthansa’s Biofuel Projects Continue Despite Low Fuel Prices" by Kurt Hofmann (ATW) Plus, February 2, 2016.

Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said he expects to further develop biofuel projects despite low fuel prices. “Biofuel is a long-term, strategical topic and not only for a two-year period or so,” he said. “We don’t talk about biofuel every six months to the public, but it is a goal for Lufthansa (DLH) to continue developing biofuel solutions. This has nothing to do with current low oil prices.”

News Item A-2: Lufthansa Technik (DLH) (LTK) will overhaul the landing gear of Emirates Airline (EAD’s 13 Boeing 777-200ER/-300s under a five-year agreement. Work will be performed by Lufthansa Technik Landing Gear services UK.

In addition, (DLH) (LTK) will provide comprehensive technical support for Eurowings (EWG)’s new long-haul fleet, operated by SunExpress (SNS). Under Total Technical Support, Lufthansa Technic will handle component supply, aircraft maintenance, engineering services, wheels & brakes, and consumables for up to seven Airbus A330-200s.

(DLH) (LTK) has developed another smart solution to avoid unscheduled maintenance. Its Logo Light Protector avoids damage that can occur while removing a logo light located in the horizontal stabilizer of a 777. Until now, there is a damage risk in removing the sealant around the cover of the logo light. (DLH) (LTK) developed a metal ring to be installed in and around the logo light cut-out. (DLH) (LTK) is also establishing a new facility, Lufthansa Technik Middle East (LTME), in the Aviation District at Dubai South. (LTME) will have both workshops and offices, repairing flaps, radomes, reversers and inlet cowls, and providing Aircraft-On-Ground support.

Finally, Lufthansa Technik has named Rubin Siddique (CEO) of Lufthansa Technical Training.

News Item A-3: Lufthansa Systems (LHS) enhanced its mCabin crew app for Windows 10, allowing it to be used on Microsoft’s new Universal Windows Platform (UWP), which enables software providers to create apps that run on all of these devices. With in-flight connectivity, the flight crew (FC) can also promptly communicate important information directly to Flight Operations and upload ground data into the app.

News Item A-4: "Lufthansa Takes Second A320neo; First A320neo Eengine Issues to Resolve by April" by (ATW) Kurt Hofmann, February 12, 2016.

Lufthansa (DLH) has taken delivery of its second Airbus A320neo in Hamburg. Its first A320neo, which was delivered January 20 with Pratt & Whitney (PRW)’s (PW1100G) engines, will keep operating on domestic routes within Germany until its engine issues are resolved, according to (DLH) Chairman & (CEO), Carsten Spohr.

The first A320neo delivery in January followed a delay from the re-engined narrow body’s planned end-of-2015 delivery schedule. The engine was certified in November, but in December Qatar Airways (QTA) stepped back as the planned first operator due to the engine restrictions.

(PRW) is working on hardware changes and a software update for the (PW1100G). Until those changes are made, the engine has to idle for three minutes following start up before it can taxi under its own power. “It is really a software issue and I expect by April, most of this will be done,” (PRW) President, Robert Leduc said.

“The A320neo is within an introduction mode, operating a reduced flight plan due to teething issues. There have been four flight cancellations [since beginning scheduled services],” Spohr said. “As soon we have the issues resolved, the aircraft will fly all over the network.”

Lufthansa Technik (DLH) (LTK) has laid out all technical, operational and personnel foundations for complete technical support of the A320neo. In the first step, employees at the Frankfurt hub were trained in Hamburg and Munich and equipped with the necessary resources.

Spohr confirmed (DLH) will add five A320neos to its fleet this year.

The Lufthansa Group has ordered 116 A320neos and A321neos. Sixty aircraft will be delivered with the new (PW1100G-JM) engine from (PRW). “That’s good for our balance sheet, because fuel prices will not stay at low levels forever,” Spohr said.

Airbus (EDS) (CEO), Fabrice Brégier said at the delivery ceremony: “This is the start of a long journey to make sure operational performance and reliability increase [for the A320neo], to improve a few technical issues, not major ones.” The A320neo is slated to deliver -15% fuel-savings over the A320ceo, increasing to -20% by 2020.

Brégier said the first A321neo will be delivered later this year. He confirmed that India’s IndiGo (IGO) will be the next customer to take delivery of the A320neo. Qatar Airways (QTA) is now slated to become at least the third A320neo operator.

Spohr detailed the company’s largest fleet renewal program, as it adds 52 new aircraft within one year. “Each one third for the 52 aircraft is dedicated for Swiss International Air Lines (SWISS) (CSR), Lufthansa (DLH) and Eurowings (EWG). That means 10% of our group fleet will be replaced new aircraft.”

The Lufthansa Group will add four new aircraft types in 2016. In addition to the A320neo and A350 XWB for Lufthansa (DLH) mainline, the Bombardier CSeries and Boeing 777-300ER will be delivered to SWISS (CSR).

News Item A-5: Lufthansa (DLH) will base the first of 10 Airbus A350-900s at its second major hub in Munich from January 2017. Delhi and Boston are expected to be the first destinations.

“This goes hand-in-hand with the opening of our terminal extension, the new satellite facility at Munich Airport,” Executive Board Chairman & (CEO), Carsten Spohr said recently.

The Terminal 2 expansion project started in April 2012. The €650 million/$856.8 million investment will be shared 60:40 between airport owners (FMG) and Lufthansa (DLH).

“The new satellite facility will be commissioned on April 26, 2016,” (FMG) (CEO) Michael Kerkloh confirmed. The additional handling capacity for a total of 11 million passengers per year will boost the overall capacity of Terminal 2 to 36 million.

(DLH), the Star (SAL) Alliance member has ordered 25 Rolls-Royce (RRC) (Trent) powered Airbus A350-900 aircraft, valued at $310 million each at list prices, that will gradually replace its A340-600 fleet. It has not yet decided which routes the remaining 15 aircraft will serve.

(DLH)’s A350 will accommodate 293 passengers: 48C in business class, 21PY in premium economy and 224Y in economy class.

Next summer, the Lufthansa (DLH) long-haul fleet in Munich will consist of 19 Airbus A340-600s and seven A330-300s.

News Item A-6: "Lufthansa to Base 12 A320s in Munich" by (ATW) Kurt Hofmann, February 26, 2016.

Lufthansa (DLH) will base 12 Airbus A320s with Sharklets at its second Munich hub by the middle of next year as part of its sustainability program.

The first Airbus A320 with Sharklets has arrived in Munich; the second is to follow in the next few days. All 12 of the type are replacing older medium-haul aircraft. (DLH) deploys 50 A319s, A320s and A321s in Munich.

“We are in a good position in Munich regarding sustainability. The fact that our fleet is getting quieter and quieter is good news for people who live near the airport in particular,” (DLH) Munich Hub (CEO), Thomas Winkelmann said.

In addition, (DLH) expects to base 20 Airbus A320s with Sharklets in Frankfurt. It will also base the first of 10 Airbus A350-900s at its second major hub in Munich from January 2017.

News Item A-7: Lufthansa Technik Philippines completed a two-month "IL"-check on Lufthansa (DLH)’s first Airbus A380, following 2,671 flights and 23,595 flight hours since 2010; a second is now in work.

March 2016: News Item A-1: "Lufthansa Eyes Iranian Market" by (ATW) Alan Dron, March 14, 2016.

Lufthansa (DLH) and Iran Air (IRN) have signed a memorandum of understanding (MOU) to increase cooperation between the two companies as they explore “further business and partnership opportunities.”

Reports from Iran have talked of the Lufthansa Group’s assistance in several areas, including corporate restructuring and Information Technology (IT), but Lufthansa (DLH) spokesman, Boris Ogurslky said further details were covered by a confidentiality agreement. “We have closely followed political developments regarding the lifting of sanctions, in particular the recent decisions by the European Union (EU), USA and Canada to remove barriers to trade and commerce. The Lufthansa Group is assessing the implications of the lifting of those sanctions on our business.”

Iran has recently signed major deals for the acquisition of Airbus (EDS) and ATR aircraft. Due to sanctions, Iran has an older civil aviation fleet and has experienced several fatal crashes in recent years.

(DLH) has maintained flight links with Iran during the period when links between Iran and the USA were barred. (DLH), the German flag carrier operates a daily, Frankfurt - Tehran flight plus a 3x-weekly, Munich - Tehran service, while another member of the Lufthansa Group, Austrian Airlines (AUL), flies from Vienna to Iran 10x-weekly.

“We’re looking to expand our regional offering in the Middle East,” Ogursky said. “As a global company, we follow a long-term investment plan and are always interested in new opportunities.”

Asked about reports that another member of the Lufthansa Group, Lufthansa Technik (DLH) (LTK), was considering opening an (MRO) base in Iran, he again declined to comment but noted that “as we’re speaking for the Group, [the (MOU)] could be valid for other businesses as well as the passenger business.”

News Item A-2: Lufthansa (DLH) began 5x-weekly, Frankfurt - Panama City Airbus A340-300 services. (DLH) signed a new code share agreement with Panama-based, Copa Airlines (COP).

News Item A-3: Lufthansa Systems (LHS) announced that United Airlines (UAL) will use its SchedConnect Information Technology (IT) solution for code share management. This solution will enable (UAL) to optimize its code share management, lower costs and increase revenues.

News Item A-4: Lufthansa (DLH), to be more precise its long-haul subsidiary "Jump" (the name for long-haul operations operated by Lufthansa CityLine), has started its new year-round service from Frankfurt (FRA) to Panama City (PTY) operated by its 298-seat, A340-300 on a 5x-weekly basis. Flight LH 484 departs Germany at 10:15 local time and is scheduled to arrive in Panama at 16:40 local time. Eastbound flight LH 485 leaves Panama City at 18:45 and lands in Frankfurt at 11:35. Commenced on March 2, the 9,085 km sector faces no direct competition and given the extensive code share agreement with home-based Copa Airlines (COP), passengers will be able to access its significant network across Central and South America.

News Item A-5: The new satellite facility at Germany’s Munich Airport (which opens April 26) should boost Lufthansa (DLH)’s second hub in terms of comfort and optimizing flight operations, (DLH) (CCO) Jens Bischof said.

News Item A-6: Brussels Airlines (DAT)/(EBA) reported a 2015 net profit of +€41.3 million/+$45.1 million, reversing a -€4.2 million net loss from 2014. (DAT)/(EBA) is 45% owned by Lufthansa (DLH). A call option may be put forth in April to buy the remaining 55% of (DAT)/(EBA), Lufthansa (DLH) Chairman & (CEO) Carsten Spohr said, adding that a decision regarding a possible complete take-over will be made in (Q2). The call-option for (DLH) repeats every year in April.

News Item A-7: Global air transport Information Technology (IT) specialist, (SITA) and Lufthansa (DLH) have jointly developed bag-tracing technology called "WorldTracer," which they say will “speed up the repatriation of delayed or mishandled bags to passengers.”

According to (SITA), the new-generation WorldTracer system provides (DLH) agents access to a new, user-friendly desktop interface that makes it easy to record delayed baggage and trace the missing bags “no matter where in the world they are.” (SITA) said the new interface allows ground handlers, airport operators and airlines to access WorldTracer’s global baggage data, while integrating it with their own reservation or operations systems, providing a rich data set that helps quickly trace a missing bag.

The new WorldTracer desktop application will be available to all agents across the Lufthansa (DLH) group in 2016.

(SITA) President Europe, Dave Bakker said: “Technology has played a vital role in reducing the number of mishandled bags, saving the industry -$18 billion since 2007. However, unforeseen situations such as weather delays can still result in a bag being mishandled. This new, easy-to-use application of WorldTracer speeds up the process of tracing and recovering mishandled baggage and provides further cost savings for airlines, airports and ground handlers.”

News Item A-8: Lufthansa Technik (DLH) (LTK) significantly increased revenue and profit in 2015, continuing its growth course. Revenue grew by +17.6% to €$5.1 billion/$5.57 billion. The company achieved +20% growth in adjusted (EBIT) to €454 million.

News Item A-9: Lufthansa Technik (DLH) (LTK) entered into a new long-term agreement with Tigerair Taiwan (TTW). (DLH) (LTK) will provide maintenance services including line-replaceable unit (LRU) services for the Auxiliary Power Units (APU)s. The contract covers maintenance of (APU)s, overhaul and pooling of (APU) components in Singapore.

News Item A-10: Airline Information Technology (IT) specialist, Lufthansa Systems (LHS) is intensifying its cooperation with software development and consulting company, Nagarro to create a “new world of airline (IT), while improving the flexibility and responsiveness of current solutions.” This will enable them to tackle the changing demands of the airline industry together.

News Item A-11: "Lufthansa Said A320neo Engine Was Improving But Not There Yet" by Victoria Bryan, "Reuters" March 17, 2016.

Lufthansa (DLH) said issues with the new engine of its A320neo plane are not fully fixed and as a result it was not ready to put more of the revamped Airbus (EDS) jets into commercial service. "The engine issues are slowly improving, we're not there yet. That's why we have not agreed to take the second aircraft into the fleet," (DLH) (CEO), Carsten Spohr said after (DLH) reported its annual results.

Airbus (EDS) missed an end of 2015 target for the first delivery of the new version of its best-selling plane after it was found the engines, made by (UTC)'s Pratt & Whitney (PRW), needed longer than usual to start properly.

Lufthansa (DLH), which stepped in as the first operator when Qatar Airways (QTA) refused to take the plane, took delivery of its first A320neo in January. For now, the jet is only flying on routes within Germany, where (DLH) has a large base of Engineers (MT) at its Maintenance division. "We could fly to other places, but we would need more Engineers (MT) in those locations," Spohr said.

He said (DLH) was receiving compensation from Airbus (EDS) until it could make full use of the A320neo and that the jet was showing a -20% reduction in costs compared with the earlier model. Software issues, where the engine sends erroneous messages to the cockpit, are also about 50% resolved, Spohr said.

Pratt & Whitney (PRW) said this month the new geared turbofan jetliner engine had logged high reliability at (DLH) and that it was delivering software and hardware fixes.

(DLH) is due to take delivery of 52 new planes this year, including five A320neo jets.

News Item A-12: Lufthansa (DLH), which recently signed an agreement with Iran Air (IRN) to increase cooperation between the two companies, is considering selling some of its Airbus A340-300s to the Iranian flag carrier.

(DLH) is taking delivery of 52 new aircraft this year, including two A350 XWBs that will replace the older A340s. “Iran Air (IRN) needs support (which had been denied [because of sanctions]). We are looking at whether Iran Air (IRN) is perhaps a customer to take those planes from (DLH). The A340s will be exchanged one-to-one by the A350s,” (DLH) Chairman & (CEO), Carsten Spohr told analysts and reporters in Frankfurt.

Earlier this year, (IRN) signed major deals for the acquisition of Airbus (EDS) and ATR aircraft. Because of sanctions, Iran has an older civil aviation fleet and has experienced several fatal crashes in recent years. “We will be renewing 9% of our fleet within the course of this year. From these 52 aircraft, there are 29 Airbus A320s, five A320neos and the rest are A320ceos.”

News Item A-13: Lufthansa (DLH), which will base its first 10 Airbus A350-900s at its Munich hub from January 2017, has disclosed several cabin features of the new aircraft.

(DLH)’s A350 XWBs will accommodate 293 passengers, comprising 48C seats in business, 21PY in premium economy and 224Y in economy class. Initial destinations are likely to be Delhi and Boston.

(DLH) said that it will offer a new service in business (C) class, where passengers will be able to serve themselves refreshments between meals in a specially designed self-service area.

Economy (Y) class features ergonomically designed seats that include more room to stow personal items.

(DLH)’s on board Internet system, "FlyNet," will be provided in all classes. Features also include a larger personal TV screens featuring the most advanced user interface. An enhanced innovative lighting concept with 12 light scenarios should increase passenger comfort.

(DLH) said the A350-900 consumes -25% less fuel and produces up to -50% less noise footprint than similar aircraft types.

(DLH) has ordered 25 Rolls-Royce (RRC) Trent XWB-powered A350-900 aircraft, valued at $310 million each at list prices, which will gradually replace its A340 fleet.

April 2016: News Item A-1: "Lufthansa Group, Singapore Airlines Expand Asian Code Shares" by (ATW) Kurt Hofmann, April 6, 2016.

Star (SAL) Alliance members, Lufthansa (DLH), Singapore Airlines (SIA), and Swiss International Air Lines (SWISS) (CSR) are expanding their code share agreements as part of a commercial joint venture (JV) that was concluded in November 2015.

(SIA) expanded connections to more than >20 code share routings via the Lufthansa´s Group’s Munich and Zurich hubs, to and from various points in Austria, Belgium, Germany, and Switzerland.

Lufthansa (DLH) will add its code on (SIA) flights via Singapore to Denpasar and Jakarta (Indonesia).

In addition, SWISS (CSR) will add its code on (SIA) flights from Singapore to Australia’s Adelaide, Brisbane, Melbourne, Perth, and Sydney, as well as to Jakarta, Kuala Lumpur (Malaysia), Auckland, and Christchurch (New Zealand).

News Item A-2: Lufthansa (DLH) has begun operations to its second Hungarian destination from its Munich (MUC) hub on April 11, starting 3x-weekly services to Debrecen (DEB) (the country’s second largest city). (DLH) also offers services to the Hungarian capital city of Budapest from its Munich hub, on a 31x-weekly basis. No other airline flies this city pair, which is operated by (DLH)’s CRJ 900s. (DLH) becomes only the second carrier (after Wizz Air (WZZ)) to operate scheduled services from Debrecen.

News Item A-3: "Lufthansa Eyes Investments in (SAS), Brussels Airlines" by (ATW) Kurt Hofmann, April 18, 2016.

The Lufthansa Group is in talks with (SAS) Scandinavian Airlines and Brussels Airlines (DAT)/(EBA) about those carriers becoming part of Lufthansa (DLH)’s low-cost carrier (LCC) Eurowings (EWG) business, several German media outlets reported.

(DLH) established Eurowings (EWG) in 2015 as a pan-European (LCC) platform, which it expects to grow quickly to become its second strongest brand, especially for point-to-point traffic. The Lufthansa Group has invited airlines to join (EWG) as part of a franchise.

“Of course, we are in talks with (SAS); we have been partners within the Star Alliance (SAL) since the alliance was founded. But [discussion] regarding a possible investment in (SAS) is just speculation,” (DLH) spokesperson, Helmut Tolksdorf said.

According to "Reuters," talks with (SAS) could lead to Lufthansa (DLH) taking a stake in (SAS). (SAS) has repeatedly been the subject of takeover speculation.

Star Alliance (SAL) member, Brussels Airlines (DAT)/(EBA) is already 45%-owned by (DLH). (DLH) Chairman & (CEO), Carsten Spohr said recently that the Group has an option to purchase the remaining 55% of Brussels Airlines (DAT)/(EBA), adding that a decision regarding a possible complete takeover will be made during the second quarter.

News Item A-4: "Lufthansa Systems (LHS) Eyes Connected Aircraft Potential" by (ATW) Victoria Moores, April 22, 2016.

Lufthansa Systems (LHS) is evaluating the potential of joining up its Lido flight operations software with its mCabin crew app and BoardConnect in-flight entertainment system to offer a connected-aircraft solution.

“Safety services is definitely an area that we are looking at, but we don’t have a product yet,” Lufthansa Systems (LHS) Director Project & Certification, Jan-Peter Ganse said at the Aircraft Interiors Expo in Hamburg. “There is whole new field out there that we can now work with.”

BoardConnect is a bring-your-own-device, wireless in-flight entertainment (IFE) system, which comes with the option of Inmarsat’s Global Xpress connectivity, while Lido is a well-established for electronic flight bag (EFB) solutions and operational data. For Cabin Services, Lufthansa Systems (LHS) offers the "mCabin crew" app.

However, Ganse said there is potential for (LHS) to use the (IFE) connectivity pipe for other purposes. “Why not use it for more?” he said, such as real-time Lido updates and to provide data to the cockpit (FC) and cabin crew (CA) during the flight, for operational and customer service uses. “We are now seeing airlines go to the connected aircraft, so we are working very strongly with Inmarsat and the European Aviation Network (EAN),” Ganse said.

(EAN) is an air-to-ground network, which uses land-based masts with a range of around 160 km. This means it can also be accessed across limited water masses, such as the English Channel and the Mediterranean Sea. (EAN) will undergo trials next year on (DLH)’s narrow bodies. “It is an awesome opportunity for us,” Ganse said.

It is comparatively easy to add air-to-ground capacity, as it only requires additional masts rather than satellite launches. While the speed of air-to-ground is “significantly faster,” said Ganse, the size of the beam is far smaller than a satellite-based solution.

News Item A-5: Frankfurt Airport will surprise transfer passengers April 14 with a free “Makeup to Go” service as part of the Happy Moments campaign. All day long, makeup & hair artist Klaudija Galic and Anika Darmstädter will treat women passengers to a 10 minute styling session (and each will receive a small makeup mirror as a gift).

News Item A-6: The new satellite facility at Germany’s Munich Airport opened April 22 and flight operations are scheduled to begin April 26.

The new facility (which is the first midfield terminal at a German airport) will have 27 new gate positions where passengers can board aircraft directly without bus transportation. Total investment costs were €900 million/$1.02 billion, according to Munich Airport staff.

The satellite terminal is a continuation of the joint venture (JV) between Munich Airport and Lufthansa (DLH). As in Terminal 2 (T2) (which opened in 2013), the partners have joined forces to design, build and finance the new passenger handling facility on a 60:40 basis.

With the new satellite facility, the capacity of T2, which is used by (DLH) and its Star (SAL) Alliance partners, will be increased by +11 million to 36 million passengers per year.

The total capacity for Munich Airport (including T1, T2 and the new satellite facility) has now reached 50 million passengers.

The number of (DLH) contact gates in T2 and the satellite facility will increase to 51. The number of all gates (including bus gates) will rise to 164.

However, the new facility is not only about boosting (DLH)’s second hub and optimizing flight operations, but also “shows the success story of (DLH) here in Munich,” Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said. “We have based 120 aircraft and 11,000 employees here,” he said.

All Lufthansa Group of airlines (including Austrian Airlines (AUL), Swiss International Air Lines (CSR), Brussels Airlines (DAT)/(EBA), and Eurowings (EWG)) will operate from Terminal 2 and the new satellite facility.

“We are also planning to see how we can generate additional growth in Munich with Eurowings (EWG). Initially, the earliest date for (EWG) in Munich could be in 2017. This will expand our offering. Currently, we serve 150 destinations from Munich in 50 countries and there is room for more,” Spohr said.

(DLH) expects to hire +750 new employees in Munich this year. “And we are putting new aircraft in Munich,” Spohr said. “We have decided to launch our Airbus A350 fleet in Munich. The first of 25 A350s will be delivered in December to (DLH) and will be based here.”

Munich is (DLH)'s second hub, after Frankfurt, in Germany.

News Item A-7: The maintenance and service market is expected to change significantly as more aircraft models with new technology, materials, components and engines enter operation, according to Hamburg-based, Maintenance Repair & Overhaul (MRO) provider, Lufthansa Technik (DLH) (LTK).

News Item A-8: The Lufthansa Group and Amadeus reached an agreement that will see the group’s airlines adopt Amadeus Altéa Departure Control Flight Management, starting with Lufthansa (DLH), Swiss International Air Lines (CSR), Brussels Airlines (DAT)/(EBA) and Lufthansa Cargo (LUB). Amadeus Altéa Departure Control Flight Management automates aircraft load control and optimizes every flight departure by analyzing the passenger and cargo load, calculating fuel requirements and defining the optimal aircraft load distribution. Once implemented across the Lufthansa Group, the system will optimize loads for the group’s 3,000 daily flights.

News Item A-9: Lufthansa Technik (DLH) (LTK) has named Thomas Rueckert, Head Aircraft Overhaul Services.

News Item A-10: Six major German airports (including Frankfurt/Main, Munich, Düsseldorf, Cologne, Dortmund, and Hannover) will be affected by German public services trade union Verdi'S strike on April 27. Verdi is calling for a +6% wage increase for its 2.14 million workers.
The union said the strike will have a significant impact on operations and is expecting major flight cancellations.

Frankfurt Airport will be affected from early morning until 3 pm local time, including ground-services, check-in, maintenance areas and also fire services (from 8 am). Frankfurt Airport said on its website that the public sector strike across Germany will cause “major disruptions and flight cancellations.”

Munich Airport expects to be affected the entire day in all areas of airport operations. The airport confirmed it also expects major interruptions at check-in services and flight operations.

Cologne Airport ground workers will strike for 24 hours starting from midnight.

Düsseldorf Airport workers are setting strike actions from between 3 am until 2 pm, including administration, terminal and bus services.

Dortmund Airport said ground services will be affected from shift start on April 27; Hannover Airport will experience strike action from 4:30 am until 3 pm.

Lufthansa (DLH) expects a significant disruption to operations as well as flight cancellations.

News Item A-11: Lufthansa Group’s acceptance of a second Airbus A320neo was conditional on a compensation agreement because the Pratt & Whitney (PRW) (PW1100G) geared turbofan (GTF) engine is still not operating to full expected performance levels.

(DLH) spokesperson, Anja Lindenstein said that agreement to accept the second aircraft was made after reaching a compensation deal with Airbus (EDS) and after further performance improvements were made on the engine. “[Further] software modifications [to the engine] gave improvements, but we also found a way with Airbus (EDS) so that we can operate this aircraft even though it does not give us the performance we want,” Lindenstein said. She declined to give details of the compensation agreement.

“The conditions [under which the second aircraft was accepted] are also in line with (DLH)’s requirement that the engine must be improved, because we want to operate the aircraft throughout our European network and not only on domestic routes,” Lindenstein added.

She said those requirements must be met before (DLH) accepts its third A320neo, which is expected to be delivered this summer. The fourth and fifth aircraft are planned for delivery in the fall.

(DLH) is operating its A320neos on domestic routes from Frankfurt to Hamburg, Berlin, Munich, and Dusseldorf, pending completion of the engine fix.

The Lufthansa Group has ordered 71 A320neos and 45 A321neos. Some of those will go to SWISS (CSR), a Lufthansa Group airline.

(PRW) is working on hardware changes and a software update for the (PW1100G). Until those changes are made, the engine has to idle for three minutes following startup before it can taxi under its own power.

(PRW) said the engines on the (DLH) aircraft are operating at 99% dispatch reliability.

“There were two primary issues (DLH) identified. The first being some nuisance messages, for which (DLH) and Airbus (EDS) have implemented software fixes that have reduced such messages by more than >80%; (PRW) plans to implement another software batch this month that will even further reduce them.” (PRW) Pratt said.

“As we have also stated, the motor-to-start hardware fixes are in engines being manufactured now, which will be delivered in June, and (PRW) will have motor-to-start [performance] close to what operators are used to with current engines later this year.”

(DLH) Chairman & (CEO), Carsten Spohr said at the group’s annual results conference March 17 that the A320neo engine software issues were about 50% resolved. “The engine issues are slowly improving, but we’re not there yet,” he said.

(DLH) took delivery of its first A320neo in January following a delay of the new narrow body’s planned end-of-2015 first delivery schedule. The (GTF) was certified in November, but in December, Qatar Airways (QTA) gave up its position to be the launch A320neo customer because of engine-related issues.

There are two engine options for the A320neo (the other is the (CFM) International (LEAP-1A). Two variants of the (LEAP) will power the Boeing 737 MAX, a rival to the neo, and the Chinese-built COMAC (CCC) C919.

May 2016: News Item A-1: The Lufthansa Group recorded a net loss of -€8 million/-$9 million for (1Q) 2016, reversed from a net profit of +€425 million for the year-ago period.

The group, which comprises Lufthansa (DLH), low-cost carrier (LCC) Eurowings (EWG), Austrian Airlines (AUL), and Swiss International Air Lines (CSR), made the loss on revenue of €6.91 billion, slightly down on last time’s €6.97 billion.

The Lufthansa group said the sharp reversal in profits compared to a year ago was because the previous year’s quarter included a +€503 million boost from the early conversion of a convertible bond with USA independent carrier, JetBlue Airways (JBL).

Even after stripping out this factor, however, (1Q) cash flow from operating activities declined -21.5% to €1.1 billion, the result of the increasing trend among customers of booking tickets closer to travel dates, which means money tended to accrue to the company later than in past years. However, that effect should even out over coming months, provided overall bookings remain at current levels, Lufthansa said.

Although the group enjoyed “significantly higher” passenger volumes, traffic revenue dipped -3.9%, a reflection of heavy downward pressure on pricing.

Despite the headline figures, the new business year had seen a “solid start,” Deutsche Lufthansa (CFO), Simone Menne said. “We are seeing significant pricing pressure at our passenger airlines, and even more at Lufthansa Cargo (LUB). “But the substantial unit cost reduction at our passenger airlines has more than made up for the pricing declines. And we are not just benefiting from further fuel cost reductions and non-recurring effects. We have also improved our operating cost structure. This marks an important change in trend in our unit cost development.”

There was a -4% reduction in unit costs, excluding fuel and currency conversion effects. Reduction in fuel costs was -€237 million over the period.

She added the new Eurowings (EWG) division had begun life well, with a “very encouraging load factor of 94.2% LF” on its long-haul services in the first quarter, with positive customer feedback. “Its first-quarter result is a decline on last year’s, but this partly reflects (EWG)’s startup costs and we feel that the new Eurowings (EWG) is well on track.”

While both Lufthansa (DLH) and Austrian Airlines (AUL) posted improved (EBIT) figures, SWISS (CSR) numbers dipped, mainly the result of reduced demand because of the strength of the Swiss franc. Lufthansa Cargo (LUB)’s figures, meanwhile, suffered from global overcapacity in the cargo market, particularly on transatlantic routes and it is bracing itself for a challenging financial year, the group said.

Looking ahead, it does not expect to see pricing pressures ease over the rest of the year, with yields under particular pressures to and from South America because of the region’s weak economy.

Bookings from Chinese and Japanese travel groups are also down. However, both Europe and North America (Lufthansa (DLH)’s largest and most important regions for traffic) are showing “more stable trends.”

For the Lufthansa Group, “2015 was our toughest year in emotional terms, and at the same time, one of the most successful in our corporate history,” Chairman of the Board and (CEO) of Deutsche Lufthansa (DLH) Carsten Spohr said.

News Item A-2: "Lufthansa Technik Wins (VIP) 787 Work"

Lufthansa Technik (DLH) (LTK) is to perform a (VIP) cabin modification of a 787-8 for an undisclosed customer. The work will begin in autumn at the maintenance provider’s Hamburg completion center and will last for two months. It will include a distinct cabin layout, adjustments to the in-flight entertainment (IFE) and communication systems, plus modifications to the crew rest and galley areas. Lufthansa Technik will also provide technical support to the customer once the aircraft enters service.

June 2016: News Item A-1: "Malaysia and Lufthansa to Set Up Joint (MRO) Operation" by (ATW) Jeremy Torr, June 3, 2016.

Malaysian flag carrier, Malaysia Airlines Berhad (MAS) is to enter into a joint venture (JV) Maintenance Repair & Overhaul (MRO) operation with Lufthansa Technik AG (DLH) (LTK), based at Kuala Lumpur International Airport.

The facility will service aircraft for regional operators, with special provision for Boeing 737 and Airbus A320 aircraft.

The new venture will be managed out of (MAS)’s holding company Malaysia Aviation Group (MAG), a specially created entity within Malaysia’s Khazanah sovereign wealth fund. It is planned the new facility will come open in 2017.

The move comes following the buyout of the previous (MAB) incarnation, (MAS), by Khazanah in 2014, following poor results and the loss of two aircraft. At the time, the option of selling off the carrier’s (MRO) capability was mooted, as it was one of the more profitable divisions.

(MAS) (CEO), Christoph Mueller said the joint venture (JV) with Lufthansa Technik (DLH) (LTK) would bring “tangible benefits” to the airline. “The level of skill, expertise and technological transfer will be invaluable, both for us and for Malaysia,” he said.

(DLH) (LTK) said the agreement would “introduce state-of-the-art technical capabilities for base maintenance services and best practices in operations” to the region. “We will significantly extend our (MRO) capabilities in one of the most emerging markets worldwide," Lufthansa Technik AG (CEO), Johannes Bussmann said, adding that the link with (MAB) would bring “a strong regional partner to create a real success story with this new business."

News Item A-2: "Eurowings Europe Launches Operations" by (ATW) Kurt Hofmann, June 24, 2016.

Lufthansa Group low-cost (LCC) subsidiary, Eurowings Europe (EWG) has launched its first flight from Vienna to Alicante on June 23.

The company received its air operator’s certificate (AOC) in Austria recently. Its first Airbus A320 is based in Vienna and the fleet should grow to up to three aircraft by October.

By the end of June, the network will include service from Vienna to Bastia (France), Rome, Hanover (Germany), Palma de Mallorca (Spain), Valencia (Spain), and London Stansted. From the end of October, the number of destinations will rise to 15, including Italy’s Pisa and Spain’s Fuerteventura, and Jerez de la Frontera.

“Our flight operations include 150 employees,” Managing Director, Robert Jahn said. The company expects to transport around one million passengers in its first full year of operations.

Other bases in Europe are under evaluation, but no further details are available.

(EWG) will hire 600 crew members as its fleet expands to 19 A320s by the end of 2017.

Lufthansa (DLH) has established Eurowings (EWG) as a pan-European low cost carrier (LCC) platform, which should grow quickly to 100 aircraft as competition from (LCC)s such UK’s easyJet (EZY), Ireland’s Ryanair (RYR), and Spain’s Vueling (VUZ) rise to a 50% market share in Europe. (EWG) should become Lufthansa (DLH)'s second-strongest brand, especially for point-to-point traffic.

News Item A-3: Lufthansa (DLH) has confirmed will cut up to -800 jobs from its logistics business as part of its plans to reduce costs.

The airline group confirmed 500 Germany-based employees at Lufthansa Cargo (LUB) would leave the company, with the majority expected to take early retirement.

Another -250 to -300 overseas-based roles will go in the next few years, with Lufthansa (DLH) targeting cost savings of around -€80 million/-$90 million.

The cuts in the logistics division are part of wider company job reductions across Europe totaling -2,400 roles over the next five years.

(DLH) said the cuts are a result of competition from its low-cost carrier (LCC) rivals and Middle-Eastern carriers.

News Item A-4: Lufthansa Chief Financial Officer (CFO), Simone Menne has asked the Deutsche Lufthansa AG supervisory board for an early termination of her contract on the executive board, effective August 31, to pursue other career options. She has served as the Lufthansa Group executive board member and (CFO) since July 1, 2012.

“The Supervisory Board regrets Ms Menne’s decision but has, after careful consideration, acceded to her request to be prematurely released from her contractual obligations,” the company said. A decision on her successor will be made shortly.

“Through her outstanding achievements, Ms Menne has made a vital contribution to the further development of the Lufthansa Group in highly challenging times. She has always steered a steady course, and has never shied away from difficult decisions,” Executive Board Chairman, Wolfgang Mayrhuber said.

Simone joined Lufthansa (DLH) as an auditor in April 1989.

In addition to her duties and responsibilities on the executive board of Deutsche Lufthansa AG (DLH), Simone headed the supervisory boards of (LSG) Lufthansa Service Holding AG, Delvag Luftfahrtversicherungs-AG, and the advisory board of Miles & More GmbH.

She is also a member of the supervisory boards of Lufthansa Cargo AG (LUB) and Lufthansa Technik AG (DLH) (LTK).

News Item A-5: Lufthansa Technik (DLH) (LTK) has an easyJet (EZY) contract to provide Airbus A319/A320 light base maintenance and (AOG) support at London Gatwick; easyJet (EZY) has 55 aircraft based at Gatwick Airport.

News Item A-6: Lufthansa Technik AG (DLH) (LTK) will open a new airplane engineering center in Budapest, adding to its present airplane maintenance center. The new Budapest-based aircraft engineering services center will focus its activities around the Boeing 737 airplane.

July 2016: News Item A-1: The Lufthansa Group is in talks to potentially buy routes from German low-cost carrier (LCC) airberlin (BER), according to a report by German financial newspaper "Handelsblatt."

If a deal is struck, Lufthansa (DLH) would hand the routes to its low cost carrier (LCC), Eurowings (EWG), the paper said. The routes involved would be those outside of (BER)’s Berlin and Düsseldorf hubs.

Airberlin (BER) is Germany’s second largest carrier and one of the equity-stake partner airlines of Abu Dhabi-based Etihad Airways (EHD). (EHD) holds a 29.2% stake in (BER), which is a member of the Oneworld (ONW) global alliance. But a source at the Lufthansa Group said that talks were being held between (DLH) and (EHD).

(DLH) declined to comment and (EHD) said it did not comment on “rumors and speculation.”

(BER) reported a -€446.6 million loss/-$485.5 million for 2015, deepened from a -€376.7 million loss the year before. Among factors that negatively impacted (BER)’s performance in 2015 was a protracted dispute over certain (BER) code share flights with (EHD), which (DLH) challenged in the final quarter of 2015 and the beginning of 2016. (BER) said the “months in limbo” until the matter was settled by a German court, cost it €40 million in lost or canceled sales in the fourth quarter of 2015. The court ruled in favor of airberlin (BER).

Sources said that the Lufthansa Group is seeking to grow Eurowings (EWG) rapidly (to a fleet of about 100 aircraft) so that it is sustainable and competitive against Europe’s other large (LCC)s.

Lufthansa Group Chairman & (CEO), Carsten Spohr said at the Star (SAL) Alliance chief executive board meeting in Zurich June 4, “Most of the European (LCC)s today are too small to be able to survive.”

News Item A-2: "Lufthansa Seeks to Combine Runway Safety Systems" by MRO-Network.com July 21, 2016.

Lufthansa (DLH), Honeywell (SGC) and Airbus (EDS) are to co-operate on a runway safety solution combining Airbus (EDS)’ Runway Overrun Prevention System (ROPS) and Honeywell (SGC)’s SmartLanding technologies for Lufthansa (DLH)'s fleet.

(ROPS) provides alerts to crews to prevent runway overruns, while SmartLanding warns pilots (FC) if their aircraft is approaching the runway too high, too fast or is not configured properly for landing.

News Item A-3: Lufthansa Technik (DLH) (LTK) plans to cut -700 of 2,000 jobs at its Engine Maintenance, Repair & Ooverhaul (MRO) unit as new engine types become more efficient. The job cuts will happen mainly by early retirements over the next five to eight years, which was agreed to by labor union Verdi. (DLH) (LTK) said it did not plan forced redundancies.

In return, Lufthansa (DLH) will invest €80 million/$86.4 million to overhaul the latest generation of aircraft engines and secure engine (MRO) business at its main facility in Hamburg.

It was reported on April 11 that the engine (MRO) business is in the middle of a significant generation change. For example, Pratt & Whitney (PRW) and (CFM) International are developing new engines that need only two overhauls instead of four, which means 30% to 50% of this business will disappear. Therefore, (DLH) (LTK) needs a competitive cost structure and must improve workforce flexibility.

The new working conditions will allow (DLH) (LTK) to take new engine types in Hamburg under (MRO) contract.

(DLH) (LTK) and Verdi, which expect to conclude further negotiations by the end of August, have agreed on a three-shift system, changes in work hours (including significantly higher work-hour flexibility), and changes in the compensation structure. In the long term, 1,300 jobs can be secured, of which 1,100 are based in Hamburg.

In 2015, (DLH) (LTK) reported sales revenue for its 22 holdings grew 17.6% to around €5.1 billion, up +€762 million year-over-year. The company achieved +20% growth in its adjusted (EBIT) to €454 million, compared to €380 million in the previous year.

In 2015, (DLH) (LTK) served 800 customers and supported 3,700 aircraft, up +12% year-over-year.

News Item A-4: See video on (DLH) 747-8 by Captain Uwe Strohdeich:

See also: http://f.lh.com/hcEb

August 2016: News Item A-1: "Lufthansa, Cabin Crew Reach New Contract" by (ATW) Kurt Hofmann, hofmann.aviation@netway.at, August 26, 2016.

Lufthansa (DLH) and the German Independent Flight Attendants’ Organization (UFO) have reached an agreement on a new collective labor agreement (CLA) for Lufthansa cabin crew (CA) members.

The approval promises long-term industrial peace. The various changes under the new (CLA) to the pay structure, retirement and benefits for cabin crew (CA) members are expected to save the Lufthansa Group millions of euros, and are expected to save hundreds of millions in the group’s pension commitments.

The vast majority of the savings will impact on group results for the current fiscal year, where it will have a correspondingly positive effect on the annual earnings before interest and taxes (EBIT), but not on adjusted (EBIT).

On August 2, the Lufthansa Group reported a first-half net profit of +€429 million/+$483 million, down -55% from a net profit of +€954 million a year ago.

(DLH) Chairman & (CEO) Carsten Spohr told journalists on August 25 in Frankfurt that, having reached agreement with its flight attendants (CA), the company has achieved working stability with 115,000 of its 120,000 employees. He remains optimistic that (DLH) can resolve its difficulties with pilots (FC)'s union Vereinigung Cockpit (VC) this year, and hopes to resume contract negotiations which stopped about two weeks ago. (DLH) employs around 5,000 pilots (FC).

In return for cost-cutting concessions in the new (CLA), cabin crew (CA) members will see salary rises and guaranteed employment until 2021. Both parties to the labor negotiations accepted the recommendations of mediator Matthias Platzeck, including the adoption of a new retirement plan which will remain in effect through 2023.

(DLH) and the (UFO) agreed to a +1% increase in flight attendants (CA)’s pay from October 1, 2016, and a further +2% increase from January 1, 2018. These follow a previous +2.2% increase from January 1, 2016. The (CLA) is valid through June 30, 2019.

(UFO) members approved the new (CLA) package by a sizeable majority.

In 2015, (DLH) was plagued with industrial disputes involving pilots (FC), flight attendants (CA) and ground staff (MT). According to (DLH), 30 days of strikes in 2014 – 2015 cost (DLH) €500 million.

News Item A-2: Inmarsat partner, Lufthansa Technik (DLH) (LTK) received a supplemental type certificate (STC) from (EASA) after installing a Honeywell Aerospace (SGC) designed Ka-band antenna for (GX) Aviation on board an Airbus A340 aircraft in Germany.

Lufthansa Technik (DLH) (LTK) has received a contract from Ethiopian Airlines (ETH) to provide comprehensive component support for the airline’s future Airbus A350 fleet. The corresponding Total Component Support agreement will run for 10 years and includes 14 aircraft. The contract comprises component Maintenance Repair & Overhaul (MRO) as well as access to a pool of spares.

News Item A-3: Lufthansa (DLH) subsidiary, SWISS (CSR) said the first 30 days of Bombardier CS100 commercial operations have gone according to plan, despite minor glitches. (CSR), the Star (SAL) Alliance member is the first operator of the CSeries.

(CSR) launched the first commercial CS100 scheduled flight from Zurich to Paris Charles de Gaulle on July 15. A second CS100 began scheduled operations on August 18, also from Zurich to Paris Charles de Gaulle.

SWISS (CSR) spokesperson Karin Mueller said: “We are satisfied with the first 30 days since starting entry-into-service [EIS]; of course, there is potential for optimization.”

Some of the glitches were “minor” technical and operational uncertainties (for example, de-icing, air conditioning and ground handling).

On July 19, a (CSR) CS100, en route from Switzerland to the UK, had to return after experiencing a problem with its air conditioning system. “These glitches had been in an area what you can expect during (EIS). There have never been signs that the entire fleet introduction is in danger.”

Bombardier (BMB) VP CSeries Rob Dewar said on July 6 that about 20 Bombardier (BMB) specialists would be based in Zurich to support SWISS (CSR) initially. “It is critical for us to have a successful (EIS),” he said.

Mueller said that support from Bombardier (BMB), as well as daily experience in operating the new aircraft, have reduced initial uncertainty “significantly.”

She said no flights were canceled during the first 30 days of CSeries operations, even though the aircraft had to remain on the ground once for technical reasons.

(CSR) said the CS100 operates on a 99% dispatch reliability.

After the first 4 weeks, the first CS100 aircraft (HB-JBA) operated at a higher reliability rate compared to other new-generation aircraft types, according to Mueller. “We are satisfied with the values, since they meet the expectations of a new aircraft.”

The target is to operate the CS100 fleet with 99% dispatch reliability year round, according to Mueller. “To get reliable information [of CSeries operations], there must be a minimum of five CS100s operating scheduled services for at least 3 months,” Mueller explained.

Inside the aircraft, minor adjustments had been necessary, like loudspeaker noise or the installation of a cabin class divider. Passenger feedback has been so far mostly positive, she said.

(CSR) expects delivery of a third CS100 (HB-JBC) within the next few weeks, but Mueller declined to give details for further CS100 deliveries. “We want to be flexible [on further deliveries] and to bring in first our experiences from the scheduled operations,” she said. This needs more time, which is why further deliveries had been moved back slightly. “But for a new type of aircraft, this is not unusual,” Mueller added.

On July 15, SWISS (CSR) (CEO) Thomas Kluehr said (CSR) will take delivery of nine CS100s in 2016. It will take delivery of one aircraft per month in July, August and September. After that, deliveries will increase to two aircraft per month.

(CSR) originally ordered 20 CS100s and 10 CS300s, plus 30 options. On June 5, (CSR) announced it would convert five of 20 CS100 orders into CS300s.

News Item A-4: Lufthansa (DLH) became the first European airline to participate in the USA Transportation Security Administration (TSA) Pre-Check program on August 31.

The (TSA) Pre-Check is an expedited screening program that allows pre-approved passengers to leave their shoes, light outerwear and belts on. Through this program, passengers can also keep their laptops and 3-1-1 compliant liquids/aerosols/gels in their carry-on bags.

The program now includes over >180 airports nationwide and 18 participating carriers, including Mexican flag carrier Aeromexico (AMX); Air Canada aCN); Seattle-based Alaska Airlines (ASA); Las Vegas-based Allegiant Airlines (WJE); Fort Worth, Texas-based American Airlines (AAL); Massachusetts-based regional Cape Air; Atlanta-based Delta Air Lines (DAL); Abu Dhabi-based Etihad Airways (EHD); Hawaiian Airlines (HWL); New York-based JetBlue Airways (JBL); Lufthansa German Airlines (DLH); Pittsburgh, Pennsylvania-based charter airline OneJet; San Juan, Puerto Rico-based Seaborne Airlines; Dallas-based Southwest Airlines (SWA); Minnesota-based Sun Country Airlines (SCA); Chicago-based United Airlines (UAL); San Francisco-based Virgin America (VUS) and Calgary-based WestJet (WJI).

German citizens are eligible to utilize (TSA) Pre-Check if they apply for and are approved for USA Customs & Border Protection’s Global Entry program.

News Item A-5: 2 A320-214 (7251, D-AIUW; 7256, D-AIUX), ex-(F-WWBB and F-WWBY) and A320-271 (6920, D-AINC), ex-(D-AUBG).

September 2016: News Item A-1: Lufthansa Group subsidiary Austrian Airlines (AUL) launched 5x-weekly Vienna - Hong Kong services on September 5, its third destination in China after Shanghai Pudong and Beijing. “We expect to transport 30,000 passengers to Hong Kong until the end of 2016 (120,000 passengers per year from 2017 onward),” (AUL) (CCO) Andreas Otto said in Hong Kong.

With the Vienna - Hong Kong service, the Lufthansa Group (which includes Lufthansa (DLH), Swiss International Air Lines (CSR) and Austrian (AUL)) flies to 19 destinations in six countries, offering a total of 239 weekly flights from Europe to Asia.

On September 4, (AUL) terminated the Vienna - Tokyo Narita route after 27 years as a result of Japan’s economic slowdown, combined with the devaluation of the Japanese yen that began three years ago. (AUL) has placed the Boeing 777-200ER airplane on the Hong Kong route.
“The economy in Hong Kong is expected to retain a trend growth of +3% per annum from 2017 to 2020,” Otto said, adding that he hopes the route will become profitable within two years.

“However, fierce competition, especially by Gulf carriers, has made business in Asia very difficult for us. (AUL) is fighting to sustain its Asian network. Nevertheless, we had to close down three destinations (Dubai, Delhi, and Tokyo) for economic reasons.”

He added, “The Lufthansa Group has given up more destinations in Asia (Jakarta, Kuala Lumpur among others) than it was able to open new ones.”

40% of (AUL)’s Asian traffic is focused on China. During the current summer schedule, the three Lufthansa Group carriers operate to six destinations in China on more than >90 weekly flights from Frankfurt, Munich, Zurich and Vienna to Hong Kong Peking, Shanghai Pudong, Nanjing, Qingdao, and Shenyang.

Separately, Otto said (AUL) is considering introducing a premium-economy (PY) class on long-haul flights to accommodate the changing service demands of global air travelers. “We are investigating premium economy (PY). This product could be attractive for us, because Lufthansa (DLH)’s premium-economy (PY) class is already a huge success. A decision will be made before the end of this year,” Otto said.

(DLH) launched its first premium-economy (PY) class service on November 22, 2014.

News Item A-2: Lufthansa Group subsidiary Austrian Airlines (AUL) will add +2 more Airbus A320s to its fleet this year and 1 additional Boeing 777-200ER from summer 2018, representing an investment value of >€100 million/$112 million.

As a result, >230 jobs will be created at (AUL)’s Vienna hub.

“The conclusion of the collective bargaining agreement for the flight crew (FC) and positive signals from political decision-makers with respect to Vienna as a flight hub, ensure a good investment climate,” (AUL) (CEO) Kay Kratky said.

The A320s were leased from the Lufthansa Group for approximately 8 years, representing an investment value of €50 million, including conversion costs. The 2 aircraft will be deployed on Innsbruck - Frankfurt, Salzburg - Frankfurt, Graz - Frankfurt, and Vienna - Munich routes.

(AUL) currently operates 7 Airbus A319s, 16 A320s and six A321s.

The additional 777 airplane will be on an 8-year lease contract with Irish lessor AerCap (DEA), representing an investment value of €60 million, including conversion costs. The 777 will be used for new possible routes to Asia, America, and Africa.

(AUL) has approved premium-economy (PY) class on long-haul airplanes, which will be launched in summer 2018.

The 767 will offer 18 premium-economy (PY) seats and the 777 will offer 24 premium economy (PY) seats, a €15 million investment.

Separately, Lufthansa Technik (DLH) (LTK) is set to begin installing Inmarsat’s (GX) Aviation Ka-band antenna on (AUL)’s 31 A320 family aircraft. In November, the system will be tested and is expected to be available from December. The entire Airbus (EDS) fleet is scheduled to be upgraded by the 2017 summer flight schedule. Investments for the project will amount to €5 million.

Commenting on long-haul fleet upgrades, (CFO) Heinz Lachinger said (AUL) will make a decision on modernizing its 6 Boeing 767-300ER and 5 777-200ER airplanes. “The existing fleet of long-haul airplanes will begin to reach the end of their useful economic lives starting in 2020. In this case we will be talking about an investment sum, which is clearly higher than >€1 billion,” he said without disclosing further details.

(AUL) operates a fleet of 78 airplanes.

News Item A-3: "Lufthansa, Air China Finalize Joint Venture."

Lufthansa (DLH) and Air China (BEJ) agreed to set up a joint venture (JV) covering routes between China and Germany on September 20. The two airlines signed an agreement covering the initiative in 2014; negotiations took two years to finalize. The deal will go into
effect in summer 2017.

The project is part of (DLH)’s strategy to protect key longhaul markets by entering deep partnerships. (DLH) is already part of the “A++” joint venture with United (UAL) and Air Canada (ACN), which includes (DLH) affiliates Swiss International Air Lines (CSR), Austrian Airlines (AUL) and Brussels Airlines (DAT)/(EBA). It also has similar deals with All Nippon Airways (ANA) and Singapore Airlines (SIA). (DLH) believes these deals can better fend off competition, in particular from the three big Gulf carriers.

(DLH) and (BEJ) have been partnering for years though code sharing, Star (SAL) Alliance membership and the (AMECO) joint venture for maintenance, repair and overhaul (MRO). As part of the agreement, the two carriers plan to expand code sharing and to cooperate more closely on frequent flyer programs and key corporate accounts.

Jens Flottau, jens.flottau@aviationweek.com

News Item A-4: Lufthansa Technik (DLH) (LTK) and (MTU) Aero Engines could partner to offer maintenance, repair and overhaul (MRO) services for the Pratt & Whitney (PRW) (PW1000G) engine family. “The two companies have signed a memorandum of understanding to explore the possibility of establishing an (MRO) joint venture (JV) at a globally competitive location,” the German companies said September 20. “First decisions will be made by the end of the year.” Lufthansa Technik and (MTU) Aero Engines already operate a shop
together in Malaysia which specializes in engine-blade repair.

News Item A-5: Lufthansa Technik (DLH) (LTK) has started installing the latest Ka-band satellite technology as standard equipment on the Lufthansa Group's entire Airbus A320 aircraft family fleet (approximately 300 aircraft) bringing broadband communication to (DLH)’s short- and medium-haul flights, (DLH) said on September 26.

The fleet will be fitted with the necessary antennae and routers in parallel in up to 10 production lines by spring 2018 at various (DLH) (LTK) locations.

(DLH) (LTK) engineers have optimized the system installation procedure and minimized the required intervention in the aircraft structure. This allows the fastest possible integration, even in large fleets (generally in 4 days per layover).

(DLH) (LTK) holds Supplemental Type Certificates (STC) to install the system on Airbus A320s and A340s. Lufthansa (DLH)’s Airbus A330s and Boeing 737s will be added in the short term “in order to provide full support for customers in particular in the Asian market for equipping their fleets with broadband communication technology.”

“We can equip even large fleets with this technology in the shortest possible time," (DLH) (LTK) Head of Connectivity Lukas Bucher said.

“[But] we also want to make sure from the very outset that any technological advances that we may not yet be aware of or any changes in customer requirements can be retrofitted or converted with minimum overhead," (DLH) (LTK) Product Manager, Strategy & Business Development, Aircraft Modification Business Unit, Heike Handke said.

Together with the partners Inmarsat and Lufthansa Systems, Ka-band satellite technology allows coverage on short and medium-haul flights with Inmarsat's Global Xpress (GX) network. Passengers can use their own mobile devices to access the Internet via (WLAN). In addition to simple email services, more demanding applications and even streaming will be possible, (DLH) (LTK) said. Eventually, passengers will be able to transfer data using their mobile phones based on their own mobile phone contract, assuming this feature is approved by the respective airline.

Lufthansa (DLH) has equipped all its intercontinental wide body airplanes with the FlyNet Wi-Fi system.

News Item A-6: 2 A320-211 (162, D-AIPZ; 202, D-AIQD) deliveries.

October 2016: News Item A-1: The Lufthansa Group (parent of Austrian Airlines (AUL), Eurowings (EWG), Lufthansa (DLH), Swiss International Air Lines (SWISS) (CSR) and the soon-to-be-acquired Brussels Airlines (DAT)/EBA)) has released the company’s 2016/2017 winter flight timetable, effective October 30 through March 25, 2017.

* Lufthansa Airlines (DLH)

For (DLH), new flights announced include year-round 3x-weekly service between Frankfurt and Cape Town, South Africa, beginning December 2; year-round 2x-weekly service between Munich - Marrakesh, Morocco, beginning Octover 30; 1x-weekly service between Frankfurt and Funchal, capital of Portugal’s Madeira Islands, beginning October 29; and 1x-weekly service from Frankfurt to both Tromso, Norway and Ivalo, Finland.

Other additions to (DLH)’s winter timetable include San Jose, California; Port Louis, Mauritius; Male, Maldives; Denver, Colorado; and Tehran, Iran. (DLH) did not specify specific frequencies or city pairs for these routes. A Munich - Rzeszów, Poland, pairing was also announced, but with no details on the route’s flight frequency.

* Austrian Airlines (AUL)

For (AUL), new flights announced include “up to” 2x-weekly service from Vienna to Maldives, Mauritius and Marrakesh; 1x-weekly Vienna - Havana, Cuba service beginning October 25; and a 1x-weekly Vienna - Colombo, Sri Lanka, service.

* Brussels Airlines (DAT)/(EBA)

For (DAT)/(EBA), new routes announced include 5x-weekly Brussels - Mumbai, India, service beginning March 6, 2017 and winter-season service (frequency unspecified) from Brussels to Porto, Portugal; Naples, Italy; Belfast, Northern Ireland; Nuremberg, Germany; and Nantes, France.

* Eurowings (EWG)

For (EWG), new winter-season flights out of Salzburg, Austria, will include 7x-weekly service to Cologne/Bonn; 6x-weekly service to Zurich; 5x-weekly service to Paris; 4x-weekly service to Brussels; and 3x-weekly service to both Geneva and Hamburg.

Out of Vienna, Austria, new (EWG) winter-season flights include 2x-weekly service to Málaga, Spain, and Canary Islands Fuerteventura and Las Palmas; and 1x-weekly service to Jerez de la Frontera, Spain, Marsa Alam, Egypt and Faro, Portugal. Rome and Pisa, Italy, were also added but flight frequencies were not detailed.

From Cologne, Germany, new winter-season (EWG) flights will include 1x-weekly service to both Havana and Miami, Florida. From Dusseldorf, new winter-season routes include service to Lisbon, Portugal, and Canary Islands Lanzarote and Fuerteventura. Flight frequencies on the Dusseldorf routes were not detailed. (EWG) will also fly winter-season service from Hamburg to Fuerteventura and Tenerife, Canary Islands, but did not reveal flight frequencies.

* SWISS (CSR)

Partnering with its leisure carrier subsidiary Edelweiss Air (EDW), Zurich-based SWISS (CSR) announced 5x-weekly winter-season service to Tenerife, 4x-weekly service Gran Canaria, and 2x weekly service to Fuerteventura, Lanzarote and Seville, Spain. Additionally, during February 4 - 25, 2017, (CSR) will start new scheduled flights between Zurich, Sion (Switzerland) and London City airport. Beginning March 3, 2017, (CSR) will increase its flights to Singapore from 3x-weekly to daily service.

News Item A-2: Lufthansa (DLH) will begin commercial passenger services with Inmarsat’s (GX) for Aviation in November, followed by Singapore Airlines (SIA) and Air Astana (AKZ). According to Inmarsat, (GX) for Aviation is the world’s 1st in-flight connectivity solution with reliable, seamless high-speed global coverage provided through a single operator. It allows airline passengers to browse the internet, stream videos, check social media and more during flights, with an on board connectivity experience on par with broadband services available on the ground.

Inmarsat has signed a memorandum of understanding (MOU) to appoint Satcom Direct as a global distribution partner for its next generation SwiftBroadband-Safety aviation service. A pre-agreement between the 2 companies has outlined the intention for Satcom Direct to supply aviation operators worldwide with SwiftBroadband-Safety, an advanced new service from Inmarsat that will transform cockpit and aircraft operations.

Honeywell Aerospace (SGC) has been appointed by Inmarsat to be a global distribution partner for its next generation SwiftBroadband-Safety aviation service. (SGC) is set to provide commercial airlines and business aviation operators throughout the world with SwiftBroadband-Safety, an advanced new service from Inmarsat that will transform cockpit and aircraft operations through the use of secure broadband connectivity.

News Item A-3: The (UFO) flight attendant union for the Lufthansa Group’s low-cost carrier (LCC) subsidiary Eurowings (EWG) has announced strikes could be possible at any time for 2 weeks, starting from October 24, after talks with management failed. “For 2 weeks [starting October 24] strikes could take place at any time. The public will be informed about the individual measures on time,” (UFO) board member Nicoley Baublies said. “There are no more negotiations; the process is finished,” he said.

Baublies said the strike could continue to escalate beyond 2 weeks if there are no signs of a turnaround from the Eurowings (EWG) management (then the (UFO) will call for an indefinite strike). However, Baublies said there are no strikes planned for the Christmas season. The conflict centers around pay and working conditions for the 400 flight attendants (CA) based in Düsseldorf.

(EWG)’s fleet comprises 90 medium-range aircraft, but only the 23 Düsseldorf-based aircraft would be affected by the strike.

Eurowings (EWG) said the company remains open for discussions. “We are exchanging 23 Bombardier CRJ900s with bigger Airbus A320 aircraft. Actually, we are doubling the number of flight attendants (CA) that we need,” (EWG) spokesperson Matthias Eberle said. Eberle is confident most (EWG) flights will be operating. “Our total 90 aircraft operate 500 flights a day,” he said.

Lufthansa (DLH) established Eurowings (EWG) as a pan-European (LCC) platform, which should grow to 100 aircraft as competition from (LCC)s (such UK’s easyJet (EZY), Ireland’s Ryanair (RYR) and Spain’s Vueling (VUZ)) increases to a 50% market share in Europe.

News Item A-4: "Ryanair Lays Down the Gauntlet in Lufthansa’s Home Base" by Karen Walker Karen.walker@penton.com in (ATW) Editor's Blog, November 2, 2016.

News that Irish low cost carrier (LCC) Ryanair (RYR) plans to start operating out of Frankfurt next year prompted Lufthansa Group Carsten Spohr to take a sharp intake of breath even as he announced a strong set of results for his company.

(RYR)’s planned move into the very heart of Lufthansa (DLH) operations is daring, especially as (DLH) has its own (LCC) unit, Eurowings (EWG), which it has put on a fast-growth track.

But perhaps more intriguing is the fact that the announcement came not from (RYR), but from Frankfurt operator Fraport. In a press release, Fraport Executive Board Chairman Stefan Schulte was full of praise for (RYR), calling it “Europe’s leading low-cost airline” and wishing the (LCC) “always happy landing here at Frankfurt.”

Ouch! No wonder Spohr retorted at a 3rd-quarter financial results press conference that (DLH) would expect the same terms as (RYR), implying that Fraport may have enticed (RYR) with discounted airport fees that will not be expected by Fraport’s biggest client.

(RYR)’s ultra-low cost base and business savvy means it probably can move into the lion’s den and survive even if there’s a bit of mauling. Its initial routes from Frankfurt will be to holiday destinations in Spain and Portugal popular with German tourists; fares will be rock-bottom low but if anyone can sustain profitability in that environment, it’s (RYR), for which Frankfurt will become its 9th German base.

But don’t expect (DLH) to ignore this move, which is really throwing down the gauntlet in the airline industry’s equivalent of “new world versus old world” head butting.

Lufthansa (DLH) achieved its (3Q) result in large part by strict cost and capacity control. It has learned much from the (LCC) phenomena that dominates Europe (and which, unlike in the USA, must also compete with a sophisticated, extensive train network. So (DLH) will likely respond with all the tools it has at its disposal, and they are considerable.

But what to make of Fraport, which so enthusiastically rained on (DLH)’s (3Q) parade by publicly wishing newcomer (RYR) “happy landings”? All airports seek new airline customers. Winning a high-profile (LCC) (RYR) is a coup for Fraport and good for competition.

However, you can be sure that (DLH) will monitor the terms of (RYR)’s Fraport operations extremely carefully.

News Item A-5: The Lufthansa (DLH) 1st Airbus A350-900 has rolled out of the Airbus paint shop in Toulouse.

The first 10 Lufthansa A350-900 aircraft will be stationed in Munich for the coming winter. Delhi and Boston will be the 1st destinations to be served.

(DLH) has ordered 25 Rolls-Royce (RRC) (Trent) powered Airbus A350-900 aircraft, valued at $310 million each at list prices, that will gradually replace its A340-600 fleet.

The 293-seat aircraft is configured for 48C in business class, 21PY in premium economy, and 224Y in economy class.

(DLH) said it will offer a new service in business (C) class where passengers will be able to serve themselves refreshments between meals in a specially designed self-service area.

Economy (Y) class features ergonomically designed seats that include more room to stow personal items. (DLH)’s onboard internet system, FlyNet, will be provided in all classes. Features also include a larger personal TV screens featuring the most advanced user interface. An enhanced innovative lighting concept with 12 light scenarios should increase passenger comfort.

(DLH) said the A350-900 consumes -25% less fuel and produces up to -50% less noise footprint than similar aircraft types.

News Item A-6: Lufthansa Technik (DLH) (LTK) has expanded an existing technical support deal with Wizz Air (WZZ) to include Airbus A320 and A321neo component support, aircraft overhaul and Cyclean engine washes through 2022.

Lufthansa Technik (DLH) (LTK) has a 3-year (WOW) Air contract for Airbus A330 component support.

News Item A-7: Lufthansa Technik (DLH) (LTK) has a 10-year contract with Royal Brunei (RBA) to provide A320 component support. (DLH) (LTK) secured component support contracts from Iceland's (WOW) Air for 3 (Trent)-powered A330s for 3 years.

News Item A-8: easyJet (EZY) recently opened a maintenance hangar with unique operating arrangements and announced 5-year base maintenance contracts to SR Technics (SWS) and Lufthansa Technik (DLH) (LTK).

News Item A-9: Lufthansa Systems (LHS) is further expanding its consulting division to meet the growing demand for professional consulting in the airline sector because of rising competitive pressure in the international market.

News Item A-10: The Iraqi Ministry of Transport signed a cooperation agreement with long term partner Lufthansa Consulting (DLH) (LHS) wherein the German firm will advise it on the restructuring of Iraqi Airways (IRQ) and the state-owned enterprise (SOE) which manages the country's airports.

The announcement comes on the back of a series of statements made by high-ranking Iraqi officials, the most prominent of which pointed to the establishment of a new carrier dedicated exclusively to the Iraq - Europe market. It is recalled that in December last year, the European Commission (EC) blacklisted Iraqi Airways (IRQ) for alleged failures in its safety oversight protocols. While it has since been able to resume service to the bloc, (IRQ) has only been able to do so using foreign (owned and/or maintained) airplane metal.

In all, Baghdad's decision to try reclaim lost market share is hardly surprising given that approximately 75% of Iraq's lucrative European connectivity is handled by foreign airlines. And it is even more surprising when you consider Iraq's tenuous national security situation and the large swathes of its north that are still under de-facto (IS) control as a result.

Though it doesn't suffer from the extremist insurgency that its neighbor is currently going through, Iran is also attempting to win back its share of European market. Following the signing of a nuclear deal with the "P5+1" (China, France, Russia, the UK, and the USA; plus Germany) in January, Iran has been gradually brought in from the cold. The reopening of the Iranian economy to limited foreign investments has seen a flurry of international carriers returning to Tehran for the 1st time in years. So far, British Airways (BAB) and (KLM) have made their Tehran service plans widely known but not much has been said about Iranian carriers despite the glitz and glamor around the tentative Airbus (EDS) and Boeing (TBC) (and possibly (ATR), Bombardier (BMB), Embraer (EMB), and Mitsubishi) (MRJ) mega-orders, said to include A350s and 787s.

That changed just recently when the "Fars" news wire ran a story about the relatively unknown Qeshm Air (QES) securing its Third Country Operator (TCO) licence from the European Aviation Safety Agency (EASA) earlier this month. The licence is a mandatory requirement for any airline wishing to serve Europe, and assesses a prospective carrier's overall safety and quality of operations. These 2 areas have proven problematic for Iran's airlines in recent years given the ageing fleets most operate using spares, and aircraft, that are often clandestinely acquired.

Anyway (EASA) has since confirmed that indeed, Qeshm Air (QES), Mahan Air (MHN), and Iran Air (IRN) have (TCO)s although (MHN) is restricted from using its A310 fleet to Europe. Iran Air Tours (IRB) is still undergoing scrutinization while Meraj Air and (ATA) Airlines (Iran) have both withdrawn their respective bids. Iran Aseman Airlines (IRC)' application was rejected, (EASA) said.

For its part, Qeshm Air (QES), which until now, has focused on the domestic and regional Iranian markets, has yet to set a date for its maiden European flights.

ch-aviation.com

News Item A-11: Lufthansa (DLH) phased out its last Boeing 737 on October 29 after completing a flight from Milan to Frankfurt.

(DLH)’s last 737-300, marks a historical move as this twin-engine narrow body airplane has been in (DLH) service for nearly 50 years.

(DLH) became the launch customer for the type on February 19, 1965 when it ordered 22 737-100s. The 737 received FAA certification December 12, 1967 and the 1st 737 was delivered for crew training on December 27, nearly 2 weeks later. The 1st scheduled flights were domestic. The original (DLH) 737-100 fleet operated 643,048 hours and made 836,446 takeoffs and landings before it was phased out on February 25, 1982. Lufthansa had a total of 157 Boeing 737s in service over 5 decades, including the variants 737-100, -200, -200C, -300, -300 QC (quick change), -400 and -500. In the 1990s, up to 120 737s at 1 time had been in service with (DLH).

The Lufthansa (DLH) 737 fleet completed nearly 5.5 million landings.
As of July 2016, Boeing said the 737 had amassed a total of nearly 13,500 orders worldwide.

(DLH) is replacing its 737s with an all-Airbus A320 family fleet.

November 2016: News Item A-1: "Ryanair Lays Down the Gauntlet in Lufthansa’s Home Base" Karen Walker Karen.walker@penton.com in (ATW) Editor's Blog, November 2, 2016.

News that Irish low cost carrier (LCC) Ryanair (RYR) plans to start operating out of Frankfurt next year prompted Lufthansa Group Carsten Spohr to take a sharp intake of breath even as he announced a strong set of results for his company. (RYR)’s planned move into the very heart of Lufthansa (DLH) operations is daring, especially as (DLH) has its own (LCC) unit, Eurowings (EWG), which it has put on a fast-growth track. But perhaps more intriguing is the fact that the announcement came not from (RYR), but from Frankfurt operator Fraport.

In a press release, Fraport Executive Board Chairman Stefan Schulte was full of praise for (RYR), calling it “Europe’s leading (LCC)” and wishing the (LCC) “always happy landing here at Frankfurt.”

Ouch! No wonder Spohr retorted at a 3rd-quarter financial results press conference that (DLH) would expect the same terms as (RYR), implying that Fraport may have enticed (RYR) with discounted airport fees that will not be expected by Fraport’s biggest client.

(RYR)’s ultra-low cost base and business savvy means it probably can move into the lion’s den and survive, even if there’s a bit of mauling. Its initial routes from Frankfurt will be to holiday destinations in Spain and Portugal, popular with German tourists; fares will be rock-bottom low but if anyone can sustain profitability in that environment, it’s (RYR), for which Frankfurt will become its 9th German base!

But don’t expect (DLH) to ignore this move, which is really throwing down the gauntlet in the airline industry’s equivalent of “new world versus old world” head butting. (DLH) achieved its 3Q result in large part by strict cost and capacity control. It has learned much from the (LCC) phenomena that dominates Europe (and which, unlike in the USA, must also compete with a sophisticated, extensive train network. So (DLH) will likely respond with all the tools it has at its disposal, and they are considerable.

But what to make of Fraport, which so enthusiastically rained on (DLH)’s (3Q) parade by publicly wishing newcomer (RYR) “happy landings”? All airports seek new airline customers. Winning a high-profile (LCC) (RYR) is quite a coup for Fraport and good for competition! However, you can be sure that Lufthansa (DLH) will monitor the terms of (RYR)’s Fraport operations extremely carefully.

News Item A-2: The night-flight ban at Germany’s Frankfurt Airport continues to put Lufthansa (DLH) at a disadvantage for creating additional business, increasing earnings and offering more connections. Even though Frankfurt hub operations itself delivers excellent overall results for the German carrier, Lufthansa Frankfurt Hub Manager, Klaus Froese said the night-flight ban prevents (DLH) from offering more attractive connections.

News Item A-3: Lufthansa (DLH) canceled 876 out of nearly 3,000 planned flights (including 51 long-haul routes) for Wednesday November 23 following the call from (DLH) pilot (FC) union Vereinigung Cockpit (VC) for a pilot (FC) strike.

(DLH) said it has installed an interim-flight schedule. The strike will affect travel plans for about 100,000 passengers. The 24-hour strike will have an impact on long- and short-haul flights.

Lufthansa Group Airlines Eurowings (EWG), Swiss International Air Lines (SWISS) (CSR), Austrian Airlines (AUL), Air Dolomiti (DLA) and Brussels Airlines (DAT)/(EBA)will operate as normal.

However, on November 22, (DLH) low-cost carrier (LCC) subsidiary Eurowings (EWG) was affected by a cabin crew (CA) strike by trade union Verdi at Dusseldorf and Hamburg from 5 am until 8 pm local time. 62 of 442 scheduled (EWG) flights were cancelled, affecting 4,100 passengers.

(DLH) said operations at its group hubs Zurich and Vienna should run normally on November 23.

SWISS (CSR) and Austrian Airlines (AUL) are evaluating whether to increase capacity on their routes to Germany. (AUL) plans to operate a Boeing 777 from Vienna to Frankfurt instead of Airbus A320s.

(DLH) said it plans to operate several long haul routes from Frankfurt including Chicago O´Hare, Delhi, Tokyo Haneda, Houston, Miami, and Washington Dulles. Flights from Munich to San Francisco, Newark and Charlotte should be operating.

Services from Munich to Hong Kong or Shanghai could be delayed to November 24.

The (DLH) pilots (FC) are demanding a +22% wage increase over a period of 5 years, an average growth per year of +3.66%.

Lufthansa (DLH) said the company has offered to solve the labor conflict with mediation several times, but (VC) has rejected the overtures.

News Item A-4: Lufthansa (DLH) and Swiss International Air Lines (SWISS) (CSR) have released their 2017 summer destinations.

For Lufthansa (DLH), new flights include 3x-weekly Frankfurt - Santiago de Compostela (Spain) service from March 27, 2017; 2x-weekly Frankfurt - Bordeaux (France) from April 2; 1x-weekly Frankfurt - Shannon (Ireland) from April 29, and 1x-weekly Frankfurt - Heringsdorf (Germany) from April 15; as well as year-round, 1x-weekly Frankfurt - Funchal (Portugal) flights.

From its Munich hub, (DLH) will launch 4x-weekly Munich - Nantes (France) services from March 28, 2017 and 1x-weekly Munich - Santiago de Compostela (Spain) service from April 9.

For SWISS (CSR), new seasonal routes include 1x-weekly service from Zurich to Bergen (Norway), Cork (Ireland) and Sylt (Germany) from June, becoming 2x-weekly in July and August. From July, (CSR) will operate 2x-weekly Zurich - Figari (France) and beginning in April, will provide 2x-weekly Zurich - Niš (Serbia) service.

(CSR) plans to operate Bergen, Cork, Figari, and Sylt services with its Bombardier CSeries 100.

News Item A-5: Lufthansa has confirmed it will take delivery of its 1st Airbus A350-900 on December 19, 2016. The 1st 10 (DLH) A350-900 aircraft will be stationed in Munich for the coming winter.

Lufthansa Technik (DLH) (LTK) will install the cabin interior, including the new premium economy (PY) class, as well as other features, so the aircraft will be ready to begin Munich - Delhi service February 10. Boston will be the next destination to be served.

The Star (SAL) Alliance member has ordered 25 Rolls-Royce (RRC) (Trent) powered A350-900 aircraft, valued at $310 million each at list prices, which will gradually replace its A340-600 fleet.

The 293-seat aircraft is configured for 48C seats in business, 21PY in premium economy, and 224Y in economy class.

Thomas Winkelmann, (CEO) of (DLH)’s Munich hub, said passengers will be able to enjoy a higher level of comfort on their flights to Delhi.
“We have now made further improvements to key components of the A350-900’s cabin interior. This includes a newly designed self-service area in business (C) class, new seats with ergonomically designed cushions in economy (Y) class, larger screens in all classes, and improved broadband internet services,” he said.

According to Lufthansa (DLH), the A350-900 consumes -25% less fuel and produces up to -50% less noise footprint than similar aircraft types.

December 2016: News Item A-1: "Lufthansa Acquires Brussels Airlines, to Become Part of Eurowings (EWG)" by (ATW) Kurt Hofmann, December 15, 2016.

The Lufthansa Group has taken over 100% of SN Airholding, the parent company of Brussels Airlines (DAT)/(EAD), in a deal to fully integrate the Belgian carrier into Lufthansa (DLH)’s Eurowings (EWG) Group in 2018.

(DLH)’s supervisory board agreed to exercise a call option on the remaining 55% stake, effective December 31. The transaction will close by the beginning of January 2017. The price for the acquisition of the remaining 55% of the shares is €2.6 million/$2.8 million, which will be transferred to a consortium of 30 shareholders.

“We have seen a series of radical changes in the industry and, over the last several months, competition has increased to a high level. We see a lot more consolidation to come. The strong [airlines] are getting bigger and this is what (DLH) intends to do,” Lufthansa Group (CEO) Carsten Spohr said

(DLH) said Brussels Airlines (DAT)/(EAD)’s attractive market, its established African network and its advantageous cost structure (which has allowed the airline to compete with the tough low-cost competition in the Belgian market) will further strengthen the Lufthansa (DLH) and Eurowings (EWG) market position.

“Africa is one of the reasons we have invested in (DAT)/(EBA), and only airlines that have a highly competitive cost structure have a place in the Lufthansa Group,” Spohr said. After the acquisition, Brussels Airlines will operate its 23 long-haul routes, as well as 79 destinations in Europe, under the umbrella of the Eurowings Group.

“With Brussels Airlines, the Eurowings Group will grow to 180 aircraft. Creating a more pan-European Eurowings is a big step in that direction. The Lufthansa Group is number one in Brussels. Aviation in Belgium needs a stronger partner,” Spohr said.

Lufthansa acquired a 45% share of SN Airholding 8 years ago. “In 2008 we had only 3 long-haul aircraft. Today we have 9, and soon we will fly to Mumbai. All this would not have been possible without (DLH),” SN Airholding board Chairman Viscount Etienne Davignon said. Between 2013 and 2015, passenger numbers have increased +30% to 7.5 million. The brand Brussels Airlines will, over time, be complemented by the claim “member of the Eurowings Group,” he said.

Brussels Airlines’ fleet harmonization toward an Airbus A320 family fleet for the European network will be continued. The fleet comprises 42 short- and medium-haul aircraft, including 2 in wet lease, and 9 A330s. “We are sure that a big joint decision will be the future long-haul fleet of Brussels Airlines,” Spohr said.

In the past 3 years, Brussels Airlines has reduced overall costs by -15%. For the fiscal year of 2015, Brussels Airlines generated an operating profit of +€43.4 million. With the full integration of Brussels Airlines, synergies will add up to a mid-double-digit million euro amount per year. “We understand the local brand. We believe there is a need to connect Europe to the world and not to be connected [from others]. Today 120,000 people work for Lufthansa, which will increase to 124,000 [with Brussels Airlines], and we are getting to 700 aircraft next year,” Spohr said.

“Over the past 8 years, our collaboration with (DLH) has proven its potential to create perspectives and safeguard jobs. Furthermore, the Lufthansa Group will enable us to expand our African reach by positioning Brussels as the Sub-Saharan Africa Hub of the Lufthansa Group,” Davignon said.

The Brussels Airlines management board remains unchanged under the leadership of (CEO) Bernard Gustin. In addition, an advisory council will be established and will support the integration process.

News Item A-2: "Lufthansa, Etihad Finalize Code Share, Wet Lease of 38 Airberlin Aircraft" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, December 16, 2016.

The Lufthansa Group and Abu Dhabi-based Etihad Aviation Group have finalized a code share deal and wet-lease agreement for 38 airberlin (BER) Airbus A319/A320 aircraft operating for Eurowings (EWG) and Austrian Airlines (AUL). The code share deal, which is subject to government approval, is set to begin in January 2017.

The 6-year wet-lease agreement, effective February 2017, is also subject to regulatory requirements. Of the 38 former (BER) aircraft, Eurowings (EWG) will operate 33 and Austrian Airlines (AUL) will operate 5.

Lufthansa Group Chairman & (CEO) Carsten Spohr said, “We are looking forward to partnering with the Etihad Aviation Group. The wet-lease contract with airberlin (BER) fosters the growth of our Eurowings (EWG) Group. The code share agreement of Lufthansa (DLH) and Etihad (EHD) will offer our customers more benefits and complement both airlines’ networks. We will consider extending our cooperation in other areas.”

Eurowings also announced it will establish a new base at Munich Airport, where it will base 4 A320 family aircraft initially. Additional aircraft will be placed in Vienna and Palma de Mallorca.

As a result of the wet-lease agreement, Eurowings said it is able to phase out up to 20 older A320s, reducing overcapacity. Airberlin said it could reduce restructuring costs. On September 28, (BER) released details of its restructuring plan, which hinged on placing up to 40 A320s with the Lufthansa Group and reducing employee positions by up to 1,200.

Under the code share agreement, Lufthansa (DLH) will place its LH code on Etihad Airways (EHD)’s 2x-daily flights between Abu Dhabi and Frankfurt and 2x-daily Abu Dhabi - Munich services. (EHD) will, in turn, put its EY code on (DLH)’s flights between Frankfurt and Rio de Janeiro, Brazil as well as Bogota, Colombia.

Etihad Aviation Group President & (CEO) James Hogan said, “We have long seen Germany as a key strategic market for the Etihad Aviation Group and this new relationship with (DLH) marks the next step in our commitment to the leading European Aviation Group.”

On December 5, oneworld (ONW) member airberlin (BER) announced the sale of 49.8% of its Austrian subsidiary FlyNiki (NKI) to Etihad (EHD) for €300 million/$320 million, to create a new European leisure airline in a joint venture (JV) with German travel company (TUI) Group (TUG).

On December 15, the Lufthansa Group took over 100% of SN Airholding, the parent company of Brussels Airlines (DAT)/(EBA), in a deal to fully integrate the Belgian carrier into Lufthansa (DLH)’s Eurowings (EWG) Group in 2018.

Airberlin (BER) reported a 3rd-quarter loss of -€45.6 million, reversed from a +€56.2 million profit in the year-ago period.

News Item A-3: "Lufthansa & Etihad: From Enemies to Partners" by Karen Walker Karen.walker@penton.com in (ATW) Editor's Blog, December 16, 2016.

Lufthansa (DLH) and Etihad (EHD), in the past, have fought over airberlin (BER) code share rights, specifically and more broadly over Gulf carrier growth and subsidy allegations. Today, the 2 became business partners, completing a code share and wet-lease agreement that links together Germany’s Lufthansa Group and Abu Dhabi-based Etihad Aviation Group, ironically with airberlin (BER) aircraft at the center of the deal.

Etihad (EHD), which owns a 29% stake in airberlin (BER), has agreed to wet-lease 38 airberlin (BER) Airbus A320 family aircraft to the Lufthansa Group, which will use them to operate routes for 2 of its airline units, Eurowings (EWG) and Austrian Airlines (AUL). The agreement is particularly important for low cost carrier (LCC) (EWG), which (DLH) is looking to grow more rapidly.

Meanwhile, (DLH) will place its LH code on Etihad Airways (EHD)’s 2x-daily flights between the 2 airlines’ respective home hubs of Abu Dhabi and Frankfurt, and on 2x-daily Abu Dhabi - Munich services. (EHD) will put its EY code on (DLH)’s flights from Frankfurt to Rio de Janeiro and Bogota.

Both elements of the partnering arrangement are subject to regulatory approval, but if accomplished, it will be the latest example of a legacy flagship and a Gulf carrier becoming "dance partners." British Airways (BAB) parent the (IAG) was the icebreaker; (IAG) (CEO) Willie Walsh and Qatar Airways (QTA) Group (CEO) Akbar Al Baker forged a deal that made (QTA) a stakeholder in the (IAG) (a stake later increased to 20%). Walsh was also instrumental in getting (QTA) into the Oneworld (ONW) Alliance (joining Oneworld (ONW) Alliance Founder member (BAB) and also, oddly enough, airberlin (BER)). Qatar Airways (QTA) is now also taking a 10% stake in the (LATAM) Airlines Group (LAN)/(TPR).

Some accused Qantas (QAN) (CEO) Alan Joyce of doing a deal in 2013 with the devil when he signed a 10-year global partnership with Emirates (EAD), the largest of the “big 3” Gulf carriers. Although no investment stake was involved, the deal permitted extensive coordination and allowed (QAN), the Australian flagship to cut back its own European flights and connect to Emirates (EAD)’s broad European network, even shifting its European connecting hub from Singapore to Dubai. Lucifer has been lucrative; restructuring and partnerships have helped Qantas (QAN) climb from A$2.8 billion/$2.1 billion net loss in its fiscal year through June 2014 to a record profit of A$1 billion for the 2015/2016 fiscal year (the best result in its 95-year history).

Now we have Lufthansa (DLH) and Etihad (EHD) in a "dance," with the Group (CEO)s of each replacing subsidy barbs with hints of a greater future together. “We are looking forward to partnering with the Etihad Aviation Group,” Lufthansa Group Chairman & (CEO) Carsten Spohr said. “We will consider extending our cooperation in other areas.”

Etihad Aviation Group President & (CEO) James Hogan responded, “This new relationship with Lufthansa (DLH) marks the next step in our commitment to the leading European aviation group.” Perhaps it’s simply a case of 2 smart businessmen realizing they are better off working together than fighting in an industry environment that gets only more challenging. Hogan has often noted that (EHD)’s 2 biggest competitors are those in his backyard. Emirates (EAD) and Qatar Airways (QTA) have become stronger competitors through their partnerships with legacy and other carriers. The Lufthansa Group, though performing well, is still in cost restructuring catch-up mode relative to the (IAG); and both airberlin (BER) and Eurowings (EWG) are loss-making. The new partnership could yield returns across each group’s portfolios and make them more resilient to the competition and economic upheavals in their home markets as well as in the all-important transatlantic market. Most significantly, the Lufthansa (DLH) - Etihad (EHD) tie-up perhaps represents the end of any global attempt to constrain the Gulf carriers by regulatory means. From here on, should the USA majors choose to continue that fight, they’ve probably lost Lufthansa (DLH) as a public supporter. And Air France (AFA), still mired in its own restructuring, seems to believe it can tackle Gulf competition by starting a low-cost, long-haul carrier dedicated to that purpose.

Keep your friends close, and your enemies closer, the saying goes. Abu Dhabi-German relations have transformed, perhaps by necessity, from chilly to sunny-warm. Let’s see what can be achieved when you quit fighting and start working on how to better compete with your enemy’s enemy.

News Item A-4: Lufthansa Group low-cost (LCC) subsidiary, Eurowings (EWG) and German public services trade union Verdi have reached a labor agreement for cabin crews (CA)s on December 2. According to the agreement, flight attendants (CA) will see a +2.5% wage increase backdated from October 1, 2016; a further +2.5% increase October 1, 2017; and another +1.25% increase October 1, 2018.

Eurowings (EWG) cabin chiefs (Chefs de Cabine) will now be managed as pursers and will be compensated based on a separate purser (wages tariff) table, which will see increase of +5% as of October 1, 2016; +2.5% as of October 1, 2017; and +1.25% as of October 1, 2018.

The collective agreement expires March 31, 2019.

The Dusseldorf-based Eurowings (EWG) will also offer this deal to the (UFO) flight attendant (CA) union. “With this financial statement, we have gone to the limits of what is economically justified in a difficult market environment. The agreement is an important milestone on the way to the solution of the tariff conflicts in the (EWG) cabin,” Managing Director Jörg Beißel said.

On November 1, it was reported that (EwWG) flight attendants (CA), represented by the (UFO) union, had postponed a 2-day strike even though the latest negotiations failed to reach an agreement. Previously, (EWG) flight attendants (CA) went on a 24-hour strike October 27, resulting in 393 flight cancellations out of 551 scheduled flights for the day, affecting 40,000 passengers.

Lufthansa (DLH) established (EWG) as a pan-European (LCC) platform, which is expected to grow to 100 aircraft, as competition from (LCC)s (such UK’s easyJet (EZY), Ireland’s Ryanair (RYR) and Spain’s Vueling (VUZ)) increases to a 50% market share in Europe.

News Item A-5: "German Pilots' Union Says to Resume Talks with Lufthansa" by Maria Sheahan, "Reuters" December 09, 2016.

German pilots' union Vereinigung Cockpit said it would resume wage talks with Lufthansa (DLH) and would hold off further strikes until the end of negotiations. It said on December 9th it would discuss options including mediation in these talks.

The union is currently reviewing (DLH)'s latest pay offer, which came after 6 days of strikes last month that cost the (DLH), the German flagship carrier EUR100 million/US$106 million in lost profit.

News Item A-6: "Lufthansa, Pilot Union Agree to Arbitration" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, December 16, 2016.

Lufthansa (DLH) and the Vereinigung Cockpit (VC) pilot (FC) union have agreed to arbitration by the end of January 2017, in an effort to resolve a pay dispute that has resulted in repeated strikes. The
(VC) union has agreed to maintain industrial peace until then.

On December 13, it was reported that the latest round of (VC) pilot strikes will affect Lufthansa Group earnings by €100 million/$106 million in the 4th quarter. In November, (VC) called members to go on strike for 6 days, forcing Lufthansa (DLH) to cancel 4,500 flights, affecting more than half a million passengers.

According to a December 16 statement from Lufthansa (DLH), the parties have not publicly identified the mediator. “We have had some intense talks over the past months and have now succeeded in agreeing on arbitration for the collective wage agreement. The negotiating table is the only place where we can find solutions that offer prospects for employees and for the company,” (DLH) Head of Human Resources & Legal Affairs Bettina Volkens said.

“I am confident that we will be able to develop a fair solution with the assistance of a mediator. We want to arrive at a long-term industrial peace in cooperation with (VC) (for our customers, our employees and our shareholders),” Volkens said.

News Item A-7: "Don’t Hold Your Breath…" by Victoria Moores in Need I say Moores.

Lufthansa (DLH) pilots (FC)’s union Vereinigung Cockpit (VC) has said that their recent strikes are “a question of who can hold their breath the longest and our breath is very long.”

That statement was far from reassuring as the strikes entered its sixth day, causing a total of 4,461 flight cancellations and disrupting the journeys of 525,000 passengers.

(VC) Board Member Jörg Handwerg said that the dispute was “about power.” He said management was using fear and pressure and the union was not willing to accept this style of leadership. But forcing the airline to bleed around €10 million/$10.6 million per day until management agreed to a +22% pay increase is hardly a gentle approach either. When companies and their staff are at war, everyone suffers.

Handwerg knew the strike was hurting the airline, but he didn’t believe it could ultimately cause Lufthansa’s downfall. “We don’t think that is a real danger. It is a ghost that they want to put in our heads. When we stop striking, passengers come back quickly.”

However, just as the strike is about power rather than a simple pay deal, passenger loyalty is not just about the price and product. Uncertainty over whether the flight will actually operate is a real turn-off for passengers.

It is understandable that the union wants a share of Lufthansa (DLH)’s record profits. It is also true that Europe’s network airlines have already demanded huge sacrifices from their staff and they keep asking for more.

Equally, over the last 9 months (DLH)’s unit revenues have fallen 5.8%, while its costs narrowed by only 2.1%. That gap is what keeps the airline in business. In a cyclical industry, which is being temporarily boosted by low fuel prices, structural change is needed. Competitive efficiency is a necessity, not a luxury. (DLH) is not competing with Air France (AFA) nor British Airways (BAB), but it is competing with every airline that touches its network. That is the nature of a global business.

Passengers will choose the best-priced, highest-quality and most reliable product. They don’t care much for company politics, or who has the greater lung capacity.

News Item A-8: The Competition Commission of Singapore (CCS) has approved a proposed joint venture (JV) between Lufthansa (DLH) and Singapore Airlines (SIA), subject to certain voluntary conditions.

On February 5, (DLH) and (SIA) sought permission to cooperate on routes between the Asia-Pacific region (Australia, Indonesia, Malaysia and Singapore) and Europe (Austria, Belgium, Germany and Switzerland).

The (CCS) said the 2 airlines were looking for clearance to work together on pricing, inventory management, sales and marketing. They also asked to coordinate schedules, capacity and revenues on services from Singapore to Frankfurt, Düsseldorf, Munich and Zurich. However, (DLH) and (SIA) hold 80% of the Singapore - Frankfurt and Singapore - Zurich market, so the (CCS) said price and capacity coordination on these routes “would raise competition concerns.” The (CCS) was particularly worried about capacity reductions and fare increases, should the (JV) be approved.

The 2 airlines offered to maintain and increase capacity on both routes and carry a minimum number of Singapore passengers. An independent auditor will also be appointed to monitor compliance with the conditions. “The (CCS) is of the view that the competition concerns identified by the (CCS) on these 2 routes will be addressed with these commitments, and the proposed (JV) will result in net economic benefits to Singapore,” the regulator said, approving the (JV).

News Item A-9: Lufthansa Technik (DLH) (LTK) and (GE) Aviation (GEC) selected the Legnica Special Economic Zone in Sroda Slaska, Poland as the site for its Maintenance Repair & Overhaul (MRO) joint venture (JV) for (GEnx-2B) and (GE9X) engines. The (JV), called "XEOS," will invest about $267 million in the new facility.

Ground breaking on the 350,000 sq ft facility will begin in spring 2017, and the facility will open in September 2018 with capability to test and repair (GEnx-2B) engines that power the Boeing 747-8 airplane for Lufthansa (DLH) and other airlines. It will operate for at least 30 years and create some 600 jobs.

(MRO) capabilities for the (GE9X), which powers the Boeing 777X airplane, will be available in 2021.

News Item A-10: Lufthansa Technik (DLH) (LTK) and (DC) Aviation Group have recently performed the 1st "A" check for a narrow body aircraft at Al Maktoum International Airport in Dubai. The services were provided for an Airbus A319 in the hangars and (VIP) facilities of DC Aviation Al-Futtaim, a joint venture of (DC) Aviation and Al-Futtaim.

News Item A-11: Lufthansa Technik (DLH) (LTK) has an Air India (AIN)/(IND) contract to provide Boeing 777 landing gear overhaul.

News Item A-12: Lufthansa Technik (DLH) (LTK) plans by end of 2017 to close aircraft overhaul operations at Hamburg after it could not reach new labor agreement with wage accord partner, ver.di; future aircraft overhaul work will be performed at Budapest, Sofia, Shannon, Malta, Puerto Rico, and Manila.

News Item A-13: Munich Airport has approved an ambitious climate protection concept to become Germany’s 1st airport to achieve carbon-neutral operations. Germany’s 2nd-largest airport said the CO2 emissions directly attributable to airport operations will be reduced 60% by 2030. The remaining 40% will take the form of carbon offsets.
“These are to be generated whenever possible through certified projects at the regional level. The costs of this climate protection program between now and 2030 will total €150 million/$160 million," Munich Airport said.

According to an airport statement, the package of measures for achieving carbon neutrality at Munich Airport covers all areas, but especially the energy supply, efficiency improvements in building systems, vehicle fleet optimization, exterior lighting and further improvements in electric power use of the baggage transport system. The improvements range from intelligent control technologies to climate-optimized facades, including a switch to (LED) technology for runway lighting, increased reliance of renewable energy sources and greater use of electro-mobility in the airport's vehicle fleet, the airport said. “We set very high standards for climate protection. With our far-reaching climate targets, we want to help ensure that the airport’s operations and ongoing development are pursued in ways that preserve the opportunities and possibilities of future generations. With the goal of achieving carbon-neutral airport operations, we are paving the way to sustainable, resource-conserving air transportation,” Munich Airport (CEO) Michael Kerkloh said.

Separately, Lufthansa (DLH) said it plans to base 10 of its 25 ordered Airbus A350-900 at its Munich hub. (DLH) said the A350 produces 25% fewer emissions than comparable types of aircraft.

News Item A-14: Lufthansa (DLH) has taken delivery of its 1st of 25 Airbus A350-900s. The 1st 10 of the type will be deployed on long-haul routes from Munich to Delhi and Boston.

Lufthansa Technik (DLH) (LTK) will install the cabin interior (which includes a new premium-economy (PY) class) as the aircraft readies to begin Munich - Delhi services on February 10, 2017.

The 293-seat aircraft is configured for 48C seats in business, 21PY in premium-economy, and 224Y in economy class. The A350 is equipped with Lufthansa (DLH)’s latest cabin products, including new seats, in-flight entertainment and in-flight connectivity in all classes.

Lufthansa Group Chairman & (CEO) Carsten Spohr said (DLH) is taking delivery of an average of 50 new aircraft every year. Airbus (EDS) has 810 firm orders for the A350 XWB from 43 customers worldwide.

Separately, (DLH) has appointed Wilken Bormann as the next (CEO) of Lufthansa’s Munich hub, effective in the 2017 1st quarter. He succeeds Thomas Winkelmann, who will be joining airberlin (BER) on February 1, 2017 as (CEO) and Chairman of the executive board. Bormann is currently VP & (CFO) of Lufthansa (DLH) airline.

January 2017: News Item A-1: Iran Air (IRN) and Lufthansa (DLH) have reached an agreement to code share from Frankfurt and Munich to Tehran beginning February 1.

The cooperation allows (IRN) to add its IR designator on (DLH)’s daily Frankfurt - Tehran Imam Khomeini International (IKA) Boeing 747-400 service, as well as (DLH)’s 3x-weekly Munich - Tehran Airbus A330 services.

Star (SAL) Alliance member (DLH) plans to negotiate further agreements with Iran Air (IRN).

On March 14, 2016 (DLH) and (IRN) signed a memorandum of understanding (MOU) to increase cooperation between the 2 carriers to explore “further business and partnership opportunities.”

News Item A-2: "Lufthansa Begins Trialing Broadband on Short- and Medium-haul Flights" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, January 10, 2017.

The Lufthansa Group said it plans to become the “most digital aviation group” in 2017, Chairman & (CEO) Carsten Spohr said at the Lufthansa Group’s digital aviation forum on January 10.

See "DLH-2017-01 - Smartphone Boarding Pass.jpg" and
"DLH-2017-01 - Cabin Attendant Online Digitalization.jpg."

To kick off the plan, (DLH) has begun the next phase of testing Lufthansa "FlyNet" internet access, initially on 5 Airbus A320s each at Lufthansa (DLH) and Austrian Airlines (AUL). The trial, which began January 10 with plans for a full market launch within the 2017 1st quarter, will include free service and will offer internet access on inner-European routes.

Passengers who fly on these aircraft will be offered free internet use during this test phase. (DLH) passengers can gain Wi-Fi access to the internet using their own mobile devices. In the future, 3 service packages will be available, priced at €3/$3.16 for FlyNet Message, €7 for FlyNet Surf and €12 for FlyNet Stream.

(DLH) Executive board member and (CEO) Hub Management Harry Hohmeister said the company is “investing €300 million in digitalization for our customers [excluding (DLH) internal digitalization) until 2020.”

(ATW) joined a special A319 flight on January 10 from Frankfurt, flying over Luxembourg and France, and returning to Frankfurt. On board the aircraft, passengers were able to join a live conference via a smartphone [provided by (DLH)] from the pilots (FC) in the cockpit, guests in the cabin and from the ground.

In the 1st quarter of 2017, the number of (DLH) aircraft outfitted with internet access will increase to around 20. The entire (DLH) A320 fleet is to be equipped with the latest advanced technology by the middle of 2018.

1 Airbus A320 can be reconfigured for the internet service in 4 days of downtime. “We are doing this at the same time on 6 different [Maintenance] locations, on a series of 10 production lines, working simultaneously, at the Lufthansa Technik (DLH) (LTK) sites,” a Lufthansa Technik (DLH) (LTK) expert said during the on board web conference.

By spring, nearly 100 aircraft are scheduled to be equipped with the required antennae and routers.

News Item A-3: "Lufthansa Group to Hire 3,000+ Employees in 2017" by Kurt Hofmann hofmann.aviation@netway.at, January 6, 2017.

The Lufthansa Group has announced plans to hire more than >3,000 employees (mostly flight attendants (CA)) who will join the Group’s various airlines in 2017.

Lufthansa (DLH) will hire 1,400 flight attendants (CA) at Frankfurt and Munich; overall the Lufthansa Group airlines will hire >2,200 new staff. “Lufthansa (DLH) remains the most attractive employer in Germany and the employer of choice for many applicants. Last year, >100,000 applications were submitted,” Lufthansa Group Chairman & (CEO) Carsten Spohr said. With 37,000 employees, Lufthansa (DLH) is the largest employer in Frankfurt and the province in Hesse.

Some of the 3,000 new employees will be based at Lufthansa (DLH) low-cost carrier (LCC) subsidiary Eurowings (EWG), which plans to recruit 200 flight attendants (CA), as well as (CA)s for Swiss International Air Lines (CSR).

Austrian Airlines (AUL) is hiring >300 cabin, check-in and cockpit staff. Other divisions, such as Lufthansa Technik (DLH) (LTK), are planning to recruit +450 new staff at different locations.

News Item A-4: Lufthansa Technik (DLH) (LTK) was selected by Air Transat (AIJ) to provide CyClean engine wash services at Montreal for its (CF6-80C2)s (Airbus A310s), (Trent 700)s (A330s), and (CFM56-7)s (Boeing 737s).

News Item A-5: JorAMCo (JOR) signed a contract with Lufthansa (DLH) to perform "C" checks/cabin modifications on 2 Airbus A340s in the 2017 1st quarter.

News Item A-6: The Lufthansa Group appointed Ms Heike Birlenbach as the new VP Sales & (CCO) Frankfurt hub, effective January 1, 2017. She succeeds Jens Bischof, who has been appointed Managing Director of SunExpress (SNS).

News Item A-7: The Lufthansa Group, which took delivery of its 5th Airbus A320neo on December 29, 2016, expects to receive +10 more of the type in 2017. The Star (SAL) Alliance member said the 5 A320neos were delivered in 2016 as planned. The Lufthansa Group has 116 of the type on order (45 are the larger A321neo version. Some of those will go to subsidiary Swiss International Air Lines (CSR).

February 2017: News Item A-1: "Etihad & Lufthansa Sign Cooperation Agreement" by (ATW) Karen Walker, February 1st, 2017.

Etihad Airways (EHD) and Lufthansa (DLH) signed a multi-faceted commercial partnership agreement February 1st that will see the 2 companies cooperate via code shares and across catering and Maintenance Repair & Overhaul (MRO) services. The agreement was signed in Abu Dhabi on February 1 by Etihad Aviation Group President & (CEO) James Hogan and Lufthansa Group Chairman & (CEO) Carsten Spohr.

It follows a deal agreed between the 2 late last year in which airberlin (BER), an Etihad Aviation Group partner airline, will wet-lease 38 narrow bodies to the Lufthansa Group, most of which will be operated by Lufthansa (DLH)’s Eurowings (EWG) low-cost carrier (LCC). Etihad Airways (EHD) has a 29% stake in (BER).

Today’s agreement reaches far wider across the 2 company’s businesses and Spohr indicated it has the potential to eventually become a full joint venture (JV).

The business environments for both Etihad Airways (EHD) and Lufthansa (DLH), as well as their group airlines, has been challenging with increased (LCC) competition coming on top of strong competition from the consolidated USA majors and rival European airline groups Air France (AFA) - (KLM) and the International Airlines Group (IAG).

The 4-year catering contract will see (DLH)’s (LSG) Sky Chefs unit provide catering services to (EHD) in 16 cities in Europe, Asia and the Americas. It will make (LSG) the largest provider of catering services to (EHD) outside its home base.

A memorandum of understanding (MOU) between Etihad Airways (EHD) and Lufthansa Technik (DLH) (LTK) will pursue cooperation in (MRO) services across (EHD) and its airline equity partners. Together, the catering and (MRO) agreements were said to be worth $100 million.

The (CEO)s said that (EHD) would also move its locations at Frankfurt and Munich airports to Lufthansa (DLH) terminals. “This partnership is the platform for a much wider strategic collaboration between our 2 organizations,” Hogan said.

Spohr added that partnering with the Etihad Aviation Group “fits perfectly the Lufthansa Group’s global strategy for our passenger airlines and service companies.” Further cooperation areas are being looked at, including freight operations, procurement and passenger services, the airlines said.

The previously announced code share between the 2 airline groups goes on sale from February 1 for flights between Abu Dhabi and Germany. (DLH) will place its LH code on Etihad Airways (EHD)’s 2x-daily flights between Abu Dhabi and both Frankfurt and Munich. After government approval is given, (EHD) will put its EY code on (DLH)’s long-haul, nonstop intercontinental services between Frankfurt and Rio de Janeiro and Bogota.

See attached - "DLH-2017-02 - DLH and EHD Link.jpd."

News Item A-2: "Wet-leased Airberlin A320s Begin Service for Eurowings" by (ATW) Kurt Hofmann Kurt Hofmann hofmann.aviation@netway.at, February 10, 2017.

3 airberlin (BER) Airbus A320s operating in Eurowings (EWG) colors launched February 10 from Hamburg to Manchester, Stuttgart and Nuremberg. The flights are part of a 6-year wet-lease agreement between (BER) and the Lufthansa Group, which was approved unconditionally at the end of January by federal antitrust authorities.

Under the wet-lease agreement, (BER) will lease 38 Airbus A319/A320 aircraft (which are stationed at German and Austrian airports) to Lufthansa (DLH) and its subsidiaries Eurowings (EWG) and Austrian Airlines (AUL). (EWG) will take 33 of the aircraft and Austrian (AUL) will take the remaining 5. The deal also includes a code share between (DLH) and (BER) equity parent Etihad Airways (EHD).

Airberlin (BER) (CEO) Thomas Winkelmann said, “The wet-lease agreement with the Lufthansa Group is a significant milestone for (BER) by providing job security with ultimately 38 aircraft flying for the Lufthansa Group.”

The (BER) wet-leased A320s will be delivered to the Lufthansa Group in phases by the end of April and all aircraft will carry the wording “operated by airberlin” on their fuselages. “According to the agreement with (BER), Eurowings (EWG) is the fastest-growing carrier compared to any other airline brand in Europe,” (CEO) of (EWG) and Aviation Services Karl Ulrich Garnadt said. The wet-leased aircraft will be operated in (EWG) colors and its cabin design.

Up to 20 (BER) A320s will replace the oldest (EWG) aircraft of the same type. The increased aircraft capacity allows (EWG) to offer 23,000 additional flights per year and >60 new connections. (BER) also estimates it will carry 3 million additional passengers annually.

4 of the 33 wet-leased aircraft will be based in Munich beginning from this summer. “>50% of the 60 additional new connections will be offered from (DLH)’s 2nd hub Munich,” Garnadt said.

2 former (BER) A320s will be based in Palma de Mallorca (Spain), increasing the number of aircraft to 4 (in Palma) starting from this summer, while the remaining aircraft will strengthen (EWG)’s existing bases in Cologne Stuttgart, Dusseldorf, Hamburg, and Vienna.

Star (SAL) Alliance member Brussels Airlines (DAT)/(EBA), which operates 51 aircraft, should be integrated into the Eurowings Group from 2018. Including Brussels, the total (EWG) fleet is expected to reach 160 aircraft.

News Item A-3: "Lufthansa Embraces Data Analysis to Offer Passengers Customized Service" by (ATW) Aaron Karp aaron.karp@penton.com, February 3, 2017.

The Lufthansa Group is aiming to offer passengers service “personalized on a silver tray” by utilizing “predictive analytics” to determine what offerings individual customers want, a senior executive said. Speaking to reporters during a February 2 briefing in New York, Senior VP Sales Lufthansa Hub Airlines, and (CCO) Frankfurt Hub Heike Birlenbach explained that Lufthansa (DLH) plans to “pinpoint the respective needs of an individual customer rather than offering them everything we have.”

The initiative is part of the Lufthansa Group’s $430 million investment in digitalization through 2020. “We have customer data about activities” that can be analyzed and utilized to explore revenue opportunities, Birlenbach said. “For example, we have learned there is a certain timing when a customer is looking for an upgrade, and it’s not when the ticket is booked or on the day of the flight. [The ideal time to offer an upgrade is] in between purchasing the ticket and the date of flight. [Lufthansa (DLH) has analyzed data to determine] when is the best time a customer would respond to an upgrade offer.”

(DLH) believes communication with passengers via smartphones and other devices should be ongoing, and not limited to the day of ticket purchasing and the day of flight. It is enabling passengers to choose on board entertainment options as much as 6 weeks ahead of a flight, for example.

(DLH) will also make sure a passenger has the digital reading material he or she wants. It is offering passengers 250 digital titles in 18 languages. “The times are gone when we say, ‘The magazine is not available because the last customer took it’,” Birlenbach said.

The data used to tailor offerings to passengers is “not necessarily linked to the frequent flyer program,” Birlenbach noted. The data could come from a joint venture partner’s frequent flyer program or just from general information about passengers flying aboard Lufthansa Group airlines.

“The key is who has the basic data,” added Lufthansa Group VP sales-Americas Tamur Goudarzi-Pour. “We have the data that many players in the industry [such as airports] do not have. If we know you have a 3-hour transfer time, but you are not a frequent flyer, we’ll offer you access to the airport lounge [on the day of the trip for a price]. But we do not want to overdo it. After 3 rejected offers [of lounge access by a specific passenger], we will no longer make the offer. This is real. This is not something for the future. This is already happening on the ground in Munich.”

Birlenbach said 2017 is viewed as “the year of digitalization within the Lufthansa Group.” Using advanced analytics is a “mega-trend” in business that (DLH) wants to get ahead of, she added. “There are many opportunities in terms of interaction with customers,” Birlenbach said. “We can improve profit margins by having additional revenue sources. We believe that if the air transport itself is rather exchangeable [from airline to airline], we need to differentiate in other services.”

News Item A-4: Lobby group "Airlines for Europe" (A4E) has completed its 1st year of operations, bringing both successes and some ongoing frustrations. (A4E) was started by Europe’s 5 major airline players: Air France (AFA) - (KLM), UK-based easyJet (ESJ), the International Airlines Group (IAG), Lufthansa (DLH), and Irish low-cost carrier (LCC) Ryanair (RYR) in January 2016 to focus on key policy areas, including airport charges, air traffic control (ATC) strikes and taxation.

News Item A-5: "Lufthansa Unveils 1st A350 XWB with New Cabin Interior" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, February 3, 2017.

Lufthansa (DLH) unveiled the 1st of 25 Airbus A350-900s February 2 in Munich after Lufthansa Technik (DLH) (LTK) completed the cabin installation. The aircraft (which was delivered to (DLH) in December 2016) is scheduled to begin Munich - Delhi services February 10.

Lufthansa Technik (DLH) (LTK) said, “The required cabin installations are complete and the supplemental type certificate (STC) has been issued by the European Aviation Safety Agency (EASA. The aircraft is technically cleared to enter scheduled service.”

(DLH) has 25 Rolls-Royce (RRC) (Trent)-powered A350-900 aircraft on order, valued at $310 million each at list prices, which will gradually replace its A340-600 fleet.

The 1st 10 A350s will be deployed on long-haul routes from Munich to Delhi and Boston. A 2nd of the type will join the fleet by the end of February; a total of 7 A350s will be delivered this year.

The 293-seat aircraft is configured for 48C seats in business, 21PY in premium economy, and 224Y in economy class. The A350 is equipped with (DLH)’s latest cabin products, including new seats, in-flight entertainment and in-flight connectivity in all classes.

Lufthansa Technik (DLH) (LTK) said “The installation of the premium-economy (PY) class and new self-service racks in business (C) class were among the upgrades that are most visible to passengers.”

According to (DLH), the A350 uses -25% less kerosene, produces -25% fewer emissions and is significantly quieter on takeoff than comparable aircraft types.

Lufthansa Group Chairman & (CEO) Carsten Spohr said the A350 will deliver a generation change for the Lufthansa Group’s long-haul fleet. “In 2013, we ordered 59 long-haul aircraft at the same time at Airbus and Boeing (a total investment of €12 billion/$12.9 billion). (DLH) has invested a total of €2 billion in 2017,” Spohr said.

This year, (DLH) will take delivery of 7 A350s, 17 A320/A320neos, 14 Bombardier CSeries 100/300s (to SWISS (CSR)) and 2 Boeing 777-300ERs (also for (CSR)).

“Within 12 months, we have integrated into the Lufthansa Group 3 different new aircraft types (the A350, the Bombardier CSeries and the Boeing 777-300ER) which has been an operational challenge,” Spohr said.

March 2017: News Item A-1: The Lufthansa Group turned in a net profit of +€1.78 billion/+$1.90 billion in 2016, up +4.6% on the previous year’s figure of +€1.70 billion, the Germany-based organization said March 16. It achieved the profit on turnover down -1.2% at €31.6 billion. “In a very demanding market environment, we successfully kept the Lufthansa Group’s margins at their record prior-year levels, through consistent capacity and steering measures and, above all, through our effective cost reductions,” Chairman of the executive board and (CEO) of Deutsche Lufthansa (DLH) Carsten Spohr said.

“All our business segments developed positively in their respective markets. And by expanding our commercial joint ventures for the network airlines, fully acquiring Brussels Airlines (DBA)/(EAT) and concluding the comprehensive wet-lease agreement with airberlin (BER) we have also strengthened our strategic position.” He cautioned, however, that further cost reductions would be necessary in 2017: “This is the only way to meet and master the decline in unit revenues and higher fuel expenses.”

Among cost-saving measures introduced in 2016 was a move to a new pension system that added +€652 million to the (EBIT) figure.

“The change in the pension system for our cabin crews (CA), which we now also agreed with our cockpit crews (FC), has had a sustainable positive effect, strengthening our balance sheet and making us less dependent on volatile interest rate developments,” Deutsche Lufthansa (CFO) Ulrik Svensson said. “This shows how important it is to have viable and forward-looking collective labor agreements.”

Among debits on the balance sheet for the past year was €100 million in strike costs. Net profit figures for the individual components of the Group were not given, but Lufthansa Passenger Airlines (DLH) raised its adjusted (EBIT) by +€254 million to >€1.1 billion. Austrian Airlines (AUL) was also in the black with an adjusted (EBIT) of €58 million, a +€6 million improvement on 2015.

SWISS (CSR) remained the Group’s most profitable airline with an adjusted (EBIT) margin of 9.3% and an adjusted (EBIT) of SFr429 million/$430 million compared to SFr453 million last time. Low-cost carrier (LCC) Eurowings (EWG) reported an adjusted (EBIT) of €-91 million. More than half of that deficit could be attributed to startup costs and other non-recurring expenditures, the Group said.

Also in the red was Lufthansa Cargo (LUB), which recorded a -€50 million loss for the year. The sharp -€124 million decline compared to its 2015 result was largely because of significant falls in price levels, particularly in the face of massive overcapacity in the freight sector.

On the ground, Lufthansa Technik (DLH)/(LTK) reported an adjusted (EBIT) of €411 million for 2016 (down -€43 million on 2015), while caterer (LSG) achieved an adjusted (EBIT) of €104 million (up +€5 million).

In 2017, the Group’s passenger airlines are expected to record organic capacity growth of +4.5% for its passenger airlines. Brussels Airlines (DBA)/(EBA), whose results will be fully consolidated for the 1st time in 2017, and the wet-leased flights of airberlin (BER), should make a small positive contribution to earnings in their 1st year.

News Item A-2: German trade union Verdi called for ground staff at Berlin’s Tegel and Schönefeld airports to strike on Friday, March 10. The 24-hour strike, scheduled at 4 am local time, had a considerable impact on air traffic to and from Berlin. Airberlin (BER) said that flights were canceled and delayed on short notice. Exceptions to the cancellations were long-haul flights and the feeder flight AB6431 to (BER)’s Düsseldorf hub. Also, flight AB8380 to Tel Aviv took place as scheduled.

Qatar Airways (QTA) Group (CEO) Akbar Al Baker said that (QTA) transferred its scheduled Berlin - Doha service to another German airport, Leipzig.

The strike coincided with the world’s largest travel trade fair, (ITB) Berlin, and Friday March 10 was a peak travel day.

Airberlin (BER) (CEO) Thomas Winkelmann said, “We fail to understand why the bargaining parties had to strike at the expense of the passengers. In addition, we also see it as irresponsible to have called a strike for the end of the (ITB) Berlin fair, when visitors from all over the world wanted to travel home from Berlin.”

Berlin’s Tegel and Schönefeld airports have canceled hundreds of scheduled flights from March 13 - 15 because of an ongoing ground staff strike over wages. On March 13, both airports canceled 670 flights, including 215 flights from airberlin (BER) and 180 flights from Lufthansa (DLH). On March 14, Tegel canceled 453 flights and Schönefeld canceled 125 flights, about 90% of all scheduled flights.

German trade union Verdi, which represents around 2,000 ground staff, wants a €1/$1.07 increase in hourly wages.

Several airlines transferred their March 14 flights to other German airports. The strike is a continuation of last March 10’s strike when both airports canceled a total of 650 flights.

News Item A-3: The Lufthansa Group has appointed Wilken Bormann as (CEO) of the Munich hub from March 1, succeeding Thomas Winkelmann, who became airberlin (BER) (CEO) and Chairman on February 1.

Bormann is responsible for the commercial management, station management, ground infrastructure and processes, as well as for the further development of the southern Lufthansa hub, behind Frankfurt, Germany’s second largest airport. He is also responsible for the operational planning and control of all flights to and from Munich.

His Lufthansa career began in 1998 at Lufthansa Technik (DLH) (LTK) in Hamburg where he held various management positions. He moved to Frankfurt in 2014 and in 2016 became Lufthansa Airline (DLH) VP Finance & (CFO).

Lufthansa (DLH) has 120 aircraft based in Munich.

News Item A-4: Lufthansa (DLH), Lufthansa Cargo (LUB) and Germanwings (EFG) have reached a deal with the Vereinigung Cockpit pilot union (VC) on all collective bargaining agreements concerning wages, productivity, transitional payments and pensions, in a contract that runs through June 2022.

Talks between (DLH) and (VC) have been ongoing since 2014 and have resulted in 14 pilot (FC) strikes that cost the German airline group €500 million/$532 million). According to (DLH), the recommendation developed in February by mediator Gunter Pleuger for the collective wage agreement formed 1 part of the considerations. But the new agreement has made a formal acceptance of the arbitration recommendations unnecessary. Likewise, (DLH) said it will not be pursuing a previously announced plan to staff 40 newly acquired aircraft outside the group-wide collective bargaining agreement (KTV).

Details of the various collective bargaining agreements will be worked out over the next few months. According to (DLH), the agreement provides a 1-off balance-sheet reduction through the conversion of the pension schemes. In return for the cost-reducing elements of the agreement, 325 aircraft will be crewed in the current (KTV) flight operations in stages by 2022. “This will make it possible for (DLH) to hire trainee pilots (FC) again in the coming years and create career prospects for pilots (FC) with a large number of positions for prospective captains. A reciprocal agreement to refrain from industrial action for the duration of the talks has already been reached, and is set to be formalized in a collective bargaining agreement that will last until 2022.”

Deutsche Lufthansa (DLH) Head of Legal Affairs & Human Resources Bettina Volkens said, “With this declaration of intent, we have finally reached a breakthrough. The path is now clear for a comprehensive settlement with Vereinigung Cockpit on all unresolved collective bargaining issues. This is not only the end of the longest collective bargaining dispute in our company’s history (it also creates a sustainable deal that will last until 2022 and, at the same time, lays the foundation for a new social partnership with the Vereinigung Cockpit).”

The agreement is subject to board approval and a (VC) ballot.

News Item A-5: "European Commission (EC) Re-imposes Cargo Cartel Penalties" by Alan Dron alandron@adepteditorial.com, March 17, 2017.

The European Commission (EC) has reinstated fines totaling €776 million/$834 million on 11 airlines for operating a price-fixing cartel on air freight from 1999 to 2006. More legal hearings are likely, as at least 1 of the carriers immediately said it would appeal the decision.

The (EC) originally imposed the penalties in November 2010, but these were annulled by a decision of the European Union’s (EU) General Court in December 2015 on procedural grounds, which ruled there was a technical discrepancy in the prosecution. In a March 17 announcement, the (EC) said it had resolved the discrepancy and was re-imposing the financial penalties on 11 air cargo carriers: Air Canada (ACN), Air France (AFA)/(KLM), British Airways (BAB), Luxembourg-based Cargolux (CLX), Hong Kong flag carrier Cathay Pacific Airways (CAT), Japan Airlines (JAL)/(JSA), (LAN) Chile, Dutch cargo carrier Martinair (MTH), Australia's Qantas (QAN), (SAS) Scandinavian Airlines and Singapore Airlines (SIA).

The (EC) said that a 12th member of the cartel, Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR), was spared from the financial penalties after it applied for immunity in 2005 and revealed details of the alleged arrangements between the airlines.

These were said to consist of collusion between the airlines at both bilateral and multilateral levels to fix the level of fuel and security surcharges on cargo. After the initial verdict, all the airlines except Qantas (QAN) appealed. The financial penalty thus became final for QAN). Millions of businesses depend on air cargo services, which carry >20% of all (EU) imports and nearly 30% of (EU) exports,” (EC) Commissioner Competition Policy Margrethe Vestager said. “Working together in a cartel rather than competing to offer better services to customers does not fly with the (EC). Today’s decision ensures that companies that were part of the air cargo cartel are sanctioned for their behavior.”

The (EU) can fine companies participating in cartels up to 10% of their revenue in the year preceding the adoption of a verdict. (SAS) immediately said it would appeal. “We strongly question the European Commission’s move to re-impose a decision that has already been annulled once by the [General Court],” (SAS) General Counsel Marie Wohlfahrt said. “Throughout the entire process, (SAS) has cooperated with the (EC) and, for >11 years, has argued against the (EC)’s perception that (SAS) Cargo had participated in a global cartel.”

Nevertheless, the fine would be recognized as a nonrecurring expense by (SAS) in its earnings for (2Q) 2016/2017. Air France (AFA) - (KLM), which will be fined €325 million if the penalties become final, said it would analyze the new decision and whether to appeal it again at the General Court. It added that the fines had been covered in its financial accounts since 2010.

News Item A-6: The Lufthansa Group has signed a code share agreement with Hong Kong-based Oneworld (ONW) member Cathay Pacific Airways (CAT), beginning April 26, (DLH) follows through on its expansion strategy to partner with non-Star (SAL) Alliance members.

The code share also includes Lufthansa Group subsidiaries Austrian Airlines (AUL) and Swiss International Air Lines (SWISS) (CSR).

The agreement covers (CAT) flights with LH/LX/OS designator codes between Hong Kong to Sydney, Melbourne and Cairns in Australia and Auckland in New Zealand. (CAT) will place its CX designator code on 14 Lufthansa (DLH), SWISS (CSR) and Austrian (AUL) European flights.

“This new code share agreement will offer Cathay Pacific (CAT) passengers enhanced connectivity to destinations in continental Europe through flights operated by (DLH), (CSR) and (AUL) via our gateways in Frankfurt, Dusseldorf and Zurich,” (CAT) (CEO) Ivan Chu said.

Lufthansa Group (CEO) Carsten Spohr called the code share a “ground-breaking partnership.” He added, “The code share and frequent flyer agreement between (DLH), (AUL), (CSR) and (CAT) brings advantages for the passengers of all the partners, because the airlines’ route networks complement each other perfectly.”

Spohr said the cooperation with Cathay Pacific (CAT) is another key building block in (DLH)’s Asia strategy and supplements existing commercial joint ventures with Star (SAL) alliance airlines (ANA), Singapore Airlines (SIA) and Air China (BEJ).

Airfreight subsidiaries of both carriers, Cathay Pacific Cargo and Lufthansa Cargo (LUB), signed a cooperation agreement in May 2016 and (since February 2017) have been jointly marketing their capacities on flights between Hong Kong and Europe.

On February 1, (DLH) signed a commercial partnership agreement with Abu Dhabi-based Etihad Airways (EHD) that will see the 2 companies cooperate via code shares and across catering and (MRO) services.

On March 16, (DLH) signed a code share agreement with Kazakhstan flag carrier Air Astana (AKZ), which began March 26. Neither (EHD) nor Air Astana (AKZ) are members of any of the 3 global alliances.

News Item A-7: Hamburg-based Maintenance, Repair & Overhaul (MRO) provider Lufthansa Technik Group (DLH)/LTK) plans to launch an additional (MRO) facility in Kuala Lumpur focused on narrow bodies.

“Our talks with Malaysia Airlines (MAS) in Kuala Lumpur are well ahead, and I believe we can make a decision soon,” (DLH)/(LTK) Executive Board Chairman Johannes Bussmann said in Hamburg. “It is helpful to have an anchor client [such as Malaysia Airlines (MAS)] to start a new base maintenance for narrow body airplanes.”

It is understood that (DLH)/(LTK) is generating >9% of its total revenue from the Asia-Pacific region. In 2016, (DLH)/(LTK) sales in the region rose +23%.

Kuala Lumpur would be an Asian (MRO) facility in addition to Lufthansa Technik Philippines (LTP) in Manila. The Philippine site is an (MRO) competence center for Airbus A319, A320, A321, A330-200/-300, A340-200/-300/-600 and A380 aircraft, as well as the Boeing 777.

(LTP) was founded in September 2000 as a joint venture between Lufthansa Technik (51%) and the Philippine MacroAsia Corporation (49%). Bussmann said additional Airbus A380 (MRO) work is going to (LTP) facilities in Manila. “We have British Airways (BAB), Lufthansa (DLH) and Qantas (QAN) as A380 clients in Manila. Right now, a huge number of A380 checks are on the schedule,” he said.

Bussmann expects that over the next 2 or 3 years, A380 (MRO) work will be significant.

April 2017: News Item A-1: Lufthansa (DLH)’s transatlantic business remains strong (especially on North Atlantic routes) even though South America traffic and capacity have dropped in Los Angeles. Lufthansa VP Airline Sales for the Americas Tamur Goudarzi Pour said the Lufthansa Group’s North Atlantic joint venture (which includes Swiss International Air Lines (SWISS) (CSR), Austrian Airlines (AUL), Chicago-based United Airlines (UAL) and Air Canada (ACN)) generates double-digit USA results.

News Item A-2: "SWISS (CSR), Austrian (AUL) and Lufthansa (DLH) Abolish 2-persons-in-the-cockpit Rule" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, April 28, 2017.

Lufthansa Group subsidiaries Swiss International Air Lines (SWISS) (CSR), Austrian Airlines (AUL) and Lufthansa (DLH) will abolish a rule requiring 2 people in the cockpit, effective May 1.

The carriers will revert to previous cockpit access provisions, plus a number of additional safety and security measures. Austrian Airlines (AUL) spokesperson Peter Thier said that (AUL) will “revert to the previous cockpit access provisions on our Airbus (EDS), Boeing (TBC) and Embraer (EMB) fleet. The only exclusion is our [Bombardier] Dash 8-Q400 fleet,” he said.

The Lufthansa Group introduced the 2-persons-in-the-cockpit rule as a precautionary measure after a Germanwings (RFG) Airbus A320 (en route from Barcelona to Düsseldorf) was deliberately flown into the French Alps March 24, 2015, killing all 150 people aboard. Investigations revealed that co-pilot Andreas Lubitz, alone on the flight deck, switched the selected altitude from 38,000 ft to 100 ft (the minimum value possible on an Airbus A320) and increased the speed of the aircraft, setting in motion an intentional fatal descent into the French Alps.

In March 2015, the European Aviation Safety Agency (EASA) issued a temporary recommendation, proposing that 2 crew members, including at least one qualified pilot (FC), should occupy the cockpit during flight. This was not a requirement.

(EASA) revised its recommendation in summer 2016, offering airlines the option of abolishing this “2-persons-in-the-cockpit” rule, provided they met the relevant further criteria.

According to SWISS (CSR), the action to abolish the rule follows an extensive safety and security review, which concluded the rule does not enhance flight safety, and actually introduces additional risks to daily operations. The decision has been coordinated with similar risk assessments by its Lufthansa Group airlines partner.

(CSR), (AUL) and (DLH) said they meet all the requirements required by (EASA) of any airline seeking to abolish the rule, which include:

* Ensuring suitable selection criteria and procedures to assess the psychological and safety-relevant demands made on pilots;

* Ensuring stable employment terms and conditions for cockpit personnel;

* Giving pilots (easy) access to any psychological or other support programs they may need; and

* Demonstrating an ability as a company to minimize the psychological and social risks to which pilots are exposed, such as loss of license.

SWISS (CSR) said its decision to abolish the 2-persons-in-the-cockpit rule is supported by the Swiss Federal Office of Civil Aviation.

News Item A-3: Lufthansa Technik (DLH) (LTK) was selected by Asiana Airlines (AAR) for Airbus A350 component support and (CF6-80) repair.

May 2017: (GX) Aviation broadband launch customers Lufthansa (DLH) and Austrian Airlines (AUL) have completed their 4-month Ka-Band internet trial on short- and medium-haul flights and have transitioned over to a paid service. “The commercial service introduction follows the completion of a test program, lasting approximately 4 months, during which performance targets were successfully met and feedback from passengers as well as Lufthansa Group cabin crew (CA) was extremely positive,” connectivity provider Inmarsat said.

Passengers traveling on equipped aircraft can access high-speed internet on their mobile devices via 3 packages, priced at €3/$3 for messaging (FlyNet Message), €7 for general web browsing (FlyNet Surf) and €12 for video streaming (FlyNet Stream). Ultimately, passengers will also be able to pay for internet access with Air Miles or via roaming partners.

“This is a significant milestone for (GX) Aviation too, which took >5 years to develop as the world’s 1st in-flight broadband solution with seamless global coverage delivered through a single operator,” Inmarsat Aviation President Leo Mondale said.

Lufthansa Group plans to ultimately fit approximately 300 Airbus A320-family aircraft with the service under a 10-year strategic partnership with Inmarsat.

To date, almost 80 Lufthansa Group aircraft have been equipped, including 19 at Lufthansa (DLH), 31 at Austrian Airlines (AUL) and 29 at Eurowings (EWG). “(EWG) is also set to launch its commercial services in the coming weeks,” Inmarsat said.

(DLH) became the 1st airline to offer internet access on long-haul flights in January 2003, but the service was discontinued in 2006 when satellite operator Connexion by Boeing (TBC) ceased operations.

In December 2010, (DLH) resumed internet access on intercontinental flights and both (DLH) and (EWG) have offered Wi-Fi across their entire long-haul fleet since 2015. “After the Boeing 777 had joined their fleet, SWISS (CSR) also offered internet access on long-haul flights and is currently planning to introduce internet on board its short- and medium-haul flights from 2018 onwards,” (DLH) said.

July 2017: Lufthansa (DLH) and Frankfurt Airport operator Fraport have agreed on an initial deal for short-term cost savings, which aims to create conditions for (DLH)’s further growth at the German airport.

Both companies are looking to improve utilization of their existing infrastructure and reduce costs by improving the advance planning of passenger traffic, Fraport said. There will also be more intense coordination between the 2 companies concerning customer relations to optimize services in the non-aviation sector.

To promote continued growth at Frankfurt Airport in 2018, Fraport said it has no plans to increase airport charges for the coming year. Thus, the existing charges regulation will continue to be valid.

In November 2016, Irish low-cost carrier Ryanair (RYR) announced plans to start operations from Frankfurt Airport this year, which drew a swift response from Lufthansa Group (CEO) Carsten Spohr, who called for equal treatment on airport fees.

However, on June 13, (DLH) said it will transfer 5 of 14 Airbus A380s from its Frankfurt home base to Munich starting from summer 2018.

(DLH) Executive Board Member Hub Management Harry Hohmeister said the agreement “is an important step in the right direction and a prelude to further discussions, with the aim of intensifying our partnership in the medium and long term.”

August 2017: News Item A-1: INCDT: "Report: Back-up Battery Pack Source of Seat Fire on Lufthansa A380" by (ATW) Victoria Moores
victoria.moores@penton.com August 18, 2017.

Canadian investigators have revealed that a passenger power bank caught fire on a Lufthansa (DLH) Airbus A380 after getting caught in an aircraft seat mechanism earlier this month.

The A380-800 (072, D-AIMI), was operating flight DLH440 from Frankfurt to Houston George Bush Intercontinental on August 2, carrying 486 passengers and 24 crew members (FC - CA).

During cruise through Canadian airspace, approximately 260 nm NE of Montreal, heavy electrical smoke/fire was reported under seat 10C.
“The source of the smoke/fire was identified as a passenger power bank stuck in the seat mechanism. The cabin crew (CA) extinguished the fire with the use of 3 fire extinguishers,” the Transport Safety Board of Canada said in a preliminary report, issued August 17.

No emergency was declared and the aircraft landed normally.

In May 2016, there was a similar incident involving a passenger mobile phone, when it got trapped in the seat mechanism of a Qantas (QAN) A380. Across the industry, there have been heightened efforts to safeguard against lithium battery fires. As part of this drive, airlines now often include an instruction in their safety briefings, instructing passengers to alert the crew if their mobile phones are lost in seat mechanisms.

News Item A-2: Ryanair (RYR) has filed complaints with Germany’s competition authority and the European Commission (EC) over the handling of airberlin (BER)’s assets since it filed for insolvency.

(RYR) called the insolvency “manufactured” and said it was being structured to allow the Lufthansa Group to take over a “debt-free airberlin (BER), which will be in breach of all known German and European Union (EU) competition rules.”

News Item A-3: German airport operator Fraport AG has applied for a building permit to construct a new Pier G at Frankfurt Airport to accommodate the growing low-cost segment. Construction is scheduled to begin in mid-2018.

Frankfurt is Germany’s biggest airport and the major hub of Star (SAL) Alliance member Lufthansa (DLH).

Fraport Executive Board Chairman Stefan Schulte said, “Frankfurt is and will remain a hub airport. However, the development of the aviation market as a whole means that, in addition to the traditional full-service offering, we have to take the needs of low cost carrier (LCC) providers into account and continuously enhance our processes.”

Pier G was originally envisaged as the 2nd phase in the construction of Frankfurt Airport’s new Terminal 3, but is now being realized and commissioned ahead of schedule.

“The (LCC) market share at Frankfurt Airport is around 2%. We support growth at Frankfurt, but our main business will remain as a hub, not the (LCC) business,” a Fraport spokesperson said in Frankfurt.

The new pier is to be constructed in 3 phases:

The 1st phase is scheduled to open in 2020 with capacity for 4 to 5 million passengers at a cost of up to €200 million/$235 million. In a 2nd phase, Pier G will be expanded to a total capacity of up to 7 million passengers and connected to the 1st section of Terminal 3. In the 3rd and final phase, Pier G will be extended to include bridges and jetways.

“Pier G will enable us to alleviate future capacity constraints at Terminals 1 and 2 as early as 2020. By this date, our 2 existing terminals are expected to be approaching their capacity limit of 64 million passengers. That limit could be expanded to around 68 million passengers, but only on a temporary basis and at the expense of quality,” Schulte said.

News Item A-4: Lufthansa (DLH) took delivery of its 4th of 25 Airbus A350 XWB and will take a 5th A350 on September 2. Both aircraft will enter commercial services from September 12 on daily Munich - Hong Kong services.

September 2017: News Item A-1: The Lufthansa Group and UK-based (LCC) easyJet (EZY) have been selected as preferred bidders for the main assets of the insolvent airberlin (BER). Lufthansa (DLH) also submitted a bid for (BER)’s Austria-based subsidiary NIKI (NKI), which could be integrated into its (LCC) arm Eurowings (EWG). (BER) Administrator Lucas Flöther had planned to keep these decisions confidential until September 25, after Germany’s September 24 general elections.

News Item A-2: Lufthansa (DLH) plans to operate Boeing 747-400s between Frankfurt and Berlin Tegel, citing high demand on the domestic route.

Starting November 1, (DLH), the Star (SAL) Alliance carrier will replace Airbus A320/A321s on select Frankfurt to Berlin flights. During November, >60 747-400 flights are planned on the route, which has a flight time of 45 minutes.

The 747-400s will be configured with 67C business class seats and 304Y/PY economy/premium economy seats.

October 2017: News Item A-1: The Lufthansa Group delivered a 2017 9-month net profit of +€1.9 billion/+$2.2 billion), up +0.1% from the year-ago period. The group’s 9-month total revenue rose +12.1% to €27 billion year-over-year (YOY) and operating cash flow stood at €4.5 billion, up +46% (YOY). Its 9-month adjusted (EBIT) margin amounted to 9.6%, some +2.6% points above the previous year’s level.

(DLH) attributed the improvement primarily to continuing positive business trends at the group’s airlines.

Lufthansa Group Chairman & (CEO) Carsten Spohr said the 9-month results “give us the investment and growth capabilities we need to play an active part in the consolidation of the European airline market, and to continue to invest in the future of our company.”

Earlier this month, the Lufthansa Group signed a €210 million deal to take over a large part of bankrupt airberlin (BER)’s assets, including NIKI (NKI) and regional carrier (LGW), in a move that will give its low-cost Eurowings (EWG) affiliate a boost.

For the 3rd quarter, the Lufthansa Group reported a net profit of +€1.2 billion, down from +€1.4 billion in the (3Q) 2016. 3rd-quarter total revenue was +€9.8 billion, up +11% from the year-ago quarter.
“Despite higher investments, we almost doubled our free cash flow and reduced our net financial debt by >80% in the 1st 9-month period,” Lufthansa Group (CFO) Ulrik Svensson said.

For the nine-month period, Lufthansa Group’s ASKs rose 11.7% to 244.8 billion; RPKs were up 14.6% to 199.2 billion and load factor was up by 2.1 percentage points YOY.

“Particularly encouraging is that all our group’s airlines were able to raise their margins,” Svensson said.

The group saw improvement at Austrian Airlines, which reported a positive EBIT of €100 million for the nine-month period, compared to €79 million in the year-ago period.

Swiss International Air Lines’ nine-month earnings rose 37.3% YOY to €442 million versus €322 million in 2016.

With the first-time consolidation of Brussels Airlines and the further addition of the airberlin wet-lease operations, the group’s point-to-point airlines almost doubled their nine-month revenues to €3 billion.

“We expect Eurowings to report a positive result as early as this year,” Ulrik Svensson confirmed, “which is a year earlier than we originally envisaged.”

In the 4th quarter, the group expects to see a slight reduction in unit costs, excluding fuel and currency effects, at its passenger airlines. 4th-quarter unit revenues are expected to increase slightly on organic capacity growth of +5.5%.

Spohr concluded, “The modernization of the Lufthansa Group is making good progress, which motivates us to consistently move head on this strategic path.”

News Item A-2: Lufthansa (DLH) has signed a €210 million/$249 million deal to take over a large part of bankrupt airberlin (BER)’s assets, including NIKI (NKI) and regional carrier (LGW), in a move that will give its low-cost Eurowings (EWG) affiliate a boost.

(DLH) (CEO) Carsten Spohr told German newspaper "Rheinische Post" on October 12 that (DLH) is expected to take over 81 aircraft, employ 3,000 people and invest a total of €1.5 billion or €500,000 per job saved in the deal.

News Item A-2: A number of airlines operating to the USA have indicated they will be implementing new security measures this month for USA-bound flights.

USA Transportation Security Administration (TSA) spokesperson Mike England said the measures are part of the continuing implementation of the Department of Homeland Security (DHS) mandate, issued in June, requiring 180 airlines operating to the USA to enhance security. The measures are part of (DHS) and (TSA) “efforts to raise the global aviation security baseline,” he explained, adding, “The security measures affect all individuals (international passengers and USA citizens—traveling to the USA from a last point of departure international location.”

The (TSA) is not specifically detailing the newest measures being put in place. Based on airline statements, it appears the measures being added involve airlines asking questions to USA-bound passengers.

Cathay Pacific (CAT), for example, said passengers flying on nonstop flights to the USA will not be able to do remote drops of checked bags as of October 26 and will be required to “check in their baggage at the dedicated counters at Hong Kong International Airport, where they will be subject to a short security interview.”

(CAT) added, “Passengers without check-in baggage should proceed to the boarding gate directly as early as possible, where they will also be subject to a short security interview. We therefore advise all passengers traveling to the USA to arrive at the airport 3 hours prior to departure to ensure they can proceed through all airport checkpoints in good time.”

Germany’s Lufthansa (DLH) and Dubai-based Emirates Airline (EAD) have also said passenger interviews for USA-bound flights will be initiated this month.

After instituting a ban in March on passengers flying nonstop to the USA from 10 airports in the Middle East and Africa from carrying personal electronic devices (PEDs) larger than a smartphone aboard aircraft, the (DHS) contemplated a wider “laptop ban.” But after discussions with other governments and warnings from airlines about the implications of such a ban (including fire safety concerns related to (PED)s in checked baggage), the (DHS) instead implemented enhanced security requirements in late June for 180 airlines flying to the USA from 280 world airports. The (DHS) removed all (PED) restrictions in July, saying airlines flying to the USA had “successfully implemented the 1st phase of enhanced security measures.”

“As we move forward, the (TSA) will continue to work closely with our aviation partners and verify that all security enhancements are accurately implemented,” England said. “As threats continue to evolve, we and our partners around the world will continue to work together to improve intelligence sharing and standardize best practices, while also pursuing technological advancements that will make flying more secure for everyone.”

News Item A-3: "Lufthansa, Pilots' Union Bring End to Strikes with Signing of Labor Deal" by Victoria Bryan, "Reuters" October 10, 2017.

Lufthansa (DLH) and its main pilots (FC)'s union put an end to years of wrangling over pay, pensions and conditions on October 10, signing a wide-ranging agreement which is expected to reduce staff costs and boost (DLH)'s profits this year.

The signing of the deal, which is valid until 2022 and therefore rules out strikes before then, boosted shares in Lufthansa (DLH), sending them up +3.5% to a fresh 16-year high of 24.92 euros.

(DLH) has been trying to bring down costs to better compete with leaner rivals on both short and long-haul routes. But its efforts to overhaul its labor agreement with the Vereinigung Cockpit union, which represents about 5,400 pilots (FC) at its Lufthansa (DLH), Germanwings (RFG) and Cargo subsidiaries, had led to repeated strikes over the last few years.

The 2 sides came to a framework agreement in March but the exact details required further work. The collective labor agreement will now be put to union members for a vote, a process which is expected to take until mid-December.

The deal includes a shift from a defined benefit to a defined contribution pension scheme, more flexible working hours and aims to increase the average retirement age of pilots (FC).

It will bring (DLH)'s cockpit staff costs down by -15% and reduce pension liabilities this year by a high 3-digit million euro amount, while earnings before interest and tax will be increased by a significant 3-digit million euro amount. "Better cost structures, especially on short-haul routes, will improve the market position of (DLH)," Vereiniung Cockpit board member Joerg Handwerg said.

In exchange, (DLH) said at least 325 of its planes will be flown by pilots (FC) under the new German collective agreement and therefore means it will start hiring junior pilots (FC) again.

Pilots (FC) at (DLH), Lufthansa Cargo (LUB),and Germanwings (RFG) will receive pay increases in stages totaling +10.3%, plus a 1-off payment of up to 1.8x their monthly salary, for the period from May 2012, when the last collective labor deal expired, until June 2022.

"This compromise opens up career prospects for our pilots (FC) and makes an important contribution to the competitiveness of our company," (DLH) personnel Head Bettina Volkens said.

News Item A-4: Etihad Airways (EHD) Engineering was selected by both Lufthansa (DLH) (Airbus A340-300s and A380-800s) and Aeroméxico (AMX) (Boeing 777s) to perform heavy maintenance checks.

JorAMCo (JOR) has a Lufthansa (DLH) contract to perform "C"-Checks on 5 Airbus A340s and 2 A320s.

News Item A-5: Lufthansa (DLH) will hire 1,000 flight attendants (CA) for its Munich hub as it launches Airbus A380 operations from the Bavarian capital in spring 2018. “From March 25, our A380s will take off for Hong Kong, Los Angeles and Beijing,” Lufthansa Munich hub (CEO) Wilken Bormann said.

Lufthansa (DLH) will transfer 5 of 14 509-seat Airbus A380s from its Frankfurt home base to Munich starting from summer 2018.

This is the 1st time Lufthansa (DLH) has based A380s outside Frankfurt.

News Item A-6: Bankrupt German carrier airberlin (BER) operated its last flight on October 27 from Munich to Berlin Tegel. The final Airbus A320 flight carried 178 passengers.

The Oneworld (ONW) Alliance member ceased operations officially on October 28, ending nearly 39 years of service. (BER) launched 1st flights in 1979 and carried >500 million passengers during that time.

Last-minute negotiations with both German leisure carrier Condor (CDF) and UK (LCC) easyJet (EZY) on the transfer of assets continue, but many airberlin (BER) aircraft are expected to be grounded at least temporarily. With the grounding, the German aviation system will lose 60,000 passengers seats and 250 flights every day.

For now, only NIKI (NKI) and Luftfahrtgesellschaft Walter (LGW) continue to fly as a result of the planned takeover by the Lufthansa Group. They operate a combined fleet of 54 aircraft, including 14 Boeing 737s (NIKI) wet-leases from TUIfly (HAP)/(HLX).

Airberlin (BER) filed for bankruptcy August 15 after 29.2% shareholder Etihad Airways (EHD) withdrew financial support. Several thousand employees are expected to be laid off as airberlin (BER) enters formal bankruptcy proceedings on November 1.

Before the August bankruptcy filing, airberlin (BER) operated 144 aircraft, many of which have already been returned to lessors. Among others, all 17 Airbus A330-200s have been handed back.

As (BER) ceases operations, both Berlin airports (Tegel and Schoenefeld) are temporarily expecting fewer passengers, but soon the numbers will grow again, Managing Direction Berlin Brandenburg Airport Engelbert Lütke Daldrup told German Press Agency dpa. “In a few weeks, all the [former airberlin (BER)] slots will be allocated and the Berlin airports will have no growth-reduction in the long run.”

Berlin-based Zeitfracht-Gruppe will take over maintenance unit, airberlin Technik, and 300 of its 850 employees.

News Item A-7: SEE VIDEO ON "(DLH) 777F Frankfurt to Tokyo."


November 2017: News Item A-1: "Lufthansa Said It Has Resources for More European Deals" by Georgina Prodhan, "Reuters" November 11, 2017.

Lufthansa (DLH) has financial firepower to take part in future consolidation of Europe's airlines, its (CEO) told Boersen-Zeitung.
"We have a certain financial cushion," Ulrik Svensson said, saying EUR3 billion/US$3.5 billion (US$1 = EUR0.8574) in liquidity would be left over after paying for investments in Air Berlin (BER) and putting money into its pension fund.

(DLH) agreed last month to buy large parts of insolvent Air Berlin (BER) for 210 million euros to quickly expand its Eurowings (EWG) budget business, consolidating its position as German leader by buying its closest rival.

Svensson said (EWG) would be operationally profitable as early as this year. He said it would make no sense to split up (EWG) or list part of it, as Lufthansa (DLH) still had big plans for the business that would be harder to execute with co-owners.

Asked about Italy's ailing flagship carrier Alitalia (ALI), for which (DLH) has put in a bid, Svensson said it was "hard to tell" how the offer was being received. "I've recommended to analysts that they do not yet include a possible (ALI) deal in their models," he said.

Svensson added that reports that Lufthansa (DLH) was offering 500 million euros for (ALI) were incorrect, but he did not elaborate.

News Item A-2: The Lufthansa Group would develop Rome Fiumicino into its 5th major European hub should it be successful in its bid to acquire parts of Alitalia (ALI). The group currently operates hubs at Frankfurt International and Munich (for Lufthansa (DLH)), Zurich (for Swiss (CSR)), and Vienna (for Austrian Airlines (AUL)).

Speaking during the presentation of the Group's (3Q) 2017 financial results, (DLH)'s (CEO) Carsten Spohr also told journalists that low-cost carrier (LCC) Eurowings (EWG) may also assume (ALI)'s Milan Linate and Milan Malpensa operations in such a scenario.

The Financial Times has meanwhile reported that Cerberus Capital Management has also approached Alitalia (ALI) with a proposal to keep it operational but as an independent stand-alone carrier.

According to the report, Cerberus would be willing to invest between EUR100 and 400 million/USD116 to 464million) in (ALI) as part of a plan in which the Italian government would retain a stake in the airline alongside unions. Both would also participate in a profit-sharing scheme. The USA private equity fund has previous experience in restructuring large scale operators having tended to Air Canada (ACN) in the 2000s.

Despite this proposal, Cerberus has not entered a binding offer for (ALI)'s assets. Thus far, only Lufthansa (DLH) and easyJet (EZY) have openly confirmed submitting offers.

Fleet:
(definitions)

Click below for photos:
DLH-747 DATA
DLH-747-400
DLH-747-430 - STAR ALLIANCE
DLH-747-430 - STAR ALLIANCE-A
DLH-747-430-A
DLH-747-430-F
DLH-747-8I - 1500TH 747.jpg
DLH-747-8I - 2011-09
DLH-747-8I - 2014-04
DLH-747-8I - 2014-12
DLH-747-8I - 2015-08.jpg
DLH-747-8I D-ABYT-2017-11.jpg
DLH-747-8I-2012-02
DLH-747-8I-2012-10
DLH-767-329ER-STAR ALLIANCE
DLH-A310
DLH-A319 - 2014-08
DLH-A319-100 D-AILE Kelsterbach - 2017-04.jpg
DLH-A320
DLH-A320 with sharklets - 2016-02.jpg
DLH-A320-1
DLH-A320-200
DLH-A320neo - 2nd 2016-03.jpg
DLH-A320NEO-2014-04
DLH-A321
DLH-A321-131
DLH-A321-231 - 2011-12
DLH-A321neo - 2012-10
DLH-A330-223
DLH-A340
DLH-A340-300
DLH-A340-600
DLH-A340-600-A
DLH-A340-600-B
DLH-A340-642
DLH-A350 XWB AT MUNICH - 2015-02
DLH-A350-900 - 1st 2016-10.jpg
DLH-A350-900 - 2013-09
DLH-A380
DLH-CRJ700
DLH-RJ85

November 2017:

0 737-230 (JT8D) (791-22139, /81 CC-CRS), JETZ LST (LAN) 1997-02. RTND.

31 737-330 (CFM56-3B1) (1246-23522, /86 D-ABXA; 1278-23525, /86 D-ABXD "SIEGEN; 1282-23526, /86 D-ABXE "HAMM;" 25149, D-ABEC). 23524 TO (CHF) 2001-08. 23527; 23528; WET-LST (IPB) 2002-03. 1 LST (AID). 26431 RF (SNS) 2002-11. 23525; 23527; RTND 2004-04. 23525; 23526; RTND, LST (CEX) 2004-09. 23529 LST (CEX) 2004-11. ALL 737 AIRPLANES TO BE PHASED OUT BY 2016. 123Y.

0 737-330QC (CFM56-3B1) (2705-27905, /95 D-ABEW "DETMOLD") (23522; 23523; 23524; 23835; 23836; 23837; 24283; 23522; TO AUTOMATIC, FL, (ISF) WET-LST (YCU) 2001-04. 123Y.

1 737-430 (CFM56-3) (2328-27003, D-ABKD), (GAX) 3 YR LSD 1999-11, 27007 RTND LESSOR, LST (ADH) 2000-03. ALL 737 AIRPLANES TO BE PHASED OUT BY 2016.

22 737-530 (CFM56-3B1) (1933-24815, /90 D-ABIA "GREIFSWALD;" D-ABIR "ANKLAM"). 1 LST (BLV) 2003-04. 3 WFU 2003-01. 25311 WET-LST (BUL) 2003-06. 24815; 24816; WET-LST (TSF) 2004-04. 24823; 24937; RTS 2005-03. 24815 RF (TVS) 2005-04. ALL 737 AIRPLANES TO BE PHASED OUT BY 2016. 24815 TO (DLH) TECHNICAL TRAINING AS GROUND TRAINER 2015-01. 103Y.

0 737-500 (CFM56-3B1), (BMA) WET-LSD 2000-04. RTND. 103Y.

1 737-7AK BBJ (CFM56-7B) (30752), (PTS) WET-LSD 2002-05, 48C (55 INS PITCH).

0 737-73S (29083), (HAU) LSD 1999-12. RTND.

0 747-230 COMBI. 22670 RETIRED 2001-12. 21588; 21591; 21643; PARTED OUT AT (LTK). 22670; 23622; ST (UVL) 2004-02.

20 747-430 (CF6-80C2B1F) (847-25046, /91 D-ABVK "HANNOVER;" 1143-29101, D-ABVM "HESSEN"). 16F, 64C, 310Y.

4 747-430 (CF6-80C2B1F) (1205-29493, /99 D-ABVW "WOLFSBURG;" 1237-29868, /99 D-ABVX "SCHLESWIG-HOLSTEIN;" 1261-29869, /00 D-ABVY "NORDRHEIN-WESTFALEN;" 1264-29870, /01 D-ABVZ "NIEDERSACHSEN"). 16F, 64C, 310Y.

7 747-430 COMBI (CF6-80C2B1F) (1191-29492, /98 D-ABVU "BAYERN"), CONV TO PAX 1998-11. 16F, 64C, 310Y.

19/20 ORDERS 747-830I INTERCONTINENTAL (GEnx-2B67) (37826, /12 D-ABYE; 37827, /12 D-ABYA, 2012-04; 37328, /12 D-ABYC; 37829, D-ABYD; 37830, D-ABYF; 37831, D-ABYG; 37832, D-ABYH; 1475-37833, /13 D-ABYI, "POTSDAM" 2013-06 WITH "SIEGERFLIEGER FANHANSA" TITLES ON UPPER FUSELAGE; 37834, /13 D-ABYJ "HANNOVER" 2013-06; 37835, D-ABYK; 37836, D-ABYL; 37837, D-ABYM; 37838, D-ABYN; 37839, D-ABYO; 37840, /14 D-ABYP, 2014-08; 37841, /14 D-ABYQ "SAARLAND;" 37842, /15 D-ABYR, 2015-01; 37843, D-ABYS; 37844, D-ABYT; 37845, D-ABYU), 747-8 PROGRAM LAUNCH CUSTOMER. 8F, 92C, 258Y.

2 767-3Z9ER (PW4060) (731-29837, /98 D-ABUV; 759-30331, /99 D-ABUW), (LAL) WET-LSD, STAR ALLIANCE (SAL) COLORS, 24C, 230Y.

5 ORDERS (2013-09) 777F (GE90) FOR LUFTHANSA CARGO (LUB), AEROLOGIC (AGC), DHL EXPRESS (DHK) OPERATIONS. FREIGHTERS:

5 ORDERS 777-300ER, FOR (CSR) OPS:

34 ORDERS 777-9X:

1 DC-10-30 (CF6-50E2).

0 A300B4-603 (CF6-80C2A3) (380, /87 D-AIAH "LINDAU/BODENSEE;" 391, /87 D-AIAI "ERBACH/ODENWALD"), ALL PHASED OUT & FOR SALE 2009-07. 270Y.

0 A300B4-603 (CF6-80C2A3) (401, /87 D-AIAK "KRONBERG IM TAUNUS;" 623, /92 D-AIAU "BOCHOLT"), ALL PHASED OUT & FOR SALE 2009-07. 280Y.

0 A300B4-605R (CF6-80C2A5) (764, /96 D-AIAW "WITTEN" (ILF) LSD; 773, /96 D-AIAX "FURTH"), ALL PHASED OUT & FOR SALE 2009-07. 270Y.

0 A300B4-605R (CF6-80C2A5) (608, /91 D-AIAY; 701, /93 D-AIAZ), EX-(EAD) 2002-06. ALL PHASED OUT & FOR SALE 2009-07. 270Y.

4 A310-304 (CF6-80C2A2) (488, /89 D-AIDD "EMDEN;" 524, /89 D-AIDF "ASCHAFFENBURG;" 527, /90 D-AIDH "WETZLAR;" 547, /90 D-AIDL "OBERSTDORF"), 222Y.

2 A310-304 (CF6-80C2A2) (523) (IN STORAGE), 1 TO (MHK). (595, /91 D-AIDM) EX-(AFR) 2001-02, GOAL LSD 2002-06. (599, /92 D-AIDN "GUTERSLOH"), 595 RTND 2004-01. 62C, 116Y.

19 ORDERS A320 FAMILY AIRPLANES:

10 A319-112 (CFM56-5B) (4141, D-AIBA, 2009-12; 4182, D-AIBB "AALEN" 2010-02; 4332, D-AIBC, 2010-06; 4455, D-AIBD, 2010-09; 4511, D-AIBE, 2010-11; 4796, D-AIBF "SINSHEIM;" D-AIBG, 2011-10; 5239, D-AIBH, 2012-07; 5284M D-AIBI "FRANKENTHAL;" 5293, D0AIBJ "LORSCH"), 126Y.

21 A319-114 (CFM56-5A5) (609, /96 D-AILA "FRANKFURT (ODER);" D-AILU "VERDEN;" 875, /98 D-AILY /98 "SCHWEINFURT") (636 & 700 LST (MLT) TIL 2001-11, 2002-05 TO LONG TERM STORAGE HAMBURG) (641, D-AILH; 651, D-AILI; 679, D-AILK; WET-LST (KHZ) 2001-05, ALL RTND). 651; 689; LST (RFG) 2004-03. 636; 2004-07. 700; 2004-11. 738; LST (RFG) 2005-03; RF (RFG) 2005-10. 636; RF (RFG) 2005-10. 689; RF (RFG) 2006-05. 641 RF (DLH) ITALIA. 126Y.

1 A319-114 (4182, D-AIBB), 2010-02. 126Y.

2 A319-132 ACJ (V2500) (1947, /03 D-PCAA; 1955, /03 D-PCAB), (PTS) WET-LSD, 48 PAX.

2 A319-133LR ACJ (V2500) (1727, /03 D-PCAC; 1880, /03 D-PCAD), (PTS) WET-LSD, 48 PAX.

1 A319-231 (3987, D-AISR, "DONAUWORTH" 2016-11).

20 ORDERS A320 FAMILY, PLUS 4 FOR (CSR), PLUS 8 A319'S FOR (RFG):

2 A320-211 (162, D-AIPZ; 202, D-AIQD), 2016-09.

6 A320-214 (CFM56-5B) (4191, D-AIZD "SCHWABISCH GMUND;" 6141, D-AIUF; 6423, D-AIUK, 2015-01), INCL 2 FOR (CSR) OPS. EX-(D-AXAZ).

1 +34 ORDERS (2016-02) A320NEO (PW1100G) (6801, D-AINA, TO BE DELIVERED BEFORE END OF 2015).

36 +30 ORDERS A320-211CEO (CFM56-5A1) (069, /89 D-AIPA "BUXTEHUDE;" 346, /92 D-AIQP "SUHL" - SEE ATTACHED "DHL-INCDT-MAR08;" 1365, /00 D-AIQU "GUMMERSBACH;" 1367, /00 D-AOQW "KLEVE"). 382 LST (RFG) 2002-10. 071; 072; LST (RFG) 2003-03. 147 LST (RFG) 2003-07. 147 RF (RFG) 2004-07. (086) RF (RFG) 2004-11. (071) RF (RFG) 2004-12. 689; RF (RFG) 2006-01. 150Y.

13 A320-214 (4097, D-AIZA, 2009-11; 4120, D-AIZB, 2009-12; 4153, D-AIZC, 2010-01; 4191, D-AIZD, 2010-02; 4261, D-AIZE, 2010-03; 4289, D-AIZF, 2010-04; 4324, D-AIZG, 2010-05; 4332, D-AIZH, 2010-06; 4363, D-AIZH, 2010-06; 4398, D-AIZI, 2010-08 "BOBLINGEN;" 4400, D-AIZJ, 2010-08; 4449, D-AIZK, 2010-09; 5203, D-AIZM, 2012-07; 5635, D-AIZU, 2013-06; 5658, D-AIZV, 2013-06; 5697, D-AIZW, 2013-07; 6225, D-AIUH, 2014-08), 150Y.

4 A320-214 (7251, D-AIUW; 7256, D-AIUX; 7681, D-AIWA, 2017-05; 7699, D-AIWB, 2017-05), EX-(F-WWBB & F-WWBY), 2016-08.

1 A320-271 (6920, D-AINC), EX-(D-AUBG) 2016-08.

35 ORDERS A321NEO (PW1100G):

20 A321-131 (V2530-A5) (458, /94 D-AIRA "FINKENWERDER;" 901, /98 D-AIRY "FLENSBURG"), 182Y.

0 A321-231 (V2533-A5) (1045, G-MIDJ), (BMA) 6 MTH WET-LSD 1999-11. 182Y.

27 A321-231 (V2533-A5) (1188, D-AISD "CHEMNITZ;" 3265, D-AISH, "WETSLAR" 2007-10; 3339, D-AISI, 2007-12; 3360, D-AISJ, 2008-01; 3387, D-AISK, 2008-02; 3434, D-AISL, 2008-03; 3864, D-AISP 2009-04; 3936, D-AISQ, 2009-06; 3938; 3981; 3987, D-AISR, 2009-07; 4005, D-AEMD, 2009-09; 4016, D-AISU, 2009-08; 4047, D-AISV, 2009-09; 4050; 4054, D-AISW, 2009-10; 4073, D-AISX, 2009-10; 4085, D-AISZ "EBERSWIDE," 2009-11; 4087; 4360, D-AIDA "PFORZHEIM," 2010-06; 4560, D-AIDC, 2011-01; 4881, D-AIDL "REUTLINGEN;" 4916, D-AIDM, 2011-11 - - SEE PHOTO - - "DLH-A321-231 - 2011-12;" 4976, D-AIDN "NEUSS;" 4994, D-ADO, 2012-01; 6415, D-AIDW). 182Y.

2 A330-223 (PW4168A) (305, /03 D-AIMA; 308, /03 D-AIMB; 312, /03 D-AIMC; 322, /03 D-AIMD; 324, /02 D-AIME). 305 RTND 2004-11, LST (BLW). 308; 312; RTND 2004-12. 322; 324; ST (TAP) FOR 2006-02. 48C, 182Y.

3 ORDERS A330-300 PLUS 5 ORDERS FOR (CSR):

9 ORDERS A330-300 FOR (CSR) OPS TO REPLACE A330-200S:

11 A330-343X (TRENT 772B-60) (570, D-AIKA; 576, D-AIKB; 579, D-AIKC, 2004-08; 629 D-AIKD, 2004-10; 636, D-AIKE 2004-11; 642, D-AIKF 2004-12; 645, D-AIKG, 2005-01; 648, D-AIKH, 2005-02; 651 D-AIKI 2005-09; 668, D-AIKJ 2005-11; 687, D-AIKI, 2005-09; 701, D-AIKJ, 2005-09; 896, D-AIKK, 2008-01; 905, D-AIKL, 2008-03; 913, D-AIKM, 2008-03; 922, D-AIKN, 2008-05; 989, D-AIKO, 2009-02).

0 A340-211 (CFM56-5C2G) (018, D-AIBD), 008 TRADED IN TO (AFIS), LST (SAA) 2003-02. 011; 018; & 019; ST (AIFS) 2003-07. 021 RTND (AFIS) 2003-07. 006 RTND 2003-11.

0 A340-211 (CFM56-5C2G) (075; 081), (AUL) LSD TIL 2003-03, 36C, 227Y.

3 A340-311 (047, D-AIMF, 2003-06; 051, D-AIMG; D-AIGF "GOETTINGEN;" 051 RTND, LST (NAM) 2005-10.

28 +7/6 ORDERS A340-313X (CFM56-5C4) (236, D-AIFL NTU; 297; 304; 352, /15 D-AIFA, 2015-11; 354; 355, D-AIFB; 327; 379, D-AIFC;), 7,300 NM RANGE. 355; ST FEDERAL REPUBLIC OF GERMANY (GRF) 2011-07, & RE-REGISTERED (16+02). 247 PAX, 3 CLASS.

3 A340-343X (636, D-AIKE, 2004-12; 642, D-AIKF, 2004-12; 687, D-AIKI, 2005-07).

25 A340-642 (TRENT 556) (482, /03 D-AHIA "NURNBERG;" 517, /03 D-AHIB "LEVERKUSEN;" 523, /03 D-AHIC "ESSEN;" 537, /03 D-AHID "STUTTGART;" 540, /03 D-AHIE, 1/04; 543, 2/03 D-AHIF; 566, /04 D-AHIH; 569, /04 D-AHII; 580, /04 D-AHIK; 583, /04 D-AHIL; 731; 762, D-AIHM 2006-09; D-AIHE "LEVERKUSEN;" 763, D-AIHN 2006-09; 767, D-AIHO, 2006-10; 771, D-AIHP, 2006-11; 790, D-AIHQ "GUMMERSBACH" 2007-01; 794; 812, D-AIHS, 2007-03; 846, D-AIHT, 2008-04; 848, D-AIHU, 2008-05; 897, D-AIHV, 2008-03; 972, D-AIHW, 2008-12; 981, D-AIHX, 2009-02; 987, D-AIHY, 2009-03; 1005, D-AIHZ, 2009-05). (1 OF LAUNCH CSTMRS), 7,300 NM RANGE. 335 PAX, 3 CLASS.

4 +21/30 ORDERS A350-941 (TRENT XWB) (74, D-AIXA, 2016-12; 5TH 2017-09; 80, D-AIXB, 2017-02), 48C, 21PY, 224Y.

14 A380-841 (TRENT 970) (038, /10 D-AIMA "FRANKFURT AM MAIN;" 041, /10 D-AIMB "MUENCHEN;" 044, /10 D-AIMC; 048, /10 D-AIMD "TOKIO;" 061, /11 D-AIME; 066, /11 D-AIMF; 069, /11 D-AIMG; 070, /11 D-AIMH; 072, D-AIMI; 073, D-AIMJ, 177, /15 D-AIMN "DEUTSCHLAND" 2015-11), 8F; 98C; 420Y.

00 AVRO RJ-85 (LF507-1F) (CITYLINE OPS). ALL 18 PHASED OUT BY 2012-08.

5 B AE 146-200, (DEB) WET-LSD 1999-03 FOR 2 YRS FOR CITYLINE OPS.

1 B AE 146-200, (BMA) WET-LSD 2000-04. CITYLINE OPS.

41 BOMBARDIER CRJ-200 (CF34-3A1) (7053, F-GLIY, AIR LITTORAL WET-LSD 2000-07; 7394, D-ACHC "FUSSEN;" 7403, D-ACHD; 7407, D-ACHE). 3 WFU 2003-01, (CITYLINE OPS). 50Y.

10 +10 ORDERS CRJ-700 (CF34-8C), (CITYLINE OPS). 68Y.

12 +15/15 BOMBARDIER CRJ900 (15229, D-ACNA; 15230, D-ACNB; 15243, D-ACNF, 2015-05), 9 LST (ADH), CITYLINE OPS. 84Y.

17 +23 ORDERS E195 (E190-100LR) (0290, D-AEMA, 2009-06; 0297, D-AEMB, 2009-06; 0300, D-AEMC, 2009-07; 0305, D-AEMD, 2009-08; 0308, D-AEME, 2009-08; 0310, D-AEMF, 2009-09; 0314, D-AEBA, 2009-09*; 0327, D-AECA, 2009-12;* 0332, D-AECB, 2010-01;* 0333, D-AECC "LUTHERSTADT EISLEBEN" 2010-01;* 0337, D-AECD "SCHKEUDITZ" 2010-02*; 0341, D-AECE "KRONACH" 2010-03;* 0350, D-AEBE, 2010-04;* 0359, D-AECF, 2010-06; 0381, D-AECI "TAUBERBISCHOFSHEIM" 2017-04; 0464, D-AEBI, 2012-01*; 0486, D-AEBJ*, 2011-10; 0555, D-AEBQ, 2012-07; 0558, D-AEBR, 2012-07), OPS FOR AUGSBURG AIRWAYS AND AIR DOLOMITI (DLA). * OPERATE FOR (DLH) CITYLINE OPS. 116 PAX, 2 CLASSES.

00/00 ORDERS (?/02) FAIRCHILD DORNIER 728 JET (CF34 TURBOFANS), 70 PAX. 60/60 CANCELED WHEN DORNIER WENT BANKRUPT IN 2002.

1 ERJ-145, (BMA) WET-LSD 2000-04.

1 JU52/3M.

1 ME108 UNIPLANE.

Management:
(definitions)

Click below for photos:
DLH-1-CARSTEN SPOHR - 2014-02
DLH-1-Carsten Spohr - 2016-04-A.jpg
DLH-1-Carsten Spohr - 2016-04-B.jpg
DLH-1-CARSTEN SPOHR-2014-04
DLH-1-CHRISTOPH FRANZ - 2013-07
DLH-1A-WOLFGANG MAYRHUBER
DLH-1A-WOLFGANG MAYRHUBER - 2005-05
DLH-1A-WOLFGANG MAYRHUBER - 2008-11
DLH-1A-WOLFGANG MAYRHUBER - 2013-05
DLH-1B-JUERGEN WEBER - 2003-06-A.jpg
DLH-1B-JUERGEN WEBER - 2003-06-B.jpg
DLH-2-CHRISTOPH FRANZ-CEO-DLH GRP-2011-06
DLH-2-Dr Johannes Bussmann-L-2015-04.jpg
DLH-2-Harry Hohmeister - 2017-01.jpg
DLH-2-KARL ULRICH GARNADT-2015-03
DLH-2-Wilken Bormann-2017-03.jpg
DLH-3-August Hennigsen Interview-2015-04-A.jpg
DLH-3-August Hennigsen Interview-2015-04-B.jpg
DLH-3-August Hennigsen Interview-2015-04-C.jpg
DLH-3-AUGUST HENNINGSEN - LTK - 2005-11
DLH-3-AUGUST HENNINGSEN - LTK - 2005-11
DLH-3-AUGUST HENNINGSEN-2014-04
DLH-3-KARL ULRICH GARNADT - 2014-08
DLH-4-Simone Menne - 2016-05.jpg
DLH-4-STEPHAN GEMKOW - 2006-06
DLH-5-DR THOMAS STUEGER - LTK
DLH-5-JENS BISCHOF-2014-03
DLH-5-WALTER HEERDT - LTK - 2012-09
DLH-6-UWE MUKRASCH - LTK
DLH-7-DR GERALD KORBLER - LTK
DLH-7-Professor Dr Regula Dettling Ott-2016.jpg
DLH-8-ALEXANDER HEILMANN - LTK
DLH-9-WOLFGANG BRECKAU
DLH-LUFTHANSA TECHNIK - 2013-04-A
DLH-LUFTHANSA TECHNIK - 2013-04-B

WOLFGANG MAYRHUBER, CHAIRMAN OF THE EXECUTIVE BOARD, FORMER (DLH) CHIEF EXECUTIVE OFFICER (CEO) (2013-05).

JUERGEN WEBER, CHAIRMAN OF THE EXECUTIVE BOARD (RETIRED 2013-05).

MS CHRISTINE BEHLE, DEPUTY CHAIRMAN EXECUTIVE BOARD (2013-05).

CARSTEN SPOHR, EXECUTIVE BOARD CHAIRMAN & (CEO) OF LUFTHANSA GERMAN
AIRLINES (DLH) (2010-09) AND OF GROUP (2014-03).
See "DLH-1-Carsten Spohr - 2016-04-A/B.jpg" for recent speech at the Aviation Club of the UK in London on "A Crazy Business."

Carsten Spohr was born on December 16, 1966 in Wanne-Eickel, Germany. After obtaining a degree in industrial engineering at Karlsruhe University, he qualified on the Lufthansa (DLH) flight training course with a commercial airline pilot’s licence. Later, in 1994, he completed a management training course at Deutsche Aerospace AG, Munich. In October 1994, Carsten Spohr returned to (DLH), initially in charge of Recruiting. From 1995 to 1998, he was personal assistant to (CEO) & Chairman of (DLH), Jürgen Weber, prior to assuming responsibility in August 1998 for (DLH)’s partnerships in Europe as Head of Regional Partner Management. In February 2000, he became VP Alliance with the responsibility for managing and coordinating (DLH) cooperation partners worldwide, including the Star Alliance (SAL) and regional partners. In July 2003, he assumed responsibility for (DLH) passenger business strategy and airline holdings. In October 2004, he was appointed to the Management Board of (DLH) Passenger Airlines. In that capacity, he was responsible for cabin crews, hub management and human resources (HR) at (DLH) Passenger Airlines. The Supervisory Board of Lufthansa Cargo AG (LUB) appointed him, effective January 15, 2007, as (CEO) & Chairman.

Carsten Spohr also holds a Lufthansa (DLH) Captain’s license for the Airbus A320 family airplanes. Carsten is married and father of a daughter.

HARRY HOHMEISTER, (DLH) EXECUTIVE BOARD CHIEF OFFICER, GROUP INFORMATION TECHNOLOGY (IT) & PROCESS MANAGEMENT (2015-01), LATER APPOINTED (CEO) (ALSO SWISS INTERNATIONAL AIRLINES EXECUTIVE BOARD CHAIRMAN & (CEO) SINCE (2009-07)).

KARL ULRICH GARNADT, CHAIRMAN & (CEO) OF LUFTHANSA GERMAN AIRLINES (2014-05), LUFTHANSA CARGO AG (LUB) (2011-01), HEAD LUFTHANSA GROUP INFRASTRUCTURE, RESPONSIBLE FOR AIRPORT & AIR TRAFFIC CONTROL (ATC) CHARGES FOR THE LUFTHANSA GROUP.
Karl Ulrich Garnadt was born on 1957. He began his career at Lufthansa (DLH) in 1979. In 2011, he became (CEO) and Chairman of Lufthansa Cargo AG. Since May 1, 2014, he has been a Member of the Executive Board of Dutsche Lufthansa AG and (CEO) of Lufthansa German Airlines.

PETER GERBER, LUFTHANSA CARGO (LUB) CHAIRMAN & (CEO) (2015-02).

DR JOHANNES BUSSMANN, EXECUTIVE BOARD CHAIRMAN & (CEO), (LTK) (HAM), LUFTHANSA TECHNIK (LTK) (2015-04).

THOMAS WINKLEMANN, CHAIRMAN & (CEO) AIRBERLIN (BER) (2017-2).

WILKEN BORMANN, (CEO) MUNICH HUB (2017-03).
Wilken is responsible for the commercial management, station management, ground infrastructure and processes, as well as for the further development of the southern Lufthansa hub, behind Frankfurt, Germany’s 2nd largest airport. He is also responsible for the operational planning and control of all flights to and from Munich.

His Lufthansa (DLH) career began in 1998 at Lufthansa Technik (DLH) (LTK) in Hamburg where he held various management positions. He moved to Frankfurt in 2014 and in 2016 became Lufthansa Airline (DLH) VP Finance & (CFO).

(DLH) has 120 aircraft based in Munich, including 5 A380s starting summer 2018.

KAY KRATKY, CHIEF OPERATING OFFICER (COO).

JUERGEN RAPS, CHIEF PILOT (DLH).

WOLFGANG GOHDE, (CEO) & MANAGING DIRECTOR, LUFTHANSA SYSTEMS (LHS) GROUP (2004-11).

STEFAN HANSEN, CHAIRMAN & (CEO) LUFTHANSA SYSTEMS (LHS) (2010-07).
Lufthansa Systems AG extended the appointment of (CEO) Stefan Hansen to June 30, 2018.

PETER VON MOLTKE, PRESIDENT & (CEO), LUFTHANSA SYSTEMS (LHS), NORTH AMERICA (2002-08).

ROBERT JAHN, MANAGING DIRECTOR, EUROWINGS EUROPE (EWG).

GERALD FRIELINGHAUS, (CEO) LUFTHANSA TECHNIK PHILIPPINES (2011-08).

STEPHAN DREWES, (CEO) LUFTHANSA TECHNIK MALTA (2011-08).

HEIKE BIRLENBACH, PRESIDENT & (CEO) (DLH) ITALIA AT (MXP) (2009-02).

FLORIAN HAMM, CHAIRMAN FLIGHT TRAINING & MANAGING DIRECTOR (2005-12).

ULRIK SVENSSON, CHIEF FINANCIAL OFFICER (CFO).

GUNTER KUECHLER, MANAGING DIRECTOR LUFTHANSA SYSTEMS.

RALF CABOS, MANAGING DIRECTOR LUFTHANSA SYSTEMS ASIA/PACIFIC.

ANDREAS JAHNKE, MANAGING DIRECTOR LUFTHANSA CONSULTING.

KLAUS FROESE, MANAGING DIRECTOR, LUFTHANSA CITYLINE (2006-07).

MS HEIKE BIRLENBACH, VP SALES & CHIEF COMMERCIAL OFFICER (CCO) (2017-01).
Heike succeeds Jens Bischof, who has been appointed Managing Director SunExpress (SNS).

MS BETTINA VOLKENS, (DLH) GROUP DIRECTOR INDUSTRIAL RELATIONS - CORPORATE HUMAN RESOURCES (HR) & LEGAL AFFAIRS (HEADS GROUP'S (HR) DIVISION, CHIEF OFFICER HUMAN RESOURCES (HR) & LEGAL.

JOSEF BOGDANSKI, CHIEF INFORMATION OFFICER (CIO)/CHIEF PROCESS OFFICER (2015-06).

RALF TECKENTRUP, EXECUTIVE VP NETWORK MANAGEMENT & MARKETING.

JUERGEN RAPS, EXECUTIVE VP OPERATIONS (2007-08).

WERNER KNORR, HEAD FLIGHT OPERATIONS (2007-09).

CLAUS RICHTER, HEAD OF TRANSPORT MANAGEMENT & FLIGHT OPERATIONS AT LUFTHANSA CARGO (LUB) (2007-12).

MS BARBARA SCHADLER, HEAD CORPORATE COMMUNICATIONS, THE LUFTHANSA GROUP (2013-07).

UWE MUELLER, HEAD SALES GERMANY, SWITZERLAND/ AUSTRIA (2011-02).

MS MYRIAM ZIESACK, HEAD COMMUNICATIONS ASIA PACIFIC

ROLAND BUSCH, EXECUTIVE VP FINANCE & HUMAN RESOURCES (HR).

THOMAS SATTELBERGER, EXECUTIVE VP PRODUCT & SERVICE.

NICO BUCHHOLZ, EXECUTIVE VP GROUP FLEET MANAGEMENT.

CHRISTOPH KLINGENBERG, SENIOR VP NON-HUB SERVICES & HEAD OF INFORMATION MANAGEMENT & CHIEF INFORMATION OFFICER (CIO) (2008-04).

REINHOLD HUBER, SENIOR VP PRODUCT & MARKETING.

JOSEF BOGDANSKI, SENIOR VP SALES, GERMANY & GLOBAL KEY ACCOUNTS.

STEFAN AUERBACH, SENIOR VP AIRLINE SOLUTIONS LUFTHANSA SYSTEMS (LHS).

DR HANS-JUERGEN LOSS, VP TECHNICAL OPERATIONS (fraob@dlh.de),
(hansjuergen.loss@dlh.de) (1998-04).

PROFESSOR DR REGULA DETTLING-OTT, VP EUROPEAN UNION (EU) AFFAIRS, LUFTHANSA GROUP.

HEIKE BIRLENBACH, VP SALES & SERVICE EUROPE (2014-03).

ULRICH WACHTER, VP CABIN SERVICES DIVISION (2005-07).

STEFFEN HARBARTH, VP ASIA/PACIFIC (2011-02).

TAMUR GOUDARZI-POUR, VP AIRLINE SALES, THE AMERICAS.

JURGEN SIEBENROCK, VP AMERICAS (2011-02).

KARL-RUDOLF RUPPRECHT, (LTK) LOGISTICS MANAGING DIRECTOR & MANAGER FRANKFURT HUB (2004-07).

RONALD SCHULZ, GROUP REGIONAL DIRECTOR PASSENGER SALES RUSSIA & (CIS).

AXEL HILGERS, DIRECTOR RUSSIAN FEDERATION & (CIS).

DEAN RANIERI, DIRECTOR NEW AIRCRAFT MAINTENANCE & READINESS.

FLORIAN DEHNE, DIRECTOR ALLIANCES & BUSINESS.

NICHOLAS ESCHERICH, FLIGHT TRAINING GENERAL MANAGER.

MS MARIANNE SAMMAN, GENERAL MANAGER UK & IRELAND.

CHRISTIAN ALTMANN, GENERAL MANAGER SINGAPORE/SOUTHEAST ASIA/PACIFIC (2011-02).

ALEXANDER ZSCHOCKE, SENIOR MANAGER AVIATION BIOFUEL.

FRANK HOELTERHOFF, PROJECT MANAGER SERVICE READINESS.

PATRICK MESCHENMOSER, MANAGER COMMUNICATIONS.

CHRISTOPH MEIER, HEAD MEDIA RELATIONS.


THE FOLLOWING ARE LUFTHANSA TECHNIK (DLH) (LTK) PERSONNEL:
(lht.infoline@lht.dlh.de). SEE ATTACHED "AVIATION MAINTENANCE" REPORT - "DLH-LUFTHANSA TECHNIK GROUP - 2013-04-A/B."

DR JOHANNES BUSSMANN, EXECUTIVE BOARD CHAIRMAN & (CEO), (LTK) (HAM), LUFTHANSA TECHNIK (LTK) (2015-04).
In April 2015, Johannes succeeded August Wilhelm Henningsen, the venerable leader who had been Chairman of the Executive Board of the global Maintenance Repair & Overhaul (MRO) operation, Lufthansa Technik (DLH)/(LTK) for 14 years.

Johannes joined (DLH) in 1999 in Product Development & Sales, and was a board member responsible for Human Resources (HR), Engine & (VIP) services for (DLH) (LTK) for 2 years.

ANDREAS KADEN, MANAGING DIRECTOR, LUFTHANSA TECHNIK BERLIN (1998-05).

ELMAR LUTTER, MANAGING DIRECTOR LUFTHANSA TECHNIK BUDAPEST IS CURRENTLY PROJECT LEADER OF NEW LUFTHANSA TECHNIK PUERTO RICO (LTPR) (2014-04).

BURKHARD ANDRICH, PRESIDENT & (CEO) LUFTHANSA TECHNIK (DLH) (LTK) PHILIPPINES (2014-01).
Previously serving as Senior VP Aircraft Component Services at Lufthansa Technik in Hamburg, Burkhard succeeded Gerald Frielinghaus. Lufthansa Technik Phillippines is a joint venture between Lufthansa Technik and aviation service provider MacroAsia.

GERALD FRIELINGHAUS, (CEO) LUFTHANSA TECHNIK PHILIPPINES (2011-08).
Gerald Frielinghaus returned to Germany to manage Lufthansa Technik (DLH) (LTK)'s paperless maintenance project in Frankfurt.

STEPHAN DREWES, (CEO) LUFTHANSA TECHNIK (SLH) (LTK) MALTA (2011-08).

ELMAR LUTTER, (CEO) LUFTHANSA TECHNIK PUERTO RICO.

DR GERALD GALLUS, (CEO) PRODUCTS & SERVICES (2000-10).

THOMAS KUHN, PRESIDENT & (CEO), (DLH) (LTK) SUBSIDIARY, BIZJET INTERNATIONAL (2015-07).

DR H SCHMITZ, (CEO) (LTK) LOGISTIK SERVICES.

DR PETER JANSEN, (CEO) FINANCE, CHIEF FINANCIAL OFFICER (CFO) TIL (2015-12).

ANTONIO SCHULTHESS, (CEO) HUMAN RESOURCES (HR) (2014-12).

RUBIN SIDDIQUE, (CEO) LUFTHANSA TECHNICAL TRAINING (2016-02).

HARALD GLOY, SENIOR VP AIRCRAFT COMPONENT SERVICES LUFTHANSA TECHNIK (DLH) (LTK) (2014-01).

THOMAS RUECKERT, HEAD AIRCRAFT OVERHAUL SER4VICES, LUFTHANSA TECHNIK (DLH) (LTK) (2016-04).

LUKAS BUCHER, LUFTHANSA TECHNIC HEAD CONNECTIVITY.

SAHIB AJJAM, HEAD AIRCRAFT MAINTENANCE SOUTH GERMANY REGION (2008-10).

DR THOMAS STRUEGER, SENIOR VP AIRCRAFT MAINTENANCE.

WALTER HEERDT, SENIOR VP MARKETING & SALES, LUFTHANSA TECHNIK (LTK).

DR BERNHARD CONRAD, SENIOR VP PROJECT & DEVELOPMENT ENGINEERING (HAM) (1998-10).

DR VOLKER KANDANSKY, SENIOR VP EXECUTIVE PROJECTS (HAM) (1999-09).

JOHANNES BUSSMAN, SENIOR VP ENGINE SERVICES (2011-08).

ANDREAS MEISEL, SENIOR VP AIRCRAFT OVERHAUL (HAM) (2005-02).

BURKHARD ANDRICH, SENIOR VP AIRCRAFT COMPONENT SERVICES (2011-08).

BERND FRECKMANN, VP BASE MAINTENANCE SERVICES.

UWE MUKRASCH, SENIOR VP AIRCRAFT COMPONENT OVERHAUL (HAM) (1999-12)

DR GERALD KORBLER, SENIOR VP POWERPLANT SERVICES (HAM) (2000-04).

BERNHARD KRUEGER-SPRENGEL, VP ENGINE OVERHAUL (HAM) (2011-08).

ALEXANDER HEILMANN, VP CUSTOMER ENGINEERING.

JOACHIM BUSE, VP AVIATION BIO-FUEL.

KLAUS NITTINGER, FLEET PLANNING CONSULTANT, EX-(RRC) (2000-08).

E HABERKAMP, GENERAL MANAGER LINE MAINTENANCE (FRA).

DR ANDREAS HEITZNER, GENERAL MANAGER (A320, A340, 737) (FRA) AIRCRAFT MAINTENANCE.

H DIETSCH, GENERAL MANAGER AIRCRAFT MAINTENANCE (747, A300, A310) (FRA).

K SCHUERGER, GENERAL MANAGER QUALITY ASSURANCE (QA) (FRA).

BERNHHARD CONRAD, CHIEF TECHNOLOGY OFFICER (2007-03).

MARCUS MOTSCHENBACKER, DIRECTOR NETWORK SALES & CUSTOMER SERVICE.

WOLFGANG BRECKAU, DIRECTOR AIRFRAME RELATED COMPONENT SERVICE (LTK).

JAN-PETER GANSE, DIRECTOR PROJECT & CERTIFICATION.

ANFREAS BARTELS, DIRECTOR & HEAD OF MEDIA RELATIONS (2006-10).

WOLFGANG WEYNELL, ENGINE SERVICES DIRECTOR CUSTOMER SUPPORT.

L KILCHERT, SENIOR MANAGER AVIONICS.

M COELIUS, SECTION MANAGER MAINTENANCE CONCEPTS (2000-03).

BERND BRENDEL, MANAGER PRODUCTION (BER).

DR MARIA-ANGELIKA HANNE, MANAGER PRODUCTION DEVELOPMENT, INTERCONTINENTAL SERVICE.

KARL HESS, PROJECT MANAGER CABIN SYSTEMS (FRA).

DR WIGGARS, MANAGER PRODUCTION PLANNING (FRA).

PETER LOEB, MANAGER PAYLOADS (1997-03).

ROBERT NYENHUIS, SECTION MANAGER ENGINEERING, AIRCRAFT MAINTENANCE.

MR NESSEL, MANAGER AVIONICS (1997-03).

RUDIGER HORNIG, MANAGER AIRCRAFT (HAM) (1997-03).

CHRISTIAN ORLOWSKI, PROJECT MANAGER BROADBAND INTEGRATED SERVICES -BISAM

ROBERT GAAG, 747 PROJECT MANAGER (FORMER RESIDENT REPRESENTATIVE, BOEING).

CAPTAIN UWE STROHDEICH, 747-8I CAPTAIN:

SEE video:

ANSGAR REDENHUIS, PROJECT MANAGER.

WERNER KOSANKE, PROJECT MANAGER ENGINEERING COORDINATION/CUSTOMER SUPPORT (werner.kosanke@lht.dlh.de), (LTK) (FRA).

FRANK LOSCHEIDER, PRODUCT MANAGER 747, (LTK).

KEIKE HANDKE, PRODUCT MANAGER STRATEGY & BUSINESS DEVELOPMENT, AIRCRAFT MOFIFICATION BUSINESS UNIT LUFTHANSA TECHNIC.

HOLGER DIETSCH, MANAGER AIRCRAFT MAINTENANCE, (LTK).

JENS KABUTH, PROJECT MANAGER (jens.kabuth@lht.dlh.de).

HEINRICH FUHR, PROJECT MANAGER AIRCRAFT SYSTEM ENGINEERING (FRAW2LH)
(heinrich.fuhr@lht.dlh.de).

CHRISTIAN HATJE, MANAGER PRODUCTION MANAGEMENT & PRODUCT DEVELOPMENT
(christian.hatje@lht.dlh.de).

ROLAND LAUER, INFORMATION TECHNOLOGY (IT) SYSTEM MANAGER ELDOR (roland.lauer@lht.dlh.de).

ALEXANDER HEILMANN, MANAGER MAINTENANCE SUPPORT (frawa4@lht.dlh.de).

DIRK SUS, MANAGER MAINTENANCE SUPPORT (frawb4a@lht.dlh.de).

BERNHARD SCHOENING, SECTION MANAGER PRODUCT ENGINEERING & PLANNING
(bernhard.schoening@lht.dlh.de) (HAM).

JURGEN TRZASKA, PROJECT MANAGER AIRCRAFT ENGINEERING & FLEET PROJECTS
(juergen.trzaska@dlh.de) (HAM).

ANDREAS GHERMAN, MANAGER MAINTENANCE FACILITIES, BERLIN, EX-(SNS).

PETER ELLISON, PROJECT MANAGER, (DLH) (LTK) BUDAPEST, HUNGARY (2000-01)

FRANK-UWE SCHAEFER, SENIOR MANAGER INFORMATION TECHNOLOGY, (DLH) SYSTEMS.

 
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