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FOUNDED IN 1993 AND STARTED OPERATIONS IN 1994. GERMANY'S MAJOR REGIONAL AIRLINE. FULL NAME EUROWINGS FLUG, GMBH. FORMERLY (RFG) REGIONALFLUG GMBH. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
44319 DORTMUND, GERMANY
Germany (Federal Republic of Germany) was established in 1949, it covers an area of 356,945 sq km, its population is 85 million, its capital city is Berlin, and its official language is German.
JUNE 1993: MAIN BASE/HUBS: AMSTERDAM AIRPORT, BERLIN AIRPORT, DORTMUND AIRPORT, NUREMBERG AIRPORT, & PARIS AIRPORT. EUROWINGS (EWG) IS A SUBSIDIARY OF EUROWINGS LUFTVERKEHRS, AG, NUREMBURG
1,032 EMPLOYEES (INCLUDING 329 FLIGHT CREW (FC) & 300 MAINTENANCE TECHNICIANS (MT)).
JANUARY 1996: 1995 = +$1.3 MILLION (NET PROFIT): +50% PASSENGERS (PAX), 1.8 MILLION, 57% LF LOAD FACTOR (+8), ANNOUNCED BY REINHARD SANTNER, CHAIRMAN.
APRIL 1996: 3/3 ORDERS (1997-01) A319-100'S (CFM56-5).
JULY 1996: 1ST 6 MONTHS = +38% PASSENGERS (PAX).
AUGUST 1996: HANNOVER TO PARIS (B AE 146-200, 84 PAX).
JANUARY 1997: 1 A319 (CFM56-5) DELIVERY.
MARCH 1997: 1 B AE 146-200 (ALF502R-5), EX-SN BRUSSELS (DAT).
APRIL 1997: 1,250 EMPLOYEES (INCLUDING 380 FLIGHT CREW (FC) & 300 MAINTENANCE TECHNICIANS (MT)).
MAY 1997: 1 A319 (CFM56-5B) DELIVERY.
JULY 1997: 1996 = +$6.91 MILLION (+$1.40 MILLION): 1.9 MILLION PASSENGERS (PAX) (+5.6%) (RECORD PROFIT DUE TO ALLIANCES WITH (KLM) AND AIR FRANCE (AFA). 1ST 6 MONTHS = 1.148 MILLION (PAX) (+29%).
NOW 250 SCHEDULED FLIGHTS PER DAY TO 37 DESTINATIONS IN 10 EUROPEAN COUNTRIES.
SEPTEMBER 1997: 5/5 ORDERS ATR 42-512'S (LARGEST EUROPEAN OPERATOR IN EUROPE).
OCTOBER 1997: +2 B AE 146-200'S, & +2 B AE 146-300'S, FOR $30 MILLION, INCLUDING EXTENDING LEASE ON 3 B AE 146'S. 2 ATR 42-512 (532; 549) DELIVERIES.
DECEMBER 1997: REINHARD SANTNER, CHAIRMAN & (CEO), SAYS IT IS NO LONGER WORTH FLYING REGIONAL ROUTES <3 HOURS, BECAUSE OF NEW COMPETITION (GERMAN GOVERNMENT HAS $5.3 BILLION DEVELOPMENT) OF HI-SPEED INTER-CITY EXPRESS (ICE) TRAINS, FORCING REGIONAL AIRLINES TO SHIFT FOCUS FROM DOMESTIC ROUTES TO DEVELOPING EUROPEAN NETWORK.
2 ATR 42-512'S DELIVERIES (546; 551). 2 B AE 146-300'S DELIVERIES.
JANUARY 1998: CODE SHARE WITH BASE AIRLINES, THE NETHERLANDS, LONDON GATWICK - MUNSTER/OSNABRUCK.
ATR 42-512 (559) DELIVERY.
FEBRUARY 1998: TO MUNICH, BERLIN - RIGA, NUREMBURG - LONDON.
MARCH 1998: VOTED "BEST REGIONAL AIRLINE" BY "BUSINESS TRAVELLER" MAGAZINE.
1 A319 (CFM56-5B6/P) DELIVERY.
APRIL 1998: 1,634 EMPLOYEES (INCLUDING 380 FLIGHT CREW (FC) & 300 MAINTENANCE TECHNICIANS (MT)).
MAY 1998: 30 ORDERS FAIRCHILD DORNIER 728JET.
SEPTEMBER 1998: FISCAL YEAR (FY) 1997 = +$8.7 MILLION (+5.8 MILLION): +33% PASSENGERS (PAX).
OCTOBER 1998: EXPANDS ALLIANCE WITH (KLM), INCLUDING CODE SHARE + NORTHWEST AIRLINES (NWA) & INTEGRATION INTO "FLYING DUTCHMAN" FREQUENT FLYER PROGRAM.
1ST 6 MONTHS = 1.39 MILLION PASSENGERS (+21.4%).
APRIL 1999: 1,725 EMPLOYEES.
(http://www.eurowings.de). (firstname.lastname@example.org). SITA: DTMRZEW.
MAY 1999: TOP 1998 PASSENGERS (PAX) (MILLION) WORLD REGIONAL AIRLINES:
1 AMERICAN EAGLE 10.67; 2 COMAIR (COI) 6.18 (+16.55); 3 CONTINENTAL
EXPRESS 5.64 (+15.65); 4 SKYWEST 4.51 (+55.4%); 5 CROSSAIR (CSR) 4.43 (+19%); 6 KLM UK (UKL) 4.41 (+1.7%); 7 (DLH) CITYLINE 4.40 (+13.3%); 8 UNI (MAK) 4.23 (+89.7%); 9 CANADIAN REGIONAL 4.19 (+23.1%); 10 HORIZON 4.09 (+18.2%); 11 MESABA 4.05 (+26.55); 12 AIR CANADA CONNECTOR 4.04 (+12.1%); 13 ATLANTIC SOUTHEAST 4.03 (+6.75); 14 TAM BRAZIL (TPR) 3.94 (+17.4%); 15 MESA 3.39 (-22.5%); 16 PIEDMONT (PIE) 3.09 (+6%); 17 MERIDIANA (ALS) 2.94 (+7.9%); 18 AIR WISCONSIN 2.76 (+42%); 19 ATLANTIC COAST 2.53 (+52%); 20 TRANS STATES 2.45; 21 BRITISH REGIONAL 2.34 (+9.1%); 22 ALLEGHENY 2.19 (+7.4%); 23 (KLM) CITYHOPPER 2.15 (+17.7%); 24 ACES (ACE) 2.10; 25 JERSEY EUROPEAN 2.07 (+17.3%); 26 (RFG) 2.05 (+15.4%); 27 RIO-SUL (ROS) 2.04; 28 TYROLEAN 1.73 (+15.1%).
A319-112 (1016, D-AKNI) DELIVERY.
JUNE 1999: 5 ORDERS (2000-01) ATR 42-500'S.
AUGUST 1999: FISCAL YEAR (FY) 1998 = +$2.66 MILLION (-40%).
SEPTEMBER 1999: FRIEDRICH WILHELM WEITZ, PRESIDENT & (CEO).
6TH ORDER (2001) A319 (CFM56-5B). ATR 42-500 (581, D-BPPP) DELIVERY.
JANUARY 2000: NUREMBERG - POZNAN, POLAND (ATR 42-500).
2 ATR 42-300'S SOLD TO ATR. ATR 42-500 (603, D-BTTT) DELIVERY.
FEBRUARY 2000: 1999 = >3 MILLION PASSENGERS (PAX), +4.9% (RPK) (TRAFFIC); 58.3% LF (LOAD FACTOR).
FLEW 1/3 OF PASSENGERS FROM 11 GERMAN AIRPORTS TO AMSTERDAM SCHIPOL.
EUROWINGS (RFG) IS A MEMBER OF THE (KLM)/(NWA)/(ALI) ALLIANCE.
MARCH 2000: TO FOCUS SUMMER GROWTH AT NUREMBURG, WITH INCREASED FLIGHTS TO LONDON CITY, & BERLIN TEMPLEHOF. ALSO, MORE SAABRUCKEN - BERLIN.
A319-112 (1172, D-AKNJ) DELIVERY.
APRIL 2000: LEIPZIG - PIESTANY/SARMELLEK/DEBRECEN.
1,729 EMPLOYEES (INCLUDING 680 CABIN ATTENDANTS (CA), & 541 MAINTENANCE TECHNICIANS (MT)).
A319 AND 2 ATR 72'S WET-LEASED TO LUFTHANSA (DLH), OPERATES OUT OF COLOGNE/BONN, PAINTED IN NEUTRAL BLACK AND BLUE LIVERY.
JUNE 2000: IN 1999, 1 MILLION PASSENGERS FROM 11 GERMAN AIRPORTS TO AMSTERDAM, 33% OF EUROWINGS (RFG)'S ENTIRE TRAFFIC.
1 A319 & 2 ATR 72'S ARE WET-LEASED TO LUFTHANSA (DLH).
JULY 2000: FISCAL YEAR (FY) 1999 = +$4.36 MILLION (+$2.78 MILLION): 3.04 MILLION PASSENGERS (PAX) (+4.9%); 1,589 EMPLOYEES (-5.4%).
SEPTEMBER 2000: LUFTHANSA (DLH) TAKES 24.9% OF EUROWINGS (RFG).
OCTOBER 2000: NUREMBERG - COPENHAGEN.
ATR42-300 (121) RETURNED TO ATR, LEASED TO BALKAN BULGARIAN (BUL).
DECEMBER 2000: (KLM) TAKES OVER ALL GERMANY - AMSTERDAM SERVICES, CURRENTLY OPERATED BY EUROWINGS (RFG).
JANUARY 2001: IN MAY 2001, TO USEDOM (2/WEEK).
FEBRUARY 2001: 2000 = 3.2 MILLION PASSENGERS (PAX) (+5.4%), 56.3% LF (+1.9), +34% CHARTER PAX, EUROPEAN SCHEDULED TRAFFIC +5.1% (RPK).
IN 2001-05, TO HERINGSDORF (ATR42, 2/WEEK).
15/30 ORDERS CRJ200, 50 PAX. 6 ORDERS ATR 72-500'S TO REPLACE ITS ATR 42'S.
MARCH 2001: ANTITRUST REGULATORS OPPOSE LUFTHANSA (DLH) LINK, WITH EUROWINGS (RFG) ARGUING THAT DAMAGE TO COMPETITION ON DOMESTIC FLIGHTS OUTWEIGH ANY BENEFITS ON EUROPEAN MARKET. (DLH) WANTED TO GIVE BIGGEST STATE, NORTH RHINE-WESTPHALIA, MORE DIRECT CONNECTIONS TO BUSINESS CENTERS.
1 ATR72-212A (658, D-ANFG) DELIVERY.
APRIL 2001: 1,736 EMPLOYEES (INCLUDING 680 CABIN ATTENDANTS (CA), & 541 MAINTENANCE TECHNICIANS (MT)).
3 CL-600-2B19'S (7032, D-ANIK; 7036, D-ANIM; 7489, D-AKEN), DELIVERIES.
MAY 2001: 1 ATR 72-212A (666, D-ANFK) DELIVERY.
JUNE 2001: 2 CRJ2000'S (7309; 7316), EX-AIR LITTORAL, LEASED. 1 ATR 72-212A (668-D-ABFL) DELIVERY.
JULY 2001: (RFG) BECOMES 26TH EUROPEAN CARRIER MEMBER, OF europeby air FLIGHTPASS, PROGRAM.
AUGUST 2001: PLANS FOR <3 YEARS TO TAKE OVER THE FLYING OF ALL LUFTHANSA (DLH) A319'S, (DLH) CITYLINE AVRO RJ85'S, AND CONDOR (CDF) BERLIN'S A320'S.
1 ATR 42-300 (233, D-BCRQ) TO EUROPEAN AIR EXPRESS.
OCTOBER 2001: TO LONDON (CITY). DUSSELDORF - BIRMINGHAM/NEWCASTLE.
3 CL-600-2B19'S (5770, D-ACRB; 7567, D-ACRA; 7583, D-ACRD), DELIVERIES.
NOVEMBER 2001: 1 CL-600-2B19 (7583, D-ACRD) DELIVERY.
DECEMBER 2001: CL-800-2B19 (7489) WITHDRAWN FROM USE (WFU).
FEBRUARY 2002: 2001 = 3.5 MILLION PASSENGERS (+11%).
IN 2002-05, BASLE - HERAKLION (WEEKLY CHARTER FOR THOMAS COOK). ALSO, TO HERINGSDORF (ATR, 2/WEEK).
APRIL 2002: 1,735 EMPLOYEES (INCLUDING 680 CABIN ATTENDANTS (CA); & 541 MAINTENANCE TECHNICIANS (MT)).
MAIN BASE: DORTMUND AIRPORT (DTM).
HUBS: FRANKFURT/MAIN AIRPORT (FRA); AMSTERDAM SCHIPHOL AI9RPORT (AMS); PARIS - ORLY AIRPORT (ORY); & MUNICH INTERNATIONAL AIRPORT (MUC).
OWNERS: DR ALBRECHT KNAUF (75%); LUFTHANSA (DLH) (24.9%); EMPLOYEES (0.09%).
MAY 2002: 1ST A320 FOR CHARTER SERVICES TO CROATIA. A320-211 (D-AIPH), LUFTHANSA (DLH) LEASED, OPERATES FOR GERMAN TOUR OPERATOR, EUROKOHA REISSEN FOR SUMMER SEASON.
June 2002: ATR 42-300 (158, D-BCRP), leased to Avanti Air.
July 2002: 2001 = +$4.96 MILLION (+$5.16 MILLION): 2.81 BILLION (RPK) TRAFFIC; 87.9% LF; 1.14 MILLION PASSENGERS (PAX); 47,000 (FTK) FREIGHT TRAFFIC; 1,760 (+10%).
1 ATR 42-300 (158, D-BCRP) delivery.
August 2002: In 2002-10, to start low-fare "GermanWings" based in Cologne with 5 A319's. In effect, this will function as a "quasi-surrogate" of Lufthansa (DLH), who own 24.9% of Eurowings (EWG), and has the option to raise its stake to 49% by 2004.
Cologne/Bonn is increasingly seen as an attractive base for low-fare carriers. The airport is located on the southern end of Germany's most densely populated region, North Rhine Westphalia, with around 20 Million people, within approx 2-hours drive. A train station is scheduled to be completed in 2004. Cologne/Bonn has 3 runways, and terminal capacity has recently increased to about 12 million passengers/year, up from 6 million.
September 2002: In 2002-10, Cologne/Bonn to Barcelona, Berlin (Tegel), London Stansted (STN), Madrid, Milan (MXP), Nice, Paris (CDG), Rome (FCO), Vienna, and Zurich.
1 737-300, Hola Airlines (HLB) wet-leased.
October 2002: Hannover - Vienna/Zurich (CRJ200); Dusseldorf - Stuttgart (B Ae 146); Stuttgart - Brussels (ATR 42-500); Munich - Toulouse (daily); Munich - Paris (CDG) (2/day); Dusselforf - Lyon/Prague/Venice (CRJ-200, daily) for (DLH).
November 2002: In summer 2003, to switch its service to Heringsdorf, to Dusseldorf, from Dortmund.
January 2003: 1 CL-600-2B19 (7738, D-ACRH), GOL (GOT) leased. 2 CL-600-2B19's (7413, D-ACIM; 7419, D-ACIN), deliveries. ATR 42-500 (559) returned to lessor.
March 2003: 2002 = 2.26 Billion (RPK) traffic (+29.1%); 3.56 million passengers (PAX) (+37.5%).
Frankfurt - Katowice/London (City)/Turin; Nurenburg/Stuttgart - Frankfurt for Deutsch Bundepost. Frankfurt - Marseilles (B Ae 146). Munich - Amsterdam/Birmingham (CRJ).
1,663 employees. SITA: DTMRZEW.
May 2003: Fiscal Year (FY) 2002 = +EUR 5.3 million/+$6.2 million (-5.4%) (+EUR 5.6 million). Friedich-Wilhelm Weitholz, (CEO), stated "We don't underestimate the fact that much of our success was dependent on our partner Deutsche Lufthansa (DLH)." (DLH) owns 24.9% of Eurowings (EWG) and holds an option to raise its stake to 49% by the end of 2003. (EWG) operates 53 airplanes and carried a record 3.8 million passengers (+6.5%) in 2002.
June 2005: B Ae 146-300 (E3203, D-AEWQ), B Ae Systems leased. CRJ-200ER (7478, D-ACRM) delivery.
July 2005: CRJ-200 (7494, D-ACRO), delivery.
August 2005: EuroWings (EWG) is a regional airline operating to domestic destinations in Europe, in co-operation with Lufthansa (DLH), under the Lufthansa (DLH) Regional Sstem, and its Star (SAL) Alliance partners.
(IATA) Code: EW. (ICAO) Code: EWG.
Parent organization/shareholders: Dr Albrecht Knauf (50.02%); Lufthansa (DLH) (49%); & others (0.08%).
Owns: GermanWings (RFG) (100%).
Main Base: Dortmmund Airport (DTM).
Hubs: Frankfurt Main airport (FRA); & Munich International airport (MUC).
Domestic, scheduled destinations: Berlin; Bremen; Cologne; Dortmund; Dresden; Dusseldorf; Frankfurt; Friedrichshafen; Hamburg; Hanover; Leipzig/Halle; Munich; Munster; Nuremberg; Paderborn; & Stuttgart.
International, scheduled destinations: Amsterdam; Basle/Mulhouse; Belgrade; Birmingham; Bologna; Brussels; Budapest; Copenhagen; Geneva; Gothenburg; Graz; London; Lyons; Madrid; Manchester; Milan; Paris; Prague; Rome; Vienna; Warsaw; Wroclaw; & Zurich.
October 2005: Eurowings (EWG) phased out its last turboprop, an ATR72. (EWG) operated 44 ATR 42/ATR 72 airplanes at one time. It now is an all-jet operator with a fleet of CRJ-100s/-200s and BAe 146s. Some of the ATRs will be converted to freighters.
B Ae 146-300 (E3125, D-AEWM), B Ae leased.
November 2005: B Ae 146-300 (E3123, D-AEWL), delivery.
December 2005: The European Commission (EC) approved Lufthansa (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 Eurowings (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.
Operated its last ATR passenger service with ATR 72-212 (446), which went to Swiftair (SWF). B Ae 146-300 (E3162, D-AEWO), delivery.
August 2006: Lufthansa (DLH) Systems announced that Eurowings (EWG), and Germanwings (RFG) will equip their cockpits with the Lido Route Manual electronic charting system.
October 2007: Rockwell Collins' Head-Up Guidance System HGS-4200 was chosen by Eurowings (EWG) for its CRJ-700s. Deliveries began in September.
November 2007: (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).
January 2008: German travel conglomerate TUI (TUG) announced that it signed a Memo of Understanding (MOU) with Lufthansa (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 Lufthansa (DLH) partners with Germanwings (RFG) and Eurowings (EWG), along with Albrecht Knauf Industriebeteiligung. The latter also signed the (MOU), TUI (TUG) said. "Agence France Presse" said a mid-2009 timeframe for finalization is TUI (TUG)'s target. No other details were released, and TUI (TUG) said a binding agreement will depend on "a due diligence process and negotiations of the specific details," as well as the approval of antitrust authorities. The combination is likely designed to counter the growing domestic influence of airberlin (BER), which has expanded with the acquisitions of (LTU) and dba (DBA).
July 2008: Lufthansa (DLH) said it was "surprised" by a strike called by 1,000 pilots (FC) flying for (DLH) subsidiaries Eurowings (EWG) and CityLine, that resulted in the cancellation of 465 flights and 525 scheduled later. Pilots (FC) walked out at noon and will remain on strike until midnight. The Cockpit union called the strike on short notice and said all major airports in Germany would be affected. Its strike window will close at the end of the week, but it is expected that members will vote on further strike action shortly. Lufthansa (DLH) was previously hit with a single-day strike that resulted in -600 cancellations.
Lufthansa (DLH) cancelled 641 flights scheduled to be operated by its CityLine and Eurowings (EWG) subsidiaries, a (DLH) spokesperson said, as a result of a 24-hour pilot (FC) strike, that started recently. The work action followed a breakdown in talks between the Vereinigung Cockpit union and the airline. Approximately 1,000 pilots (FC) took part in the strike, which affected passengers throughout Germany, including those at (DLH)'s main hubs of Frankfurt and Munich. The airline said further delays are possible as it works to bring its schedule back to normal.
December 2008: Lufthansa (DLH) will purchase Low Cost Carrier (LCC) Germanwings (RFG) from Eurowings (EWG), in which (DLH) already holds a 49% stake, according to a statement cited by the "Associated Press." "Eurowings (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.
April 2009: CL-600-2D24 (15229, D-ACNA), delivery.
May 2009: 2 CL-600-2D24 (15230, D-ACNB; 15236, D-ACNC), delivery.
June 2009: Eurowings (EWG) will resume its seasonal weekly, Dusseldorf - Newquay Cornwall flight June 20 aboard a CRJ-200.
July 2009: CL-600-2D24 (15238, D-ACND), delivery.
September 2009: CL-600-2D24 (15243, D-ACNF), delivery.
October 2009: CL-600-2D24 (15245, D-ACNG), delivery.
November 2009: CL-600-2D24 (15247, D-ACNH), delivery.
December 2009: CL-600-2D24 (15248, D-ACNI), delivery.
January 2010: Eurowings (EWG) will phase out 17 CRJ-200s and two CRJ-700s during the summer schedule starting on March 28 as part of the parent company Lufthansa (DLH)'s "Climb 2011" cost-cutting plan. Several hundred jobs reportedly will be cut. In a statement, (EWG) said the airplane will be removed from the fleet over a 12-month period during which (EWG) will increase the number of CRJ-900s to 15.
CL-600-2D24 (15249, D-ACNJ), delivery. All B Ae 146s to be retired by end of March.
March 2010: 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, a spokesperson told the "Neue Ruhr/Neue Rhein Zeitung." Bases at Dortmund, Munster Osnabruck, Paderborn, Cologne, Nurnberg, Berlin Tegel, Hannover, Frankfurt, Stuttgart, and Munich will close. No details were provided regarding a timetable or layoffs.
CRJ-900 (15252, D-ACNL), (DLH) leased.
April 2010: CL-600-2D24 (15254, D-ACNN), delivery.
June 2010: Lufthansa Technik (DLH) (LTK) AERO Alzey signed an eight-year exclusive repair and overhaul agreement with Eurowings (EWG) covering "at least" 30 (CF34-8C) engines powering (EWG)'s CRJ-900 fleet.
September 2010: Eurowings (EWG) has moved its headquarters from Dortmund and Nuremberg to Dusseldorf. It retired its last BAe 146-200s and BAe 146-300s by the end of June.
January 2011: German regional carrier Eurowings (EWG) resolved a long-standing dispute with its pilots (FC). All pilots (FC) agreed to reduce their work to 80% with a corresponding reduction in pay. In return, (EWG) will not lay off any flight crews (FC).
Eurowings (EWG), a Lufthansa (DLH) subsidiary, has taken a massive
hit through its parent’s decision to retire all 50-seat regional
jets. That move would have reduced the (EWG) fleet from 34 to 15 airplanes. (DLH) offered to place eight larger CRJ-900s with (EWG), but that was conditional on the work time reduction and the closing of several flight crew (FC) bases, which has been a very contested issue among pilots (FC) over the past few months.
July 2011: Eurowings (EWG) has operated its last scheduled service with a CRJ-200 on July 30. It has retained a single CRJ-200 for charter services alongside its 23 CRJ-900s operated on behalf of parent Lufthansa (DLH).
March 2012: Peter Kranich resigns to become (COO) of Brussels Airlines (DAT) (EBA).
September 2012: 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.
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.”
October 2012: Lufthansa (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.”
November 2012: 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 structures, and have a strong online sales focus. “It must be profitable from 2015,” Franz said.
But (DLH) must first complete rounds of difficult labor talks.
April 2014: germanwings (RFG) launched a whole raft of mostly seasonal flights. Most are operated with just a single weekly frequency (either Saturday or Sunday) using (RFG)’s own A319s, or the CRJ900s of eurowings (EWG). While many of these are replacing services previously operated by Lufthansa (DLH), the Düsseldorf (DUS) services to Ancona (AOI), Bastia (BIA), Lamezia Terme (SUF) and Montpellier (MPL) were not previously served by Lufthansa (DLH).
September 2014: The Lufthansa Group has ordered 10 A320ceos for its Eurowings (EWG) subsidiary, which is being repositioned as a low-cost carrier (LCC).
Building on the new strategy which Lufthansa (DLH) announced in July, (EWG) will return to A320 operations and focus on direct point-to-point flights within Europe. (EWG) operated A319s in the 1990s and early 2000s, but today has a fleet of 23 Bombardier CRJ900s.
“This new order is the next logical step in our ongoing fleet modernization strategy, in particular with regards to driving down fuel burn, operating costs, noise and emissions,” Lufthansa Group Executive VP Fleet Management, Nico Buchholz said.
The Lufthansa Group already operates over >400 Airbus airplanes and is the European manufacturer’s biggest airline customer, with orders for over >580 aircraft to date.
December 2014: 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.
January 2015: News Item A-1: The Lufthansa Group’s low-cost carrier (LCC) subsidiary, Eurowings (EWG) will perform its maiden flight February 1 from Hamburg to Prague, with its first 162-seat Airbus A320.
In the following weeks, more A320s will begin replacing its 23 Canadair CRJ900 jets.
The Lufthansa Group is moving forward with the implementation of the “Wings” concept by renewing the Eurowings (EWG) fleet with Airbus A320s in the new branding. Lufthansa (DLH) is transforming its Eurowings (EWG) subsidiary into a pan-European platform to operate low-cost flights from several bases outside Germany. The range of services oriented to leisure travel under the "Eurowings" brand should allow the Lufthansa Group to open up new customer potential.
The Lufthansa Group is also safeguarding its leading position in point-to-point connections in its German, Austrian, Swiss, and Belgian home markets in the long term.
At first, flights will operate on behalf of Germanwings (RFG). However, by the end of 2015, Eurowings (EWG) and (RFG) (along with other European airlines) will be united under the "Eurowings" (EWG) brand name. The "Germanwings" (RFG) brand is expected to disappear from the market.
News Item A-2: 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.
February 2015: News Item A-1: 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 Dash 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-2: SunExpress (SNS), a joint venture (JV) of Lufthansa (DLH) and Turkish Airlines (THY), is on track to start long-haul operations for Eurowings (EWG) in November from Cologne.
March 2015: Lufthansa Group’s low cost carrier (LCC) subsidiary, 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.
May 2015: 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.
A320-214 (5658, D-AIZV), ex-(D-AUBY), Lufthansa (DLH) leased.
June 2015: Eurowings ((IATA) Code: EW, based at Dusseldorf) (EWG) will operate to Bangkok Suvarnabhumi and not Bangkok Don Mueang as previously announced when it commences long haul budget operations later this winter.
Using a pair of ex-(EVA) Air A330-200s on wet-lease from Sun Express Deutschland ((IATA) Code: XG, based at Frankfurt International) (SXD), the Lufthansa (DLH) subsidiary will serve Varadero, Cuba and Punta Cana in the Dominican Republic from its Cologne/Bonn hub beginning this November.
Thereafter, flights to Bangkok and Dubai International will launch in December along with other destinations such as Phuket in Thailand and Puerto Plata in the Dominican Republic.
July 2015: News Item A-1: The Lufthansa Group's budget subsidiary, Eurowings (EWG) has disclosed routes to be launched from its first non-German base in Vienna as well as an interline agreement with Bangkok Airways (PGB) for its planned long-haul division.
Starting November 9, (EWG) will serve Barcelona, London Stansted, Majorca, and Rome from the Austrian capital, Vienna.
Flights to Barcelona and Palma de Mallorca have been planned for the winter schedule only, while services to Rome and Stansted appear to be part of a year-round schedule.
Rome is to be served 3x-weekly and Stansted 6x-times per week, the group said.
Eurowings (EWG)'s Vienna-based aircraft will be operated by Austrian Airlines (AUL) with pilots (FC) and flight attendants (CA). The two carriers have arranged code shares for Eurowings (EWG) flights from Vienna. Eurowings (EWG)’s pan-European fleet will operate under two Austrian Air Operating Certificates (AOC)s.
With Bangkok Airways (PGB), (EWG) has arranged an interline agreement for flights to the Thai capital from Cologne. These are scheduled to begin in October .
The agreement covers Bangkok Airways (PGB)'s domestic services to Chiang Mai, Ko Samui, Krabi, and Udon Thani, plus flights to Phnom Penh and Siem Reap in Cambodia.
News Item A-2: Eurowings (EWG) plans to move its administration offices from Dusseldorf to Cologne. An exact date was not given. Flight Operations will remain in Dusseldorf.
August 2015: News Item A-1: Eurowings (EWG) has reported promising bookings for first flights from Vienna to the Caribbean, Thailand, and Dubai from November 9.
The new intercontinental services will be operated with two Airbus A330-200s, which will be wet leased from the Lufthansa (DLH)/Turkish Airlines (THY) (50/50%) joint venture (JV) SunExpress (SNS). The (EWG) long-haul fleet will gradually expand to seven A330s.
In collaboration with Lufthansa Group subsidiary, Austrian Airlines (AUL), (EWG) will offer European services from Vienna using one Airbus A320 from the 2015/2016 winter schedule and a second service from March 2016. Both aircraft will be operated by Austrian Airlines (AUL).
The new Eurowings Europe (EWG) was founded in Austria on August 10. The company will serve as the starting point for further growth, which will establish several more operating bases throughout Europe.
Eurowings Europe is currently setting up Flight Operations, which include creating its own cockpit (FC) and cabin crew (CA) corps.
(EWG)’s pan-European fleet will operate under two Austrian air operator’s certificates (AOCs). All flights, which will fly into and out of Austria, will be operated by Austrian Airlines (AUL)’s (AOC). The second (AOC), which will be used for (EWG)’s pan-European flights, will also be placed in Austria.
The new (EWG) cockpit crew (FC) positions are initially being advertised internally within Lufthansa (DLH) and those who have completed Lufthansa (DLH) Flight Training in Bremen.
In the latter part of August, the company will recruit pilots (FC) from outside the company. The cabin crew (CA) recruitment process will begin in the second half of September.
Eurowings (EWG) operated its maiden flight February 1 from Hamburg to Prague, with its first 162Y-seat Airbus A320.
News Item A-2: Lufthansa (DLH) says it has established a Limited Liability Company (Eurowings Europe GmbH) in Austria to oversee the Austrian operations of its Eurowings (EWG), Dusseldorf budget subsidiary.
"The company will serve as the starting point for further growth, which will see the establishment of several more operating bases throughout the European continent," the Lufthansa Group said.
Eurowings (EWG) has begun advertising for flight crew (FC) with positions being offered to existing (DLH) FLIGHT personnel and to those who have completed their flight training in Bremen and are awaiting suitable vacancies. Recruitment should then be extended to outside applicants during the second half of August.
Cabin crew (CA) recruitment is slated to begin in the second half of September.
Though it is currently undergoing certification with the Austrian Federal Ministry for Transport, Innovation and Technology (BMVIT), Eurowings (EWG) has set a tentative November 9 launch date for its Vienna-based subsidiary.
As previously reported, initial destinations include Barcelona El Prat, London Stansted, Palma de Mallorca Son Sant Joan, and Rome Fiumicino. Operations are on-board a pair of A320-200s, wet-leased from Lufthansa (DLH) subsidiary, Austrian Airlines (AUL), the first of which is due this winter, while the other will arrive in March 2016.
September 2015: News Item A-1: 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-2: "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-3: Eurowings ((IATA) Code: (EW), based at Dusseldorf) (EWG) has requested 767 and 777 operational permits as well as Extended Twin OPerationS (ETOPS) authorization for its nascent Austrian subsidiary, according to a report by "Austrian Aviation Net." (EWG), founded as Eurowings Europe, is currently undergoing certification with the Austrian Federal Ministry for Transport, Innovation & Technology (BMVIT) and expects to launch operations to Barcelona El Prat, London Stansted, Palma de Mallorca Son Sant Joan, and Rome Fiumicino on November 9 using a pair of A320-200s wet-leased from Austrian (AUL).
Despite the application, Austrian Airlines (AUL) spokesman, Peter Thier has told Austrian Aviation Net that Eurowings (EWG) has no plans to operate longhaul flights out of Austria for the time being.
Last year, Austrian (AUL)'s ex-(CEO), Jaan Albrecht said the board had considered repositioning their carrier as a budget airline operating under the name "Austrian Wings." As with Eurowings (EWG), Austrian Wings would have leveraged its lower cost base to deploy its fleet of six 767-300ERs on longhaul leisure flights, albeit out of Vienna.
November 2015: Eurowings (EWG) commenced services between Cologne Bonn (CGN) and Varadero (VRA) in Cuba on November. The 7,942 Km sector will be operated 2x-weekly on Mondays and Fridays, and will face no direct competition. The link between the German and Cuban airports will be served by the carrier’s A330-200s. Varadero is the first of six long-haul destinations to be served by the new (EWG) winter flight schedule. Alongside Varadero, Punta Cana and Puerto Plata in the Dominican Republic will be served, along with services to Phuket and Bangkok in Thailand, as well as Dubai in the (UAE).
December 2015: 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.
January 2016: Lufthansa Group low-cost (LCC) subsidiary, Eurowings Europe (EWG) will hire 600 crewmembers as its fleet expands to 19 Airbus A320s by the end of 2017.
A Lufthansa (DLH) spokesperson said, “We are looking for 400 cabin crew (CA), as well as 100 captains (FC) and 100 first officers (FC).”
Eurowings Europe (EWG) will have an air operator’s certificate (AOC) in Austria. Two A320s will be based in Vienna. Other bases in Europe are under evaluation.
(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 EasyJet (EZY), Ryanair (RYR), and Vueling (VUZ) rise to a 50% market share in Europe.
In November 2015, the Lufthansa Group invited airlines to join Eurowings (EWG) as franchise companies.
March 2016: News Item A-1: The Lufthansa Group has reported a 2015 net profit of +€1.7 billion/+$1.9 billion, up significantly from a net profit of +€55 million in 2014, although the main contributors were lower fuel prices and money received from withdrawing its stake in USA carrier JetBlue Airways (JBL).
(CFO), Simone Menne confirmed the improved results were helped by the “known effect of the (JBL) write-back of €503 million, as well as -€976 million less in fuel costs.”
It was reported February 18 that Lufthansa (DLH) shed its stake in USA-based carrier (JBL) after more than >7 years. The exit plan was through an early redemption of (DLH) bonds convertible into (JBL) shares.
Full-year revenue increased to €32 billion, up +6.8% from 2014, while capital expenditures were down 7.5% to €2.57 billion. The investments were made mainly in fleet and new on board products.
(DLH) Chairman & (CEO), Carsten Spohr told analysts and reporters in Frankfurt: “With the Germanwings (RFG) tragedy, 2015 was an emotionally very challenging year for the Lufthansa Group: a year of extremes. The numerous strikes were a further burden. Nevertheless, we continued to successfully work on our group’s future viability and our strategic realignment is progressing well.”
Spohr said the company has already paid a double-digit million euro amount to relatives and friends of those who were killed in the March 24, 2015 Germanwings (RFG) crash. It was discovered the Airbus A320 was flown deliberately into the French Alps during a scheduled flight from Barcelona to Düsseldorf, killing all 150 people aboard.
The adjusted (EBIT) of the Passenger Airline Group was €1.5 billion (compared to €701 million for 2014), doubling the adjusted (EBIT) margin to 6.1%.
The adjusted (EBIT) of Lufthansa (DLH) Passenger Airlines increased +143% to €970 million.
Results for Eurowings (EWG) (including Germanwings (RWG)) were also included in these numbers. Eurowings (EWG) alone (which will be reported separately from 2016 onward) achieved an adjusted (EBIT) of €8 million on revenues of €1.9 billion (a performance that “not only meets but exceeds the ambitious 2015 target of a break even for the group’s point-to-point business),” Spohr said.
“The doubling in the passenger airlines’ result is not only due to lower fuel costs, but also to the favorable developments in our passenger volumes and to our capacity discipline,” Spohr said.
Lufthansa (DLH) had been strict in aircraft capacity in 2015 and operated -15 fewer aircraft compared to the year before.
The group transported nearly 108 million passengers, which Spohr described as a new record. “We still have to reduce our fleet types further. We want to phase out three sub-fleets this year by phasing out Boeing 737, Fokker F 70/F 100 and Avro [aircraft]. By 2025, the Lufthansa Group will receive 251 new aircraft,” Spohr said.
Its subsidiary, Swiss International Air Lines (CSR) achieved earnings of +€429 million, an increase of +54% and an (EBIT) margin of 9.4%.
Austrian Airlines (AUL) posted earnings of +€52 million compared to +€9 million in 2014.
Lufthansa Group’s (ASK)s rose +3% to 268.1 billion, (RPK)s were up +2.7% to 214.6 billion, producing a load factor of 80.1% LF, up +0.3% over the year-ago period.
(CFO), Simone Menne said (DLH) plans to invest €2.7 billion in 2016 and €2.5 billion in the following years.
Nevertheless, (DLH) adjusted its planned growth for 2016 slightly downward as a result of worldwide instability. “In total, we are expecting a slight earnings improvement for the passenger airlines in 2016,” Menne said. “Unit costs for Lufthansa Passenger Airlines are still too high. That means competitive collective wage agreements are necessary. The wage negotiations at (DLH) Passenger Airlines are still ongoing,” Spohr said.
“For 2016 we are aiming to increase our result for the Lufthansa Group again, to enhance the profitability of our hub airlines by further modernizing their fleets and further increasing efficiency,” Spohr added.
News Item A-2: Lufthansa Group low-cost carrier (LCC) subsidiary, Eurowings (EWG) is delivering unit costs of up to -30% lower than its hub airlines, Lufthansa (DLH) Chairman & (CEO), Carsten Spohr told reporters and analysts during the group’s financial results conference.
(DLH) established Eurowings (EWG) in 2015 as a pan-European (LCC) platform, which it expects to grow quickly to become its second strong brand, especially for point-to-point traffic. “The aviation industry is changing rapidly. The unit costs at (EWG) are already up to -30% lower compared to our hub airlines,” Spohr said. “In addition, we plan to reduce unit costs by a further -10% every year until 2018.”
Spohr said load factor was 96% LF on (EWG)’s long-haul flights in January and 94% LF in February. “Eurowings (EWG) attained operational stability on long-haul routes. And we consider securing this operational stability a greater priority than rapid growth.”
SunExpress (SNS), a joint venture (JV) of Lufthansa (DLH) and Turkish Airlines (THY), launched its first Airbus A330-200 long-haul flight for Eurowings (EWG) from Cologne to Varadero, Cuba, on November 2, 2015. The aircraft are part of a wet-lease contract.
By the end of the year, (EWG)’s long-haul fleet is expected to grow to six A330-200s (wet-leased from SunExpress (SNS)) and one TUIfly (TUG) Boeing 767-300ER. It remains focused on long-haul routes to the Caribbean and North America.
Also by year-end, (EWG) is eyeing 360 short-haul and 17 long-haul destinations from eight bases, including Vienna, where (EWG) Europe has its head office.
Spohr said Eurowings (EWG) is considering operating from Munich by 2017-18. “We [Lufthansa Group] didn’t grow enough in Munich over past years. (EWG) is a growth idea, so we are evaluating [this option], especially for leisure traffic. This move would not replace Lufthansa (DLH) flights,” Spohr said.
He said (EWG) should expand substantially and enlarge the route network, especially in areas where (DLH) mainline cannot grow.
In November 2015, the Lufthansa Group invited airlines to join Eurowings (EWG) as franchise companies.
May 2016: 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.”
June 2016: "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.
(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.
July 2016: 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.”
August 2016: Lufthansa (DLH) low-cost carrier (LCC) subsidiary, Eurowings (EWG) said delays and flight cancelations on long-haul routes because of technical issues and crew shortages have been reduced.
Going forward, careful planning will take priority over growing its network rapidly. “There have been long delays in the past, but now we have this under control. About 3% out of a total of 1,000 Eurowings (EWG) long-haul flights had been delayed more than >3 hr,” spokesperson Joachim Schoettes said in Cologne, Germany.
Lufthansa (DLH) Chairman & (CEO), Carsten Spohr said in June that the start of Eurowings (EWG)’S long-haul routes was a bit too ambitious. “[We had] a complex network; too many destinations counted down to one aircraft. I also learned from that [mistake]. (EWG) is a completely different ballgame,” he said.
Dusseldorf, Germany-based Eurowings (EWG) operates four 310-seat Airbus A330-200s on long-haul flights, which are wet-leased from SunExpress (SNS), a joint venture (JV) of Lufthansa (DLH) and Turkish Airlines (THY). It launched its first long-haul flight from Cologne to Varadero, Cuba, on November 2, 2015.
To improve operations further, on May 30, (EWG) launched Cologne – Boston, USA service. That will be terminated August 28, earlier than the end of October as originally planned. “Boston was planned as a summer-only destination,” Schoettes said. Earlier this month, Eurowings (EWG) decided to cancel its Cologne – Dubai route, which was planned to open December 15.
There is still a shortage on A330 training-pilots (FC) at SunExpress (SNS), which delays the availability of additional flight crews (FC).
“The fleet should grow to six A330s by the end of 2016, and a 7th aircraft will be delivered in 2017. We see very high load factors on our long-haul routes,” Schoettes said.
Eurowings (EWG) also recognizes the increasing transfer of business to and from its long-haul flights in Cologne. “The transfer share is good. For example, passengers from the UK use our connection via Cologne to Phuket, Thailand,” Schoettes said.
(EWG) will launch a new Cologne – Miami service from September 1, and Cologne – Havana flights from December 12.
(DLH) established (EWG) in 2015 as a pan-European (LCC) platform, and “must grow quickly to about 100 aircraft to remain competitive in the market,” Spohr said.
According to Schoettes, Eurowings (EWG) (including Austria-registered Eurowings Europe and the A330 fleet) operates a total of around 90 aircraft.
A320-214 (7263, D-AEWL), ex-(D-AXAD), (DLH) leased.
October 2016: News Item A-1: 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-2: Lufthansa Group low cost carrier (LCC) subsidiary Eurowings (EWG) flight attendants (CA), represented by the (UFO) union, called for a 24-hour strike on October 27.
The (UFO) said that strikes could be possible at any time for 2 weeks from October 24, after management negotiations failed. (UFO) said the latest round of talks were also unsuccessful. The strike action will affect Düsseldorf and Hamburg airports, starting from midnight local time for 24 hours.
The strike also includes Germanwings (RFG) cabin crew (CA) members, which are based in Düsseldorf, Cologne, Hanover, Stuttgart, Berlin, and Hamburg.
Eurowings (EWG) said October 26 that it could not agree on a solution in the tariff conflict despite intense talks. However, management said it offered all (EWG) Germany Flight Attendants (CA) not only substantial increases in remuneration, but also a conciliation of all open-wage agreements at Eurowings (EWG).
The offer corresponds to an average increase of +7% over the 3-year and 3-month period, plus variable compensation, among other benefits.
“With this whole package of improvements and significant tariff increases, we go to the limit of what is and can be done in an economically difficult environment,” (EWG) Managing Director Joerg Beißel said.
(UFO) said October 26, “There is no alternative to the strike. We are very sorry for the escalation.”
The 24-hour strike on October 27 resulted in 393 flight cancellations out of 551 scheduled flights for the day, affecting 40,000 passengers.
November 2016: Lufthansa Group low-cost subsidiary Eurowings (EWG) plans to launch 2x-weekly Cologne - Orlando services beginning July 8, 2017 and 3x-weekly Cologne - Seattle services from July 11, 2017.
The company said the new routes will double (EWG)’s USA network, in addition to flights to Las Vegas and Miami. It will also re-launch seasonal Cologne - Boston Logan services in 2017.
(EWG) operates 310-seat Airbus A330s on long-haul flights, which are wet-leased from SunExpress (SNS), a joint venture (JV) of Lufthansa (DLH) and Turkish Airlines (THY). It launched its 1st long-haul flight from Cologne to Varadero, Cuba, on November 2, 2015. The fleet should grow to 6 A330s by the end of 2016; a 7th aircraft will be delivered in 2017. So far in 2016, (EWG) said it transported 420,000 passengers on long-haul flights.
Separately, Karl Ulrich Garnadt, the (DLH) director responsible for Eurowings (EWG), will step down next year, because (EWG) has a rule requiring management board members to retire at age 60, according to the German daily "Handelsblatt." It’s unclear when he will leave and who will succeed him.
Lufthansa (DLH) established Eurowings (EWG) in 2015 as a pan-European (LCC) platform and is expected to grow quickly to about 100 aircraft to remain competitive in the market.
December 2016: 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 (EWG) 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-2: "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-3: "Lufthansa, Etihad Finalize Code Share, Wet Lease of 38 Airberlin Aircraft" by (ATW) Kurt Hofmann email@example.com, 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-4: "Lufthansa & Etihad: From Enemies to Partners" by Karen Walker Karen.firstname.lastname@example.org 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-5: 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-6: "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-7: "Lufthansa, Pilot Union Agree to Arbitration" by (ATW) Kurt Hofmann email@example.com, 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-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. “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).
January 2017: News Item A-1: The Lufthansa Group low cost carrier (LCC) subsidiary Eurowings Europe (EWG) opened a base in Salzburg, Austria on January 11, (EWG)’s 2nd base after Vienna.
The Salzburg network will include 30 weekly flights to Hamburg, Düsseldorf, Cologne, Brussels, Paris Charles de Gaulle, Palma de Mallorca, Olbia, Spilt, Dubrovnik, and Saloniki. “We will offer a total of 480,000 seats in the 1st year from Salzburg,” Managing Director Michael Knitter said, adding, “The one based [Airbus] A320 will create 35 new jobs.”
Knitter said Eurowings will double its Vienna-based fleet to six aircraft by adding three wet-leased A320s from airberlin in 2017.
In the 1st year, the Vienna operation transported 400,000 passengers on more than 3,000 flights. The company received its air operator’s certificate (AOC) in Austria in June and launched its 1st flight from Vienna to Alicante June 23, 2016.
Lufthansa (DLH) established Eurowings (EWG) as a pan-European (LCC) platform, which should grow quickly to 100 aircraft as competition from (LCC)s such as UK’s easyJet (EZY), Ireland’s Ryanair (RYR), and Spain’s Vueling (VUZ) rise to a 50% market share in Europe.
“Our cost structure is close to [that of] (EZY), but we know we will not reach [the same] level that (RYR) has. (EWG)’ cost structure is about one-third lower compared to (DLH),” Knitter said.
(EWG) Europe’s fleet will grow to 11 A320s this year when it opens a 3rd base in Palma de Mallorca with 4 aircraft joining the fleet in May.
News Item A-2: Eurowings Europe (EWG), which is adding 33 wet-leased airberlin (BER) Airbus A320s to its fleet by the end of April, said the additional aircraft will create operational challenges for the Lufthansa Group low-cost subsidiary (LCC) (EWG).
(EWG) Managing Director Michael Knitter said that 1 of several challenges facing (EWG) is training (BER) flight attendants (CA) to Eurowings (EWG) standards. “We started cabin crew (CA) training on January 10. (BER) needs 5 to 6 crews per aircraft. Also, at the same time, we have to bring together 2 different operations [(BER)n and (EWG) fleets] into the same traffic control center,” Knitter said.
On December 16, 2016, the Lufthansa Group and the Etihad Aviation Group finalized a code share deal and a 6-year wet-lease agreement for 38 airberlin (BER) A319/A320 aircraft operating for (EWG) and Austrian Airlines (AUL). Of the 38 former (BER) aircraft, (EWG) will operate 33 and (AUL) will operate 5. Abu Dhabi-based Etihad Airways (EHD) has a 29.2% stake in Oneworld (ONW) Alliance member airberlin (BER).
Another challenge (EWG) faces is to sell additional seat capacity from the wet-leased fleet. “(EWG) is growing faster than the [European aviation] market itself,” Knitter said. “For example, we also exchanged 90-seat Bombardier regional jets with 180-seat A320s. In addition, every week, 6 A320s [from (BER)] will join our operations.”
Knitter said consolidation in the European aviation business creates opportunities. “However, we have to manage to sell our additional capacity. In 2016, we transported +9% more passengers compared to the year before.”
4 of the 33 wet-leased A320s will be based in Munich, 2 will be based in Palma de Mallorca, and the remaining (BER) aircraft will be used to expand existing bases.
“The wet-leased (BER) aircraft creates new action options for us,” he said.
Several German media outlets have speculated that Lufthansa (DLH) could consider taking over (BER) completely. Lufthansa Group Chairman & (CEO) Carsten Spohr saiud on the sidelines of the company’s digital aviation forum in Frankfurt on January 10 that selling airberlin (BER) (no matter to which type of investor) would be very difficult. "1st, the debts of (BER) are much too high to attract an investor. Besides that, (BER)’s [operating] costs are still too high. Also in terms of competition [authority] cartel, this could create a problem,” Spohr said. Airberlin (BER) has debts of about €1 billion/$1.05 billion.
Rapidly expanding Lufthansa Group low-cost carrier (LCC) subsidiary Eurowings (EWG) reportedly plans to add SunExpress Germany (SXD) to its portfolio as it aims to quickly reach a competitive size in the European (LCC) market. “(SXD), a joint venture of Lufthansa (DLH) and Turkish Airlines (THY), is expected to be part of Eurowings (EWG) before the summer season 2017 begins,” the source said. The (SXD) Boeing 737-800s should be repainted in Eurowings (EWG) colors.
February 2017: "Wet-leased Airberlin A320s Begin Service for Eurowings" by (ATW) Kurt Hofmann Kurt Hofmann firstname.lastname@example.org, 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.
BelAir (BLB) A319-112 (3245, HB-JOY) to Abu Dhabi for painting into Eurowings (EWG) colors.
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.
A320-214 (7019, OE-1QC), ex-(D-AEWD), ferried Dusseldorf to Vienna, delivery.
April 2017: As part of the celebration for the 10th anniversary of its Boomerang Club, Eurowings (EWG) has applied special titles to the fuselage of A320-21 (7393, D-AEWN) to advertise (EWG)'s frequent flyer program - see photo.
May 2017: Eurowings (EWG) has launched 17 new routes from 7 of its German and Austrian bases, with the biggest expansion being at Vienna (VIE), which witnessed the start of 5 new routes. The average sector length of the new city pairs is 1,380 km, with the shortest airport pair being the 454 km hop from Vienna to Zadar (ZAD) in Croatia, while the longest is the 2,520 km route from Stuttgart (STR) to Larnaca (LCA). The average weekly frequency of the 17 new routes is just 1.7. Only 3 of the 17 airport pairs will be flown >2x-weekly, the 3x-weekly operation from Munich (MUC) to Pula (PUY) and Zadar, as well as the similar frequency being offered from Vienna to Brindisi (BDS).
Only 4 of the 17 routes will see any direct competition for (EWG), Germany’s now 3rd biggest airline (in terms of ASKs and when combined with germanwings (RFG) operations).
A319-132 (4227, OE-LYZ; 4256, OE-LYY), ex-(D-AGWP, D-AGWQ) deliveries.
July 2017: News Item A-1: Lufthansa Group low-cost carrier (LCC) subsidiary Eurowings (EWG) will base 3 Airbus A330-200s in Munich from April 16, 2018, as the fast-growing European carrier continues its long-haul expansion. The 1st flight will operate to Las Vegas, Nevada.
(EWG) will transfer 3 of 6 A330-200s from Cologne to Munich, the Bavarian capital.
(EWG) (CCO) Oliver Wagner said the expansion in Munich was the result of “positive developments in Southern Germany” as (EWG) positions itself as the “growth engine within the Lufthansa Group.”
Munich is Germany’s 2nd-largest airport and Lufthansa (DLH)’s 2nd hub behind Frankfurt.
Eurowings (EWG) will launch other tourism long-haul routes from Munich, including Bangkok (Thailand), Fort Myers (Florida), Windhoek (Namibia), Mauritius, Varadero (Cuba), Puerto Plata (Dominican Republic), Cancun, and Punta Cana (Mexico), as well as Montego Bay (Jamaica).
Cologne will remain the main base for (EWG)’s long-haul operations, where (EWG) has reported load factors of nearly 90% LF and a capacity of 800,000 seats.
Long-haul operations from Cologne will focus on routes to the Caribbean and North America, including flights to Thailand, Namibia and Mauritius. (EWG) will offer 700,000 seats on long-haul routes for the coming winter season from Cologne.
(EWG) operates 6 310-seat Airbus A330-200s on long-haul flights, which are wet-leased from SunExpress (SNS), a joint venture of Lufthansa (DLH) and Turkish Airlines (THY). (EWG) launched its 1st long-haul flight from Cologne to Varadero, Cuba, on November 2, 2015. Its 7th A330 will join the fleet by summer 2018 and will be based in Cologne.
Separately, Munich Airport reported its best half-yearly figures in its 25-year history this year with 21 million passengers, up +6% compared to the same period in 2016. That number matches the full-year figure for 1999.
News Item A-2: Lufthansa Group low-cost (LCC) subsidiary Eurowings (EWG) said the wet lease of 33 Airbus A319/A320s from airberlin (BER) allows (EWG) to offer +23,000 additional flights, +60 new routes and to generate an additional +3 million passengers. The 1st wet-leased aircraft joined (EWG) in mid-February; number 30 arrived in early May. “This has been a very fast development.
Aircraft number 31 is arriving in August; the last 2 in 2018,” (EWG) (CCO) Oliver Wagner said.
August 2017: Lufthansa Group (LCC) subsidiary Eurowings (EWG) will hire 600 crew members, comprising 200 pilots (FC) and 400 cabin crew (CA) members, as its fleet expands to a further 20 Airbus A320s.
In addition, (EWG) management has confirmed that temporary working contracts for flight attendants (CA) will be changed to permanent contracts. (EWG) employs 1,500 flight attendants (CA).
Lufthansa (DLH) established Eurowings (EWG) as a pan-European (LCC) platform in 2015 to operate low-cost flights from several bases outside Germany and safeguard Lufthansa Group’s leading position in point-to-point connections in its German, Austrian, Swiss, and Belgian home markets. It had been expected to grow quickly.
September 2017: News Item A-1: Lufthansa Group (LCC) subsidiary Eurowings Europe (EWG) will continue to grow even if airberlin (BER) and Austrian (LCC) NIKI (NKI) become part of the Lufthansa Group.
Speaking on the sidelines of the Austrian Aviation Association symposium in Vienna, (EWG) Managing Director Dieter Watzak-Helmer said (EWG) plans to grow its fleet from 8 to 13 aircraft in 2018.
(BER) filed for insolvency in August and is in the process of seeking buyers for its assets after Etihad Airways (EHD), which owns a 29.2% stake in the German carrier, withdrew further financial support. Several companies have since expressed interest in (BER) and (NKI) assets, including the Lufthansa Group.
“This growth will happen independently whether or not (BER) or (NKI) become part of the Lufthansa Group. However, we are not planning additional bases in Europe at the moment, because we need clarity on how the scenario with (BER) will play out.”
Eurowings Europe has 4 Airbus A320s and 1 A319 based in Vienna, 2 A320s in Palma de Mallorca (Spain) and one A319 in Salzburg (Austria).
“Next year, 2 more A319s will be based in Vienna, 2 more A319s in Palma, and maybe a 5th aircraft either in Vienna or Palma.”
Vienna-based Eurowings Europe (EWG) launched its 1st flight from Vienna to Alicante June 23, 2016. (EWG) operates under an Austrian air operator’s certificate.
News Item A-2: 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.
October 2017: News Item A-1: "Democratic Route Development" by (ATW) Victoria Moores in "Need I say Moores" blog, email@example.com October 6, 2017.
Eurowings (EWG) has asked passengers to vote on potential new destinations, ticking boxes for passenger engagement, marketing and route development.
(EWG) has said the ‘You vote, we fly’ campaign is an industry 1st. I can see other airlines kicking themselves for not thinking of this sooner.
After an initial round of voting, 3 destinations will be shortlisted. The winner will be selected during a live finale on social media site Facebook and will be added to the (EWG) network for summer 2018.
There are 3 reasons why this is a smart strategy:
1: Marketing impact: (EWG) is less well-known than easyJet (EZY) and Ryanair (RYR). This campaign shows innovative thinking; it engages directly with passengers and gives them a voice in the airline’s strategy and decision-making. In this digital era, social media plays a huge role and passengers increasingly expect products to be tailored to their needs. This taps several market trends and has the potential translate into bottom line profit.
2: Finding an undiscovered gem: Network evaluations are usually primarily based on historic traffic data. By asking travelers themselves where they want to fly to, (EWG) might uncover untapped demand that isn’t contained in historic data.
3: Choice, but not too much choice: Rather than giving passengers a free say, (EWG) has offered 10 possibilities. This is a wise move, as internet voters can be a difficult audience. This shortlist will undoubtedly be places that (EWG) is evaluating anyway. A choice of 10 options focuses votes into valuable feedback and makes it easier to deliver on the end result.
However, I can see 2 initial drawbacks. Just because a person votes for a destination, it doesn’t mean they will act on it. Will the campaign actually reach the people who will pay money for tickets? For example, more lucrative business travelers may be unlikely to participate, but these destinations seem to be fairly leisure-focused and more suited to a social-media audience.
The choices available to vote on are Belfast in Northern Ireland, Bergen in Norway, Biarritz in France, Brac in Croatia, Castellón in Spain, Mostar in Bosnia and Herzegovina, Podgorica in Montenegro, Shannon in Ireland, and Trapani and Trieste in Italy.
By listing the 10 potential destinations, is there a danger that (EWG) could tip off its competitors about its route-development evaluations? Airlines tend to play their cards pretty close to their chest when it comes to network expansion, but this would give (EWG) their own unique data set, indicating the potential interest in serving those cities.
News Item A-2: Lufthansa Group low cost carrier (LCC) subsidiary Eurowings (EWG) (CEO) Thorsten Dirks has said Star (STM) Alliance member Brussels Airlines (DAT)/(EBA) could operate long-haul flights for (EWG) from Düsseldorf, Germany.
“This could include flights to the USA. However, we will not change (DAT)/(EBA)’s business portfolio. For example, they are an expert on routes to Africa, but we want to use their competence and air operator’s certificate,” Dirks said in Vienna.
In December 2016, 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.
Dirks said the (EWG) long-haul fleet comprises 6 Airbus A330-200s. A 7th A330 will arrive in December, which was actually planned as a spare aircraft, but will now be used for scheduled services immediately. All these aircraft are part of a wet-lease contract with SunExpress (SNS), a joint venture of (DLH) and Turkish Airlines (THY).
(EWG) expects to take over 2 former (DLH) A340-300s to speed up its long-haul network expansion.
(EWG) is also leasing a Boeing 767-300ER from Swiss company PrivatAir (PTS) to cover the increased demand after airberlin (BER) canceled all its long-haul routes following insolvency in August.
December 2017: Germany-based regional carrier (LGW) has begun wet-lease Airbus A320 operations for Lufthansa (LCC) subsidiary Eurowings (EWG) as part of the Lufthansa Group’s €210 million/$247 million bid to take over a large part of bankrupt airberlin (BER) assets, which includes Austria’s NIKI (NKI) and carrier (LGW).
“This is a special achievement for us, because we have not had this aircraft in our fleet yet,” (LGW) Head of Operations Peter Knecht said.
Dortmund-based carrier (LGW) begin cooperating with the bankrupt airberlin (BER) in 2007, later becoming a subsidiary. It ceased operations along with airberlin (BER) October 27 until it became part of the Lufthansa (DLH) takeover deal.
Eurowings (EWG) plans to take over carrier (LGW)’s regional arm with 830 employees.
“We have to make this company [LGW] Airbus-firm,” Eurowings Europe (EWG) (CEO) Thorsten Dirks said in Vienna.
Since early November, carrier (LGW) has operated 17 wet-leased aircraft (so far only Bombardier Dash 8-Q400s for Eurowings Europe (EWG).
“The operational step from a propeller aircraft to jets is enormous,” Eurowings Europe (EWG) Managing Director & (COO) Michael Knitter said.
In the near future, carrier (LGW) plans to add 12 more A320s for Eurowings (EWG) wet-lease operations.
However, Dirks said the Lufthansa Group hopes the airberlin deal will close by the end of the year. Asked what would happen if competition authorities do not approve the deal, Dirks said, “Then we have invested a lot of money, €1.5 billion, and you will have 2 more carriers (LGW) and NIKI (NKI) going into bankruptcy. That’s the situation today.”
Click below for photos:
EWG-A320 - 2015-02
EWG-A320 - Eurowings Europe.jpg
EWG-A320-200 - 2016-08.jpg
EWG-A330-200 - 2017-06.jpg
30 +3 ORDERS A319/A320 WET-LEASED FROM AIRBERLIN, 1ST 2017-02, 30TH IN 2017-05. LAST 2 IN 2018.
0 A319-100. RTND.
1 A319-112 (3245, HB-JOY), EX-BELAIR (BLB) 2017-02.
2 A319-132 (4227, OE-LYZ; 4256, OE-LYY), ex-(D-AGWP, D-AGWQ) 2017-06.
14 A320-214 (3121, D-ABDQ; 5658, D-AIZV; 6992, D-AEWB; 7259, D-AEWM; 7019, OE-1QC; 7263, D-AEWL; 7377, D-AEWP; 7393, D-AEWN; 7394, D-AEWO; 7398, D-AEWQ; 7412, D-AEWR; 7439, D-AEWS; 7513, D-AEWU; 7534, D-AEWT), EX-(D-AUBY & D-AXAD), (DLH) LSD 2015-05, 2016-08, 2016-10, 2016-11. 7019 WAS EX-(D-AEWD) 2017-03.
6 +3 ORDERS A320ceo, 162Y.
2 A330-200, 310 PAX.
1 A330-202 (612, D-AXGE) TO SUNEXPRESS GERMANY (2016-11), EUROWINGS (EWG) OPS.
1 A330-203 (616, D-AXGF TO SUNEXPRESS GERMANY (2016-10), EUROWINGS (EWG) OPS.
6 +1 ORDER (2017-04) A330-203 (684, D-AXGB), SUNEXPRESS (SNS) WET-LSD. EX-(A7-AFP), 310 PAX.
00 BOMBARDIER CRJ200ER (CF34-3B1) (7478, D-ACRM, 2005-06; 7486, D-ACRN, 2005-10; 7494, D-ACRO, 2005-07; 7567, /01 D-ACRA; 7570, /01 D-ACRB; 7573, /01 D-ACRC; 7583, /01 D-ACRD; 7607, /02 D-ACRE; 7619, /02 D-ACRF; 7625, D-ACRP; 7629, D-ACRQ, 2005-05; 7630, /02 D-ACRG; 7738, /02 D-ACRH; 7862, /03 D-ACRI; 7864, /03 D-ACRJ; 7901, /04 D-ACRK; 7902, /04 D-ACRL), GOAL LSD. RTND. 50Y.
23 CRJ-900LR (CL-600-2D24) (CD34-8C) (15229, D-ACNA, 2009-05 - - SEE PHOTO - - "EWG-CRJ-900-2009-05;" 15230, D-ANB "WERMELSKIRCHEN" 2009-05; 15236, D-ACNC "WEIL AM RHEIM" 2009-05; 15238, D-ACND, 2009-07; 15241, D-ACNE "HELMSTEDT; 15243, D-ACNF "MONTABAU" 2009-07; 15245, D-ACNG, 2009-10; 15247, D-ACNH, 2009-11; 15248, D-ACNI, 2009-12; 15249, D-ACNJ, 2010-01; 15252, D-ACNL, 2010-03; 15253, D-ACNM, 2010-04; 15254, D-ACNN, 2010-04; 15255, D-ACNO, 2010-05; 15259, /10 D-ACNP; 15260, /11 D-ACNQ; 15263 /11 D-ACNR; 15264, /11 D-ACNT; 15267, /11 D-ACNU; 15268, /11 D-ACNV; 15269, /11 D-ACNW; 15270, /11 D-ACNX), LST (RFG) AS REQUIRED. 90Y.
0 B AE 146-200 (ALF502R-5) (E2200, /91 D-ACFA; E2069, /87 D-AEWD; E2077, /87 D-AEWE), E2201, /91 D-AJET), ALL RETIRED BY THE END OF 2010-03. 92Y.
0 B AE 146-300 (ALF502R-5) (E3123, D-AEWL, 2005-11; E3125, D-AEWM, 2005-10; E3158, D-AEWN, 2005-10; E3162, D-AEWO, 2005-12; E3163, /90 D-AEWA; E3165, D-AEWP, 2005-04; E3183, /90 D-AEWB; E3187, /90 D-AHOI; E3118, /88 D-AQUA; E3203, D-AEWQ, 2005-06), B AE LSD. E3162; RTND 2009-05. ALL RETIRED BY END OF 2010-03. 98Y.
0 ATR 42-500 (643), LST CIMBER AIR AS (OY-RTH) 2005-11.
0 ATR 72-202 (PW124B) (224, /91 D-ANFA; 229, /91 D-ANFB; 237, /91 D-ANFC; 256, /91 D-ANFD; 294, /92 D-ANFE; 292, /92 D-ANFF), 256 ST (FED) 2005-07. 292; 294; TO (FED) 2005-10. ALL WFU BY 2005-12. 68Y.
0 ATR 72-212 (PW127) (347, /93 D-AEWG; 359, /93 D-AEWH; 404, /94 D-AEWI; 446, /95 D-AEWK), 404 RTND 2005-06. 347 TO (FED) 2005-10; 359; & 446; WFU. ALL WFU BY 2005-12; 446 TO (SWF) 2006-03. 68Y.
0 ATR 72-212A (PW127F) (658, /01 D-ANFG; 660, /01 D-ANFH; 662, /01 D-ANFI; 664, /01 D-ANFJ; 666, /01 D-ANFK; 668, /01 D-ANFL), GOAL LSD. 664; 658; 666; 668; LST CONTACT AIR 2005-04. ALL WFU BY 2005-12. 666; RTND 2009-05. 50Y.
Click below for photos:
EWG-1-KARL ULRICH GARNADT-2015-03
EWG-3-Oliver Wagner - 2017-06.jpg
KARL ULRICH GARNADT, CHAIRMAN & CHIEF EXECUTIVE OFFICER (CEO) THE LUFTHANSA GROUP & LUFTHANSA GERMAN AIRLINES (DLH).
DR ALBRECHT KNAUF, CHAIRMAN, EUROWINGS (EWG).
THORSTEN DIRKS, (CEO) EUROWINGS EUROPE (EWG)
DIETER WATZAK-HELMER, EUROWINGS EUROPE (EWG) MANAGING DIRECTOR.
MICHAEL KNITTER, EUROWINGS EUROPE (EWG) MANAGING DIRECTOR & (COO).
JOERG BEIBEL, EUROWINGS (EWG) MANAGING DIRECTOR.
ROBERT JAHN, MANAGING DIRECTOR, EUROWINGS EUROPE (EWG) (2016-06).
FRIEDRICH-WILHELM WIETHOLZ, CHIEF EXECUTIVE OFFICER (CEO) & PRESIDENT (EWG).
OLIVER WAGNER, CHIEF COMMERCIAL OFFICER (CCO).