Lufthansa is contemplating handing over some of its short-haul flight duties to fellow carriers, while keeping quality at the forefront. This includes both internal operations like subsidiaries Discover and City Airlines, as well as external wet-lease providers. According to Lufthansa's airline boss, Jens Ritter, this move is in response to the bustling summer vacation season, as business travelers have significantly dwindled. During the summer, Lufthansa needs an extra 25 planes compared to winter.
No definite partner has been named just yet, but Airbaltic, a Latvian airline currently serving various Lufthansa subsidiaries with its modern A220 aircraft, could be a strong contender. Airbaltic is also expanding its staff at Lufthansa's hubs in Vienna, Munich, and Brussels.
Lufthansa's short and medium-haul fleet for its core brand may grow from around 220 to 250 aircraft by 2027/28, as reported by "Handelsblatt". Ritter mentioned that 40% of these jets, or 100 aircraft, will be operating outside Lufthansa Classic. This decision has sparked fierce disputes with the core workforce, represented by the UFO and Cockpit unions.
The company expects this strategy to result in lower operational expenses for its primary airline, which has recently sustained substantial losses. The cost savings of Chinese airlines, which opt for the shorter route through Russian airspace instead of European ones, have been cited as a reason for less fare pressure towards the Far East. In Atlantic traffic, Lufthansa is affected by the increasing trend of US companies transporting tourists directly to popular vacation spots like Greece, reducing connecting passengers.
The European Commission will have to assess any potential partnership between Lufthansa and a wet-lease provider, given the regulatory framework surrounding airline collaboration. The agreement will be scrutinized to ensure it complies with antitrust rules, while also considering if the increased fleet size could lead to market dominance, potentially resulting in unfair pricing or reduced choices for passengers.
Sources: [1] Lufthansa Group’s Airbus A220 Rental Deal [Accessed on 2022-10-22] ()
