The Lufthansa Group is arguably the largest and most influential grouping of airlines across Europe with the group’s three network airlines offering a network comprising of 263 destinations in 86 countries last year. Now, Lufthansa Group has revealed their growth strategy for the future and announced how they will be optimising their hubs and preparing for the 2019 season. Their goal? To increase quality and on-time punctuality across all of Lufthansa Group’s network airlines.
which airlines are part of Lufthansa group?
Lufthansa Group comprises of five airline ‘brands’ – three of these are referred to as ‘network airlines’ and two as ‘point to point’ airlines.
Network airlines offer connecting hubs and a premium onboard experience. These include:
- Lufthansa German Airlines
- Austrian Airlines
The two remaining airlines are ‘point to point’ airlines. These airlines are designed to appeal to price-sensitive customers and tap into the growing direct traffic segment, with low-fare travel at its heart.
The route network of the Point-to-Point Airlines is served from a total of eleven bases and in the summer flight timetable 2017 comprised 192 destinations in 62 countries. The airlines are:
- The Eurowings Group (Eurowings, Germanwings and Eurowings Europe)
- Brussels Airlines
Consequently, Lufthansa Group’s main hubs are Munich, Frankfurt, Zürich and Vienna. Notably absent is Brussels, which is home to Brussels Airlines, which is classed as a ‘point to point’ airline. Going forward, it seems as if Brussels Airlines will be more closely integrated to Eurowings – rather than the mainstream network airlines grouping. So what is Lufthansa Group’s plan to optimise operations in each of these hubs?
Although ‘Lufthansa’ is most closely related to ‘Frankfurt’, the airline has decided to focus on and accelerate growth in Bavaria’s capital; Munich. Specifically, Lufthansa Group wants Munich to become a strategic hub for flights to Asia. Increased frequencies will be offered from Munich to Seoul and Singapore, Summer 2019 will see the first ever daily connection from Munich to Bangkok as part of this transformation. Additionally, the Frankfurt-Osaka flight will be moved to depart from Munich.
Five of Lufthansa’s Airbus A380-800s have already been transferred from Frankfurt to Munich. Lufthansa aims to transfer even more by 2020. Three Airbus A320s are being moved from the Frankfurt hub to Munich to support the expansion of feeder traffic while three smaller Bombardier CRJ900s will be transferred from Munich to Frankfurt in exchange. The airline says Munich is a ‘five-star location’. As a result, the majority of Lufthansa’s first-class configured Airbus A340-600s will operate to/from Munich, rather than Frankfurt going forward.
Contrastingly, Lufthansa will be curbing its growth in Frankfurt, to improve on time performance. However, the airline is still growing. Eilat (Israel), Agadir (Morocco), Trieste (Italy) and Thessaloniki (Greece) are new additions to the flight programme from Frankfurt this year. Lufthansa is also expanding its footprint in the US. From 3rd May 2019, the airline will inaugurate its flight from Frankfurt to Austin, whilst terminating the Frankfurt to San Jose, CA route.
For 2019, there will only be low single-digit year-on-year growth at Frankfurt, which may come as a surprise, as the airport is Germany’s largest and one of the busiest across the European continent.
Zürich has been growing moderately over recent times. As the home base of SWISS, the airport has grown as an attractive connecting hub. Now, however, the main focus will be on expanding European flights, rather than long-haul. For next year, this modest growth will continue and new routes will be added across Europe (Bremen has already been announced) but, given Lufthansa Group’s intentions, it is unlikely that SWISS will be flying any new long-haul routes soon.
Similarly to Zürich, Vienna will see moderate growth. Austrian Airlines will be adding new flights across Europe and is already increasing frequencies to destinations such as Athens and Kiev. This aims to strengthen Vienna’s hub status – given its strategic location in Central Europe, providing quick and easy connections from eastern Europe to the US and Canada. Austrian Airlines will continue to optimise its network in North America. Recently, for example, the airline has announced new services from their hub to Montréal – with Air Canada replacing services on the Vienna-Toronto route.
Lufthansa group’s fleet plans
Lufthansa has a firm order for 34 Boeing 777-9X aircraft, to be delivered from 2020. Whilst these aircraft are designed to replace the airline’s ageing jumbo-jet fleet, Lufthansa Group has not decided how they will be distributed between network airlines. The group says that they will be making a decision based on each hub’s performance next year as to which airport the new Boeing 777X will takeoff from initially. Whilst the majority of the aircraft are almost certainly going to be a key component in Lufthansa’s core fleet, there is a strong possibility that some aircraft could operate under the ‘Austrian Airlines’ banner, given Austrian’s lack of long-haul aircraft on order and existing Boeing 777-200ER fleet. SWISS has recently replenished its fleet with new Boeing 777-300ER aircraft so it is unlikely that any of the new aircraft will operate from Switzerland for the foreseeable future.
We do know one concrete fact about the 777-9X, however. It will feature Lufthansa’s new onboard product, featuring direct aisle access to every seat for the first time in Lufthansa’s fleet in Business Class.
If the new aircraft are to operate for Austrian Airlines, this onboard product will represent a significant upgrade over the current experience.
All in all, Lufthansa Group clearly has a robust strategy for the future and focusing on consolidation and improving punctuality in their largest hub -Frankfurt – can only be a positive thing for passengers. As previously, Berlin still remains woefully underserved by Germany’s national airline – although this is probably in part due to the constant delays in the opening of Berlin’s Brandenburg airport. Whilst Brussels Airlines could feasibly be a ‘network airline’ – with a fully-fledged Business Class product and a developed hub in Brussels – Lufthansa Group clearly anticipates further alignment with Eurowings as a low-cost carrier.