💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Slow start for Lufthansa on new U.S. route after Air Berlin collapse

Published 11/08/2017, 01:45 PM
Updated 11/08/2017, 01:50 PM
© Reuters. FILE PHOTO: A Lufthansa Airbus A321 plane is seen at Tegel airport in Berlin
EZJ
-
LHAG
-
AB1
-

BERLIN (Reuters) - Lufthansa's (DE:LHAG) first flight from Berlin to the United States in over 16 years took off on Wednesday, although a slow start to sales shows the difficulties involved in trying to replace the gaps left by insolvent rival Air Berlin.

Germany's second largest carrier Air Berlin (DE:AB1) filed for insolvency in August and carried out its last flight at the end of last month, leaving a gap in the market for long-haul flights from the German capital in particular.

"Of course bookings are slow at this stage," Lufthansa board member Harry Hohmeister told Reuters at Berlin's Tegel airport ahead of the departure of the flight to New York's JFK on Wednesday.

He said that usually Lufthansa would give 12 months notice of a new long-haul route, or eight months at a minimum, but in this case it had only six weeks to sell tickets ahead of the first flight.

"The next four weeks will be difficult, then we get a peak at Christmas time and then it will develop better, otherwise we wouldn't do it," Hohmeister said.

Lufthansa has traditionally shied away from long-haul flights from Berlin, instead flying intercontinental routes from its hubs in Frankfurt and Munich.

Hohmeister said the Lufthansa group was currently looking at other long-haul options from Berlin, but that any would likely be flown by its budget arm Eurowings.

Lufthansa is currently awaiting EU approval for a deal to take over large parts of Air Berlin, which will see it adding 81 planes to the group.

The collapse of Air Berlin means Berlin Airports will see a dip in passenger number growth this year after a period of strong demand.

Britain's easyJet (L:EZJ), which is planning to take over some Air Berlin operations at Tegel, has said it expects to run a reduced schedule this winter from the airport.

© Reuters. FILE PHOTO: A Lufthansa Airbus A321 plane is seen at Tegel airport in Berlin

"We expect that new partners will quickly bring growth," Berlin Airports CEO Engelbert Luetke Dalderup said, urging Lufthansa to "never say never" to the idea of Berlin as a hub.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.