New LH Airline.Back to Forum
Anonymous7 Oct 2014
Apparently LH is to launch a new airline called ‘jump’ next year – and this is NOT the already discussed ‘low cost long haul’ carrier they announced.
‘Jump’ will focus on the asia pacific (as well as some north american routes) and try and emulate Air Berlin’s hybrid low cost formula. It will retain three classes and have the same J class as on the new LH aircraft.
I wonder if Jump will take over existing LH routes in Asia or whether it will be a springboard to new ones?
So by end of next year we should have three lufthansa brands – four if including Germanwings.7 Oct 2014
Sorry Tim, you are right. Five.
Yes, I can see the obvious advantage to LH – they say the new airline will have operating costs of 25% less than LH mainline – but could they not just introduce a new fleet with new pilots and cabin crew on new contracts and retain the LH brand?
I can understand if the ‘new’ airline has a total different market proposition – for example you could call Air Canada Rouge Air Canada, or Scoot, Singapore – but it seems ‘Jump’ will pretty much offer services like that of LH mainline and leaving the true loco to the yet unnamed airline.
I reckon we will see Jump amalgamated back into the mainline brand within a few years of launch. Maybe the article had got it wrong and jumped too far ahead with ‘jump’ being a project name?7 Oct 2014
In fact the original piece was published on our sister website businesstravellerasia.com
Here’s the link:
As I’ve said before, this proposed Lufthansa division simply looks like a posher, updated version of Condor (a leisure carrier which LH used to own but later sold to Thomas Cook).7 Oct 2014
Am not sure, VAG has Volkswagen, SEAT, Skoda, Audi, Bentley, Bugatti, Lamborghini, Porsche marques; (as well as Ducati motorcycles) all of which have a fair amount overlap even from a consumers perspective.
Behind the scenes the true economies of scale (eg common chassis on Beetle, Golf, Jetta, A3, Fabia, Cordoba) really take off.
Lufthansa Group has imo more remote “owned” services than other carriers who have outsourced when away from home base, enabling LH to leverage/utilize this already established infrastructure economically.
A plethora of Labels/Brands may be messy however it certainly helps establish an image, target market, create affinity/loyalty as well as manage expectations.
Also if something goes belly up it does not tarnish other brands as imo most customers will not be aware of the family connection.7 Oct 2014
‘BigDog’ Good point, are we reaching the stage of individual airline brands which are targeted at certain individuals? Fiat of course do something similar with their Fiat, Ferrari, Maserati etc brand mix.7 Oct 2014