Rumour: next tied up LH Group and Turkish?Back to Forum
Anonymous5 Nov 2012
Picked up a discussion in another forum that apparently may have more substance beyond first glance…
The LH Group Management Team has probably been the most outspoken critics of the “unfair subsidies to Middle Eastern carriers”. Furthermore, if I am not mistaken, Emirates only will be allowed to fly to four German gateways at a time…
However, the following article from Centre for Aviation does detail apparent “meddling” from Merkel:
Reading through this, and looking at LH Group’s current strategic issues it does make a bit of sense.5 Nov 2012
Interrupting article Senator. LH always relied on its home market, and most Germans prefer to fly them because they can speak German throughout the flight rather than being forced to speak English if they want something. As a consequence, like the Swiss they will even pay a higher fare for what they consider “superior” German service.
Problem is, many younger people are now flying more frequently, and for them price is important. They will speak some English (if not fluent) and would rather change planes in Doha or Dubai than in Frankfurt or Munich. Not just because it’s more convenient, but also it breaks the flight and it is another country “visited”!
As they relate their experience to family/friends, word spreads and so even those who would only buy a VW will now venture to Qatar to save a few €’s.
Consequently LH can no longer rely on its home market, and with a much higher cost base and strict labour laws is finding it very hard to compete. The only thing it can now do is go back to protectionism in its own market and this can lead to many dangers.
the outcome of all this will be very interesting indeed.5 Nov 2012
While I can see synergies for LH & TK, it’s unbelievable that LH have their heads buried so deep in the sand over the Gulf carriers. It’s a bit like if they ignore them they will go away. They won’t.
They have first bite of the cherry with QR and failed to get them on board, now what choice do they have left? EK are not about to join them, EY and with AF/KLM so that leaves Gulf and Oman, the latter of course are very smart, up and coming and certainly no threat to LH.
Maybe they will see sense before it’s too late. Somehow I doubt it. The restrictions on EK in to Germany will not be sustainable for ever and the longterm loser will be LH.5 Nov 2012
LH and TK, I believe it could work, not only they are already in the same alliance, TK’s hub, Istanbul is a well developed holiday destination. In a sense, it would be a bit of an advantage compared to the unfamiliar middle east hubs of Doha, Abu Dhabi and Dubai, especially to the youngsters.
Furthermore, when flying with TK, you got to earn status miles on M&M, while it will not applied for AF-KL-EY and not yet for BA-QR.
Cheers to LH to stand by it’s word.5 Nov 2012
I don’t think either anyone should underestimate the growing economic power of Turkey. Each time I visit, I am more and more amazed at the signs of increasing prosperity particularly in Istanbul and the surrounding area.
As a colleagues said, bring them in to the Eurozone instead of Greece and watch what happens to growth. Finances seem very sound. (So the last thing they probably want is the Euro!)7 Nov 2012
@ Henkel.Trocken – 07/11/2012 14:54 GMT
You are so right. Over recent years, we’ve been to Istanbul, Bodrum, Izmir, Marmaris and around much of the literal and the rate of economic expansion is phenomenal. There is nothing that you cannot get made now in Turkey: it’s like imagining how the Black Country would have been in earlier times. But, unbelievably, I saw more Morgan’s than Jaguar cars in and around IST – there is a serious job that Jaguar has to do with its inadequate distribution there.7 Nov 2012