I always eagerly look forward to my first business trip at the beginning of the month. A fresh issue of the Lufthansa magazine has always been a joy to go through given the high quality of its contents, variety and coverage. From in-flight magazines to well maintained aircrafts, efficient ground handling to on-the-dot flying...Lufthansa has not given many reasons to complain. Till yesterday.
Off late, few incidents gives me enough reason to smell trouble brewing for the airlines, internally. Delays are suddenly not as efficiently managed as it used to be. Thanks to a ageing cabin crew, short haul flights can no longer complete the service before landing. Aircraft cleanliness is not as impeccable as it used to be. Inflight entertainment is still way behind Air Berlin. And onboard meals have never been Lufthansa's strongest points.
Now consider how it measures up to the threats that are external...
Anyone who has flown between London->India or Brussels->India/US by Jet Airways would testify the re-definition of service levels in International flights. I have learnt, Jet revolutionised the Indian skies when it broke the monopoly of state run airlines 15 years ago by sheer efficiency in operations, customer satisfaction, services standard, gourmet meals and a unique loyalty program. Now Kingfisher, who is giving Jet a run for their money now, is known to have upped the ante a few more notches higher. Despite a slew of lowcost ( I mean really cheap ) airlines ferrying the bulgeoning middle class in India, Jet and Kingfisher continues to reap profits with premium pricing.
Both the carriers have very aggressive International expansion plans, slash of cash, a flourishing business in the world's densiest skies and vision to be one of the TOP5 in the next five years. Airliners.net says, Kingfisher's first (of the many) AB340 is ready for delivery which will kickstart its international foray. There are 6 firm orders for AB380 with options to add more. Plans to have an European hub at either Düsseldorf or Munich. Jet is consolidating from its Brussels hub, has equally large orders with Boeing ( 777s, 787s ) and is also rumoured to take over Brussels Airlines.
I have not yet compared with Skyteam members (AF, KLM) or British Airways, as I seldom fly them.
Does is mean bad days ahead for Lufthansa? How can it cope with the threat from the new international players?
