Update on Austrian Airlines Saga

Senior management at Austrian Airlines and representatives of the employees’ union have reached agreement on a new labour agreement. While the details are yet to be disclosed, the key point is that one option: that of Austrian Airlines becoming an LCC has been avoided. Austrian Airlines CEO Jaan Albrecht stated: “I am relieved. The agreement […]

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Can airlines find their Sweet Spot?

With the ongoing convergence of passenger airline business models, it’s worth remembering the fact that despite this convergence, there are distinct differences between the intended positioning of the airlines related to on the ‘front-end’ product and service mix on the one hand and the ‘back-end’ cost structures that the airlines exhibit. The diagram below breakouts […]

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The Alamo or Gunfight at the OK Corral? Air France and Lufthansa/Austrian Pilots’ Strikes

In the copycat world of European passenger aviation, Executives at both LH Group and Air France-KLM have embraced the ‘inevitable’ need for a LCC to compete with Ryanair, easyJet, Vueling, Wizzair and Norwegian Shuttle. As mentioned in an earlier blog this month, AF-KLM are seeking to ramp up their LCC subsidiary – Transavia – to […]

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Aviation Op-Ed – September Edition

As a very frequent flyer with Lufthansa Group, I received to much fanfare (and cost – they paid for an envelope to be sent to me containing expensive bleach white color printed pamphlets) about two new ‘benefits’ afforded its frequent flyers: the ‘all-new’ Miles and More Selections for passengers who more than meet the status […]

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