PPRuNe Forums - View Single Post - Lufthansa dumping NetJets ?!
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Old 11th December 2007 | 19:54
  #10 (permalink)  
falconbis
 
Joined: Nov 2004
Posts: 161
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From: europe
not at all, if you buy a card then I agree with you, but Lufth bought quite a large quantities of shares year and a half ago, so they are charged operating cost by Netjets like all owners and ONLY on revenue leg NOT on ferry. Of course someone have to pay for the positionning and in the Netjets business model its a fraction of those cost which is included in the customers monthly management fees...so its completly painless for those owners (they don t even know) quite different if you are a charter company, if you don t charge the customers you go burst and if you do so you are twice more expensive than Netjets...How Lufth is going to maintain the same pricing than before to their owners and have DCA to make a living is impossible unless 1. they decided to lose money but use the service as a marketing tool ! 2. they increase the price of the service by at least 50% and then Netjets is going to get most of the Lufth customers...interesting to see what is going to happen !!
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