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Air Berlin : fleet cut in half + layoffs

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Old 26th Sep 2016, 07:42
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Air Berlin : fleet cut in half + layoffs

According a (serious) German newspaper this morning Air Berlin ( 2nd Airline in Germany) , lost 1 billion $ last year is planning to cut its fleet by half, including pilots and cabin crew layoffs .
Sad day for Germany.
Air Berlin soll halbiert werden - Wirtschaft - Süddeutsche.de
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Old 26th Sep 2016, 07:46
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no - a sad day for Air Berlin staff and their investors

In the 21st century we should stop confusing an airline's interests with a country 's interests

there is still plenty (maybe too much) capacity to serve Germany
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Old 26th Sep 2016, 07:47
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The plan seems to put some aircraft into a joint venture with Tuifly.
Eurowings wants to wetlease 40 other A/C.
So nearly all A/C will be operated.
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Old 26th Sep 2016, 08:18
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Harry :
we should stop confusing an airline's interests with a country 's interests
Yes you are right of course, I typed too fast, I was meaning the German aviation world ,especially the Pilots and cabin crew that will be affected, not the State of Germany.

LW20 : wetlease ? The article ( and some others) do not mention it. As the merging with Tui , the article says it will be the 17 FlyNikki aircraft ( from Austria) that may join the Tuifly fleet, not AB aircraft.
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Old 26th Sep 2016, 09:30
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AB's seat costs are approximately 3x those of Ryanair. With the latter making more and more inroads onto markets from primary airports across Germany there is only so far brand loyalty will take you!
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Old 26th Sep 2016, 09:40
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AB will operate 40 A320 on wetlease for EW. LH kills two birds there, one the slots stay blocked so EZY/RYR cannot get in plus they expand without having to hire crew nor aquire A320 EW will probably fly the same AB routes for a period to keep regulators happy.
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Old 26th Sep 2016, 09:49
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Consistently the worst customer service I have ever experienced from an airline, to the point of fury on several occasions.

Although sad for individuals, as a corporate entity they absolutely 100% deserve this.
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Old 26th Sep 2016, 10:13
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Consolidation is inevitable in Germany. I think in 10 years time you will see LH subsidiaries limited to prime slot-constrained markets such as MUC/FRA/DUS and EasyJet, Ryanair and Wizz scrapping for everything else.
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Old 26th Sep 2016, 11:05
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Probably, and that will signal the end of my flying days, at least within Europe. With no Channel to cross, it will be back to the car and holidays in France. Being retired I can travel there off peak.
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Old 26th Sep 2016, 15:43
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I think the general feeling is it had to happen. Some strange Union agrreements in place due to previous mergers. The best thing AB could do is cease and start again. That's not my view but someone who works there!
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Old 26th Sep 2016, 16:42
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Air Berlin had a nice business case with their flights to holiday destinations, one aircraft type, a lot of small bases all over Germany. But then Hunold got megalomania. Bought Deutsche BA and LTU. By this he made it to complex and the operating costs got to high.
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Old 26th Sep 2016, 16:50
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Anyone who didn't see it coming though? The only reason it took as long was because Etihad threw money at them over and over again.
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Old 26th Sep 2016, 17:06
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Yes, but I'm slightly surprised EY didn't throw money at them with stricter conditions and that we would've seen AB doing a proper turnaround in their business....

CP
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Old 26th Sep 2016, 17:24
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Yes, but I'm slightly surprised EY didn't throw money at them with stricter conditions and that we would've seen AB doing a proper turnaround in their business....
Why would that be? The EU, like the US, is quite clear when it comes to the point of 'controlling interest'. A non-EU entity may buy shares in an EU airline, but only up the point they are not effectively controlling the airline.

Besides, AB is a complete basketcase and EY are hardly the world-standard, as far as demonstrated ability to perform turnarounds goes. They've got lots of money, but not necessarily the talent to manage it wisely.

One hopes the soon to be ex-employees of AB may find gainful employment elsewhere, in the industry or outside of it. Don't be surprised to see parts of its management washing up on hot and sandy shores, as thousands of failed managers have done before them.
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Old 27th Sep 2016, 07:51
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There is a certain panic in Germany that now with the Brexit on the horizon lowcost giants from the UK might step expand in central Europe instead. So everybody tries to brace for that moment, LH, AB and TUI. Ryanair has quietly moved many flights and business to Germany's big airports and aims for business travellers now, being ready to grow there.
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Old 27th Sep 2016, 08:10
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http://mobile.reuters.com/article/idUSL8N1C22FG

"mainly sales and marketing jobs" (to go) - if you don't sell the flights yourself you won't need them, true.

Last edited by safelife; 27th Sep 2016 at 15:48.
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Old 28th Sep 2016, 19:05
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There is a certain panic in Germany that now with the Brexit on the horizon lowcost giants from the UK might step expand in central Europe instead. So everybody tries to brace for that moment, LH, AB and TUI. Ryanair has quietly moved many flights and business to Germany's big airports and aims for business travellers now, being ready to grow there.
Time for the Germans to step it up then, do like France, Norway, Denmark and demand they follow local labour laws. They can't back out of every European country. Where are they going to put all the nice new Max:es??
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Old 28th Sep 2016, 19:16
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This requires the German government to grow balls. You know who our "chancellor" is ? She won´t grow the required 'tools' to cope with that guy O'Leary.

In fact, German policy since Gerhard Schroeders so called "reforming" (the "Agenda 2010"), was to shrink German employees rights to next to zero, dumping the income and create a whole new part of the populous, the working poor. Social welfare is now for people from the middle east and German workers that get the sack at, say age 50 or 55, are doomed. They will, after one year, go to "HartzIV" which means to get stripped of everything of value before the welfare kicks in. Meaning sell your life insurance, use whatever savings for your pension age you have, sell your house, should it be greater than 160 square meters etcetc.

And Angela Merkel keeps this course true and well.
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Old 28th Sep 2016, 19:17
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Far-reaching restructuring of airberlin to deliver long-term growth
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Old 28th Sep 2016, 19:32
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Can anyone say whether Air Berlin is a low cost carrier?
This question has nothing to do with their fares.
If their fares are low and their costs are high they're doomed.
"Concentrate on higher yielding markets" and they're probably doomed.
Simple.
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