Thursday, November 10, 2016

Air Berlin: the Airline with a heavy Minus in the third quarter – MIRROR ONLINE

The crisis has no end: The latest quarterly figures from Air Berlin to fall devastating. Chairman of the Board Pichler has a simple explanation.

Air Berlin does not find a way out of the crisis. Even after the important summer business Figures for the third quarter are still deep red, the airline recorded a loss of approximately 46 million euros. In comparison to the prior year period, revenue fell by five percent to 1.23 billion euros. The Germany’s second largest Airline announced on Thursday evening.

the Rest of the year will not change this trend more and more, warned Air Berlin CEO Stefan Pichler. The youngest of Minus, he said with a harder price competition in the tourism industry, as well as the costs incurred for the restructuring of the Airline. On the routes to and from Majorca and the Canary Islands about the providers are competing for passengers, the prices fall. Due to the political Situation in Turkey, the demand for travel fell there sharply, so that many airlines have used their machines on routes to Spain. Air Berlin flies for years, a loss after the next.

Air Berlin will had announced the planned conversion hold

Stefan Pichler, under the leadership of Air Berlin’s major shareholder Etihad at the end of September, a profound conversion. Thus, the core is supposed to shrink the fleet by about half, to 75 aircraft. From the rest of the fleet, the group intends to lease 40 machines to Lufthansa, which wants to use especially at its low-cost subsidiary eurowings. Air Berlin Touristik fleet to merge with office staff in a new Alliance with Etihad and the flight line of travel group Tui. Up to 1200 jobs are to be eliminated. At the same time, Air Berlin wants to track his business with long-haul flights to the USA significantly. Until 2018, Air Berlin wants to create it in this way, at least in the profit zone.

Still it is unclear if this Plan works. For one, it gives rise to acute tensions between Air Berlin and the US Partner American Airlines. For six years, a Code-Share agreement between the two airlines, but the Americans want to renounce, apparently. Under such an arrangement, flights will be marketed together, and Airlines can offer connecting flights on the partner airline under its own flight number. This could be in the March 2017 deadline. Currently, talks between Air Berlin and American Airlines, ran said.

on The other had pilots and flight attendants Tuifly after merger plans will be reported at the beginning of October in droves, the sick and the flight operations of the company temporarily to an almost complete Halt. Also, Air Berlin was affected, because 14 Tuifly machines, including personnel, are leased to Air Berlin. The result is that Tui has postponed a decision on the new Alliance and gave employees a three-year site warranty. In the case of salaries, there should be no cuts.


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