Airlines on Watch for Ash as Icelandic Volcano Rumbles

Airlines are on alert as one of Iceland’s biggest volcanoes rumbles to life, threatening ash clouds that could force flight cancellations across the North Atlantic, the busiest international travel market.

Air France (AF), Deutsche Lufthansa AG (LHA), EasyJet Plc (EZJ) and Delta Air Lines Inc. (DAL) are among carriers watching the Bardarbunga volcano. Iceland’s Civil Protection Agency began evacuating the area north of the volcano today after deciding yesterday to raise the eruption risk to “orange,” the second-highest level.

The seismic activity raised concern that airlines may face a repeat of the 2010 disruptions when a cloud belched from the Eyjafjallajokull volcano forced carriers to erase more than 100,000 flights and caused about $1.7 billion in lost revenue. Ash is a menace to jetliners because the glass-like particles can stop turbines by melting and congealing.

Airline traffic in Northern Europe would be affected “if the winds, as we’re seeing them today, continue” in an eruption, said Melissa Anne Pfeffer, atmospheric volcanologist at the Icelandic Met Office.

Eurocontrol, the region’s air traffic manager, said there is currently no impact on aviation from the volcano. Bardarbunga lies beneath Vatnajokull, Europe’s largest glacier, and last erupted in 1996. Iceland authorities have recorded about 800 earthquakes in the area since early yesterday.

Tracking Magma

“If the volcano erupts -- which we don’t know -- how explosive or non-explosive the eruption is depends entirely on where the magma reaches the surface,” Pfeffer said.

Molten rock bubbling up under the icecap would create “a more explosive eruption” with the combination of high heat and a sudden meltdown of frozen water than one that occurs in the open, Pfeffer said.

Investors are monitoring the threat of travel tie-ups in Europe, Helane Becker, a New York-based aviation analyst with Cowen & Co., wrote in a note to clients today.

“We have gotten more than a handful of calls on this subject, and while the potential impact could be significant, it is tough to handicap how this even will play out,” Becker said. “The European airlines have the most exposure to this potential event.”

The three biggest U.S. carriers -- American Airlines, United Airlines and Delta -- also serve Northern Europe. Representatives for the U.S. airlines and Federal Aviation Administration said operations were continuing as normal while they monitored the volcano.

‘Always Prepared’

“We’re in dialogue with authorities awaiting their directions in case of eruption,” Trine Kromann-Mikkelsen, a spokeswoman for Sweden’s SAS AB (SAS), said by e-mail. “We are always prepared for irregularity and have experience from last time.”

The Eyjafjallajokull blowup prompted European officials to close the majority of airspace in the region for six days, stranding 10 million passengers. There was less disruption to travel from a 2011 eruption, which was smaller and only affected airports in Iceland and northern Germany for a few hours.

“Europe is more prepared to deal with volcanic ash these days,” Eurocontrol said in a statement. “We have better mechanisms in place than we did in 2010.”

EasyJet, a Luton, England-based budget carrier, said that in the event of an Bardarbunga eruption, it plans to work with partners including Icelandic officials, planemaker Airbus Group NV (AIR), Nicarnica Aviation, which developed technology to detect airborne volanic ash, and FutureVolc, a 26-partner group funded by the European Commission.

Ash Detection

The team will “ensure that ash from it is detected and charted from space, using infrared cameras on European weather satellites or through the potential airborne deployment AVOID technology,” EasyJet said in an e-mailed statement. The acronym refers to the Airborne Volcanic Object Identifier and Detector.

NetJets Inc., the luxury aviation unit of Warren Buffett’s Berkshire Hathaway Inc., has a crew of meteorologists to track disruptive weather and incidents like the 2010 ash cloud, said Christine Herbert, a spokeswoman. During the 2010 flight shutdown, NetJets helped clients relocate outside of the ash zones so they could be picked up in private jets, Herbert said.

“We are watching it, and our customers that may be affected will be advised based on the recommendations of our weather team,” Herbert said by e-mail. “We are in contact with the local authorities so we can react instantly if the situation changes, but at present this is not affecting any operations.”

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Lufthansa likely to expand long-haul low-cost ops - CEO in FT

German carrier Lufthansa is likely to expand its planned low-cost long-haul operations if their launch goes well, its Chief Executive Carsten Spohr told The Financial Times.

Lufthansa last month announced a new strategy that includes expanding low-cost services in Europe and on intercontinental flights as it battles competition from Middle Eastern and budget airlines.

It has said it would build up the inter-continental budget service to seven Boeing 767s or Airbus A330s readily available on the market.

"If it works we'll be rolling it over into A350s or 787s and we probably won't stop at seven planes," the paper quoted Carsten Spohr as saying in an interview published on Friday.

Lufthansa currently has 25 A350-900s and no 787s on order, according to its website.

It has not yet decided whether to team up with a partner for the low-cost business or go it alone and has been in talks with Turkish Airlines on the matter.

"I want to be in the air by next fall," Spohr told the FT.

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Boeing's 747 could be preparing for final descent

Boeing's iconic 747 hits a major milestone this weekend when German carrier Lufthansa flies away with the 1,500th 747 ever produced. The delivery continues a remarkable run for the airplane, which has been in production since 1968. It was the world's first jumbo jet, and the new ultra-long routes it could fly helped reshape global air travel.

"It's the most recognizable aircraft produced today," says Eric Lindblad, vice president and general manager of Boeing's 747 program. "Fifteen-hundred 747s is a huge number, especially for an airplane this size."

But the milestone comes as some industry observers suggest that the aircraft is near the end of its run as demand for four-engine jumbo jets wanes. Indeed, the number of 747s coming off Boeing's production line north of Seattle is just 1.5 per month — down from about six per month in 1990. And airlines that have older 747s in their fleets are phasing out the planes at an increasingly brisk clip.

Airlines show an increasing preference for two-engine wide-body jets — like the Airbus A330 and Boeing's own 777 — that seat fewer people, but burn less fuel and can fly comparable distances. Richard Aboulafia, an aviation analyst at the Virginia-based Teal Group, says the 747 "has two more turbines to carry around," making its higher capacity an "expensive block of seats to carry around."

Only three passenger airlines besides Lufthansa — Korean Air, Air China and Russian carrier Transaero — have orders in for new 747s. And while cargo has historically been a strength for the 747, orders for Boeing's freighter versions also have slowed amid a global slump in cargo demand.

But Lindblad pushes back against any pessimism regarding the 747's long-term outlook.

Redesign details

He notes the company is fresh off a major redesign of the 747 that resulted in the current iteration of the jet — a thoroughly modern 747 that's also the biggest passenger jet ever made by Boeing.

Lindblad says the jet's technology upgrades — many borrowed from Boeing's new-age 787 Dreamliner — have made the current model a state-of-the art aircraft with improved reliability and lower operating costs for airlines that buy it.

"The 747 is advanced technology when it comes to the wing, the engine, the flight deck, and it has the new interior in it as well," Lindblad says.

Lindblad suggests airline customers are willing to pay more to fly on the 747, a "flagship" aircraft perfect for "making a premium experience for high-yield customers."

Lindblad points to the 747's signature hump, and the opportunity it provides for airlines to create an upper-deck first- or business-class cabin that feels exclusive because of its location relative to the rest of the plane.

"People relish the opportunity to be there," he says. "It's a space all by itself. ... And the same thing goes for forward of the entry door," an area most airlines use for first- or business-class cabins.

Analysts' doubts

But can Boeing turn all of that into more orders for the jet?

"There is still a fair amount of interest" from airlines, Lindblad says. "Enough that we're going to sit here today and say we expect we're going to be building the 747-8 for quite a bit longer."

Aboulafia doesn't see it that way. He says he thinks "it's highly unlikely" that the 747 stays in production beyond the next decade.

"If we get back to the cargo numbers we've seen for several decades, it is possible," he adds.

However, Aboulafia says he's pulling for the 747, even admitting he's "part of the club" that "loves the upper deck of the 747."

"I would love to be proven wrong about the 747," he says. "It's a beautiful plane, and it's an icon. It's the only word for it. Iconic."

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Lufthansa lands Frankfurt deal to disrupt flight paths of Middle Eastern airlines

Eintracht Frankfurt is eyeing an expanded sponsorship deal with German airline Lufthansa. The deal could generate revenues of about €5 million for the football club over the next five years. 

Eintracht and Lufthansa launched cooperation in August 2008. Since then, the airline has been sponsoring the family sector at the club's Commerzbank-Arena. Lufthansa also acquired its own VIP zone and business seats, and has advertising inventory at the stadium in Frankfurt.

The new deal is expected to significantly broaden the scope of the collaboration between Eintracht and the airline. In addition to the funds, Lufthansa is to provide free transportation services to the Frankfurt-based side.

With the latest move, Lufthansa is reportedly aiming to prevent further expansion into German sports by rival airlines from the Middle East, following talks held by officials from Eintracht and local businessmen in Abu Dhabi.

Among other clubs competing in the German Bundesliga, rival side Hamburger SV is currently sponsored by the Dubai-based Emirates airline.

The deal has not been confirmed by Lufthansa. However, an official offer is to be submitted this week, the newspaper said.

Eintracht won the German championship in 1959. The club's Commerzbank-Arena has a capacity of some 51,500, including 42,200 seats.

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Lufthansa launches Munich flight

Lufthansa has expanded its long-haul services from Toronto to include a second German destination, Munich. The new flight will connect travellers from Toronto to the global Munich hub throughout the summer travel season until Oct. 24. It’s the first time Lufthansa has flown from Toronto to Munich. Lufthansa already operates daily non-stop flights between Frankfurt and Toronto.

The new Munich flight, LH 495, is flown on an Airbus A330-300 aircraft and will feature a new First and Business Class in a configuration of First, Business and Economy Class seats.

Said Hans DeHaan, director, Lufthansa Group Canada: “This reflects Lufthansa’s commitment to the Canadian market and the high level of demand we are seeing here. The new route is a great addition to our services by adding more than 1,500 additional seats to Germany and beyond every week.”

Munich, the capital of Bavaria, is the third largest city in Germany and home of the world renowned Oktoberfest celebration. Its rich German history and culture is a beacon for tourists. The city houses some of the most prominent museums and galleries, including the Deutsches Museum, said to be the world’s largest museum of science and technology.

The Toronto-Munich service is the second new route introduced to Canada this year. On May 16, the airline launched its Montreal-Frankfurt service.

The two Canadian routes are the only new services Lufthansa will launch in North American this year.

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Flying the flag: Great World Cup airplane paint jobs

They may have a silly name and be 750-1 against to win the tournament, but Australia's "Socceroos" were Team Keen on May 28, arriving first for the Brazil World Cup in a specially designed Qantas jet marked with the team logo.

Thus began a small but nevertheless slideshow-worthy trend for spruced up World Cup aircraft.

Brazil's GOL adopted the role of attention-stealing host, with a paint job so magnificent it's worthy of its own gallery.

Germany's Lufthansa became "Fanhansa" on eight planes, in a design that valued minimalism and efficiency over gaudy ostentation.

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To combat Gulf carriers, Lufthansa may fly A380 to India from October

German carrier Lufthansa plans to start services of its high-capacity twin-deck Airbus A380 to India starting October-November this year. Lufthansa's A380 super jumbo with 526 seats will both expand capacity and lower operating costs, helping it combat the rising challenge of Gulf-based carriers like Emirates and Etihad, who have cornered a large chunk of India's 45 million inbound and outbound annual (2013) international traffic.

Two civil aviation ministry officials told FE that officials from Lufthansa recently moved an application seeking the start of A380 services from the winter 2014 schedule. The move will require a ‘minor change’ in the Air Services Agreement (ASA) with Germany, with the current system of flights per week likely being changed to seats per week and allowing A380 operations. Lufthansa currently utilises 46 of the 69 flights per week allowed under the India-Germany ASA.

“Lufthansa recently gave an application to start A380 services. A minor change is required in the ASA, which we are discussing with the external affairs ministry. There will be no change in weekly seat entitlements to Germany, so we expect this to be done by June,” the official said.

When asked for details over email, a Lufthansa statement said, “We change aircraft size according to demand in our long-haul markets and as we already operate all types of long-haul aircraft except the A380 to India, we are also looking forward to operate the A380 to India in the future. We do not have decided yet when and where we will operate the aircraft to. We always aim to be able to offer our Indian customers our top products and we aim to be able to use the variety of all aircraft in our fleet in our long haul markets.” Lufthansa currently operates aircraft like the A330, A340-300, A340-600, A380, besides the Boeing 747-400 and B747-8.

Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, added the introduction of A380 on European routes will bring fares down, and lead to higher travel by middle-class Indians for tourism. “The introduction of A380 by Lufthansa will help bring airfares down and expand the tourist base. It may also help Lufthansa win back some business passengers that they may have lost to Gulf carriers.

An interesting battle is in the offing this winter”.

Lufthansa will be the third and likely the last airline to start A380 services to India this year, after Singapore Airlines (SIA) starts daily flights to Mumbai and Delhi from May 30 and Emirates begins its A380 services to Mumbai from July. The addition of A380s have come about after the central government lifted the ban on the high-capacity aircraft in late January this year.

While SIA will focus on the Asian markets, Lufthansa and Emirates will be the only two airlines to offer connections from Indian metros to Europe and the US on the A380, an aircraft that offers more luxury features and space than anything else in its class today. At present, only four airports in the country — Delhi, Mumbai, Hyderabad and Bangalore — have the infrastructure to handle the super jumbo.

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Lufthansa Restructuring Continues…

Lufthansa has revealed details of its next round of route transfers to low-cost subsidiary Germanwings.  The Frankfurt-based operator has already consolidated much of its non-hub, short-haul network as part of its ongoing SCORE cost-cutting programme.  It is expected that its wholly-owned budget arm will assume control of Lufthansa’s services from Düsseldorf to Birmingham, Manchester, Newcastle and Paris/Charles de Gaulle from September 18, while its links to London/Heathrow, Malaga, Moscow/Vnukovo, Naples and Nice will follow on October 26.

Despite having achieved its profit and restructuring targets for 2013, the carrier’s outgoing CEO Christoph Franz has suggested SCORE may continue beyond its current conclusion date of 2015.  He told Reuters he did not think Lufthansa had realised all the benefits of the initiative, adding: “I don’t believe we’ve squeezed all the juice out of the fruit yet,”

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How to get compensated for air travel delays

Last summer, Mark Wilson waited in a Rome airline terminal for a connecting flight to London on his way home to New York. And waited. And waited. By the time he arrived in London four hours late, the final New York-bound flight had departed.

Wilson was offered a room at an airport hotel, which he declined. He was also due a $550 cash penalty by U.S. law but says he never knew about the rule. The money sat unclaimed for more than two months, until he used the service Refund.me to collect.

“I travel constantly. I had no idea that law existed,” says Wilson, 36, an investment banker.

Indeed, the right of consumers to collect cash from airlines for international as well as domestic flight delays is not well known, says Christopher Elliott, author of “How to be the World’s Smartest Traveler” and ombudsman for National Geographic Traveler. “The rules are obscure, and airlines intentionally keep them that way.”

Consumers can fill out the required forms themselves and deal directly with the airlines. You can access the U.S. forms through the Department of Transportation’s Aviation Consumer Protection Division. European fliers can find forms at individual airlines or through the European Union.

But some prefer to skip the extra paperwork and hire someone else to handle it, even though it will cost a hefty percentage of what’s recovered. Service providers include AirHelp and Refund.me.

Either way, fewer than 2 percent of eligible travelers try to claim the cash, and less than 1 percent of travelers receive money, says Nicolas Michaelsen, co-founder and chief marketing officer of AirHelp.

RULES FOR PAYMENTS

Passengers whose flights from Europe are delayed by at least three hours or canceled are eligible for up to about $825, depending on the length of delay and distance of the flight. The average payout is around $600, according to Michaelsen. Flights to Europe and within Europe on an European Union-based carrier are also subject to European Union law.

Domestic U.S. travelers may be eligible for even more money, but under much narrower circumstances. An airline that denies a booked passenger a seat (somebody who is bumped on an oversold flight because there are not enough volunteers to give up seats) and can’t get to their destination within an hour of the scheduled time can collect 200 percent of the one-way ticket price, capped at $650.

A delay of two or more hours is worth 400 percent of the price of the one-way ticket, up to $1,300. The average payout is $643, AirHelp says.

In 2013, nearly 467,000 passengers were bumped from overbooked U.S. flights, according to U.S. Department of Transportation records. A routine airline practice can end your eligibility for a cash payment: if an airline offers you a voucher and you accept it.

“Then all bets are off,” Elliott says.

Data shows that most people take the voucher when offered - only about 57,000 U.S. domestic travelers last year were involuntarily bumped. Airlines are supposed to hand those consumers the rules that govern being bumped from a flight, and payment is supposed to be immediate. But that’s not always the case, travel experts say.

However, United Airlines spokesman Charles Hobart says passenger gate agents are told to immediately settle up with travelers due a payment.

Delta Air Lines last year was fined $750,000 by the Department of Transportation for not following the rules. The airline has since invested in additional training and electronic signature pads to document that passengers were properly notified and compensated, spokesman Morgan Durrant says.

So far, AirHelp has processed about 25,000 claims and says a majority of applicants received a payout, with AirHelp taking a 25 percent commission including tax. Refund.me has a two-tier fee, starting at 15 percent commission plus tax for those who return a signed power of attorney form within 28 days, and 25 percent plus tax for those who turn it in later.

A typical case works like this: Connie Lee, 31, of Oakland, California, was delayed on a trip home from Germany. She filled out an online AirHelp form once she got home, which took about five minutes. A couple of weeks later, Lee ended up receiving about $800 from her airline carrier, minus the company’s 25 percent commission.

“It was a very good surprise,” Lee says.

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World Cup: Lufthansa becomes Fanhansa

They will be the centre of attention in the coming weeks before and during the football World Cup. A total of eight aircraft in the Lufthansa fleet will swap their well-known lettering for the new ‘Fanhansa’ logo. It will be the first time that Lufthansa has changed for a certain time period its name on the fuselage of some its aircraft since commencing operations almost 60 years ago. 

On the 16th of May, the first “Fanhansa Airbus” will take off from Munich to Hamburg and London. The first flight will be LH 2066 departing at 11.20 a.m. from Terminal 2. This Airbus A321-200 will be followed by two additional short-haul aircraft and a total of five long-haul aircraft, including the Boeing 747-8, the world’s longest aircraft, which will feature the ‘Fanhansa’ logo. 

“Fanhansa is more than a logo on the aircraft, of course – it is a surprise for our customers and a thank you to our fans,” says Alexander Schlaubitz, Head of Marketing at Lufthansa Passenger Airlines. “Over the coming days, we will be creating new travel experiences with a number of different promotions – there is no doubt that we will be flying the happiest fans to Brazil with Fanhansa, offering the best World Cup atmosphere and pure football fever. It will make Lufthansa the official carrier of all football fans.” 

With Fanhansa, Lufthansa will be flying not just the German national team to Brazil, as partner of the German Football Association, but also thousands of football fans, media representatives and officials. 

During the many surprise promotions that will be happening on board Lufthansa’s scheduled flights and at check-in counters and gates in German airports, participants will be able to qualify immediately for a ticket to Brazil on board a Fanhansa plane. This naturally includes the World Cup experience in the land of the Amazon, Copacabana and Caipirinha. 

Fans of the latest Lufthansa experience can follow everything to do with Fanhansa online at LH.com in the next few weeks: the night in the Lufthansa Technik hangar in Munich and the application of the lettering, which will be up to 1.23 metres high, the first surprise flight, the departure of the German team at Frankfurt Airport and, of course, the flight carrying all of the fans to Brazil in mid-June.

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Emirates Says Interested In Buying Lufthansa Catering Business

Dubai-based airline operator Emirates’ ground services unit Dnata is “very interested” in acquiring the world’s largest in-flight catering business from Lufthansa, if it is put up for sale again, Dnata’s president said on Tuesday. Lufthansa, Europe’s largest airline by revenue, had put LSG Sky Chefs up for sale in 2012 but then abandoned the plans.

“They have said they are not ready to sell,” Gary Chapman, told reporter on the sidelines of a conference in Dubai.

“But there’s a change in the leadership at Lufthansa and maybe that would change the approach.”

Carsten Spohr took over as chairman and chief executive at Lufthansa at the beginning of May, stepping up from heading the passenger airlines division to lead the battle against low-cost carriers and fast-growing Gulf airlines.

“Lufthansa has major social issues in Germany, which needs to be addressed. If everything fits well, we are definitely still very interested (in acquiring the company),” Chapman said.

Lufthansa, which reported a narrower first-quarter loss last week said on Tuesday that it would transfer some 1,500 ground staff at German airports into separate companies this year as part of its cost-cutting campaign. Globally, airline companies been looking to shed their catering business to focus on boosting margins. Franco-Dutch carrier Air France-KLM was also reported to be considering the sale of its entire Servair catering unit. Dnata, which is part of the Emirates Group that also includes the Emirates airline, reported a 14 per cent increase in its profit for 2013. The unit has been expanding organically and through acquisitions, and bought Air Chefs in Italy by taking over the remaining 50 per cent stake from Servair last year.

It acquired Broadlex, an aircraft cleaning service provider in Australia, and Gold Medal Travel Group, a distributor of long-haul travel products in the UK.

“We have Dhs2.4 billion ($653 million) of cash available this year. So that’s a nice little war chest to make use of and we have the support of our chairman to reinvest,” Chapman said.

Dnata now employs 23,000 staff in 38 countries and has ground handling businesses in 19 airports around the world including the UAE, Singapore, Australia, the United Kingdom and others.

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Lufthansa Plans Ground Staff Outsourcing

Lufthansa is planning to transfer some 1,500 ground staff at German airports to separate companies this year as part of cost-cutting measures.

Lufthansa is trying to improve its profits by EUR€1.5 billion (USD$2 billion) in 2015, compared with 2011, under its SCORE restructuring.

Measures range from expanding its low-cost unit Germanwings and shortening aircraft turnaround times, to cutting 3,500 back office jobs and even auctioning off business class seats.

A spokesman said on Tuesday that Lufthansa planned to transfer employees working at check-in desks and ticket sales counters in airports such as Berlin, Hamburg and Dusseldorf into separate companies.

The new companies would then have to compete with third-party providers for Lufthansa contracts. That could help Lufthansa to reduce its costs at medium-sized airports and better fend off increasing competition from low-cost rivals such as Ryanair and easyJet.

Lufthansa's ground services can cost it up to €5 per passenger, compared with around €2 for low-cost rivals.

The Verdi union criticised the plans, saying a similar plan at Lufthansa catering unit LSG Germany had resulted in lower pay and worse conditions for staff.

The union said it would be calling meetings with Lufthansa staff and would fight to stop the airline reducing pay or closing sites.

Lufthansa's main hubs in Frankfurt and Munich are not affected by the plans.

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Lufthansa pursues joint venture with Air China

Lufthansa and Air China are in talks that could lead the German and Chinese carriers to forming a revenue-sharing joint venture similar to those that Lufthansa has with United Airlines, Air Canada and All Nippon Airways.

The joint venture, if agreed, would deepen the relationship that Lufthansa already has with fellow Star Alliance partner Air China.

Lufthansa Group CFO Simone Menne confirmed the talks during the release of the Group’s 2014 first quarter financials this week. She did not give any details or timelines.

Lufthansa’s transatlantic JV with United and Air Canada and its Japan JV with ANA provide important boosts to those markets and a similar arrangement with Air China could do the same for the fast-growing China market.

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Lufthansa will fly Boeing 747-8 on Frankfurt-Mumbai route

Lufthansa will fly its Boeing 747-8 aircraft on Frankfurt-Mumbai route offering more capacity and higher business class seats from July 15. The airline already flies this aircraft to Delhi and Bangalore. The aircraft is configured with 8 first class, 80 business class and 298 economy class seats.

"The B747-8 sets new standards of comfort and efficiency. Our customers will be able to experience Lufthansa's latest in-flight products, such as a sophisticated new Business Class seat featuring a 6.5 feet long full-flat bed with vastly improved sleeping comfort and greater privacy,'' said Wolfgang Will, Lufthansa director (South Asia).

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Germany’s Lufthansa Technik expanding in South Florida, Puerto Rico

Germany’s Lufthansa Technik, which maintains, repairs and overhauls civilian planes, is expanding its regional office in South Florida into a new location in Miramar.
The company plans to invest $114,000 and create 24 new jobs at the new office, a statement said. The Miramar office will handle all major customer service, account management and product sales functions in the South Florida area, according to Gordon Weller, senior director of product sales and customer service and branch manager at the company’s office in Fort Lauderdale.

Lufthansa Technik said it chose Miramar for the larger office for several reasons, including easy access to international airports, proximity to universities, a strong pool of employees and the city’s growing cluster of aviation businesses. Miramar's City Commission last year also approved incentives for the venture: up to $14,400 to locate its customer service center in Miramar and up to $12,000 for local hiring, the South Florida Sun Sentinelreported.

New MRO facility in Puerto Rico to employ up to 400

Meanwhile, Lufthansa Technik said it will open a new new maintenance, repair and overhaul (MRO) facility in Puerto Rico in the Caribbean to service short-haul and medium-haul aircraft.
It will create a new unit, Lufthansa Technik Puerto Rico, to run the facility at Rafael Hernández International Airport in Aguadilla at the site of a former U.S. air force.
The new MRO center  will employ up to 400 people and run a total five overhaul lines, a statement said. It will initially operate two lines for Airbus A320 C-checks and D-checks. MRO work is expected to start in 2015.
JetBlue Airways, the leading carrier to Puerto Rico, has commited to use the center for heavy maintenance.

Lufthansa Technik reported revenues topping $5 billion and nearly 20,000 employees on average for 2013. It has been increasing sales by handling more types of jets and boosting cooperation with manufacturers.
The company owns a stake in South Florida’s fast-growing Heico Corp., which makes jet engine parts and electronic component systems. Heico’s revenues topped $1 billion for the first time last fiscal year.

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Lufthansa: “Best European Airline serving the Middle East”

Lufthansa proved that it is the best among the best after clinching the “Best European Airline serving the Middle East” title during the gala ceremony of the Business Traveller Middle East Awards 2014 on the eve of the Arabian Travel Market 2014 in Dubai. The magazine holds its prestigious awards based on independent polls from readers in the Middle East. 

“To receive this award is a tremendous honour for us as it expresses the trust of our customers to our company, product and services.  We are proud having a long history of operations in the Middle East since our first flight landed here in 1960”, said Karsten Zang, General Manager UAE and Director Gulf and Pakistan. 

“We have set ourselves a number of objectives for 2014 – it will be Lufthansa’s biggest service initiative in recent years. As well as installing the latest cabins in all classes of our aircraft, which is already proceeding apace, we will also be demonstrating to an even greater degree our qualities as a dedicated host with a keen understanding of service and hospitality,” added Zang. 

“We thank Business Traveller Middle East for spearheading this objective initiative which is helpful for like-minded travellers and those who are planning to go on an adventure.  Our passengers in the Middle East know that Lufthansa offers more connections to Europe, North America and beyond than any other carrier,” concluded Zang. 

No stranger to awards, Lufthansa’s products enjoy a strong recognition worldwide. Not only has there been excellent feedback from top customers in the few months since it was introduced, it has also received major awards. Lufthansa’s First Class and its range of services were awarded 5 stars in the Skytrax star ranking, while the American Academy of Hospitality Sciences (AAHS) presented its International 5 Star Diamond Award to Europe’s leading airline. These awards promise passengers an outstanding travel experience, since five stars are synonymous with top quality, first-class comfort and personal service. And this will soon be the case not just in First Class, but throughout the Lufthansa range.

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New Lufthansa CEO Un-Retires A340s For Long-Haul Flights

Game on.

One day after officially taking over as Lufthansa Airlines’ new CEO, Carsten Spohr is putting his words into action. Spohr will retrofit nine Airbus 340-300s that were set to be retired and use them on select long-haul routes starting next summer, hoping to regain marketshare Lufthansa has lost to gulf airlines, according to the German magazine Spiegel.

While being introduced as the new CEO, Spohr said that while he believes Lufthansa can compete in Europe with low-cost airlines like Ryanair, “Those we can handle. They’re on a level playing ield. With the Gulf carriers, it’s different,” he said. The Germain carrier has had a feud with such airlines as Emirates, Etihad and Qatar, and believes – as do British Airways and Air France – that Gulf airlines use unfair subsidies to finance their aircraft deals, according to Bloomberg News.

Thus, the move to retrofit the A340s makes sense.

Lufthansa will offer low-cost long-haul flights on these aircraft, which will be reconfigured with less business class seats, on routes to the Caribbean and the Far East, among other long-haul spots.

Spiegel noted that Lufthansa will negotiate with airport operators and staff regarding concessions in order to keep costs down for the low-cost flights.

More immediately, Spohr will need to settle a labor dispute with his pilots’ union, which launched a three-day strike last month that cost the airline more than $70 million against what had been a 22 percent rise in stock price since September.

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Boeing delivers 75th 747 to Lufthansa

Boeing and Lufthansa celebrated the delivery of the German airline's 75th 747 on Wednesday.

"Lufthansa is proud to share this milestone with Boeing," said Nico Buchholz, executive vice president, Lufthansa Group Fleet Management. "The 747 is an amazing airplane and will continue to delight our passengers for many years to come, and provide them with the ultimate in comfort and efficiency."

Lufthansa is the launch customer for the 747-8 Intercontinental jetliner and took delivery of the first one in April 2012. The airplane delivered Wednesday is Lufthansa's 13th 747-8 Intercontinental. The airline currently flies the 747 to 22 destinations in 10 countries. Over the years, Lufthansa has ordered a total of 81 747s.

Lufthansa's first 747 – a 747-100 – was delivered in 1970. The airline was also the first to order the 747-200 Freighter.

"Boeing and Lufthansa have a long and proud history of working together to bring new innovations to the airline industry," said John Wojick, senior vice president, Global Sales, Boeing Commercial Airplanes. "We are pleased to continue that tradition with the 747-8 Intercontinental."

The 747-8 has accumulated 120 orders for passenger and cargo versions, 68 of which have been delivered.

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Lufthansa plans no buyback despite rise in foreign shareholdings

German airline Lufthansa dismissed the risk of it coming under undue foreign influence despite the percentage of non-Germans owning its shares rising to more than 40 percent, a move that could trigger a defensive buyback of its shares.

Germany's biggest airline said the total shareholding of non-German investors had reached 40.69 percent, but it was not planning any buyback for the moment. It said an analysis of its shareholder register gave no reason to believe there was any immediate danger of excessive foreign control.

It gave no further explanation in a statement on Tuesday, though its website said its biggest groups of shareholders after German investors were from the United States, Luxembourg, the Cayman Islands, Britain and Canada.

Aside from a share buyback, other steps it could potentially take to fend off a threat of foreign control include a new share issue or requesting foreign shareholders sell their stock.

Lufthansa shares were up 2.4 percent by 1409 GMT on Tuesday, outperforming a 1.7 percent rise in the blue-chip DAX index. The stock has gained 24 percent so far this year as a restructuring programme to improve profits takes effect. It also plans to resume dividend payments again for 2013 after scrapping them the previous year.

Lufthansa's shareholder list is also potentially important in a broader regulatory context, given European Union rules which mean European airlines must be more than 50 percent owned and controlled by European investors in order to qualify for operating licences awarded by the region.

The EU is examining some foreign holdings in airlines, such as Etihad's stake in Air Berlin and Delta's in Virgin to see whether they comply with control and ownership rules.

The shareholding disclosure came as a source familiar with the matter said Lufthansa's IT infrastructure business, which the airline is trying to sell, is drawing interest from IBM, Hewlett-Packard and France's Atos.

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Lufthansa says pilots' strike to cost up to 75 min euros

Lufthansa said a three-day walkout by its pilots, which has effectively grounded Germany's largest airline, could cost it up to 75 million euros ($103 million) as it called on their union to return for talks over pay and retirement conditions.

Lufthansa has cancelled a total of 3,800 flights over the strike period, which began on Wednesday. It hopes flights will run normally on Saturday, with only a few rescheduled due to crews being out of place as a result of the stoppage.

"A definite calculation will take several days... We estimate it at between 35 million and 75 million euros," Kay Kratky, chief operating officer of Lufthansa German

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