Airlines India, Indian Airlines

A senior airline official has announced the completion of the merger of Saudi-based operations of Swiss International Air Lines (SWISS) and Lufthansa German Airlines, which will offer uniform price for tickets and choice of flights besides destination options to thousands of passengers flying on these two airlines. Rolf Koller, general manager for both airlines in the Kingdom, made this announcement here yesterday.

“Passengers traveling on either airline from Saudi Arabia can benefit from a single price structure which will help travelers to journey one way on SWISS and return on Lufthansa or vice versa,” said Koller. Additionally, passengers can enjoy a choice of six flights a week, between both Riyadh and Jeddah. SWISS, he said, would introduce its fourth frequency on Dec. 2, which would ensure that there will be a flight every day in a week.

He said that the two airlines together operated 12 flights a week from the Kingdom to Frankfurt and Zurich. “And now with the merger, it is part of our commitment to the Kingdom to ensure that through SWISS’ and Lufthansa’s combined network we provide choice for each day of the week,” said SWISS-Lufthansa chief, adding that the two airlines had completed integration procedures in the Kingdom.

Referring to the merger, he said that the sales and marketing functions of the two airlines had been merged fully and a centralized office had been set up to operate. Koller further said: “With our new one-company focus, sales and marketing operations and airport services will function from our combined offices in both Riyadh and Jeddah.” The 50-men strong team in the Kingdom will be able to optimize services for both airlines more conveniently, he said.

The Riyadh office will be based in the Olaya district, while the Jeddah office has moved to the Al-Sharafeyah district of the city. Koller will sit in the airlines country office based in Riyadh, while Abdulaziz Mangera, the regional manager for the Western Province, will also be responsible for the port city of Jeddah, Makkah and Madinah. The move to operate jointly following the merger will provide added benefits and competence to the two airlines, said Koller.

About benefits to customers, he said: “The partnership between SWISS and Lufthansa is a natural one, ideally complementing two high quality carriers, an amalgamation of professionalism and a high performance pairing that offers our customers optimum flexibility and reliability for their air travel needs. It reflects the consolidation processes in the present aviation industry.”

He said that the SWISS network was not limited to travel to Switzerland; rather it offered a comprehensive network of 71 destinations in 42 countries, through its summer timetable.

“In addition, the partnership with Lufthansa affords SWISS travelers the option of additional destinations across Lufthansa’s 181-strong destination network, covering 76 countries” said General Manager Koller.

He said that a single airfare, combined check-in facilities, joint frequent flyer program; through Miles & More, and optimum hub connections via Zurich, Frankfurt and Munich, made both airlines an indomitable force for visitors to Europe.

SWISS has also joined Star Alliance, the world’s largest and most comprehensive airline grouping. Star Alliance extends to 842 destinations in 122 countries, offering reciprocal access for SWISS Miles & More members across 660 lounges, as well as accrual and redemption of frequent flyer points. This is in addition to many other programs and incentives for customers on which the two airlines are now jointly working.

Jade Cargo International, the first Sino-German joint venture airline, is expected to play a vital role in Lufthansa’s overall expansion in China, top executives of the German aviation group said yesterday.
“We want to enhance all aspects of our China business. Lufthansa will be a strong brand in China, so that when you want to do business with Europe (in aviation), Lufthansa will come to your mind first,” said Wolfgang Mayrhuber, chief executive officer and chairman of Deutsche Lufthansa AG.

Mayrhuber made the remarks yesterday while visiting Jade Cargo’s headquarters in Shenzhen.

Lufthansa holds a 25 per cent stake in Jade Cargo, the maximum share a single foreign carrier is allowed to hold in a Chinese airline. Shenzhen Airlines controls 51 per cent of the joint venture, while the German Investment and Development Company has the remaining shares.

The maiden flight of the Shenzhen-based cargo joint venture took place from Shenzhen to Amsterdam on August 5.

It will have a fleet of six Boeing 747-400 freighters by 2008 and plans to develop a network spanning European, intra-Asian and trans-Pacific routes.

Stefan H. Lauer, a member of Lufthansa’s executive board, said that Shenzhen-based Jade Cargo would not be adversely affected by its proximity to Hong Kong, a major cargo gateway to the Chinese mainland.

“We are not taking cargo traffic away from Hong Kong. The Pearl River Delta region is a world manufacturing base, which ensures enough cargo business for three airports in the area, namely Hong Kong, Guangzhou and Shenzhen,” Lauer said.

“Shenzhen airport is currently under-utilized and we hope the launch of Jade Cargo will give it a real chance to play the important role in logistics that the airport deserves in this region,” Lauer said.

Lauer added that most cargo carriers are currently focused on the Yangtze River Delta region.

Shanghai’s cargo-handling capacity is increasing as a result of new start-up joint ventures.

For example, Great Wall Airlines Ltd, in which Singapore Airlines holds a 25 per cent stake, launched a scheduled flight from Shanghai to Amsterdam in June. It operates two B747-400 freighters.

Shanghai Airlines Cargo, a joint venture between Shanghai Airlines and two subsidiaries of Taiwan-based Evergreen Group, started flights to Los Angeles last month. The company, which currently has three freighters, plans to expand its fleet to 10 by 2010.

In addition, Air China plans to establish a cargo joint venture with Cathay Pacific in Shanghai.

Also yesterday, Lauer denied rumours that Lufthansa would purchase a stake in Shanghai Pudong International Airport’s new freight zone.

But the German carrier’s existing joint venture with Shanghai Airport Group, PACTL, will “extend its current services and play a role” in the new freight facilities, he said.

PACTL, or Shanghai Pudong International Airport Cargo Terminal Co Ltd, was established in 1999 and is 29 per cent-owned by Lufthansa.

China is Lufthansa’s largest market in Asia and accounts for 15 per cent of its global revenue. Passenger airline service, cargo and MRO (maintenance, repair and overhaul) are its biggest profit sources in China, followed by catering and IT services.

Lufthansa is in future adding an audible note with a specially developed Corporate Sound so as to enhance recognition of the Lufthansa brand. In an intensive process, the company’s brand values have been transformed into the musical sphere. Aside from the “Acoustic Logo“, the Corporate Sound is composed of ”Corporate Music“, the ”Corporate Song“ and the ”Corporate Soundscape“. The Corporate Sound will gradually widen audio perception of the Lufthansa brand in “hold-the-line” queues, dialing tones, radio and TV spots. The Corporate Music and in particular the Corporate Song will in future be played as passengers board their flight. “With our sound branding, we are addressing another of the senses, which together with our visual branding will clearly strength our brand message and emotional appeal,” said Lufthansa Executive Vice President Marketing and Sales Thierry Antinori, explaining the reasons for taking branding into the audible domain.

Transforming brand values into sound is an intricate exercise. It requires a high degree of intuition and sensitivity to create a sonic identity that precisely reflects a company’s attributes. Like the corporate design, the sound of the brand communicates Lufthansa’s quality message, its leadership role and its innovative skills as well as sovereignty, appeal and sensitivity. Based on a rising sequence of four tones, the acoustic logo elicits the feeling of ”taking off“ and “wellbeing”. Only when the brand sound rests on a lasting concept and is anchored in the brand can it orientate and evoke immediate recognition on the part of recipients.

The Corporate Sound was developed by the agency MetaDesign in Berlin.

Book by Tuesday, August 15, and travel by Saturday, September 2. This week’s “ready to fly” offers from Lufthansa take in Basel, Bologna, Nice and Venice from £109 and Oslo from £129. All fares are return and include taxes, fees and charges.

Fares are valid from London Heathrow and City, Birmingham, Manchester and Edinburgh airports.

Travel to any of the above destinations from today (Wednesday, August 9) for ten days. All travel must be completed by Saturday, September 2.

The German flag-carrier releases new fares every Wednesday.

Lufthansa (LHA.XE) July passenger data is solid and meets expectations, says Landesbank Rheinland-Pfalz analyst Per-Ola Hellgren. Says this compensates somewhat for disappointing June traffic figures. But he says, it’s too early to consider the data a sign of a trend reversal. Keeps marketperform rating, target price at EUR17. Shares -0.4% at EUR14.50.