Lufthansa CityLine reached a tentative contract agreement with its 663 pilots in late February, narrowly averting a strike that threatened to derail the German company’s recovery from a pair of one-day strikes last May by Lufthansa mainline pilots. In mid-February CityLine pilots voted nearly unanimously in favor of a strike if the sides did not reach an agreement by the end of that month.
Economy of Germany
Lufthansa Airlines absorbed the sales, marketing and ticketing functions of Team Lufthansa partner Augsburg Airways last month, completing a restructuring exercise that saw Olaf Dlugi replaced by new CEO Manfred Scholz and 144 employees lose their jobs at the Bavarian regional airline. The changes came at the behest of new investors from German paper company Haindl GmbH, the airline’s controlling shareholder.
German completion and refurbishment giant Lufthansa Technik is building a research and development center for its cabin innovation business division in Hamburg. The company estimates the investment at about $15.4 million. In addition to offices, the center will contain testing laboratories and display areas for new products under development.
Construction has begun on a new aircraft engine overhaul hangar in Hamburg to support an expansion of Lufthansa Technik’s production capacity in Germany. More than $76 million will be invested at the company’s home base over the next few months. The first engines will be overhauled at the new facility early next year.
Stuttgart, Germany-based DC Aviation (formerly known as DaimlerChrysler Aviation) replaced NetJets in December as the executive jet service provider for Lufthansa Private Jet (LPJ), the business jet division of Deutsche Lufthansa. The Germany-based airline and NetJets Europe terminated their partnership last year, but there is disagreement about the effective date.
Lufthansa is ordering its own business jets to replace those supplied thus far by NetJets Europe (NJE) for Lufthansa’s Private Jet service. The German-based carrier claims the success of the service makes a sound business case for buying the aircraft.
Jet Aviation has announced a new AOG support service called Jet-Response. The main feature of the service, which will initially be available only in the U.S., is a one-call-fixes-all, toll-free telephone number (877-JET-HELP) to reach technicians who will coordinate the necessary response around the clock.
Cabin systems supplier Intheairnet is out to prove that it can be both naughty and nice with the introduction last month of the Network and Wireless Technology Including Ethernet (Nawtie) system. The cheeky acronym takes a subtle swipe at the rival Nice (Network Integrated Cabin Equipment) system Lufthansa Technik recently introduced.
Germany-based airline Lufthansa and NetJets Europe (NJE) are embroiled in a disagreement over the recently announced termination of their partnership of Lufthansa Private Jet. Specifically, the clash is about when the actual date of the termination becomes effective. Lufthansa insists the agreement is valid until February, but NJE is asserting Lufthansa has already used all of its share-allocated flight hours.
Lufthansa Technik has won a contract to do the first interior for an executive version of Boeing’s new 747-8. The owner, whose identity has not been disclosed, signed a memorandum of understanding with the Hamburg, Germany-based interiors shop early last month. Lufthansa Technik expects the job to require as much as 18 months. This will be the company’s 16th 747 executive completion project.