Lufthansa sees yields improving

New Delhi: German carrier Lufthansa has completed a comprehensive cost restructuring exercise by rationalising sales network and cutting two flights from India over the last several months.
Lufthansa operates 52 flights per week from seven destinations. Like other carriers, Lufthansa has also seen yield per passenger falling in the last several months because of the global meltdown and consequent fall in passenger traffic. However, yields are improving again. But has the cost rationalisation exercise achieved what it set out for?
Axel Hilgers, director (south Asia), Lufthansa, told DNA, "I see an improvement in yields (per passenger) but this is happening slowly and not at previous levels. We need to work further on cost levels... yields fell 20% during the global slowdown and even though passenger traffic is back now, yields are still not back with us." Earlier this year, Lufthansa centralised marketing and other functions while outsourcing ticketing and reservation functions. This meant closure of ticketing offices in some cities and rationalisation of sales staff. It has also cut one flight each from Mumbai and Bangalore.
As per bilateral agreements between India and Germany, airlines from both the countries are allowed to together operate 69 flights to and fro per week.Since no other German airline currently flies into India, Lufthansa is free to use the entire quota of flights. But Hilgers says that there are no plans yet to increase flights to or from India.
23/11/09 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Foreign Nov 2009