‘We’re now taking the hassle out of airports’

‘We’re now taking the hassle out of airports’

afford to pay staff salaries. Weber’s shake-up forced top managers to take responsibility for other areas of the business. New companies emerged such as Lufthansa Technik, LSG Sky Chefs and Lufthansa Cargo. Within one year the carrier was rejuvenated.

These days, 70% of Luft-hansa Technik’s business comes from third parties and more than 30% of meals in the world are made by LSG Sky Chefs. American Airlines is the largest Sky Chef customer. This break-up, said Wachter, was the airline’s success factor.

Priding itself on its technology, Lufthansa has ambitious plans for on-line business and intends to sell a quarter of its tickets via the Internet by 2005.

It has been offering ticketless flying since 1996 and passengers can travel with etix, Luthansa’s trademark name for paperless flying, on almost all of the German domestic routes and on 160 international routes to 40 countries.

“We were surprised by the acceptance of electronic tickets in Germany, but this has been the case in London, Paris and Zurich as well. I fly ticketless all the time. It’s impersonal, but you have more time for business and it takes the hassle out of airports,” said Wachter.

Wachter acknowledges the trend towards the more cost-conscious traveller and agrees there is a growing number of business passengers now travelling in economy. “There is a downward movement, but business passengers are paying full economy fares – in some cases they are 20 times more than the lowest economy fare.”

Despite the emerging cost-conscious business traveller, Wachter said the low-cost airlines have not had an impact on the carrier. However, the one to watch, he adds, is Ryanair. “Ryanair could move into our sector because of its routes, and its image. It has a modern fleet, and is organised. We must watch it very carefully.”

HAVING been with Lufthansa since 1991, Weber took the helm in 1991 and started a stringent cost-reduction plan at a time when the airline was suffering from its worst-ever crisis.

Until this time, many major European airlines had benefited from the support of theirgovernments. Air fares were agreed across Europe and airlines operated almost as a cartel.

The blow to Lufthansa was brought about by deregulation in the US and increasing liberalisation in Europe. Germangovernment support for the carrier was withdrawn, and at the beginning of 1993, the situation was so bad Lufthansa could not afford to pay staff salaries. Weber’s shake-up forced top managers to take responsibility for other areas of the business. New companies emerged such as Lufthansa Technik, LSG Sky Chefs and Lufthansa Cargo. Within one year the carrier was rejuvenated.

These days, 70% of Luft-hansa Technik’s business comes from third parties and more than 30% of meals in the world are made by LSG Sky Chefs. American Airlines is the largest Sky Chef customer. This break-up, said Wachter, was the airline’s success factor.

Priding itself on its technology, Lufthansa has ambitious plans for on-line business and intends to sell a quarter of its tickets via the Internet by 2005.

It has been offering ticketless flying since 1996 and passengers can travel with etix, Luthansa’s trademark name for paperless flying, on almost all of the German domestic routes and on 160 international routes to 40 countries.

“We were surprised by the acceptance of electronic tickets in Germany, but this has been the case in London, Paris and Zurich as well. I fly ticketless all the time. It’s impersonal, but you have more time for business and it takes the hassle out of airports,” said Wachter.

Wachter acknowledges the trend towards the more cost-conscious traveller and agrees there is a growing number of business passengers now travelling in economy. “There is a downward movement, but business passengers are paying full economy fares – in some cases they are 20 times more than the lowest economy fare.”

Despite the emerging cost-conscious business traveller, Wachter said the low-cost airlines have not had an impact on the carrier. However, the one to watch, he adds, is Ryanair. “Ryanair could move into our sector because of its routes, and its image. It has a modern fleet, and is organised. We must watch it very carefully.”