The Lufthansa Group is setting its sights on a significant expansion into the Asian market, with a specific emphasis on Thailand. Carsten Spohr, the chief executive officer, sees Thailand not just as a haven for tourists but as a burgeoning hotspot for business ventures. With the increasing demand for cargo and the Asia-Pacific region developing rapidly into a hub for maintenance, repair, and overhaul (MRO) services, the Lufthansa Group is eager to broaden its horizons in these sectors. Lufthansa Technik, a key player in the MRO market, is already working with the Royal Thai Air Force and is on the lookout for new partnerships within Thailand. The allure of Bangkok, the throbbing heart of Thailand, continues to captivate Lufthansa’s airline operations, bolstered by an impressive offering of over 10,000 seats each week across 27 flights from Europe. This includes a new route from Rome operated by ITA Airways, in which Lufthansa holds a 41% stake. A third of the passengers flying to Bangkok are connecting to other captivating Asian destinations.
Addressing the swell of travelers during the vibrant Songkran holiday in April, Lufthansa has taken proactive measures by extending its Airbus A380 services from Munich to Bangkok for an additional month. Anticipating continued demand, the A380s will also be making their winter journey to Thailand from October. In a classy touch, the innovative Lufthansa Allegris cabin will grace its long-haul flights to Thailand in the coming year, after its debut on Shanghai and Mumbai routes. Presently, passenger revenue from Asia constitutes around 14% of Lufthansa’s total operations, with cargo revenue from the region impressively contributing 42%. However, a niggling challenge remains: the closure of Russian airspace. The hope for reopened skies holds the promise of streamlined operations in the vast northern Asian expanse.
Optimism is the word echoing through the corridors of the Lufthansa Group, fueled by robust bookings and a revival in travel enthusiasm. This buoyant outlook is prompting the group to invest heavily in aircraft upgrades and services, firming up its stature as a premier European airline. The draw of luxury has seen a new first class take flight, while Swiss Air is set to unveil its version later this year. A curious trend has emerged: leisure travelers, perhaps seeking added comfort post-pandemic, are not shy of diving into the premium seat experience, even as business travel lags in pace.
Peering into the crystal ball, Lufthansa Group anticipates striking double-digit growth in capacity by 2025, a momentum driven by partners like ITA Airways and others. A fleet expansion is also on the cards, with over 100 new aircraft slated for inclusion, primarily sourced from ITA. For frequent flyers, this spells good news with the ability to earn status points, alongside the option to book codeshare flights. Showing an adventurous spirit, Lufthansa has agreed to acquire a 10% stake in Air Baltic, transforming them into a wet lease provider amidst aircraft shortages.
The goal? To achieve a dazzling turnover exceeding 40 billion euros (a staggering 1.43 trillion baht) by 2025, with aircraft modernization plans earmarked at 4 billion euros. Notably, Lufthansa is poised to become the pioneering operator of the Boeing 777X in 2026, as reported by the Bangkok Post. Brace yourselves, as airfares are predicted to rise, largely propelled by insatiable demand and a capped supply, coupled with escalating taxes and regulatory costs across Europe. To offset environmental impacts, Lufthansa imposes a surcharge on flights departing Europe and incorporates a 2% blend of sustainable aviation fuel for EU takeoffs. Interestingly, around 4% of passengers eagerly choose to pay a green fare, championing the sustainable travel cause.
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