Monday, July 31, 2017

Eurowings eyes growth across all EX-YU markets


Lufthansa's fast-growing low cost subsidiary Eurowings, which has capitalised from leasing extra aircraft from ailing rival Air Berlin, intends to grow its market share across the former Yugoslavia over the next year. Lufthansa has made Eurowings its main focus in the battle with market leaders Ryanair and easyJet for passengers in Europe and a vehicle for consolidation. It is set to become Europe's third largest low cost carrier and operate a fleet of 180 aircraft by 2018.

Eurowings has made Croatia the focal point of its expansion in the region over the past year, with the airline opening up eleven new routes to the country this summer alone. However, in the coming period, the no frills carrier will work towards easing seasonality on its services to Croatia by introducing more year-round routes. It has already announced the winter launch of its flights from Dusseldorf to Zagreb and the extension of some of its seasonal services to Split, Rijeka and Pula to year-round operations. The airline is considering adding flights between Cologne and Osijek following the successful launch of its service from Stuttgart to the Croatian city this May and is in discussions with Brač Airport over potential flights next summer. New routes are also being considered to other airports it already serves in the country.

Eurowings has said it is in negotiations with airports in Serbia, with the airline interested in launching services to Niš, in the country's south-east. Several routes are under consideration at this point, although no final decision has been made. Eurowings has a limited presence in the country, operating only seasonal flights from Stuttgart to Belgrade. Similarly, the carrier is in talks with Ljubljana Airport over potential services to Slovenia. Earlier this year,  Ljubljana Airport's General Manager, Zmago Skobir, said negotiations were taking place with two no frills airlines, one of which is headquartered in northern Germany. The carrier in question is tipped to be Eurowings which is based in Dusseldorf.

The German airline will enter the market in Macedonia this winter by introducing flights from Munich to Skopje. Depending on the route's performance, the carrier would also consider adding services from Dusseldorf to the Macedonian capital. In Kosovo, it will continue to maintain year-round flights from Cologne, Dusseldorf, Hamburg, Hannover and Sttutgart to Pristina. Elsewhere, Eurowings commenced operations to Montenegro this year by introducing flights to Tivat. The carrier has confirmed it is considering additional flights to the city but also to Podgorica as well, which it has not served in the past.

Despite cancelling its planned new service from Dusseldorf to Sarajevo after "reviewing economic efficiencies of the route", the airline is focusing on flights to Mostar in Bosnia and Herzegovina, which are likely to launch this winter. Mostar Airport's General Manager, Marin Raspudić, said last week, "We are currently in contact with Wizz Air and Eurowings. These two airlines are analysing the economic sustainability of launching flights to Mostar. The management has delivered all necessary information and we hope to get low cost flights from Mostar Airport". Eurowings is said to be considering introducing services from Stuttgart to the Bosnian city. The Premier of the Herzegovina-Neretva Canton has already committed to subsidising the route. Mostar Airport, which has no scheduled year-round flights, has identified Germany as its main market due to its sizable Bosnian diaspora.

137 comments:

  1. Move over Wizz!

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    1. Unlike Wizz, EW is expensive and not that low cost at all.

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    2. It will force W6 to be more competitive, which is a good thing. Competition like Eurowings lead to them to no longer charge for carry-ons.

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    3. @9.09 +1 fares are very high compared to Ryanair or Wizz.

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    4. EW is offering connecting flights, at least to all LH Group member airlines. Fares are comparable to LCC like Vueling and Transavia. Basic EW fares do not include baggage, same as with all the other full fare airlines of LH group.

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    5. @ AnonymousJuly 31, 2017 at 9:09 AM
      Unlike Wizz they can attract transfer passengers

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  2. We will be seeing more and more of them as they grow.

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  3. Eurowings is perfect for INI. Hope it happens.

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    1. They will have very strong comeptition from INI, as FR and W6 covers mayority of german routes. The only good move would be Vienna and maybe Oslo (I dont think they would fly there, as well as Paris). Let´s see!

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  4. They are cutting more and more into OUs share. I think in the end we might see Croatia Airlines integrated into Eurowings like Brussels Airlines.

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    1. Bad news for OU

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    2. Also it is very probable that JU will be absorbed by Eurowings if the rumours are true that Etihad will get rid of its European investments in a Lufthansa deal.

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    3. Can the news get any worse for JU Anon 9.20 AM?
      JU is diminishing at a rapid rate. Getting rid of a lot of routes, trying to lease out 25% of its fleet in the winter season and an A330 that spends most of its time on the Tarmac while paying high leasing costs. Now the onslaught of LCCs in Serbia and the likely exit of the Arabian knight. The future looks challenging

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    4. Well I think it could. When they start selling slots at LHR to repair engines on their planes then you know the end is near.

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    5. According to OAG, JU's capacity is down 3% this year which is hardly a rapid decline. Also 3 planes out of a fleet of 21 is not 25%. Back to school.

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    6. Haha Anon 10.04
      Apologies I didn't include JUs 737s and ATRs in the fleet total as they have nil market value. I think they're ready for the scrap heap

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    7. You forgot many things this morning except to troll. Have a nice day.

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    8. Great news for the Croatian economy. All year round flights. Bravo Hrvatska!

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    9. And what market value do the A319s have for JU since they don't own them.

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    10. The guy just woke up and had the need to troll. Just leave him be.

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  5. Eurowings will open new routes from Germany to Pula and Rijeka next summer season. They have already signed agreements with those two airports

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    1. Do you know from where will they fly to Brac?

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    2. I assume it will be Germany.

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    3. VIE could be also very possible

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    4. @9.08, do you know which destinations?

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    5. It is true about agreement between Rijeka and Pula airport and Eurowings! Don't know about routes, but I'm expecting Munich - Rijeka which will destroy OU on that route, they are right now too expensive. Also not sure about Brac airport for next summer season, they are still not done with all paperwork and licence for new extended runway.

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  6. Zvuci kao kraj za OU ako produze sezonu. Opet ako OU na tim letovima gubi kako ce oni zaradjivati?

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    1. Eurowings probably has lower costs than OU.

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    2. Kako? Imaju manje plate osoblja, starije avione? Debt to Equity Ratio Luftike je je uvek iznad 1 za Eurowings verovatno i gori.

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  7. The good thing is that they offer connecting flights through Lufthansa.

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  8. Could we see them go long haul from Croatia?

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    1. Possible. Maybe they will be the one to launch ZAG-JFK.

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    2. I doubt it. It would make more sense for them to open a base with an A319 then launch TATL from ZAG.

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    3. They haven't consolidated their German longhaul flying yet they will launch ZAG JFK so as to steal passengers from LH and OS? Yeah. No.

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    4. What about seasonal to the coast?

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    5. @AnonymousJuly 31, 2017 at 9:18 AM

      NO!!!

      Eurowings won't fly long hull out of non-German destinations. If anyone would try their luck with long hull out of Zagreb, it would be LOT or Norwegian on seasonal basis.

      However Air Canada Rouge will probably launch Toronto - Zagreb flights before JFK flights happen. Air Transat might in meantime could try to connect Montreal with Zagreb on a seasonal basis.

      I fear OU might need to lease A330 200 if it wants direct JFK flights. I just can't see this happening any time soon with other airlines.

      Delta potentially could start seasonal flights between JFK and Zagreb, but that is long term seasonal possibility perhaps around 2025.

      OU if it converts 2 A320 NEOs in to A321 NEOs, might see Direct flights for JFK, A321 NEO LR would need be configured with max 176 seats, 16 in Premier business class and 160 in Economy, to make flights viable. A321 NEO LR with 176 seats has range of around 8100km, 700km more than A321 NEO LR configured with 206 seats.





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    6. Doubt it, OU will keep the A320 NEOs, and it definitely won't lease an A332
      The only way Croatia will get JFK is if a foreign airline decides to start it

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  9. LJU did say that they were talking with Eurowings and that they should launch flights this year but I highly doubt it will happen since it's already August and they haven't announced anything yet.

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    1. They can come to Maribor if they can't make a deal with Ljubljana.

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    2. Yeah, I'm sure SHS Aviation would welcome them with open arms...

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    3. True, forgot about that.

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  10. What's the sudden interest in ex-Yu region from Eurowings?

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    1. They are getting a lot of new planes and need to focus on new markets.

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    2. They have a lot of new (well, not all of them new) planes and Croatia has a lot of islands and miles of coastline and German tourists

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    3. They also have a Croatian route planner.

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  11. Will Banja Luka recognize Eurowings intentions to expand and try to attract them?

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  12. Great news for Mostar.

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    1. But would they have considered this route without subsidies?

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    2. Probably not. But that's how all of these small airports start out. It's normal.

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  13. Every major low cost airline is either already serving, or eying Podgorica. It's beautiful to watch recent developments at the airport...

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    1. True. Podgorica has been very impressive this and last year. I hope in 2018 it will surpass 2 million passengers.

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    2. Star performer this year.

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    3. I am sure that title goes to INI

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  14. I think Dusseldorf-Skopje has even more potential then Munich.

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    1. If the planes are filling well, there is a pretty good assumption that Eurowings will launch flights to Skopje from both Dusseldorf and Stuttgart, although competing with their own PRN routes.

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    2. Lufthansa should have started flights to Skopje, not Eurowings!

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    3. There is no market for both LH and OS inSKP

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    4. Because the market is not that big, OS handles what is there

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  15. They will primarily keep on focusing on Croatia, where they are actually really printing money!

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  16. Their BEG presence is laughable. Flights from 1 destination for a month and a half. But then again BEG is really well connected to Germany. JU flies to Berlin, Dusseldorf, Frankfurt, Hamburg and Stuttgart. Lufthansa flies to Frankfurt and Munich, and Wizz flies to Dortmund, Hannover, Karlsruhe, Hannover, Memmingen and Nuremberg.

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    1. There is nothing left for them to launch from Germany. It is really well connected to BEG and there is no need for more German flights.

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    2. That is why they should focus on INI instead.

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    3. They could start flights from their base in Vienna to BEG.

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    4. LH is big at BEG, expect Eurowings on DUS-BEG

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    5. Don't they also fly from Friedrichshafen and Baden Baden?

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    6. Yes, you are right I forgot Friedrichshafen. Karlsruhe is Baden baden.

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    7. Cool, thanks for the clarification. Are all these German routes served two times per week?

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    8. They wont be launching any new BEG flights. The CGN-BEG route was cancelled due to very poor yields. With these yields only Ryan and Wizzair can make money, or at least get near making money.

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    9. Or maybe they won't be launching any flights to BEG because it is the most connected ex-Yu city with Germany and there is nothing left to fly.

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    10. Well if demand and willingness to pay were there, they certainly would fly in competition.

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    11. Hmm... Germanwings operated the CGN flights, not Eurowings.
      Also, Lufthansa is upping its presence in Serbia this winter meaning that the willingness to pay is there.

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  17. INI yet again proving to be one of the fastest growing airports in ex-Yu.

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    1. +1
      I wonder what route we will see there. Maybe they will attack FR with flights from VIE or TXL.

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    2. They will not attack FR since they know that the purchasing power in Serbia is very low and they do not stand a chance winning against FR. Many people here describe them as too expensive although their avarage fare is around 70Eur.

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    3. You've written 5 comments already how Serbia is poor. We get it. Get over yourself.

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    4. Why do you feel insulted? Its a discussion and it is obvious why Ryan and Wizzair are big in countries with low purchasing power. This topic is about EW and they need higher yields which makes it difficult for them to make money and launch new routes.

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    5. If Serbia is so poor then how come LX flies out of INI full in both business and economy class? That despite competing with Germania.

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    6. @10.55 Ryanair has the biggest market share in the most developed western European countries.

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    7. @ anonymous 10.56
      Probably because the flights are filled by those living in Switzerland? Serbs are one of the biggest diaspora in Switzerland. So the average Nis citizen is not flying to ZRH to enjoy holidays there. Those flights cater primarily to VFR.

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    8. Last anon,

      So? It still doesn't change the fact that LX does exceptionally well in INI.
      Next year the airport should hit half a million passenger and from there it starts to slowly become a true player.

      Also, don't forget that FR will be launching NYO which is great. They are most likely going to add more flights around the holidays like last year

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    9. Any news on Wizz and INI? Have they published their winter schedule?

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    10. You are right but I was not speaking about the performance of INI but about the willingness to pay and the related topic why I personally think it might get difficult for EUROWINGS to start flights to destinations like Berlin and Vienna/Bratislava that are both served by FR. It was an answer to anon 10.23.

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    11. It depends what they are after, if they want to attack FR then they will most likely look at those markets. VIE is slashing its charges meaning that INI VIE is now more likely than ever before.

      Besides TXL, DUS and VIE I don't know what other market they could/would consider.

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    12. Leoni just opened a factody in Nis, this will increase premium demand, go INI

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    13. What's Leoni?

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    14. https://www.leoni.com/en/

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    15. Nice. Hopefully next year we see some charters out of INI

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  18. Interestingly from PRN they haven't expanded for quite some time. In fact they reduced ops. Last winter they cancelled Berlin.

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    1. There is a lot of competition for German flights in PRN.

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    2. Competition is not that much of an issue as is the fact that Pristina is expensive for low cost airlines.

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  19. When will they start selling tickets for new flights?

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    1. Last year they started selling tickets for their new Croatia and Tivat flights in December.

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  20. Ima li sanse da ostane poneka linija cijelu godinu iz Dubrovnika?

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  21. Launch Tuzla Flights!!!!

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    1. Not sure Wizz would allow it.

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    2. They have a say?

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    3. They certainly seem to have had one at SKP when Ryanair announced it would launch flights.

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  22. I flew Pula-Munich end of June for 29€ (LF was around 40%) I hope they have improved since then. It is a new route though, takes some time.

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    1. Yes, but with 40% LF they could actually make money on that route. It is so ridicularly short.

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    2. possibly yeah. I enjoyed the flight so much tho.

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    3. Was it an Airbus or a CRJ?

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    4. one of the A320 leased from AB

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  23. Anyone know what Eurowings' market share is in Croatia at the moment?

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    1. Around 7% from what I heard.

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    2. Any idea on which LCC has the biggest share of the Croatian market?

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    3. Yes, easyJet. They have like 50% share on the coast.

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    4. It's crazy that they still don't fly any year long flights to Croatia.

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    5. Because they are not carrying locals, they are bringing in foreign holidaymakers who are going to the coast. When Brits start swimming in the Adriatic in October and February then we might see some year round flighte

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    6. EW has 10% (+3% vs last year) of market share in Croatia. OU has 27% (-3%), U2 10% (+2%), FR 5% (-1%), DY 5% and LH 5% (+0%)

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    7. The coast is very different

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  24. As they keep growing their fleet, we will definitely see more of them in ex-Yu. There are a lot of untapped opportunities in the region.

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  25. Such a shame LH didn't launch SKP instead.

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    1. Didn't Lufthansa used to fly to Skopje some time ago?

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    2. 2001, briefly. MUC-SKP

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  26. What I have always found interesting is how limited Lufthansa is in the region. Only Slovenia, Croatia and Serbia with 1 route to Sarajevo too.

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  27. Lufthansa itself is quite strong in Croatia!
    They fly double daily to both FRA and MUC, daily to DBV and SPU from MUC, 5/7 with 321 from FRA to both SPU and DBV, twice a week from FRA and MUC to PUY and twice weekly from MUC to ZAD. Morover they have all the codeshares with OU.

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    1. Well, that's not surprising to say the least.

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  28. I flew recently VLC-STR-VIE with EW. First leg was with their own A319 which is a joke comparing to AirBerlin A320 they were utilizing on STR-VIE sector (leg room, cabin wise, quality of seats etc).

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  29. huh, it seems there is never an easy days for our national carriers

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    1. It will only get more difficult :)

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  30. OT:

    Visitors on this blog many times ask questions like: "Why would a passenger from Europe fly back to BEG/ZAG and transfer to another European destination from there if there are already direct flights from the departure point, or he/she can simply use one of LH's hubs in Central Europe and arrive faster...?"

    Let me share with you a fresh experience from a LHR-IST flight with TK.

    It was a 10pm flight (7pw), arriving to IST at 4am to catch the morning wave of connected flights. An A321 was filled literally and absolutely to the last seat (business class included). At the gate I noticed a lot of people with strong (South American) Spanish accent and once on board, I realized at least half of passengers were South Americans who among themselves talked a lot about Argentina :)

    I asked one of the FAs how come so many pax were South Americans (couples, families, elderly people, all demographic types). The answer: "They are transferring to Buenos Aires in Istanbul. They will catch TK15 to GRU/EZE, departing at 9:30am. Sometimes there are so many of them, we upgrade this flight to an A330."

    So it seems that every week a couple of hundred passengers from London decide to fly 4 hours to Istanbul, wait there for 5 hours, then take an 18-hour journey to EZE (with a stopover in GRU) and finally get to their destination 27 hours after departing. A direct BA flight LHR-EZE takes 14 hours.

    Just to illustrate how - if driven by the financial moment or personal agenda - some people easily do things that for some other people totally make no sense.

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    1. Inčeresting.

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    2. Do you know how expensive and direct flights from LHR (long houl) are?.Lots of people are going the extra mile to AMS or DUB and start there (even with BA, transiting through LHR)

      Im not surprised some of them taking TK.

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  31. Lufthansa thinks ex-yu is not good enough for its mainline airline. That's why they send Eurowings instead.

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    1. Yeah I'm sure that's why...

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    2. Hmm they don´t think this for Croatia obviously with their 9 daily flights.

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    3. And how many daily flights does eurowings have to Croatia?

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    4. not as many as easyjet ;)

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  32. Alen Šćuric PurgerJuly 31, 2017 at 5:21 PM

    Štrajk u Croatiji 8.8.

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    1. OU business results for the first 6 months are really good (including selling slots at LHR, of course)

      +10% in pax numbers

      http://www.poslovni.hr/domace-kompanije/croatia-airlines-ostvario-426-milijuna-kuna-neto-dobiti-u-prvom-polugodistu-330581

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    2. koji su zahtevi u igri, osim plata

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    3. Potpisivanje novog kolektivnog ugovora.

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