Wednesday, November 7, 2007

Lufthansa-Air Canada

Lufthansa & Air Canada have officially announced a major Canadian expansion which will start in Summer 2008. The main highlights are as follows :

YYC - new nonstop daily flights by LH flights start on April 14th using a three class A 333 from FRA.

Flight timings are as follows :
LH 494 FRA 1110 - 1250 YYC
LH 495 YYC 1445 - 0755+1 FRA

YOW - new nonstop daily flights by AC to FRA start from June using a B 763ER.

Flight timings are as follows :
AC 838 YOW 1935 - 0855+1 FRA
AC 839 FRA 1415 - 1645 YOW

YUL - upgrade in capacity for the seasonal LH operated flights from MUC. Previously, an A 343 was being used for this route, but from next summer it will be an A 346.

In addition, other new long haul routes for Summer 2008 were also announced by LH.

SEA - new daily nonstop flights to Seattle, USA from March 30th 2008 using a 3 class A 333. Flight timings are as follows :

LH 490 FRA 1005 - 1120 SEA
LH 491 SEA 1430 - 0925+1 FRA

SIN - new 5 weekly nonstop flights from Munich using an A 343 from 8th June 2008.

Analysis :

This is a brilliant move by LH to launch YYC & SEA as both markets offer immense high yielding traffic potential in the premium cabin as YYC has the oil/energy market to exploit where as SEA has the IT/Software industry to tap into. LH have purposely timed their YYC flights to connect with their key oil markets in Africa and the Middle East as these type of pax are the highest yielding ones flying full fare F & J class & most of all they can obtain AEROPLAN points. From YYC, their main threat is BA who offers a superior F & J class product on board its B 777-200ERs but lacks the variety of connections that LH can offer via FRA across its network.

As far as AC's YOW-FRA route goes, off line carriers such as GF/QR/KU/EK/UL/MEA stand to benefit with AC's new YOW-FRA flight as it provides them a new nonstop EU gateway from the YOW market to extract passengers from. It has been mentioned before that AC's YOW-LHR flight is its most profitable trans-atlantic service.

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