Hamburg Airport

German airlines adjust strategies as outlook darkens

Germany’s two largest airline groups, Lufthansa and Air Berlin, have announced wide-ranging measures to either preserve profitability, in the case of the former, or restore profitability, as they grapple with a gloomy regional economic outlook. Air Berlin, sandwiched between the low-cost and full-service space, will reduce its exposure to the struggling German leisure segment, which has been on a downward spiral all year.

Germany, the de facto leader of the European Union and a major underwriter of the bailout packages as a large holder of European sovereign debt, has been hit with renewed, and increasing, recession fears. German investor confidence fell to its lowest in more than 2.5 years in Sep-2011, the ZEW Center for European Economic Research said on 20-Sep-2011.

Air Malta troubles worsen as unions flex muscle and LCCs grow

Air Malta’s troubles have become more acute as the struggling carrier’s unions increase their opposition to large-scale redundancies. Prime Minister Lawrence Gonzi has stated the present situation is increasingly worrying, particularly in light of the EUR77 million the government has poured into the airline since Jun-2011.

Ryanair in the dock

Ryanair may have to repay millions of euros as Germany’s highest court ruled fees it has received to operate from airports may amount to subsidies in breach of EU competition rules. Lufthansa and airberlin have been awarded the right to pursue legal action accordingly. Together with the other difficulties the Irish airline faces in Germany could this be the beginning of the end for its operations there? Or might there be even more significant outcomes?