A recently approved code-sharing deal between Lufthansa Airlines and United Airlines should boost revenue at United by about $90 million, according to Graham Atkinson, senior vice president of international operations.
That’s important money for United, which is searching every corner for more revenue.
The two airlines said they will share revenue on North Atlantic flights, align pricing and coordinate schedules.
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“This new level of cooperation with Lufthansa is a critical component in United’s recovery because of the additional revenue it will generate for both carriers,” Atkinson said.
While United and Lufthansa were founding members of the Star Alliance, they had been prevented from cooperating on the European end of their flights because the alliance had not received approval from the European Union. EU officials approved the alliance last month.
New airline to launch: Seeking to blunt the impact of low-fare carriers, Delta Air Lines could announce as early as next week a low-fare, airline-within-an-airline.
According to Jamie Baker, airline analyst for J.P. Morgan Securities, the new airline is a “direct response to the continued proliferation of low-fare, low-cost airlines in key Delta markets.”
The new carrier will be in addition to Delta Express, the current low-fare carrier that Delta operates in some markets. Delta officials apparently believe Delta Express’ operating costs are too high to let the firm compete effectively, according to Baker.
Delta faces intense competition from Southwest Airlines, which has been expanding along the Eastern Seaboard; AirTran, an Orlando-based carrier that uses Atlanta as its hub; and JetBlue, the New York discount airline that is winning rave reviews from business travelers. All three airlines have been grabbing market share from Delta.
Leo Mullin, a former Chicagoan and Delta’s chairman and chief executive, has warned that he won’t continue allowing competitors to cut into Delta’s markets.
In September, he proposed creation of an alliance between Northwest Airlines and Continental Airlines, to blunt the impact of the recently approved alliance between US Airways and United Airlines.
Delta spokeswoman Katie Connell said the airline plans to provide additional details by the end of the month.
A `nutty’ request: Even in these times of financial turmoil for United Airlines, at least one Boeing 777 pilot is demanding the airline remember who and what is important.
In a message to the airline’s operations center, the pilot wrote: “Once again IAD (Dulles International Airport) catering is dropping the ball on crew meals. They are boarding plain cheesecake with no topping of any kind with the crew meals. I have been told that crew meals get the same dessert as business class. Business class … this day got cheesecake with a caramel nut topping.”
A spokesman for United, which has said it faces bankruptcy and is asking the Air Transportation Stabilization Board for a $2 billion loan, declined to comment.
New O’Hare service: Grupo Taca, an El Salvador-based international airline, begins service between Chicago and Guatemala City on Saturday. The airline will offer flights on Mondays, Thursdays and Saturdays.