Growth focus is transatlantic this year - Lufthansa CEO
Thursday, March 13, 2014 - 04:29
Mar. 13 - Lufthansa CEO Christoph Franz says the biggest growth opportunities this year lie in transatlantic routes to the US and Latin America, despite the threat of competition from low-cost carriers.
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Mr. -- the times issued a positive set of results today and gave an optimistic outlook for the year. What causes you must consent is a slowdown in China emerging market problems in Ukraine or tacky or is it possible strikes at Frankfurt airport. I think basically all of the elements which you have described of those elements which we face every year so this is not something. I'm really. Deeply concerned because this is the flexibility. Which we have in the company to react with regard to political. Trouble with -- -- to a slowdown in economic development go through price volatility. Which is really seriously. Concerning. Is the political framework we -- acting in here in Europe because we feel. That's you know industry is set top player has around -- Not committing to the same social. And Linda Davis status as we -- used to here in Europe. We have special Texas whereas in other areas of the world's the aviation industry is seen as a growth driver as a motive for employment. And so this is not get reflected in our but he framework and that we need change. -- -- and then fuel costs make up -- -- Part of Costa and lions. Pupils have been coming down. What are your pitching plans a 2014 and 2015 how do you see if you -- developing the ship. Basically and and we have a fuel hedging policy in plays. Because if I would be able to predict the development of fuel price I would probably not be working in this industry. What is all of the essence for the Lufthansa group with our fuel hedging program that beat by time in order to react. So the fuel price goes up we have to increase so. Surcharges if the fuel prices coming down we will also react about lowering surcharges. The flexibility and the time he needs to implement the countermeasures in the market that's what we need and this is the reason why we have this. Very comprehensive fuel hedging program in place. Okay and looking at Asia and in recent Asia and coming under pressure in terms of fields. Am but wet the areas geographically that I'm not coming under so much pressure which you see is the most promising areas for the Lufthansa group to achieve group from the future. Basically we. Have seen a very positive developments on the transatlantic. At trial. At travel. Area and -- this is also in 2014. Probably a very strong area where we see. Along gulf. They yield stability and also some growth opportunities. The same is true probably for Latin America. With a strong growth. Africanized some Aaron Rouse is growing. And a high speed -- -- area are still very sluggish so there's selective approach. And also within Europa. Certain recovery of the economies we see again growth showing up in want to benefit from it. -- -- Atlantic -- you just mentioned are you know worried about increased competition from low cost carriers or even Norwegian. This is flying to New York these days and also delta seems to really upped its game on on transatlantic -- as well. The overall capacity on the North Atlantic -- shows a very reasonable capacity development compared to what we see in the Asian traffic for example. So -- there -- some new guys. A rounds and though there are some it is some growth coming up. It is. Digest a Villa and is probably the Internet all those magnitude which is not destroying the humans we have to. The -- -- and a final question this is your final set of annual results for Lufthansa. What -- top piece of advice for mr. spore when he takes over for me. I'm very reluctant to give advise to my colleagues but clearly. And since he isn't very had valuable. Strong a member of -- management bought he has developed a lot of our activity is. And I'm sure that he will continue the way forward because he was. Very instrumental. Off. From developing these kind of targets. And that this probably all it needs.
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