Lufthansa Italian regional Air Dolomiti (EN) is facing challenges in Italy’s tough economy environment. CEO Michael Kraus told the market has weakened since November.
EN recorded a 1.2% passenger growth in 2011, down from between 5% and 7% in recent years. Kraus said that 80% of its business is feeding Lufthansa hubs from Northern Italian airports, especially to Munich. Weakened demand reduced its January schedule by 4%. “I can’t give an outlook for 2012 but we are relatively stable regarding our yield,” he said.
Some of EN’s Embraer fleet will be repurposed for charter flights; the carrier is also evaluating new routes.
Kraus said that “just operating into hub transfer business is not enough anymore” and the carrier needs something new. Nevertheless, he said costs are under control. “We are also under pressure regarding our onboard service. Every euro has to be calculated, we have to ask ourselves, is our product still good for our benchmark?”
He said that business travelers account for 65% of its business. “We have to grow, and this should happen with bigger volume [bigger aircraft],” he said.
EN operates five Embraer E-195s and 11 ATR 72-500s. The carrier was founded in 1989 and serves 22 destinations, 16 in Italy. EN transported 1.66 million passengers in 2011.
Article Source : ATW Daily News
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