Budget Airline News

Air Berlin Improves Revenue

Over the first seven months of 2008, Air Berlin transported 5.1 percent more passengers than in the corresponding period of the previous year. The number of passengers welcomed on board increased from 15,615,031 to 16,403,054. Fleet capacity utilization for the seven-month period rose from 75.6 to 78.1 percent, i.e. an increase of 2.5 percentage points over the corresponding period of the previous year.

For July 2008, the company recorded a significant increase in revenue per available seat kilometer. Capacity was reduced by 40,000 seats (= 1.1 percent). As a result, the number of passengers traveling on Air Berlin sank by 1.4 percent to 2,908,018 (07/2007: 2,948,315) and capacity utilization decreased from 83.6 to 83.3 percent, i.e. by 0.3 percentage points. However, flight revenue per available seat kilometer ("Yield per ASK") increased by 14.6 percent to reach 5.86 Eurocents (07/2007: 5.11 Eurocents).

As Air Berlin’s CEO Joachim Hunold stated in Berlin on Wednesday: "The figures for July clearly demonstrate that our efficiency program has taken off – the more so that our clients value our good price-performance ratio."

Air Berlin: Book Now For Summer 2009

Air Berlin is releasing flights for summer 2009, which passengers can book now. This means that passengers flying with Air Berlin from Germany, Austria, Switzerland and Denmark can already choose from around 300 weekly direct flights to Palma de Majorca, from 24th July 2008. Further flight connections to Palma de Majorca will follow. Numerous continuation flights from Air Berlin’s Palma hub to the Spanish mainland are also available for booking.

The summer timetable starts on 3rd April 2009 and ends on 31st October 2009.

Air Berlin To Cut Routes As Fuel Crisis Deepens

Air Berlin, Europe's third largest budget airline is to cut several routes from its network in response to the growing fuel crisis.

The German airline has also abandoned its full year profit forcast claiming that profits will be "adversely affected" by spending on fuel.

Air Berlin To Go Bust Unless Oil Prices Drop?

Outspoken Ryanair boss Micheal O'Leary has told a German Newspaper that rising oil prices will force several budget airlines into bankruptcy over the next 12 months.

According to O'leary German budget airline Air Berlin is one of the carriers facing bankruptcy if oil prices do not drop soon.

O'Leary claims that within five years the German market will be shared by Ryanair and the German national carrier Lufthansa.

Air Berlin – Racking Up Awards And Going Long Haul In 2008

Air Berlin's consistently excellent service has won it warm praise and a new clutch of awards from a broad range of UK consumers and travel professionals in 2007. Accolades awarded this year acknowledge Air Berlin's unique reputation as a low-cost carrier offering a constantly high level of service.

Awards in 2007 include best Short Haul Business Airline in the Business Travel World Awards -a first for a low-fare carrier. Air Berlin was highly commended at the Travel Trade Gazette awards for best leisure airline and was one of just three airlines to win a prestigious Daily Telegraph Readers' Award. Air Berlin was also honoured as best airline in both the Skytrax World Airline Awards and the World Travel Awards.

Moving into 2008, Air Berlin is one of the proud finalists in the European Business Awards 2008 where it has been recognised for its excellent service levels whilst providing lower fares.

In May 2008, Air Berlin will commence new long haul services to both Shanghai and Beijing. UK passengers will benefit from Air Berlin's attractive pricing and service levels flying from London Stansted via Air Berlin's hub at Düsseldorf.

Titus Johnson, Air Berlin's Country Manager for the UK and Ireland comments: "Air Berlin has clearly created its own segment in the market by offering a full quality service at lower fares. It is encouraging that consumers and travel professionals alike have awarded and commended Air Berlin for these excellent service levels. We look forward to offering the same award-winning service on our new long-haul network from the UK in 2008".

Book Early At Air Berlin For Best Winter 2008/2009 Fares

Air Berlin is already taking bookings for flights for the 2008/2009 winter season and advise passangers to book early for the best priced flights.

Early bookers can secure reasonably priced Majorca flights from 49 Euros including taxes, charges and service with immediate effect. Connecting flights to 17 destinations on the neighbouring islands, the Spanish mainland and in Portugal can also be booked with immediate effect.

Non-stop connections to Spain can also be booked now. These include flights from Berlin-Tegel, Hamburg and Düsseldorf to Barcelona.

The winter flight schedule starts on 1st November 2008 and ends on 26th March 2009.

Air Berlin creates new engineering company

The tariff agreement with ver.di trade unions has cleared the way: 600 people who have been working for LTU in Düsseldorf and Munich and for Air Berlin in Düsseldorf will now be working for "Air Berlin Luftfahrttechnik Düsseldorf GmbH", under the umbrella of "Air Berlin Technik Ltd." (London). They will shortly be joined by the 130 employees from dba-Technik in Munich. "Air Berlin Technik Berlin GmbH" will also be part of the group, which will then have 1,100 employees.

The plan is that this new, independent technical division will not only be servicing the Air Berlin fleet, consisting of 130 aircraft, but will also be developing further third-party business. Air Berlin is hoping that by merging these technical operations it will achieve better utilisation of the facilities at the individual sites and a reduction in technical costs. The intention is also to separate these activities from seasonal flight operations.

On Thursday, Air Berlin’s chief executive officer, Joachim Hunold, made the following statement in Berlin: "By setting up an independent Air Berlin engineering section, we are not only creating potential growth for third-party business with airlines outside the group, but also securing a proportion of the synergies amounting to between 70 and 100 million euros per annum, which is what we are expecting from our acquisition of LTU. This is a decisive step to increase cost savings and competitiveness."