| Joachim Hunold (CEO of Air Berlin) November 2007 |
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Could you please present Air Berlin to our readers? What are your specificities compared to other European LCCs? What do you do better than your competitors? From the most comfortable,modern fuel efficient aircraft, to inflight menus created by the famous Sansibar restaurant, Air Berlin’s processes are driven with the customer in mind. We firmly believe that quality produces efficiency, by delivering the best product in the market sector and achieving customer retention. The market has understood our strategy and continues to reward us with a consistent buying interest on the stock market. After initial concerns, experts now consider the “Air Berlin model” as exemplary for the sector. So far, we are the only German hybrid carrier, namely a carrier that uses all conceivable sales channels, thereby making itself less dependent on seasonal fluctuations. In the future, we also plan to grow faster than the market in which we do business. For a long time, Air Berlin has considered this market to embrace not only Germany but Europe as a whole How do you analyze the competition in Germany with German carriers (TUI, Condor, Germanwings…)? And especially with Ryanair, easyJet and other LCCs? Which LCC is for you the main competitor? Every airline to fly on the same routes as we do is a competitor. Competition can be tough, but it has to be fair – if so, it is good for the business, and can be furtherer of innovation. In Germany, we are the second biggest airline, in Europe the third biggest Low Cost Carrier – but all in all: we differ from every other airline in Europe. We offer much higher customer service levels than all other European Low Cost or Low fare carriers, and most of Europe’s National or legacy carriers. What is your position on environmental issues concerning European LCCs? Air Berlin is aware of its responsibility for environment-friendly behaviour and adheres to policies designed to keep emission levels as low as possible. One of the central elements of Air Berlin’s environmental commitment is its fleet policy. Our company operates one of the industry’s youngest fleets. Almost all aircraft are fitted with Winglets or Wingtips, to improve the wings’ aerodynamics and contribute to reduced fuel consumption up to 3%. Moreover, the new Air Berlin aircraft also are considerably quieter than comparable other aircraft. The European Low cost carriers market has reached a certain maturity which leads to its consolidation. During this transition, what are, for you, the greatest threats to the European Low cost carriers? Fuel rising? Overcapacity? Evolution of airports? Regulation?... What are your expansion projects for the coming year(s)? Many LCCs look after extra-revenues to offset the low price of their tickets. What are the projects of Air Berlin in terms of Extra-revenues? We successfully integrated additional meals and high-quality service, such as the on top gourmet “Sansibar” meal, which has become very popular among our customers. Additional in-flight products or tickets for ground transportation and our premium partners for our frequentflyer program Top Bonus are further examples from which we and our customers will profit. I think there might be more consolidation, not only in Germany, but also in Europe. There are a lot of low-cost carriers and you don’t know how long they will last and some flag carriers are in a very weak position. Look for example to Austria or Italy. Are you worried about the shortage of pilots and crew hitting LCC market? As we started this year with our own flightschool we can secure our need of pilots. What are the options for Air Berlin to transform its business model in order to make more costs savings? Our expansion and the thereby resulting joint market presence offers cost-cutting potentials and positive synergies. |
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