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Home » Etihad » Etihad and Lufthansa Announce Closer Partnership
EtihadLufthansaNews

Etihad and Lufthansa Announce Closer Partnership

Matthew Klint Posted onFebruary 1, 2017February 1, 2017 7 Comments

In a joint press conference with Etihad CEO James Hogan and Lufthansa CEO Carsten Spohr, the two carriers announced a strengthened codeshare agreement, terminal relocations for Etihad in Germany as well as new LSG Sky Chefs and Lufthansa Technik contracts with Etihad. No merger or Star Alliance membership for Etihad…just yet.

The Press Conference

Held in Abu Dhabi, the press conference began with the sort of video (below) that typically precedes a merger announcement, highlighting the fleet and onboard product of first Lufthansa, then Etihad.

Hogan then began with a “housekeeping mater” in which he defended his tenure at Etihad and re-asserted that it was a “mutual decision” for him to step down.

Corporate doublespeak aside, here is what we learned this morning–

  • Expanding codeshare agreement – the codeshare agreement between Etihad and Lufthansa will expand to include more parts of Germany for Etihad and the Middle East and Indian Subcontinent for Lufthansa. The mutual goal is to eventually expand the codeshare agreement to Lufthansa’s South American routes as well. Etihad does not serve South America outside of São Paulo.
  • Etihad will move into the Lufthansa terminals in Munich (MUC) and Frankfurt (FRA) – the move will allow for “more seamless” transitions between the two carriers
  • A 4-year 100MN USD global catering contract between LSG and Etihad – LSG will become the primary catering provider for Etihad outside of Abu Dhabi in 16 cities
  • Lufthansa Technik and Etihad have signed a memorandum of iderstanding (MOU) for LH Teknik to provide maintenance outside of Abu Dhabi

Interesting Commentary from Lufthansa CEO

Calling today’s news the first step in developing further opportunities, Spohr highlighted the 20th Anniversary of Star Alliance and noted its “success” and “diversity” in 28 member carriers around the world. But he then added, “Star Alliance is only one of our approaches to partnership” and mentioned Lufthansa’s joint-venture agreement with United and Air Canada to North America and with ANA to Japan. He also mentioned a new partnership between Lufthansa and Air China and another with Singapore Airlines. Finally, he mentioned a partnership between Lufthansa Cargo and Cathay Pacific Cargo. Cathay Pacific, of course, is in the oneworld alliance.

Both Hogan and Spohr used the “synergies” and “seamless” keywords that seem to inevitably foreshadow greater cooperation. Might Star Alliance membership be in the cards? Hard to say — Lucky addressed the issue nicely yesterday. There are just as many reasons against it as there are for it. During the question time, Hogan was asked if this partnership will lead to a JV agreement and his response was “perhaps” and that there are “other ideas” as well.

Spohr added that Lufthansa has not changed its position on opposing subsidies for airlines, calling on airlines to be bound by the World Trade Organization (airlines are not currently). Walking a fine line, he conceded that it was possible for partners to have opposing positions on this issue. He fiercely defended globalization in what a reporter called an era of looking inward and condemned protectionism, arguing the airline industry must push globalization beyond aviation itself.

Slides and Photos from the Etihad/Lufthansa Press Conference

The press conference lasted for about 30 minutes and included a number of slides which I have included below–

Lufthansa Etihad Press Conference 01

Lufthansa Etihad Press Conference 02

Lufthansa Etihad Press Conference 03

Lufthansa Etihad Press Conference 04

Lufthansa Etihad Press Conference 05

Lufthansa Etihad Press Conference 06

Lufthansa Etihad Press Conference 07

Lufthansa Etihad Press Conference 08

Lufthansa Etihad Press Conference 09

Lufthansa Etihad Press Conference 10

Lufthansa Etihad Press Conference 11

Lufthansa Etihad Press Conference 12

Lufthansa Etihad Press Conference 13

Lufthansa Etihad Press Conference 14

CONCLUSION

While the news will not upend the airline landscape, the closer working relationship between Etihad and Lufthansa would have been unthinkable in the not-to-distant past. That a Gulf Carrier and European legacy carrier are now working closely together represents a notable shift in the airline world. I expect the partnership to grow deeper.

You can watch the full press conference here:

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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7 Comments

  1. Pailista Reply
    February 1, 2017 at 8:30 am

    If Etihad does not serve South America,where Sao Paulo is located?

    • Matthew Reply
      February 1, 2017 at 10:15 am

      Cute comment…

  2. MeanMeosh Reply
    February 1, 2017 at 11:27 am

    You’ve got “Untied” again in the first paragraph under “Interesting Commentary”. If I don’t know better, I’d say you’re sending us all subliminal messages to visit everyone’s favorite United-hating website. 🙂

    I’d still guess that Star Alliance membership for EY is a long-shot, even if it isn’t a bad idea. The newspeak subtly hints at it, but I’d imagine unwinding all of EY’s other partnerships would be unwieldy to the max.

  3. Pingback: Details Of The Expanded Partnership Between Etihad & Lufthansa - One Mile at a Time
  4. Pingback: Lufthansa and Etihad Inch Toward Closer Ties | Cranky Flier
  5. Pingback: Lufthansa ile Etihad, İşbirliğini Geliştiriyor | Havayolu 101
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