Eurowings: Wet lease of airberlin A320s a challenging task

Eurowings Europe, which is adding 33 wet-leased airberlin Airbus A320s to its fleet by the end of April, said the additional aircraft will create operational challenges for the Lufthansa Group low-cost subsidiary (LCC).
Eurowings MD Michael Knitter told ATW that one of several challenges facing the LCC is training airberlin flight attendants to Eurowings standards. “We started cabin crew training on Jan. 10. Airberlin needs five to six crews per aircraft. Also, at the same time, we have to bring together two different operations [airberlin and Eurowings fleets] into the same traffic control center,” Knitter said.

On Dec. 16, 2016, Lufthansa Group and Abu Dhabi-based Etihad Aviation Group finalized a codeshare deal and a six-year wet-lease agreement for 38 airberlin Airbus A319/A320 aircraft operating for Eurowings and Austrian Airlines. Of the 38 former airberlin aircraft, Eurowings will operate 33 and Austrian Airlines will operate five. Abu Dhabi-based Etihad Airways has a 29.2% stake in oneworld member airberlin.

Another challenge Eurowings faces is to sell additional seat capacity from the wet-leased fleet. “Eurowings is growing faster than the [European aviation] market itself,” Knitter said. “For example, we also exchanged 90-seat Bombardier regional jets with 180-seat A320s. In addition, every week six A320s [from airberlin] will join our operations.”

Knitter said consolidation in the European aviation business creates opportunities. “However, we have to manage to sell our additional capacity. In 2016 we transported 9% more passengers compared to the year before.”

Four of the 33 wet-leased A320s will be based in Munich, two will be based in Palma de Mallorca, and the remaining airberlin aircraft will be used to expand existing bases.

“The wet-leased airberlin aircraft creates new action options for us,” he said.

Several German media outlets have speculated that Lufthansa could consider taking over airberlin completely. Lufthansa Group chairman and CEO Carsten Spohr told ATW on the sidelines of the company’s digital aviation forum in Frankfurt Jan. 10 that selling airberlin—no matter to which type of investor—would be very difficult.

“First, the debts of airberlin are much too high to attract an investor. Besides that, airberlin’s [operating] costs are still too high. Also in terms of competition [authority] cartel, this could create a problem,” Spohr said. Airberlin has debts of about €1 billion ($1.05 billion).

Kurt Hofmann hofmann.aviation@netway

Photos:Pedro Filipe - Duss