Editor's Notes: Lufthansa is now the leading air carrier between China and Europe, with 52 weekly non-stop flights. As an aviation group, the company is very active in China with Lufthansa Cargo (logistics), LH Technik (aircraft maintenance), LSG Sky Chef (catering) and LH Systems (IT Systems services) all among the top runners in their respective fields.
In celebration of the company's 80th year in China, Lufthansa Chairman and CEO Wolfgang Mayrhuber led a delegation of senior executives and other VIP guests to the country for a series of events highlighting Lufthansa's confidence and commitment to China.
While in China Mayrhuber was able to spare some time to talk to China Daily reporter Lu Haoting, telling her about Lufthansa's ambition and strategy in China.
Q: Lufthansa's business in China now covers passenger flights, cargo, aircraft MRO (maintenance, repair and overhaul), catering, and aviation information technology services. Which one is your largest revenue source? And which areas will Lufthansa focus development in China on in the near future?
A: Lufthansa, as an aviation group, has an active engagement in China. Each business unit is a leader in its own sector in the service chain of air transportation. Lufthansa will continue to enhance its investments in the market working closely with its partners.
Currently, our passenger business plays the major role in generating group revenue. In China, we now run passenger, cargo, aircraft maintenance, catering and IT systems service. And they are all top runners in their respective fields.
Last Month, we inaugurated Jade Cargo, and recently Ameco
Beijing announced plans for a A380 hangar and hosted the Cornerstone Ceremony. Our prospects are very bright.
Q: What kind of role does China take in Lufthansa's global strategy?
A: For us, China is an extremely important market with a great future.
Today, no other European airline already offers such a wide range of connections between Europe and China. In the last five years, we have more than doubled services to the Chinese mainland and
Hong Kong from 24 to 52 flights per week. Lufthansa today flies more frequently to China than to Japan.
In terms of the number of intercontinental connections, China is the number two in the Lufthansa network behind the US.
We want to strengthen our position in the next few years and expand together with our partners. Our co-operation with Air China has really proved itself and Lufthansa has acquired a high level of market competence in China in recent years, which will pay off in the future.
Mutual reliability, professionalism and a high degree of fairness are the foundation of our joint venture with Air China. It is an outstanding example of successful German-Chinese co-operation.
Lufthansa is well prepared to face the competition with our extensive flight schedule, operative stability, reliability, punctuality and the many connections for ongoing flights into China's interior which we offer.
At Lufthansa we have the right blend of services to continue to grow further and faster in China's airline business than our competitors.
Q: Will Lufthansa increase its capacity in China this year? What is Lufthansa's core strategy in China?
A: Lufthansa already has a strong presence in the Chinese market. We have daily direct flights from Frankfurt and Munich to Beijing,
Shanghai and
Hong Kong and from Frankfurt to
GuangZhou a total of 52 flights per week.
Via code-share agreements with our new Star Alliance members, Air China and
Shanghai Airlines, Lufthansa can offer flights to another twelve destinations.
Among European airlines we are the market leader in flights from Europe to China, with a share of 14 per cent of the total seat capacity.
The target we will set ourselves over the next few years is to consolidate our leading position and grow faster than our competitors.
The quality of our network planning will be the deciding factor as to whether this goal can be accomplished.
Q: What are your plans for Lufthansa's future expansion in China?
A: Lufthansa aims to participate in the growth of China's aviation industry by exploring the many opportunities offered in one of the most dynamic markets in the world. The airline remains committed to its investments and will continue to enhance its bilateral partnerships.
Lufthansa continues to pursue major objectives in its involvement in China.
The airline wants to grow further and consolidate its position as the leading foreign airline.
To this end, as soon as it goes into service with Lufthansa, the huge new Airbus, the A380, will be used to increase the capacities of our Chinese routes probably on routes to
Beijing and Shanghai.
In addition, Lufthansa is giving strong support to the integration of Air China and
Shanghai Airlines as members of the Star Alliance.
Lufthansa is also continuing to push for the further development of code-share agreements, in order to open up China even more effectively for European visitors. For the 2008 Olympics Lufthansa expects a further significant increase in passenger volume.
Q: Last year when we interviewed Ameco Beijing, we heard that the company's new multi-bay line maintenance hangar, which can simultaneously accommodate two A380s, two Boeing 747-400s and two 777-300ER aircraft, will be completed in 2006. How is the project going? What kind of maintenance services will Ameco
Beijing provide to A380s at
Beijing Capital International Airport?
A: As
Beijing airport opens a third runway and third terminal in 2007, Ameco will also be opening a new maintenance hangar, especially for its main customer, Air China.
The new hangar has been designed right from the start to accommodate our new flagship, the A380.
The Airbus A380 will have a special role in the traffic between Europe and China that is experts' unanimous opinion.
Therefore, Lufthansa is planning to be the first European airline to operate the new mega-liner on its high-volume routes to China. Network strategists are currently examining three possible destinations in China for our A380s: Beijing,
Shanghai and Hong Kong.
Q: Ameco
Beijing is a major joint venture between Lufthansa and Air China. How do you feel about its development over the past 17 years?
A: Ameco
Beijing was established in
Beijing in 1989. It is a leading maintenance, repair and overhaul (MRO) facility and it is Lufthansa's most successful project, and biggest co-operative project, in China.
The founding of Ameco was the start of a success story for both Air China and Lufthansa. The co-operative project has developed into the largest maintenance, repair and overhaul operation in China. Within the first 15 years of its existence, almost 1,000 major overhauls of commercial aircraft were completed, 126 jets were painted, more than 2,000 jet engines serviced and more than 200,000 components repaired.
In 2004, Lufthansa and Air China signed an extension to their contract for a further 25 years. On the one hand, the contract offers Air China optimal reliability and, on the other, offers Lufthansa Technik interesting opportunities in the growth market of Asia.
An investment programme worth about 300 million Dollars has been planned. Additional hangars, material stores and equipment workshops as well as extended services for maintenance and jet engine repairs will be introduced.
