AirBerlin, Germany's second-largest airline carrying almost 32 million passengers a year on a network of around a hundred routes, continues to lose money. Stephan Pichler, the new CEO, wants to return to breakeven by 2016 with a two-pronged strategy: attractive prices that are more competitive with the low-cost competition, and a service offensive. "We are fortunate in that our costs are lower than those of Lufthansa and the other major traditional European airlines, and that we also have a strong network from our three hubs at Berlin Tegel, Munich and Vienna", says Stephan Pichler. The restructuring plan primarily involves optimising sales. This means simplifying fares, with four public prices: Justfly, Flydeal, Flyclassic and FlyFlex+. While the last two fares offer booking flexibility and top-of-the-range service, the basic fare, from 44 euros one way, is adapted to passengers without baggage. In a second phase, the airline will rationalise its network before continuing its expansion...
