Lufthansa Drops Flights to Abu Dhabi

Lufthansa said on Thursday it would stop flying from Germany to Abu Dhabi in its summer 2015 program because the route is unprofitable amid competition from Middle Eastern carriers.

The German airline blamed pricing pressure on government-subsidized Gulf carriers that have expanded their capacity on routes between Germany and the United Arab Emirates.

“Given the massive overcapacity, the Frankfurt-Abu Dhabi route is increasingly uneconomical for Lufthansa,” an airline spokesman said.

Like many European airlines, Lufthansa is struggling with competition from discount carriers that has undermined its short-haul operations in Europe.

Rapidly growing Middle East carriers, such as Etihad Airways and Qatar Airways, are also pushing deeper into Germany, threatening Lufthansa’s long-haul business.

Lufthansa’s German rival Air Berlin whose largest shareholder is Etihad Airways, with a 30% stake—offers dozens of flights between Germany and Abu Dhabi, both direct and via connecting flights to small cities. The flights can be booked through Air Berlin or Etihad, boosting international sales and helping fill Air Berlin planes.


wsj.com