“The right assumption that it has some kind of protectionism. In the long run, I think airlines would be better off if they do partnerships and if they understand that not one airline can generate a global network. It is simply impossible, ” said Harry Hohmeister, head of Global Markets & Network, Lufthansa Group Airlines.
An airline can be strong in one region as the Lufthansa Group is the strongest in Europe, he said. “Most probably, Air India will be the strongest in India. If the strongest work together, it will be very good,” he mentioned.
“The country, and all the airlines would be better off, if they release the restrictions in the long run and if we guarantee the passengers free travel. It will take some time and I guess, it will take some work,” he said.
Differences have erupted in the aviation industry over the government’s policy of not increasing flying rights to other nations.
Flying rights are allocated on a bilateral reciprocal basis. For most Middle East countries, Indian carriers have been unable to utilise their quota while foreign airlines have exhausted theirs. In 2016, India in its National Civil Aviation Policy framed the guidelines saying that unless the utilisation from the Indian side reaches 80%, additional flying rights will not be granted.
Global airline CEOs say the policy stifles capacity expansion and hurt consumers. Home grown. Tata-owned Air India, on the other hand, is said to be in favour of the freeze as it plans to increase direct connectivity through long haul flights.Air India has put in an order for 70 wide body aircraft with which it aims to increase flights to Europe and US.
However, Hohmeister said that Lufthansa will look to have deep commercial partnership with Air India for its expansion.
“Lufthansa and Air India have a partnership and would like to deepen the partnership,” he said.
“Air India has to first find its own way. I think they are restructuring right now. It is a company with new management and it is a company with ambitions. It is redesigning its strategy. “
Lufthansa is currently operating about 80 flights per week between India and Germany. The carrier announced on Thursday that it plans to operate flights on two new routes: Munich-Bengaluru and Frankfurt-Hyderabad.
Lufthansa and Air India are part of Star Alliance. Both the carriers have a codeshare arrangement between them.
