The Hindu Business Line : Lufthansa hopes to fly A-380s by early 2010

India needs to invest in infrastructure, something it has started with the modernisation of Delhi and Mumbai airports, which could be potential cities for the A-380 to fly to.

DR HOLGER HAETTY, MEMBER, LUFTHANSA PASSENGER AIRLINES BOARD

On board the Airbus A-380

Having placed an order for 15 Airbus A-380s, the German airline Lufthansa is the largest European customer for the double-decker aircraft that is to enter service for the first time later this year with Singapore Airlines. Member of the Lufthansa Passenger Airlines Board and the man overseeing the A-380 induction into the airline, Dr Holger Haetty, spoke to Business Line earlier this month on board the A-380 aircraft as it flew on a route-proving flight between Frankfurt and Hong Kong.

Excerpts from the interview:

What destinations is Lufthansa looking at for deployment of the Airbus A-380 when it joins the fleet in 2009?

At present there are many airports around the world that show potential for this aircraft. In fact there are about 20 destinations being considered by Lufthansa's network strategists. However, the infrastructure has to be ready for the aircraft. Lufthansa gets its first A-380 in Autumn 2009 but the deployment of the first three aircraft has not been decided yet.

The US will be our first focus. Second will be Asian cities such as Bangkok, Singapore and some in India. This aircraft will be in Asia in 2010, especially as a bunch of A-380s will be delivered to us in 2009-10. We will probably start flying at the beginning of the year, although no firm decision has been taken so far.

Within Asia will the aircraft first fly to China or India?

For Lufthansa both the markets are important. No decision has yet been taken on this matter. At the moment it would seem that airports in China are more developed for the A-380, but this is something that can change. We will take a final decision a year before we launch the flight as to which route we want the A-380 to fly. So there is still some time.

What are the key concerns in India?

India needs to invest in infrastructure, something that has already been started with the modernisation of Delhi and Mumbai airports, which could be potential cities for the A-380 to fly to.

The A-380 offers airlines a number of advantages, including a 30 per cent reduction in noise. It is more ecologically friendly and can carry 60 per cent more passengers than competitor aircraft. Therefore, do you see airlines passing on some of the savings that they will make to passengers in terms of lower fares?

Air-fares have been going down for many years now and the way things are going they are likely to decline in the future also. To compensate for this, airlines need larger aircraft with a better cost structure. The A-380 is actually a reaction to falling yields. At present we are not doing any special pricing for the A-380 flights.

The process of merger of Air India and Indian has started. Will this in any way help the merged entity enter the global airline partnership of Star Alliance?

We have long expected the merger and feel that this is a good thing for the airline industry in India. It is not enough to have an airline doing long-haul flights only. It is equally important to have a dominant partner and reach within the country. We would like to have a code-share agreement with the merged entity.

At present, we have such an agreement with Air India so you can fly seamlessly between Germany and India, or in the return direction. But eventually we should be able to offer seamless travel to a passenger wanting to go to, say, Kerala from Germany without actually physically flying there ourselves. This will be a big advantage for travellers.

The Air Services Agreement between India and Germany is due. Will the German side be interested in entering into a liberal bilateral agreement with India, on the lines of what exists between India and the UK?

The decision of the Indian government to open the market was a smart move. I am sure what was started with the United Kingdom, which is one of the most important markets for India, will be extended to other countries as well.

Germany is also an important market and I am pretty positive that in course of time, there will be systems in place for Germany also.

What kind of employment generation will the induction of the A-380 lead to in the markets where it flies?

This aircraft will create employment wherever it goes. It is in the interest of airports worldwide to get ready to receive the A-380.

Our data shows that each A-380 will support 400 Lufthansa employees, or about the same number of jobs provided by two average medium-sized German companies.