Air Berlin, the second largest airlines in Germany has operated from its bases in Dusseldorf and Berlin - Tegel airport. The airlines is currently is struggling its financial. Since then, the airlines management took several steps to reduce loss. For example, reduce numbers of fleets and cut several routes. In addition, the airlines sold its stake 29% to Etihad Airways and also joined Oneworld alliance in March 20, 2012. However, based on reports on RTT news, shows that number passengers decline by 6.4% compared last year This is due to increase number of capacity utilization and thus, reduce revenue passenger kilometers by 47 percent to 4.89 billion billion from the prior years's 5.14 million. However, the airlines currently focusing on increasing number of flights on profit routes and also, decrease the available seat kilometers, or ASK in september by 5 percent.
I would like to suggest several steps to reduce AirBerlin's financial performance
- Reducing numbers and standardize of fleets. Suggestion: Air Berlin consider to phase either Boeing 737 - 800 and Airbus 320 since it has similar capacity and functions.
- Air Berlin need serve more flights out of Frankfurt am Airport. Currently, Air Berlin has limited flights and offers to several holiday destinations to Alicante, Catania, Hurghada, Palma de Mallorca. In order to increase number passengers carried and smooth connection, Air Berlin need to add more destinations within Germany and Major European cities as below. The reason need to open more routes because most oneworld members operated to Frankfurt such as American Airlines (DFW), Japan Airlines (NRT), Finnair (HEL), S7 airlines (DME & OVB), British Airways (LHR), Malaysia Airlines (KUL), Lan Chile (SCL& MAD), Cathay Pacific (HKG), Iberia subsidiary - Iberia Express (MAD), Royal Jordanian Airlines (AMM) and Future Oneworld alliance - Qatar Airways (DOH) and SriLankan Airlines (CMB) and TAM (GRU).
Suggested Routes for Air Berlin out of FRA - Cut - down several unprofitable routes and forming new subsidiary (with small stake) which are focusing operation in Mediterranean regions. In addition, Air Berlin to transfer its operation from secondary airport to primary airport. Currently, Air Berlin serves flights to Paris - Orly and London Stansted. However, some Oneworld passengers and FFP find difficulty for connecting flights. They have to travel few kilometres to other airport for flying connections. Thus, this is the reason why passengers preferable to fly other airlines than Air Berlin.
- More International routes should reopen. Since Etihad Airways owned Air Berlin, several routes have been dropped and transferred to Etihad's based in Abu Dhabi. Air Berlin currently offered flights to Phuket (from Dusseldorf and Berlin - Tegel) via Abu Dhabi. Based on Dusseldorf airport website, the airport currently looking airlines to fly to several Asian city such as Singapore, Shanghai, Hong Kong, Johanesburg, Delhi and Mumbai. Moreover, Berlin - Brandenburg airport is also searching flights to Bangkok, Hong Kong and so on. These routes are potential for Air Berlin to expand. Moreover, Air Berlin bought Boeing 787 - 8s, has helps Air Berlin to expand flight to longer routes with less capacity.
I am hoping that Air Berlin reconsider its to revise its business in order to become profit airlines.
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