Lufthansa ends code-share deal with Turkish Airlines

ISTANBUL

Lufthansa aircrafts are parked on the tarmac at Frankfurt airport in this July 12, 2013 file photo. Lufthansa has announced it plans to terminate their codeshare agreement with Turkish Airlines by March 2014. REUTERS photo

Lufthansa has announced it plans to terminate their codeshare agreement with Turkey’s flagship carrier, Turkish Airlines (THY), by March 2014, saying the agreement no longer makes commercial sense. Turkish Airlines, however, has criticized the decision, publicizing its hope for Lufthansa to reconsider its decision.

Lufthansa’s spokesperson has said that the airline had concluded the codeshare partnership to be economically unprofitable for the German carrier, following an in-depth review of the deal. The codeshare agreement, a common occurrence in aviation, involves several airlines party to the agreement issuing tickets on the same aircraft on pre-determined routes, while operating flights under the other’s flight code.

“Code-share deals are arranged for the parties involved to achieve a win-win situation. These deals are in favor of both sides; for example, seeing to a rise in sales. If there isn’t such a situation [sufficient profitability], it [the agreement] should be revised and adapted, and that’s what we are doing.”

The deal enables Lufthansa passengers to both combine their trips with THY and accumulate frequent flyer miles, as well as benefitting from various sales and discounts. Yet, in the lead up to the agreements termination from March next 2014, Lufthansa will reduce mile accumulation to 25 percent from January next year, according to the statement.
 
In response to Lufthansa’s autonomous action, THY made a public announcement Nov. 26, touching on the carriers’ commitment to the 28-member leading global airline alliance (Star Alliance) that both airlines are members of:

“THY [seeks to] serve all Star Alliance member’s passengers in its capacity as a Star Alliance member. Agreements surrounding code-share flights and related frequent flyer mile accrual and redemption (Frequent Flyer Program - FFP) should be evaluated within this framework. We find Lufthansa’s unilateral decision on this matter inappropriate and we are hoping it will reconsider it,” the national Turkish carrier said.

Der Spiegel, a German magazine, reported that Lufthansa’s FFP deals with the other Star Alliance member airlines would continue, meanwhile a Lufthansa spokesperson said the company flew 126 times a week between Turkey and Germany.