Lufthansa boosts flights to Iran, looks to offer SkyChefs in Saudi Arabia

Lufthansa, Europe’s largest airline group, is eyeing new growth opportunities in Saudi Arabia’s aviation sector as it holds off for the most part on increasing passenger capacity in the Gulf. The Germany-based company has made privatization within the kingdom a key focus, targeting other market segments such as maintenance and catering. Lufthansa’s regional director for the Gulf, Iran, Afghanistan and Pakistan, spoke to Argaam about these plans and shared his views on the GCC’s aviation sector.

Q: Can you elaborate on plans under review to expand further into Saudi Arabia?

A: Saudi Arabia is a growth market and quite an important one. Currently, we are providing 25 weekly flights between the Kingdom (Riyadh, Jeddah and Dammam) and Germany (Frankfurt and Munich). As a group, we are looking into offering our services not just in the passenger airlines but also through our MRO business from Lufthansa Technik and our catering division, LSG SkyChefs.

Q: What other markets in the Middle East are you targeting at the moment?

A: Currently, with the easing of sanctions in Iran, we have raised our operations to 25 weekly flights including flights operated by Lufthansa German Airlines, Austrian Airlines and Eurowings (for the summer period). As soon as we see possibilities in other markets, we will increase capacity.

Q: How would you describe the state of the aviation sector in the Gulf, compared to other regions?

A: Admittedly, there is good infrastructure in the UAE and Qatar. The government and airport authorities are doing well in their investments to make their airports world-class and passenger-friendly. For example, Dubai has recently opened the $1.2 billion Concourse D at Terminal 1 and is expected to handle 18 million passengers per year. 

Q: What challenges has Lufthansa and European carriers faced as Gulf airlines have expanded so rapidly into Europe, the US and Asia?

A: The main challenge would be overcapacity and not having the same opportunities in the business environment. In Europe, we are faced with many different challenges which significantly impact our operations such as various taxes and are also subject to night flight bans, particularly in Frankfurt. In the GCC, these scenarios are not present and do not limit airlines’ operations.

Q: Mideast carriers have come under much scrutiny after security incidents and flight crashes in recent months. What must be done to improve security and enhance operations in the sector?

A: On this aspect, airlines follow security measures that are set forth by government authorities. With the changing environment, we all need to adapt and see what practices will best serve our passengers, including their safety.

Write to Joumana Saad at joumana.saad@argaamplus.com