Airlines

United and Emirates Expand Market Presence Through New Agreement

United and Emirates announced a historic commercial deal that would expand each airline’s network and make it easier for passengers to travel to hundreds of locations both domestically and internationally.

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The United and Emirates announced a historic commercial deal that would expand each airline’s network and make it easier for passengers to travel to hundreds of locations both domestically and internationally.

Beginning in March 2023, United will add a brand-new nonstop service between Newark/New York and Dubai. From there, passengers can board Emirates or its sibling airline flydubai for flights to more than 100 different cities. United has started selling tickets for its new trip to Dubai.

United and Emirates announced their agreement today at a ceremonial event at Dulles International Airport, hosted by United CEO Scott Kirby and Emirates President Sir Tim Clark, featuring United and Emirates Boeing 777-300ER aircraft and flight crews from each carrier.

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This agreement unites two iconic, flag carrier airlines who share a common commitment to creating the best customer experience in the skies,” said United CEO Scott Kirby. “United’s new flight to Dubai and our complementary networks will make global travel easier for millions of our customers, helping boost local economies and strengthen cultural ties.

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This agreement will also give the loyalty program members of both airlines more opportunities for more rewards: United MileagePlus® members flying on United’s Newark/New York to Dubai flight can soon earn and redeem miles when connecting beyond on Emirates and flydubai and Emirates Skywards members will be able to earn miles when they travel on United operated flights. Eligible United customers will also soon have access to Emirates lounges when connecting to and from United’s new Dubai flight.

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Both airlines have recently announced significant investments in the customer experience. Emirates will retrofit more than 120 aircraft as part of a $2 billion effort that includes elevated meal choices, a brand-new vegan menu, a ‘cinema in the sky’ experience, cabin interior upgrades, and sustainable choices. At United, the airline will add 500 new Boeing and Airbus aircraft to its fleet with a focus on a new signature interior that includes seat-back screens in every seat, larger overhead bins, Bluetooth connectivity throughout, and the industry’s fastest available in-flight WiFi.

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.