Cheap Avios deals on airberlin may be over as the end beckons …..

Ever since it joined the oneworld alliance, airberlin has offered some exceptional bargains for Avios collectors.

As I wrote in this article, you have been able to fly to the USA and Abu Dhabi paying only minimal taxes.  Since that article was published, airberlin has added a raft of new US routes on top.

A one way airberlin Avios redemption in business class from the US to Germany costs just £4 in taxes and charges!  A return is a bit more because of German airport taxes but you will pay under £100 return.  Berlin and Dusseldorf are also easy to reach from many UK regional airports.

The service isn’t shoddy either – here is Anika’s review of her recent New York to Berlin Avios redemption in business class.  Etihad, the 49% shareholder in airberlin, oversaw an upgrading of its business class with new fully flat seats.  The food is very Germanic but apart from that ….

Is the end nigh for airberlin?

Back in September, I wrote about how Lufthansa is taking over a third of the airberlin route network.

From 31st March 2017, all airberlin and NIKI flights which do not feed into the hubs of Berlin or Dusseldorf will be transferred to Eurowings.  This includes flights out of Vienna, Stuttgart and Palma, where airberlin is the biggest airline.

The deal is a ‘wet lease’.  The planes and crew remain with airberlin but Eurowings will pay a fixed fee to lease them.  Eurowings will keep all of the revenue from the services and therefore takes all of the economic risk.

40 planes are involved, of which 35 will be branded as Eurowings with the other five passing to Austrian.  airberlin is also having discussions with TUI about the remaining NIKI operation based in Austria. This is, in theory, a six year deal although it is difficult to imagine the operation of the routes ever passing back to airberlin.

I saved a four figure sum using Avios to fly from Palma to Innsbruck on airberlin / NIKI last summer.  Taking the same trip this year will be very expensive.

For airberlin, the deal makes sense.  It will have no impact on their long-haul operation.  It is no different to what British Airways did a few years ago when it span off its regional operations into BA Connect which was merged into Flybe.

It is now beginning to look as if this is only part of the story, however …..

Lufthansa may be on the verge of acquiring the rest of airberlin.

airberlin has been losing money for a number of years, despite major capital injections from 29% shareholder Etihad.  There are even rumours that Etihad CEO, James Hogan, may lose his job after losing $2.6bn on investments in airberlin, Air Serbia and Alitalia.

airberlin lufthansa sale

airberlin has a decent long-haul network  but short-haul has been hit by competition from Ryanair, easyJet, Wizz etc.  I thought that retrenching to a hub and spoke network, with its remaining short haul flights providing feed to the long haul flights out of Berlin and Dusseldorf, would keep airberlin afloat.  It now seems not.

Reports in the German media have said that the German Government would be supportive of Lufthansa taking over the rest of airberlin – ie the long haul routes and the feeder flights.  airberlin has just fired its CEO and the replacement is reportedly being appointed with a ‘to do’ list consisting of just one item.  They are not concerned about competition issues – the German Government has spent years trying block the ‘Middle East 3’ from getting established at Frankfurt and Dusseldorf in order to protect Lufthansa.

For Lufthansa this would be a smart move.  Once Berlin Brandenburg airport finally opens, it will have a brand new facility with enough space to ramp up operations.  Lufthansa was at serious risk here, having put all of its long-haul eggs in the Frankfurt and Munich baskets with no long haul presence from the national capital.

At a stroke, taking over airberlin will give it dominance of the long haul market from Germany and pole position at the new airport.  It won’t complain at gaining a major presence at Dusseldorf either.

For Avios collectors, this would be a blow.  You can say goodbye to those low tax redemptions out of Germany.  With Aer Lingus also increasing its taxes and charges sharply following the launch of AerClub, 2017 may not be a good time to Avios rich but cash poor.

It isn’t clear what will happen to existing Avios redemptions on airberlin in this scenario.  You might think existing bookings would be protected, but there are many examples in the hotel sector where a property rebrands from one chain to another and all existing redemption bookings are cancelled.  We would need to wait and see.

(Want to earn more Avios?  Click here to visit our home page for the latest articles on earning and spending your Avios points and click here to see how to earn more Avios from current offers and promotions.)

January Sale Bits: BA Holidays extra £100 off, Opodo extra £20 off, Monarch flights £29 or less
I (finally) try AirPortr - why should I carry my own suitcase to the airport?!
About Head for Points

We help business and leisure travellers maximise their Avios, frequent flyer miles and hotel loyalty points. Visit every day for three new articles or sign up for our FREE emails via this page or the box to your right.

Comments

  1. What a shame. I flew to Abu Dhabi in AB Business Class and loved the service, both on board and on the ground. One of my favourite Avios redemptions.

    • Agree, the on board service on that route is excellent far better than the MIA-TXL and DUS-CUN Business flights I have also flown with AB( not that they were bad). I remember thinking at the time that more money must be allocated for the in flight food and drink on the TXL-AUH route to please Etihad.

  2. Lady London says:

    I had a multi-segment rewards booking made with BMI when Lufthansa owned them.

    The ticket had been issed. The first segment was a Lufthansa operated flight on a Lufthansa flight code. Meaning the entire ticket was the responsibility of Lufthansa.

    Lufthansa sold BMI to IAG (BA’s parent).

    Shortly after that with the rewards booking still unflown, Lufthansa divested itself of the first flight on my multi-flight ticket, as they put all their flights that didn’t go through Munich or Frankfurt to Germanwings.

    The first flight on my ticket got eliminated. This messed up the timings for following flights on the ticket. As each flight was ticketed in a rewards fare class the chance of reward class seats still being available on any replacement flight segment for all the flights affected – longhaul flights around the world – was practically zero. This all happened more than two weeks before the first flight btw.

    Lufthansa didn’t want to know. The ticket was their responsibility, and they owned BMI when it was bought. The result was that I lost 3 flight segments in Europe at the beginning of the ticket and got no replacement and I ended up positioning myself to take the first longhaul segment in order to keep all the rest of the ticket. Lufthansa had a moral obligation to help if they were decent at all. The problem was entirely of their making, and they were also the responsible airline for all the flights on the ticket under the rules. They simply refused to provide substitute flights and preserve the routing so I lost quite a lot of things I had planned to do on the 3 stops lost.

    Long story but I haven’t foot on a Lufthansa flight since. Any Lufthansa segment offered by my various companies’ business travel agencies I told them I did not want to be booked on any Lufthansa flights and told them why. So I wouldn’t trust Lufthansa to honour anything at all you arrange with Air Berlin. Not even if it’s their responsibility. supposed to.

  3. “The airline is now planning to roll back its European investments, which include a 29 per cent stake in Air Berlin bought in 2011, a 49 per cent stake in Air Serbia acquired in 2013 and a 49 per cent stake in Alitalia acquired this year, according to the publication.”

    Who would take Alitalia off their hands?

    • They had some good ideas for Alitalia but Ryanair etc are decimating its short haul business which may be beyond repair. It is hard to imagine that you can’t run a decent long haul airline with a country of 60 million.

  4. The piece about James Hogan being fired is the only positive! He has been on a drunken spending spree that has finally caught up. His past is not great…drove the Australian carrier into the ground…then did the same at Gulf Air. With Etihad, he had a blank cheque from the government. And while he did build the brand, he has been completely outdone by Emirates. Emirates A380 fleet is enormous…and when Etihad launched 3 of them (to LHR, JFK and SYD), it was such a big thing. Why?

    Spending crazy amounts on fashion shows, football (not only Man City but also in the US in New York and Washington) and their “ambassadors”. He also lined up cushy and high paying jobs to his friends (based on Australian nationality rather than experience). Instead, he should have invested in the service side (not the useless flying nannies and inflight chefs) and building out profitable routes.

    He’s all about glamour and marketing with little substance. Look at him compared to the late Maurice Flanagan and Tim Clark who head(ed) Emirates.

    Let’s see which other airline will want to have him.

    Rant over.

    • the real harry says:

      I thought Clark is still there but working out an acceptable retirement date

      Clark has done very well for Emirates, I hope they have made him a multi-millionaire, he deserves it

  5. Peter Taysum says:

    OT Anyone any experience of Hilton honouring status for booking made via BA? I’ve got a suite booked in Mumbai, and am hoping to get late checkout, and points from my Gold status….

    Thanks,
    Peter

  6. But if AB remains a separate operation code-sharing with LH due to the joint ownership, then maybe LH inventory could be made available for Avios redemptions?

    A guy can dream, right?

  7. Based on past similar deals, what is likely to happen to TopBonus miles?
    We have/are approaching enough of them to be valuable, E.g. for a long-haul upgrade.
    We have TXL-DOH-SIN-DOH-TXL in J coming up on QR, currently to be credited to AB.
    With rumours of AB going bankrupt they would become worthless so we would prefer to have credited to BA; if it is taken over as a going concern then hopefully it stays; if completely merged then a 1:1: transfer to Miles&More would not be disappointing.
    I suppose the risk is that it is done as a pre-pack bankruptcy, but maybe those don’t happen in Germany?

    • You would hope they convert to Lufty, could be some good opportunities if they do.

      • Rob. How do you transfer ab points to BA please? Thank you!

        • You can’t, but you can redeem them for BA flights as airberlin is a oneworld alliance member. The redemption table for BA flights is on the AB website.

  8. Flew AB for the first time last week MUC-TXL what a terrible experience. No ability to select seats online, hard to get through to a human being on customer service hotline, wouldn’t recognise my OW status and demotivated miserable staff both at the airport and flying.

    They do say first impressions count…

  9. Andrew Tucker says:

    When are we going to hear some good news about avios?

    • It is cyclical, but over the short term you might not see that. I remember life before the Amex 241, before £3 tax AirBerlin redemptions, before Qatar joined oneworld and before Amex gave big bonuses.

      I also remember BA without fuel surcharges and the BMI’s ludicrously cheap Star Alliance redemption chart though – which meant taking 4 mates in Lufty F to New York or Cape Town or Dubai for the weekend (all of which I did, paying for everyone) was easy.

      • Booking Concorde LHR-JFK just 3 weeks before departure and total taxes/fees coming to about £150 to 2 adults.

        That was with an Amex 2 for 1 though (my first one). 160,000 BA Miles.

        • We should also mention ‘life before Reward Flight Saver’. Pre 2011 you paid £100 in taxes for a European redemption.

          Last year Lufthansa wanted £250 in taxes when I tried to redeem London to Salzburg via Germany in Economy. Be grateful for what you have!

          • And Before Avios, you could fly to NYC on airmiles and not pay any taxes at all. I had enough airmiles for about 3 transatlantic flights when they announced the change. At least it gave me the option of flying over for 3 days to meet Martin Sheen, just to burn the remaining miles.

  10. I’m also concerned that the end could be near for Aer Lingus low-tax Avios redemptions as they join oneworld and presumably the TransAtlantic Joint Venture.