18 January, 2021

Parting Company

ModiLuft faces an uncertain future after the break with Lufthansa

Parting Company
outlookindia.com
-0001-11-30T00:00:00+05:53

DETER Heinin, Lufthansa's senior vice-president for West Asia, Africa and the Asia-Pacific region, minced no words at the hastily convened press conference on May 29. "The executive board of Lufthansa has decided to discontinue its existing relationship with ModiLuft with immediate effect," he said. "Financial constraints between the two partners that do not conform to internationally accepted and practised business norms leave Lufthansa no other choice but to move in this unhappy direction."

 ModiLuft, claims the German national carrier, had failed to meet its financial commitments despite numerous rounds of negotiations as well as many warnings and deadlines given to them over the last 18 months. Without naming the actual sum involved, Heinin suggested that it ran into several million deutsche marks. And he clarified that the break is total. All agreements—aircraft lease, technical support, pilots, training programmes—stand cancelled. After ModiLuft returns the three Boeing 737-200s with have been leased from Lufthansa, it will be left...

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