DNA is set up by Robert C. Welch at Alpena, Michigan, in the early spring of 1964 as the scheduled air taxi division of Alpena Flying Services. Employing Piper and Cessna lightplanes and, later, a Beech 18 and Douglas DC-3, the company inaugurates daily roundtrip flights to Detroit on May 18.
Operations continue for until 1975.
DEUTSCHE BA LUFTFAHRTGESSELSCHAFT, GmbH.: Wartungsallee 13, Rughafen Munchen, Munich, D-85356, Germany; Phone 49 (89) 975 91 500; Fax 49 (89) 975 91 503; http:// Www. deutsche-ba. de; Code DI; Year Founded 1992. Early in 1992, Delta Air Regionalflugverkehr, GmbH. loses a profitable replacement contract with Deutsche Lufthansa, A. G., an action that forces the company to idle four of its nine SAABs. Discussions are held with its chief investor, the Swiss regional Crossair, Ltd., on the possibility of its taking a larger interest. However, the talks fail when the regional’s parent, Swissair, A. G., indicates its lack of interest in German expansion. Salvation will come from across the English Channel.
In order to maintain its access to the German domestic scene, due to expire this year with termination of the German internal service begun under a 1945 grant from the Allies, British Airways, Ltd. (2) is warmly receptive of an approach from Delta’s Managing Director Wolfgang Bierbach. On March 29, the U. K. major purchases 49% shareholding in the airline, including the 40% original interest acquired from the Swiss founder Crossair, Ltd., with an option to acquire all shareholding following full European deregulation on April 1, 1997. In accordance with German law, 51% majority interest in the joint venture is taken by three German banks: Commerzbank, 19%, and Berliner Bank and Bayerische Vereinsbank, 16% each. The company, headquartered at Friedrichshafen, is renamed Deutsche BA Luftfahrtgesselschaft, GmbH. on May 5.
Airline employment is 415 and the fleet comprises 3 Boeing 737-3L9s leased from Maersk Air, A. S., a Dornier 228-212, and 9 SAAB 340s, the turboprops taken over from Delta and the jetliners assigned by British Airways. Orders are reconfirmed for five SAAB 2000s requested the previous December.
A comprehensive alliance is signed with the British flag carrier and, under terms of the pact, the subsidiary will cooperate with its parent on engineering, purchasing, and information technology. The two will also offer a joint frequent flyer program, and BA will act as the German airline’s worldwide marketing and sales representative.
The first flights, made by the “Baby Boeings” painted in a new Deutsche BA livery, are made from Berlin to Stuttgart and Munich on June 29. Revenue operations in direct competition with Deutsche Lufthansa, A. G. begin on July 1.
In addition to maintaining the Delta regional network, flights are undertaken on the one-time German Internal Service route network. Destinations now served from Flughafen Friedrichshafen include Berlin, Brussels, Budapest, Bremen, Dusseldorf, Dresden, Ghent, Koln, Bonn, Hamburg, Lyon, Leipzig, Munster, Munich, Stuttgart, Zurich, Prague, and Osnabruck.
Four more B-737-3L9s are chartered from Maersk through the remainder of the year and, in late fall, charter service begins from Berlin to holiday locations in the Mediterranean. Unhappily, national disillusion with reunification brings a downturn in the Berlin’s new market at year’s end.
Enplanements this year total 690,000 and $109 million in revenues are earned.
Airline employment stands at 486 in 1993 as the first of three ordered Fokker 100s is acquired. In January, service is inaugurated from Berlin’s Tegel Airport to Moscow, Oslo, St. Petersburg, and Stockholm.
On March 10, an Air France B-747F delivers the company’s SAAB 2000 flight simulator to the company hangar at Basel. It is unloaded and lowered through a floor to the company’s subterranean training center.
Director Richard Heideker succeeds Wolfgang Bierbach (who remains a board member) as managing director and begins planning, during the summer, a closer union with the airline’s U. K. sister, BA Regional, Ltd.
Excluding domestic services in Germany and flights to Eastern Europe, Deutsche BA takes its parent’s code on all other European routes, beginning in November. Also, a night postal route, flown under contract with the German post office, is opened from Munich to Leipzig.
Passenger boardings for the year double to 1,550,872 and income totals $155.25 million.
Airline employment is increased by 32.4% in 1994 to 630 and orders are reconfirmed for 5 delayed SAAB 2000s that will enter service in the spring of the following year, as two more Fokker 100s join the fleet.
In April, the main operating base and corporate headquarters begin transfer to the new Munich Flughaven. Fokker 100 flights begin from Frankfurt to Madrid and to Paris’ Charles de Gaulle International Airport; plans are laid for the inauguration of service to Riga, Latvia, and Vilnius, Lithuania, in 1995.
An unconditional one-way fare is introduced on June 1 for passengers traveling in business - or economy-class seating from Berlin to Cologne, Bonn, Dusseldorf, Munich, and Stuttgart as well as between Dusseldorf and Stuttgart. Fares are 10% less than those of Deutsche Lufthansa,
A. G.
To combat the success of the new British concern, the German flag carrier, Deutsche Lufthansa, A. G., begins to fight back in July, introducing service by its “Lufthansa Express, GmbH.” subsidiary over the five low-fare routes started by Deutsche BA the previous month. The move results in a highly publicized price war.
Customer bookings accelerate 63.6% to 1.8 million and revenues double to $310.5 million.
The workforce grows another 15.9% in 1995, up to 730, and the owned fleet now includes 3 SAAB 340As. Also operated under charter are 7 SAAB 340As, 5 Fokker 100s leased from TAT European Airlines, S. A., and 7 B-737-3L9s from Maersk Air, A. S.
The Munich headquarters transfer is completed early in the year’s first week. Unable to obtain sufficient slots to maintain four daily roundtrips to Paris (CDG), a minimum considered necessary in the face of strong competition from Air France and Deutsche Lufthansa, A. G., Deutsche BA ends its service to the French capital.
The first of five SAAB 2000s is delivered to the company at Berlin’s Tegel Airport on March 20. It replaces a SAAB 340A service from that destination to Friedrichshafen, where the new type will hub. Daily Munich to London (LGW) B-737-3l9 service begins on March 26. At month’s end, the turboprop inaugurates flights from Friedrichshafen and Berlin to Riga and Vilnius. The nonstop return service to Latvia is offered four times a week and that to Lithuania twice.
Following the delivery of a second SAAB 2000, Deutsche BA in May begins thrice-daily nonstop roundtrips from Friedrichshafen via Zurich to Bremen. The third machine launches roundtrip nonstops in June from Friedrichsafen to Dusseldorf and Stuttgart. A fourth SAAB 2000 will honor weekend May-October charter commitments for vacation flights from Friedrichshafen to Ibiza, Mallorca, Corfu, Thessaloniki, and Naples.
During the summer and fall, five SAAB 340As are returned to their lessor.
When the main runway at Stuttgart Airport is closed for repairs during July 31-October 4, a BAe 146-200 is leased from Crossair, Ltd. with which to maintain frequencies to the cross-runway of the German airport.
The year’s final service highlight is the introduction of daily Fokker 100 return service from Bremen and Munich to London (LGW) on October 29. The same day, Deutsche Lufthansa, A. G. scraps its “Lufthansa Express, GmbH.” competition on the Deutsche BA domestic routes, electing instead to offer discounts on the routes it must contest and raise them on routes over which it holds a monopoly.
Enplanements swell 13.5% to 2,122,300 and revenues jump 8.4% to $325.42 million.
A fifth SAAB 2000 arrives in early 1996 and on January 8, twice-daily flights commence from Berlin’s Tegel Airport to Gatwick Airport at London.
USAir now becomes a code-sharing partner on flights from Munich to Cologne, Berlin (Tegel), Dusseldorf, and Hamburg. During the spring, the Riga route is increased from four to six flights per week; however, the Vilnius service is halted due to lack of traffic. Additional flights are also added on the schedules to St. Petersburg, Nice, Geneva, and Dresden.
On October 7, a memorandum of understanding, effective in November, is signed with Regional Airlines, S. A. for the sale of its international and domestic turboprop operations originating from Bremen, Stuttgart, and Friedrichshafen to the French company.
It is announced on October 17 that the British Airways, Ltd. (2) parent will revamp this struggling German subsidiary by reshuffling the management, changing fleet composition, and focusing on domestic flights at the expense of unprofitable international regional service.
On October 31, frequencies from Berlin to Oslo are halted, along with those from Munich to Paris and Madrid.
The arrangement with Regional Airlines, S. A. is concluded in November as Deutsche BA turns over its turboprop domestic and international operations originating from Bremen, Stuttgart, and Friedrich-shafen. The BA subsidiary is now free to concentrate on its core 100-seat markets in Germany and Europe and to compete with Deutsche Lufthansa, A. G.; the move will have an impact on the company’s balance sheet.
Two senior BA officials are now tasked to assist in implementation of the changes. Adrian Hunt, the commercial director for BA Engineering, is named operations director while the German area manager, Paul Gib-lin, becomes commercial director. Giblin is, in fact, the carrier’s interim chief executive officer. He is assisted by Carl Michel, an assistant to Robert Ayling, BA’s CEO.
By the end of the year, 900 flights are offered weekly to 27 cities in 12 countries.
Passenger boardings still manage to accelerate 10.8% to 2,352,000. Revenues increase 6% to DM 520 million. To some extent, as a result of the restructuring undertaken after the sale of its turboprop domestic and international operations, the carrier suffers a DM 59-million (U. S.$34.3-million) loss.
Airline employment is increased by 9.6% in 1997 to 800. In keeping with its previous October pledge, BA begins to revamp its Munich-based subsidiary in January. It will be reported in the German press six months later that only the arrangement by British Airways, Ltd. (2) of a DM 340-million interest-free credit line allows the carrier to refinance its debts and avert bankruptcy. Carl Michel succeeds interim director Giblin as permanent CEO.
Eight daily deep-discount roundtrips are inaugurated on January 20 from Munich to Hamburg and Cologne with nine Maersk Air, A. S. Boeing 737-3L9s. The number of frequencies is increased at the same time over all remaining German domestic routes as concentration is placed upon building up high-frequency domestic trunk routes. With a DM 60 return fare, the British-owned competitor quickly grabs 20% of the market share on the Hamburg-Munich route.
On February 14, the company offers German sweethearts a Valentine’s Day gift of DM 99 return fares to any of its destinations in Germany. The promotion is an obvious attempt to lure passengers from the German flag carrier through price as well as quality.
Before the month is over, competing Deutsche Lufthansa, A. G. is issued a nonbinding warning from Germany’s federal cartel office. The document suggests that the major may be guilty of overcharging on its near-monopoly of the Frankfurt-Berlin routes, charging upwards of 30% more from 16 cities to the former capital than on comparable routes in the remainder of Germany—where it faces Deutsche BA. The matter is turned over to the judicial system for resolution.
In March, the Federal Cartel Office orders Deutsche Lufthansa, A. G. to reduce its prices on the Frankfurt-Berlin route to a point consistent with fares on other domestic routes. The major refuses and indicates that it will maintain its current pricing while the ruling is contested in court.
At the end of March, a $287-million order is placed with Boeing for seven more B-737-300s with which to replace the Fokker fleet. Meanwhile, the B-737-3L9s begin to appear in an “interim livery,” which will be replaced after British Airways, Ltd. (2) unveils its new ethnic color schemes on June 10.
During the second quarter, the airline is able to field its own sales force; 12 locally recruited representatives replace BA sales personnel seconded to Germany. BA increases its stake in Deutsche BA from 49% to 65% on July 7 when it purchases the 16% shareholding of Munich-based Bayerische Vereinsbank, A. G. for an undisclosed sum.
By August 1, the carrier is operating 59 daily flights on 7 routes from Berlin and Munich and 9-times-per-day roundtrips from Berlin, Hamburg, and Munich to London (LGW).
The first new B-737-3L9, christened Wolkenschreiber, is delivered in August. In keeping with the parent’s new “World Image” marketing and livery makeover, the new aircraft arrives wearing a blue-bottom and white-top fuselage, with the new “Speedmarque” on its side and a Stern-taler (Fairy Tale) tail design, created by German artist Antje Brugge-mann. Plans are underway for a total of 18 of these aircraft in the fleet.
Having proven to be technically unreliable and prone to cause many flight delays, the last four of five wet-leased Fokker 100s are withdrawn in the fall and returned to TAT European Airlines, S. A. BA’s European regional customer-services manager, Sabine Forest, is appointed DBA’s director of customer services on October 1.
On November 24, the carrier directly challenges Deutsche Lufthansa, A. G. by introducing eight-times-daily roundtrips between Frankfurt and Munich. DLH responds by lowering its prices on the trunk route.
For use on German domestic routes, six more B-737-300s are ordered on December 2. Deliveries will begin during the first quarter of 1998 and continue through 1999.
Passenger boardings jump 19.1% to 2.8 million while operating revenues move up 6% to $297 million.
The final Fokker 100 service is operated between Munich and London (LGW) on January 20, 1998, after which the machine is withdrawn and returned to its French owner.
When parent British Airways, Ltd. (2) enters into a strategic alliance with Finnair O/Y in February, the arrangement includes Deutsche BA.
The response of Deutsche Lufthansa, A. G. to the Deutsche BA invasion of the Munich-Frankfurt trunk route pays off in March when
Deutsche BA, which has failed in its bid to win additional slots at Frankfurt, elects to quit the highly competitive route after only five months. The last 35% stake in Deutsche BA is purchased in April, making the German airline a 100% wholly owned British Airways, Ltd. (2) subsidiary.
By May, Deutsche BA and Finnair, O/Y are, together, accounting for 64 weekly services to Helsinki from the German communities of Berlin, Dusseldorf, Frankfurt, Hamburg, Munich, and Stuttgart. Flights continue apace during the remainder of the year.
Passenger boardings accelerate 10.7% to 3.1 million.
Under terms of an agreement signed on March 8, 1999, the company begins to code-share with Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.) over a route from Munich to Madrid on June 17.
On March 28, Finnair O/Y’s twice-daily MD-87 return flights from Helsinki to Hamburg are replaced by B-737-3L9s operated by Deutsche BA. Also during the month, a B-737-3L9 is leased to Debonair, Ltd., which employs the Boeing to increase capacity on its routes to Lisbon from London (CTN and LGW).
On June 14, arrangements are completed with Bouillon for the lease of three B-737-36Qs, which are scheduled for delivery before the end of the year.
In November, the company enters into a code-sharing agreement with the Italian start-up Gandalf Airlines, S. p.A. It also elects Adrian Hunt to be CEO.
Customer bookings leap upward 11.8% to 2,897,000. The B-737-300 fleet now includes 3 Dash-36Qs, 2 Dash-3L9s, and 13 Dash-31Ss.
The workforce at the beginning of 2000 totals 800.
Daily B-737-300 roundtrips are inaugurated on March 26 between Munich and Barcelona.
Following a 24-hour job action on August 31, company pilots threaten a longer strike in early September. The flyers seek enhanced wages and working conditions.
Beginning on September 29, the airline affixes BA codes, as well as its own “DI” code, to all of its flights.
Protesting that the move will allow the major to control 80% of Germany’s domestic market, Deutsche BA Managing Director Adrian Hunt petitions the European Union and German antitrust authorities on October 3. Hunt seeks to have these bodies disallow the announced 24.9% share Deutsche Lufthansa, A. G. will take in Eurowings Luftverkehr, A. G. come January. When Deutsche BA issues a press release attacking the Lufthansa and Eurowings arrangement with what it considers to be “untruthful and disparaging” comments, DLH files suit in a Dusseldorf court seeking a temporary injunction against what it terms as a “smear campaign.”
The BBC reports on October 17 that, in keeping with company-wide policy, all staff will now be tested for drug and alcohol abuse.
On October 24, the Dusseldorf court grants Deutsche Lufthansa, A. G. the restraining order it had sought against Deutsche BA, ruling that the British-owned regional had, in fact, breached Germany’s strict laws on competitive advertising and public relations activities.
A British Aerospace BAe 146-200 is wet-leased from WDL Aviation (Koln), GmbH. on November 1 and is employed to offer scheduled frequencies from Koln to Munich, Dusseldorf, and Berlin (Tegel). Two more planes, also wearing Deutsche BA stickers, will follow.
Just after takeoff from Munich for Berlin on November 10, a B-737-31S is forced to return because it is unable to raise its landing gear. On the ground, maintenance workers find a 27-year-old Romanian asylum seeker in the wheel well, unconscious and suffering from hypothermia.
Deutsche BA and Emirates Airlines sign and begin a code-sharing pact on December 15. The German line is able to sell tickets for the Mideast carrier’s return services from Dubai to Munich, while Emirates is able to place its designator on Deutsche BA flights from Munich to Berlin, Cologne, and Dusseldorf.
Company officials will be pleased when Germany’s federal cartel office announces on March 7 that it will block Deutsche Lufthansa, A. G. plans to take a 24.9% stake in Eurowings Luftverkehr, A. G.
World History
