Lufthansa German Airlines' recent decision to launch daily flights between Portland, Ore., and its Frankfurt hub largely was the result of advance commitments from local corporations to use the carrier's business class service. The flights, beginning March 31, 2003, partially will be funded from a travel bank that was created by the Port of Portland. The bank is administered by AirPlus International and already has earmarked $10.8 million for Lufthansa's first year of Portland service.
According to the Port, at least 10 area corporations have operations in Germany. Digital display provider Clarity Visual Systems, truck manufacturer Freightliner, shoemaker Nike and information technology company Tektronix are among those involved. The Port, which had been working on the concept with area travel managers for 18 months, said dozens of companies initially were approached and that at least 22 German firms have operations in the Oregon/southwest Washington region.
An official from AirPlus International, a centralized travel payment mechanism owned by Lufthansa AirPlus and used extensively in Germany, confirmed the company cooperated with the Port to attract Lufthansa and will help administer the travel bank on behalf of involved parties. The arrangement, similar to a recent AirPlus launch in the United Kingdom with British Airways
(BTN, Oct. 7), is set as a central ghost card for each corporate account. Unlike that jointly marketed initiative, however, the Portland program is not cobranded with Lufthansa. Participating companies can make purchases on other carriers. AirPlus launched U.S. operations earlier this year.
Travel banks compiled by corporations have brought carriers into new domestic markets several times in the past, including AirTran and JetBlue airways' recent entries in such cities as Kansas City, Mo., and Wichita, Kan.,
(BTN, May 27). Lufthansa's decision to serve Portland, which will be the carrier's 18th and smallest North American gateway, may be the first time such a strategy successfully attracted a foreign carrier to a U.S. city.
Lufthansa will operate the service with 247-seat Airbus A340 aircraft. Oregon tourism officials said the new flights—the only ones linking Portland with Europe—will save travelers four to eight hours in each direction.