Endeavour to slash and burn in dash for cash

What happens when you put people who know nothing about wine in charge of wine businesses?

Nothing good for wine lovers.

Star Australian wine producers Oakridge, Chapel Hill and Josef Chromy are all set to be sold after new Endeavour Group CEO Jayne Hrdlicka - who knows a lot about aviation - announced plans to sell most of the company's vineyard and winery assets.

Endeavour will target $300 million in savings as Hrdlicka, formerly in charge of Virgin Australia, launches a turnaround plan to lift the struggling giant’s business profitability.

The changes were the first major announcement from Hrdlicka, who started in the role in January.

Endeavour is the largest liquor retailer in Australia, with brands that include Dan Murphy’s and BWS chains.

The plan appears to be to cut back on premium products and concentrate on bulk.

Yarra Valley winery Oakridge, under winemaker David Bicknell, has been one of Australia's best premium producers for two decades. Chapel Hill in McLaren Vale is a historic producer of top-notch wines led by talented Michael Fragos.

The company’s winery operations will be cut from seven sites to three. Endeavour will retain Cape Mentelle in Margaret River, Isabel Estate in Marlborough, New Zealand, and bulk production factory Dorrien Estate in the Barossa.

Hrdlicka said she remained committed to the Pinnacle Drinks business, which offers distribution channels and private-label wine brands, saying it was generating strong returns.

Hopefully the star brands find sympathetic owners focused on quality so Endeavour can concentrate on bulk labels and the bottom line. The decision reflects an apparent 'quantity over quality' mentality.   

Lufthansa planning to can domestic flights

German airline powerhouse Lufthansa is poised to cancel up to 100 flights a week on domestic routes. 

Reduced passenger numbers, higher taxes and airport fees at German airports were reasons given by Lufthansa, which says many domestic routes are no longer profitable.

The decision follows a recent one by Ryanair to cut back on its flights in and out of German destinations. 

Lufthansa CEO Carsten Spohr said around 100 weekly domestic air links are now under review, news hub Travel Mole reported.

“Without a reduction in the burden on our home markets, further cuts will be unavoidable,” Spohr told Welt am Sonntag.

The decision comes as Lufthansa also plans to eliminate about 4,000 administrative positions as part of a wider cost-reduction effort.

“Routes such as Munich–Münster/Osnabrück or Munich–Dresden are under review,” Spohr said. “We operate these flights at a loss every single day.”

He noted that the cost of operating within Germany has nearly doubled since 2019 due to higher air traffic control fees, airport charges, and environmental taxes, making some services unsustainable.

Unlike international traffic, domestic air travel in Germany has failed to return to pre-pandemic levels. Industry groups attribute this to a decline in business travel. 

Many businesses have permanently shifted to videoconferencing while there is also major competition from high-speed rail services. 

If implemented, Lufthansa’s reduction could affect smaller regional airports such as Dresden, Münster/Osnabrück, Nuremberg, and Saarbrücken. 

These all rely heavily on connections to Munich and Frankfurt. 

Low-cost airline carrier cuts back on flights

Planning a European trip with low-cost airline Wizz Air? 

It might pay to make sure your travel insurance is up to date and to have a back-up plan. 

Wizz Air continues to rationalise its network and close bases as it faces financial difficulties, travel news hub Travel Mole reported this week.

Wizz this week announced the gradual closure of its base in Vienna, following a strategic review of its operations and fleet allocation.

The process will take place in two phases: two routes and two planes, serving Bilbao and London Gatwick, will be withdrawn on October 26. Three remaining aircraft and the rest of the routes from the Austrian capital will cease operation on March 15, 2026.

Wizz Air launched its Vienna hub in 2018 and it has been one of the most important bases for the carrier in Central Europe. Vienna’s current fleet comprises five Airbus A321neo aircraft.

Operating 28 routes to 20 countries, the fleet reflects the strong position Wizz Air has achieved in Austria.

Since the inception of Wizz Air’s Vienna base, however, airport costs and taxes have increased significantly.

Operating from Vienna has become incompatible with the airline’s ultra-low-cost business model, Wizz Air management said in a statement.

"The airport cost base in Vienna, as well as taxes and ground handling services, has risen significantly since our launch, making continued operations unsustainable," managing director Mauro Peneda said.

Founded in 2002 and based in Hungary, the airline group has its largest hubs at airports in Budapest, Bucharest and London Luton Airport. It currently flies to 194 airports and has a fleet of over 220 aircraft.

In July this year, the company announced the suspension of its operations from Abu Dhabi, saying it was caused by geopolitical turmoil, supply chain constraints, and regulatory barriers.

All flights to the region ceased on September 1.

Heathrow wants passengers to stay away

London's Heathrow Airport - one of the busiest in the world - has an unusual message for travellers: Stay away.

Heathrow has told airlines to stop selling tickets for the remainder of summer and has plans to limit passenger numbers to a maximum 100,000 a day.

It is the airport’s latest desperate move to limit ludicrously long queues, baggage delays and flight cancellations, Travel Mole reports.

“Some airlines have taken significant action, but others have not, and we believe that further action is needed now to ensure passengers have a reliable journey,” CEO John Holland-Kaye said.

“We have therefore made the difficult decision to introduce a capacity cap to September 11.

“We recognise that this will mean some summer journeys will either be moved to another day, another airport or be cancelled and we apologise.”

Heathrow said the move potentially affects up to 4,000 passengers a day.

“There are some critical functions in the airport which are still significantly under-resourced, in particular ground handlers,” Holland-Kaye said.

Sounds like he should look for another job.

And sadly for Mr Holland-Kaye not all the airlines are willing to play ball. Emirates is one airline that has said it is not willing to cut its slots.

Emirates has rejected Heathrow’s demands for airlines to stop selling summer tickets, calling the move "unreasonable and unacceptable".

The airline accused the airport of having a "blatant disregard" for customers. Sounds about right.