Status perks
October 11, 2011
"The German parliament faces great challenges. I would like to promise you our constructive support in rising to these challenges," Air Berlin founder and former CEO Joachim Hunold wrote in a letter dated January 2010.
The missive, which a report in Tuesday's Frankfurter Rundschau newspaper claims was sent to an unspecified number of German parliamentarians, describes the "great importance" Air Berlin places on receiving support from the country's politicians, and of the airline's dedication to securing economic and environmental stability.
"I can assure you that our company will not stop trying to contribute to sustainable economic growth and internationally agreed progress on the issues of climate and environmental protection."
The letter concludes by inviting addressees to accept the enclosed "topbonus Gold Card" which entitles its holders to benefits including, but not restricted to, extra leg room at no charge, priority check-in and a 40 percent mileage bonus.
Cards for all occasions
Air Berlin declined to comment on the number of politicians who made use of their handout, which is usually only available for frequent flyers who have racked up at least 40,000 miles with the airline. "We don't publish names or groups of people," spokeswoman Yasmin Born told the Frankfurt paper.
In a later comment, she told dpa news agency that the Gold Card "facilitates travel."
A statement released by the Administration of the German Bundestag – the lower house of parliament – in response to the report in the Frankfurter Rundschau said that MPs had each received two cards in the summer of 2008.
One, the Gold Card, was intended for use on official business, while the other, which does not offer the same perks, could be used to accumulate air miles on private flights. But whether MPs adhered to these rules is not known.
"The German Bundestag does not manage this bonus program, and therefore has no information about how it is used," parliamentary administrators said.
Buttering up Berlin
Anti-corruption watchdog Transparency International (TI) is critical of the cards and the lack of transparency.
"They give politicians advantages they would not have if they were not MPs and we therefore believe they should not accept these advantages," Managing Director of TI, Christian Humborg told Deutsche Welle.
He added that although Air Berlin had not actually broken any laws in offering its "topbonus Gold Cards" to MPs, such incentives paved the way for lobbying activities further down the line.
"The letter generates a level of expectation that parliamentarians might later remember they were treated very well," Humborg said. "It is all about creating a nice climate between policy makers and individual interests."
The German aviation industry is tightly regulated, he said, and federal laws influence the success of airlines operating under them.
Once bitten, not so shy
The bonus card revelation draws Air Berlin its second bout of negative headlines in as many weeks. Just days ago it came to light that the airline has been operating what it calls its Counter Card Premium Plus plan – which entitles some 100 prominent Germans and their families to free travel on the airline.
SdK, an organization that aims to protect the interests of shareholders, told the Berliner Zeitung newspaper that the scheme was "an unfathomable scandal", and that Air Berlin should immediately publish a list of the celebrities and public figures who benefited from it.
"Shareholders have a right to know how much the program cost and how long it has been going on," Michael Kunert of SdK said.
But the airline defended the plan in a press statement, saying the selected celebrities from the fields of sport, economy, culture and entertainment, serve as "marketing ambassadors, whose openly communicated loyalty to Air Berlin has a positive effect on the company's image."
Image issues
But TI's Humborg pointed out that the public would need to know the ambassadors' identities in order for the program to have the desired effect. That, however, is still not the case with those on the Counter Card Premium Plus plan.
Both Air Berlin incidents have come to light since the former head of the Deutsche Bahn rail group, Hartmut Mehdorn, took the helm of the airline in September.
Mehdorn has already announced that the celebrity loyalty scheme would be scrapped at the end of the year. But if he is to succeed in his 200 million euro ($274 million) profit-improvement program, which includes removing 18 aircraft from service and increasing operating times, Air Berlin can hardly afford any more negative press coverage.
Author: Tamsin Walker
Editor: Sam Edmonds