ｷ Fleet – about 350 aircrafts According to Lufthansa’s website, most of their aircraft are noted for quiet and low air-pollutant operation. ｷ Transportation – owns and operates shuttle services to transport passengers to and from airports worldwide ｷ Lounges - At more than 60 airport destinations, lounges are already in place, and Lufthansa is investing more than 150 million euros in new lounges and upgrades. ｷ Catering services – Operating under Lufthansa Service Holding corporation, they are The world’s largest airline caterer and provider of inflight service solutions. Revenue from their catering services in 2008 was over 230 billion Euros.
2002, and 2003 – Lufthansa suffered from a two-year traffic decline due to the 9/11 attack in 2001. 2008 – up until 2007 the ROA is looking good, but it dropped below 4% due to the economy downturn. Lufthansa also purchased 19% of JetBlue’s share in late 2007.
Lufthansa’s cash revenue dropped very low in 2001
Lufthansa Going Global, but How to Manage Complexity? Adel Donnych Jason Myat-Hsu Yusuke
Industry changes, deregulation and the economic pressures of sustaining a profitable business, Lufthansa formed The Star Alliance with other airlines to provide a seamless network of intercontinental connections.
Mergers and acquisitions were costly and ran into governmental regulations and limitations. The alliance would provide the needed “expansion” sought by Lufthansa with limited regulatory hurdles and reduced investments.
Emphasis is on maintaining a Global strategy that offers the customers a similar level of service throughout the network.
The elasticity of demand, the economy, IT, socio-cultural, political/legal, demographics, from the general environment has claimed massive movements in this industry and Lufthansa core business units.
Maintenance Repair and Overhaul (MRO)
Catering (Passenger Food Service)
Lufthansa will continue to do what it does best: focusing on the customers by providing the best customer service, ramping up their IT, and reducing cost; in addition, conservative risk management practices.
Looking at the Airlines from a global standpoint Lufthansa facilitates economic growth, world trade, international investment and tourism; and is therefore central to the globalization taking place in many other industries.
Now Approximately one-third of the workforce is non German.
Continuous education and training is on Lufthansa top priority list not only for employees but also for managers.
“ Lufthansa School of Business”
Lufthansa environmental activities engage a wide range of social and environmental projects from supporting children in need (via the help alliance) to protecting endangered animals and recycling or introducing fuel efficiency initiatives.
Lufthansa Oneworld SWOT Strengths : Focus on quality Complementary global network None of its members declared bankrupt Opportunities : Anti-trust immunity JAL’s presence Expecting growth Mexicana joining in 2009 Weaknesses : Smaller than the other two Can’t compete in equal terms North America Threats : Economy Member’s bankruptcy Member may leave for other alliances
Lufthansa SkyTeam SWOT Strengths : 2 nd biggest alliance Market share in the North America Opportunities : Vietnam Airlines joining in 2010 Growth in Asia Weaknesses : Oceania and Middle East Lost $19.5 billion in 10 years Threats : Economy No Japanese Airlines Loss of Continental Airlines