Case Study Of Lufthansa

Case Study Of Lufthansa
1. QUESTION 1.1 In my opinion the most important challenges that the airline industry has to deal
with are the volatility caused by air plane accidents or terror attacks, the economic crisis and the
competition from low cost airlines. Firstly , some terror attacks could have a significant decrease in
the demand for air trips. For example after the attacks of the September 11,2001 the flights in
U.S.A. were decreased more than 20 percent and despite this, most of the planes travelled with half
of their passengers capacity ( Raymond et al., 2003, p.178). Secondly, the world economic crisis has
forced the companies to adjust the cost of fares , therefore and their earnings. Finally the low cost
airlines had managed ... Show more content on Helpwriting.net ...
The classical process of training and development involves a need analysis ,the set up of the goals
and a decision if this training would be in–house or outsourced(Mihiotis ,2005, p.62). In a digital
workplace a need analysis is much easier to be made. This is because up–to date software can
provide us information and statistical data about the productivity of every employee, common
mistakes, unnecessary delays and customers feedback. By this way it is easier to design a training
based not only in the company needs , but the training could be specialized in the strengths and
weakness of every employee. Knowing better the company and the workforce you can set up better
the goals for the organization and even each employee separately. Personal question marks and tests
can be developed so every employee would be able to see where he is going well and what he has to
improve. Furthermore some employees who might be expert in some cases could take the role of
"mentor" and answer questions of their
... Get more on HelpWriting.net ...

The Pros And Cons Of American Airline
In 2015, it showed in the record that the number of employees American Airline has was 110,300
employees within different departments such as flight attendants, and ground workers and pilots.
With this huge number of workers, they need a representative to make their rights will be claimed.
That why American Airline has a voice with a different labor unions such as Association of
Professional Flight Attendants (APFA), Air Line Pilots Association (ALPA), Transport Workers
Union–International Association of Machinists alliance (TWU–IAM) and Allied Pilot Association
(APA). Therefore, the airline will be forced to consider and listen to the labor unions and their
demands to avoid strikes that can damage the reputation of the company.
American airline trying to address the recommendation that are made by the labor unions to make
sure of the employee contentment, conviction and satisfaction to be avoiding the publicity scandal
that can happen. For example, the personnel of the American airline recently, the flight attendants,
suffered headaches, hives and rashes. At first nobody could know what's happening, but then it was
emphasized that the new uniforms were the culprit. According to the Association of Flight
Professionals (APFA), more than 1,600 employees have grown up complaining of skin problems
and some other problems. Due to the increasing number of complaints, the Association of Flight
Professionals were asked to ask American Airline to test the uniforms and replace them so

Lufthansa Airlines
Executive Overview:
Lufthansa is the largest airline in Europe in terms of passengers carried. By 2002, Lufthansa had
become of the strongest airlines and top aviations groups in the world. Lufthansa had undergone a
decade of fundamental change. Lufthansa was transformed from a state–owned, unprofitable
national airline into one of the most profitable, privately owned aviation groups in the industry. The
group turned a record loss of €350 million in 1992 into a pre–tax profit of €952 million in 2002.
This financial result reflected Lufthansa's major competitive advantage–its ability to respond
rapidly, act flexibly, and withstand crises. Lufthansa proved its unique change management
competence when it coped with September 11th, the ... Show more content on Helpwriting.net ...
The EU economy is expected to grow further over the next decade as more countries join the union
– especially considering that the new States are usually poorer than the EU average, and hence the
expected fast GDP growth will help achieve the dynamic of the united Europe. It is estimated that
the Eurozone will grow around 2.6 per cent this year (2006), on a par with other industrialized
nations such as the United States at 2.6% (Q2 2006) and 1.6 (Q3 2006).
GDP: $12.82 trillion. (2006) GDP/capita: $18,056. Annual growth of per capita GDP: 2.8% (2006).
Income of top 10%: 27.5%. Unemployment 8.8% (2006).
Opportunities:
1. GDP is growing; opportunity to take advantage of that growth.
2. The EU has made doing business across borders easier with standardized currency and regulation.
3. Inflation rates are steady along with currency rates; currency exchange risk will be lower.
Threats:
1. The European economy is not growing as fast as developing nations such as China.
2. The EU has a lot of power over the economy in terms of currency rates and regulations.
Political/Legal Segment
The European Union has evolved over time from a primarily economic union to an increasingly
political one. This trend is highlighted by the increasing number of policy areas that fall within EU
competence: political power has tended to shift upwards from the Member States to the EU. The
European Free Trade Association (EFTA) was established on May 3,

Application of E-Business Strategy Creates Competitive...
Introduction
The airline industry is an area facing immense competition and with high fuel and maintenance
costs, the margins in this industry are proportionately very low. As a result of this it is an area
undergoing constant consolidation through a number of mergers and acquisitions. This means every
airline is fighting tooth and nail to stay afloat and not go bankrupt, yet at the same time they need to
find a method to create competencies for itself. On the basis of this it would create competitive
advantages for itself and become a market leader.
It is in this backdrop that the this paper tries to analyse whether evolving and adopting an e–business
strategy helps an airline gain sufficient market advantage to prove beneficial for ... Show more
content on Helpwriting.net ...
Reduce costs
F11. Increase productivity
Airline can gain significant productivity improvements by using business–to–business e–commerce
to streamline and improve its supply chain processes. Airline can save time and money by
purchasing supplies via the Web. Similarly, Airline can use e–commerce to communicate and
transact with distributors and customers in a more cost–effective and timely manner than through
traditional channels.
F12. Improve level of customer service
Airline can improve it 's level of customer service by allowing customers to access "help"
information, complete application forms, pay invoices, or change their account details via it 's Web
site, at their own convenience.
F13. Strengthen customer relationships
Airline can strengthen relationships with existing customers by allowing them to access – via it 's
Web site – previously inaccessible decision–support information, such as detailed research reports,
product specifications and price comparisons.
F14. Enhance business intelligence
Airline can use its Web site to collect valuable intelligence about customer needs, buying habits and
preferences. This intelligence can be a valuable input to the development of new, profit–enhancing
processes, products and services. Similarly, Airline can use the Web to research new markets and to
gather valuable intelligence about its competitors.
F15. Increase direct sales of products or services
The Web enables

Lufthansa Case Study Essay
Lufthansa Case Study
Lufthansa Case Study I. External Analysis: Several large scale, interrelated conditions have affected
the airline industry over the past several years in such a manner that every carrier has had to respond
in order to remain viable and competitive. a. Environmental Analysis: The international war on
terror, with its attendant rising cost of oil has created havoc in a number of ways (Lufthansa Annual
Report, 2004). Rising costs have resulted from the increase in fuel prices. Customer check–in wait
times and flight time delays have resulted from new regulations designed to ensure passenger and
plane safety, including more rigorous bag searches, more extensive passenger screening, and the
like. This ... Show more content on Helpwriting.net ...
The very size of the company threatens to cause it ongoing trouble, as it must deal with problems
around the globe on an ongoing basis and must remain flexible with a behemoth corporate organism.
III. Strategic Intent and Mission: Lufthansa has restructured its operations to allow it to respond
quickly to problems areas and to control costs across the organization. It has also utilized its market
power to negotiate favorable contracts for products and service, including fuel. The company has
also withdrawn from unprofitable routes and simplified product and service offerings to cut costs.
Finally, it has capitalized on technology, by making flight check–ins and bookings available online
to make the customer service appropriate for demands (Moody's Investors Services, 2005). In order
to compete in the future, the company must find new ways to control costs without sacrificing
infrastructure or customer service. IV. Strategy Formulation: The effort to control costs will force
the company to focus on profitable routes and ruthlessly cut service to unprofitable areas going
forward. (The company has shown a willingness to take this sort of approach.) It will also force the
company to form strong alliances with other carriers that essentially protect its own territory by
providing alliance coverage of different markets. Company officials will have to

Lufthansa Case Study
Lufthansa is an international airline group that has earned its place among one of the leading
aviation transportation providers in Europe. The airline operates an extensive network of services
within Europe, as well as several countries around the world. Lufthansa operates worldwide with
540 subsidiaries and associated companies. They offer flights to a variety of destinations at a fair
price. The company was founded in 1926 when Deutscher Aero Lloyd (DAL) and Junkers
Luftverkehr merged to create the Deutsche Luft Hansa Aktiengesellschaft. The company's
headquarters is currently located in Cologne, Germany. Their main competitors include Delta
Airlines and Air France. Lufthansa has differentiated themselves and made themselves more
appealing to the public by making great efforts in giving back to the world. They did this through
their commitment to social causes and their efforts in developing their ecological efficiency in flight
operations. For example, the Help Alliance is the main charity of the Lufthansa group. This not–for–
profit organization covers over thirty projects that help youth gain an access to education and
promoting entrepreneurship in other areas of the world.
OBJECTIVE(S) OF THE CAMPAIGN
Objectives of the Campaign: The objectives of this campaign are as follows:
Make the travel experience as enjoyable and easy as possible to improve customer satisfaction by 12
percent by the end of the year.
Increase flight sales by 7 percent by the end of the year.

The Value Of The Airline
3.2 Hedging Add Value The airline must benefit from hedging due to the mitigation of finance risk,
reduction agency problems of information asymmetry in this section we show the important relation
between Aircraft Company and hedging of fuel price and operating cost due add value. The hedging
is associated with a lower cost of crude oil, operating cost comprehensive set of controls and finance
specifications. Hedging initiating firms of airline experience a drop in the cost while suspension
firms sustain a jump. We perform an extensive set of robustness tests to address the possible issue of
endogeneity, competitive. We further show that hedging leads to a drop in the cost of debt by
reducing higher oil price risk and the level of ... Show more content on Helpwriting.net ...
Hedging also reduces information asymmetries between the firm and its stakeholders, facilitating
contracting. For example, demonstrate that managing risk can reduce noise, thus helping outside
investors to better identify skilled managers. All these arguments imply that risk management can
add airline firm value (Karl and Henri, 2011).
3.2.2 Airline Industry and Economic Aircraft companies are derived strongly from the airline
production function, like the situation at ticket prices, operators cost and some elements variables
specification such as satisfy of passengers and situation in the market competitive. The large
endogeneity and careless variable case could have an effect on our estimates of oil price coefficients
.The chain may have to be side to costs higher at the time of high oil prices. instead that, it might be
the case that when firm's product market positions are stronger they are better able to enact
flexibilities to deal with high oil prices, leading to reduced costs for example in fixed the category of
the data base, the period business a swing fuel prices might face to be wide at the same time as
airlines' capacity is tired with investors (Paul and Chi Zhang, 2014). Hedged fuel cost is boosted in
fuel price and concave. Hedged fuel cost is rising in jet fuel price, but less credible concave,

Competitive Challenges Of Lufthansa
2.1 The awareness of Star Alliance– how it is till now
2.1.1 Brand development
The creation of airline alliance in the 90's was driven by new level of competitive awareness in the
sky transportation field. There were many elements that influenced the decision of bounding airlines
such as to gain the competitive advantages by code–sharing to make growth in market share. Many
alliances were created back then, but later they consolidated and formed five big alliances that exist
till today and one of those and the biggest one is Star Alliance. The airlines within the alliance that
were under one network, still could maintain their own identities.
Despite the fact that Star Alliance was founded in 1997, the building of the started earlier in 1996 ...
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Business model of Star Alliance is seem to be working properly with the large area of possibility to
travel and using frequent flyer programs. The biggest issue is the loss in integration between the
airlines or even absents of it. For the material and immaterial benefits integration must be wide
spread not only visible in small groups.
To work more efficiently they should invest and make a centralized IT infrastructure for all of the
systems. There were also too many cases where customer felt defrauded because of losing their
baggage or being unable to enter the lounge. These examples show the failure of delivering services
which were claimed by the alliance to be offered. That kind of inadequacy can cause a customer to
breakdown and stop using the company's services. Start Alliance is expected to bring seamless travel
environment so it should unify their operations.
The focus on a value should also be taken care of. Every airline should be examine on how much
value do they add to the alliance, because keeping a carrier just for the sake of having the largest
number of members does not seem to be profitable. With the measuring of the worth of each airline
it can be noticed which carrier fits and which would be better somewhere else. This should be done
also in definitive way, because right now the added value can be seen, but it needs to be more
precise. After all this would help to see clearly the benefits

Quality Management
Effects of Quality Management on Domestic and Global Competition Paper
Effects of Quality Management on Domestic and Global Competition Paper
Quality Management within any organization is important because it will guide the organization to
success. The goal that the organization is looking to accomplish will heavily depend on what quality
of service is offered to the customers. Managers, who provide quality service will increase the level
of satisfaction to the customers. Businesses aim to provide the highest level of quality service and
products to their customers. In this paper the student will compare and contrast two organizations,
one in global market and one in the domestic market. The use of quality ... Show more content on
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Lufthansa Airlines also has a long –term strategic plan for the success of their airline; this airline is
always developing techniques for effective communication to ensure that their employees apply
total quality to their work. This airline strives to ensure long–term competitiveness in the global
market. A successful strategy for developing markets and sales activities relies strongly on the
strategic orientation of an airport as well as the relevant market and customer needs. That is why
Lufthansa services are always based on a thorough assessment of their markets, customer base,
potential, and existing processes (Lufthansa, 2011) 1. Distribution Channel management –Secure
and increase airline revenue and reduce cost 2. Airline– e commerce strategy– using the Internet as a
strong platform for information and sales. 3. Airline revenue management and pricing policy–
Marketing and sales 4. The sales/distribution strategy and planning– this includes assessment,
identification, improvement, and implementation. Competiveness in the global and domestic market
The approach for long–term success in the global and domestic market assists both companies in
increasing new and innovative plans. These plans should meet the requirements of the customers
and the industry in, which they serve. Both airlines have affective strategies in meeting their long–
term goals through

What Is Deutsche Lufthansa Competitive Advantage
Deutsche Lufthansa AG is the leading airline company in terms of passage and fleet size not only in
Germany but also in the whole of Europe. Given the many challenges posed by the general,
industrial and competitive environment of the airline industry, Lufthansa and other existing airlines
decided to form an alliance, know as Star Alliance. This alliance was founded on the common
understanding that it is quite unfeasible for a single company to stay alive in a global network if not
part of an alliance. This cooperative strategy serves as a mechanism for the Aviation Group to enter
the international market swiftly, and with greater impact through the support of the alliance. Since
mergers are illegal across country boarders the strategic response by Lufthansa was to create a
legally independent company that shares some of its resources and capabilities to develop a
competitive advantage in the passage segment of the airline market globally. This competitive
advantage and the benefits of networks effects, result in an increasing offer of customer flights,
better service, more destinations, better flight connections, in addition to addressing further needs
within the passenger airline segment. Lufthansa is therefore able to increase value and reduce cost
and thus maximize gains through its cooperative international strategy by sharing customer
information with other partners as well as resources including ... Show more content on
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Lufthansa should establish some common monitoring and incentives programs within the alliance to
strengthen the cooperation and extract as many benefits as possible from economies of scale, while
working on maintaining its internal competitive advantages and keeping up its high reputation.
Additionally it should consider further expansion through acquisition in order to strengthen its
market position and increase its sphere of influence

Large Aircraft Essays
The A–380 is becoming more popular as airlines look for ways to move the maximum amount of
passengers for the least money (Stafford, 2006). The A380 is made in passenger or freight versions.
The A380–800 is the largest passenger plane in the world. When passenger areas are divided into
three classes, the A380 can seat 550 passengers. When the entire plane is designated economy class,
it can seat 853 people. There is 50% more cabin floor space than the Boeing 747 because the A380s
upper deck goes the entire length of the fuselage ("Airbus a380 airfield,"2011). In 2010 there were
already over 30 in use and more are expected in the near future (Young & Wells, 2011, p. 473). Due
to the size and weight of the aircraft, airports will have ... Show more content on Helpwriting.net ...
According to FAA Order 5300, airports may "submit Modifications of Standard (MOS) requests for
review of non–standard compliance items as long as safety is not compromised". Making
modification would be much less expensive and less time consuming for the airports that are able to
do them. Some design standards to allow for safe use of the A380 include blast pad dimensions to be
250 x 400 feet ("Airbus a380 airfield,"2011).
Many smaller airports will not be able to fit the larger airbus and the A380 will be limited to only
the large, hub airports better able to accommodate them. Smaller airports may have to be used as
feeder airports that will connect passengers to the large airports and the A380s. This could be a
problem of increased congestion with the existing slot system if more connecting flights are needed
and there are no more gates available or slot time (Ruehle, Goetsch, & Koch, 2006).
At this time intercontinental routes use the hub and spoke system. This method allows airlines to
bundle an increased number of passengers on the flights. The draw–back is that it also leads to a
more complex feeder flight schedule. Those airports with the facilities and room to support the
airbuses would then become hubs for those aircraft flights. To be profitable and fill enough seats,
airports with the most potential passengers would need to be paired for flights. Any delay or
cancellation would have a domino effect, costing more

Lufthansa Cargo
Brochure
More information from http://www.researchandmarkets.com/reports/1322865/
Lufthansa Cargo AG – Strategic SWOT Analysis Review
Description: Lufthansa Cargo AG – Strategic SWOT Analysis Review Summary Lufthansa Cargo
AG(Lufthansa Cargo) is a Germany–based company which provides cargo airline, air freight and
logistics services. The company is engaaged in transporting cargo and mail from airport–to–airport.
Lufthansa Cargo AG has a strategic partnership agreement with Fraport AG. The airline transported
around 1.8 million tonnes of freight and mail. Lufthansa Cargo serves three product types with its
service portfolio, namely, the general cargo segment td.Pro, the express segment with td.Flash and
the Specials. The company ... Show more content on Helpwriting.net ...
and Services Lufthansa Cargo AG – History Lufthansa Cargo AG – Company Statement Lufthansa
Cargo AG – Locations And Subsidiaries Head Office Other Locations & Subsidiaries Section 2 –
Company Analysis Lufthansa Cargo AG – Business Description Lufthansa Cargo AG – Corporate
Strategy Lufthansa Cargo AG – SWOT Analysis SWOT Analysis – Overview Lufthansa Cargo AG
– Strengths Strength – Innovation Strength – Diversified Service Offerings Strength – Strategic
Alliance Lufthansa Cargo AG – Weaknesses Weakness – Lack of Scale Lufthansa Cargo AG –
Opportunities Opportunity – Expansion into Emerging Markets Opportunity – Global Air Freight
and Logistics Outlook Opportunity – Relocation of its Asian Hub Lufthansa Cargo AG – Threats
Threat – Uncertain Macroeconomic Factors Threat – Short–Term Aviation Industry Outlook
Lufthansa Cargo AG – Key Competitors Section 3 – Company's Recent Developments Lufthansa
Cargo AG, Recent Developments Apr 14, 2010: Lufthansa Cargo, Mojix Complete Pilot
Deployment Of RFID System Feb 24, 2010: Lufthansa Cargo Enters Into Agreement With Austrian
Airlines Feb 24, 2010: Lufthansa Cargo Enters Into Agreement With Austrian Airlines Feb 02, 2010:
Smiths Detection, Lufthansa Cargo, Covenant Collaborate To Provide Security Solution Section 4 –
Appendix Methodology About GlobalData Contact Us Disclaimer
List of Tables Lufthansa Cargo AG, Key Facts Lufthansa Cargo AG, Key Employees Lufthansa
Cargo AG, Key Employee Biographies Lufthansa Cargo AG, Major Products

Airline Product Offering : Airline Products
AIRLINE PRODUCT OFFERING 7
Running head: AIRLINE PRODUCT OFFERING
Written Assignment 4: Airline Product Offering Assignment
MBAA 523 Advanced Aviation Economics
December 10, 2015
Professor: Gerald Cook
Airline Product Offering ?Ryanair and Lufthansa In the book, Flying off Course, Rigas Doganis
states, that there are five key product features that affect travel decisions and choice of airline by
customers, and these requirements usually do vary between different market segments on the same
route, but can vary also between neighboring routes and geographical areas (Doganis, 2010). These
five product features include; price, schedule–base, comfort–base, convenience and image. For any
airline product that is in a given market, any ... Show more content on Helpwriting.net ...
overarching business strategy, with an explanation of the most profitable strategy.
For the comparison of Doganis? five key product features, the Ireland based low–cost carrier,
Ryanair will be compared to the German based, full–service airline, Lufthansa. Both airlines will be
using a city–pair from Dublin to Frankfurt for the basis of the comparison in airfare. Since, Ryanair
only offers a single fare for their seating class which is Economy, that is in accordance with most
low–cost models and Lufthansa offers First, Business, and Economy classes, only Lufthansa?s
economy class pricing will be used is used in this paper. Lufthansa uses a three tiers system for their
economy class, with each tiers offering different cost structures based on the prices of the fare,
which is based on options available. The tiers consist of Economy Light, Economy Classic, and
Economy Flex, to stay close in accordance with Ryanair, the Economy Light class offered by the
carrier will be used since the cost structure for this seating allows the passenger the same amenities
as the low–cost carrier.
In the airline industry pricing is vital. This type of product and service is one of the only key
features that are planned and combined together so that the airline can generate demand (Doganis,
2010).
Fares, for both flights were booked on the same dates of travel, using December 31, 2015 as the
departure date, with a return date of January 7, 2016. The times for the particular

Jetblue Case Analysis
JetBlue Airways airline was established by David Neeleman as a low–fare airline with high–quality
customer service. His goal was to create an airline that was innovative for the current market. Their
main focus was to provide service to areas that were underserved as well as to large cities with
overpriced fares. He aimed to establish a strong brand that differentiated itself from its competitors
by being a safe, reliable and low cost–airline. Neeleman managed to achieve this partially by hiring
friendly, helpful, team–oriented, and customer–focused people. JetBlue is capable of offering low–
cost flights due to their low operating costs. In order to achieve the cost advantage, they initially
operated a single–type aircraft, the Airbus ... Show more content on Helpwriting.net ...
Subsequently, a newly created airline would definitely face trouble having to compete in this mature
industry specifically with other low–cost airlines that have learned to implement high–quality
service while providing the lowest prices possible. It appears that one of the available opportunities
for a newly created airline would be to take on a differentiation strategy and provide its customers
with unique features that larger competitors simply do not have. The bargain power of buyers is
fairly high, especially within the low–cost airline industry. Customers continuously seek to purchase
tickets at the lowest price possible while suppliers tend to look for ways to differentiate their service
among other competitors. Moreover, the widespread use of the Internet enables customers to find
the most affordable fare quickly and conveniently. Definitely, the buyers are price sensitive as far as
the airline industry goes, and they are often willing to substitute services provided by one airline to
purchase a ticket for less from another airline. The bargain power of suppliers is high mainly
because the airline's success depends greatly on their suppliers. The switching costs are
tremendously high for airlines which makes the suppliers position even stronger. Additionally, there
is not much competition in the airplane manufacturing industry on account of Boing and Airbus as
being the main manufacturers that dominate the industry. The threat of

JetBlue Airlines Case Analysis
JetBlue Airlines
Strategic Management Case Analysis
Introduction to the Company
History of the Firm JetBlue was established in 1999, and was the third airline start–up for founder
and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a
start–up airline, from investors that included Chase Capital and financier George Soros. With the
large start–up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the
industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The
airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline
added nine more destinations in California, Florida, New York, Utah, and ... Show more content on
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Regional airlines such as SkyWest and Mesa generally operate smaller aircraft on lower volume
routes. These airlines generally form alliances with the major carriers and provide service from their
hubs to smaller cities in the region. Low cost carriers such as Southwest developed after
deregulation in 1978. Southwest pioneered the low cost airline model, which many other airlines
have tried to copy. Although there are currently four low cost major U.S. carriers (JetBlue Airways
2006 Annual Report, n.d.), major competitors according to market share include (Figures 1 and 2;
JetBlue Airways Corporation Overview, n.d.):
AMR Corporation
Southwest Airlines, and
UAL Corporation.
Industry Profitability
Intensity of Rivalry The airline industry can be considered an imperfect oligopoly. There are several
large carriers that dominate long distance flights, and many small carriers that compete for short
distance flights. Competition is fierce, and the return for most carriers is very low. Some airlines are
trying to differentiate themselves, like JetBlue for example, by offering superior services at low
prices. Other low cost airlines, like Southwest, offer low costs with no frills. Most airlines offer a
frequent flyer programs in order to develop brand loyalty. In recent years there has also been several
alliances formed between airlines. These alliances enable

What Are The Advantages And Disadvantages Of Alliances In...
Alliances and Partnership in Civil Aviation "First Europe, and then the globe, will be linked by
flight, and nations so knit together that they will grow to be next–door neighbors. . . . What railways
have done for nations, airways will do for the world." – Claude Grahame–White, 1914. The subject
that I am taking up in this context, to further research in, as per the allotted curriculum is called
International Air Law. The topic that I shall be taking up in brief in this First Draft Synopsis is called
"Alliances and Partnerships in Civil Aviation". I shall be targeting this topic largely from the Indian
Perspective, although glimpses of global principles and their ideological interplay may be gleaned
from the text from time to time. ... Show more content on Helpwriting.net ...
What are the various kind of alliances that can be formed between two entities of the Civil Aviation
sector, particularly with respect to airlines? 2. What kinds of alliances exist in the Aviation Sector in
the Indian market? 3. What are the distinct advantages and disadvantages of Partnerships in the Civil
Aviation Sector? 4. Whether Alliances in the Aviation Industry have a tendency to promote unfair
trade practices and adversely affect the market scenario? Hypothesis It is assumed that the alliances
and partnerships in civil aviation are doing more good than harm and strategic initiatives between
different entities in this sector are largely beneficial to the end user in providing for a better overall
experience with regards to service. Research Methodology The Research Methodology adopted in
this Research Project is primarily doctrinal in nature. The Doctrinal research on this research on this
issue covers reports of the Competition Commission of India, The Chicago Convention among
others, Articles published in research journals, speeches given by prominent jurists, articles in the
newspaper, Statutes, Books and most importantly the Constitution of India. Tentative Chapterization
The research project shall consist of the following

Case Study: Egyptair
Projections:
1– Risks:
– Political stability: Egyptair continues to make massive losses as the carrier and Egypt struggle to
recover from the Jan–2011 revolution which resulted in the airline moving into crisis mode for two
months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue
evaporated. The instability of the political situation which we could say its improving gradually this
year had been one of the major risks that's facing Egyptair.
– Reduced demand and Customer inability to pay: Average ticket prices have jumped 10 percent in
the last several years, potentially turning off consumers that can reach their destination in other ways
and specially After the global downturns and the hard financial times customers ability to pay for
tickets for certain destinations that are tend to be expensive had declined. So the company had to
compensate these loss by offering promotions and discounts over tickets to ... Show more content on
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The budget is a reflection of the goals and strategies we have for each area of our business. The
figures we budget for sales and expenses will help us to chart the financial performance and
compare the business's actual performance against our goals. Egyptair is using the Top down
budgeting strategy throughout its annual planning. Our strategies will include an increase in
marketing expenses, payroll to produce our service professionally competitive in the global market
and capital equipment purchases. Though we will guarantee through determining our budget plan
the marketing expenses should be planned wisely for the benefit of the Airlines development but
still compatible with our current situation of loss of profits and revenues that we are currently and
recently facing these past years. Developing a budget will help us to plan for the costs of
implementing these

Analysis Of The Deutsche Lufthansa Group
1.1 Lufthansa Group
Business activities
The Lufthansa Group (LG) is a global aviation group with around 540 subsidiaries and equity
investments. In the 2014 financial year it was organised into five operating segments: Passenger
Airline Group, Logistics, MRO, Catering and, up to the end of 2014, IT Services.
(Lufhansagroup.com) Each segment occupies a leading position in its respective market.
Organisation
In terms of Management and Superviosry structures, Deutsche Lufthansa AG (DL) is a typical
German Company. Company Mangement and strategic direction vest with The Executive Board. In
doing so, the aim is to increase Company value sustainably. The Executive Board is appointed,
supervised and advised by The Supervisory Board. The parent and ... Show more content on
Helpwriting.net ...
There are three standards commonly used namely Rule–of–Thumb measures, Past Performance and
Industry norms.
To gain insight into which company the investor should invest in, he must look beyond the
individual numbers to the relationship between the numbers and their chain from one period to
another. (Needles, 12th Edition)
The four tools of financial analysis are intended to show these relationships and changes. They
setout here in under and applied to each of Lufthansa and Ryanair.
2.31 Tools of Financial Analysis
2.311 Horizontal Analysis
Horizontal analysis gives insight into year–to–year changes in which the previous year is compared
to the current year and computed in both currency and percentage. The percentage of the change
relates to the size of the change to the currency amounts involved. (Needles, 12th edition)
The percentage change is computed as follows :
Comparative Year Amount – Base Year Amount
Percentage Change = 100 X Base Year Amount*
*1st year considered in any set of data (Needles, 12th

Vertical Integration: a Case Study of Scandinavian
VERTICAL INTEGRATION: A CASE STUDY OF SCANDINAVIAN AIRLINE SYSTEM IN
1988
Name
Course
Instructor
Institution
1
Month, Year
Vertical Integration: A Case Study of Scandinavian Airline System In 1988
Introduction
The Scandinavian Airlines System (SAS) applied vertical integrations strategic management
approach as a way of overcoming the challenges it faced especially in the 1980s. The threats in the
aviation environment such as competition from other major airlines caused the profitability of the
airline to decline steadily. Because of the new management, which began with Jan Carlzon as the
company's CEO, there was complete company restructuring and thus the airline began to grow
steadily through vertical integration ... Show more content on Helpwriting.net ...
(1988, p. 33). Good management especially by the company's former CEO Jan
4
Carlzon who saw the company through the worst of challenges during the 1980s enabled the
success of the airline. The CEO maintained that businesspersons had to travel both in the good and
bad times. The motivation behind the vertical integrations a management strategy by the airline
stemmed from the need to increase its share in the air travel and leisure market. This was after the
realization that the market trends at the time were very competitive hence there was a need to use
proper management strategies so that the airline would stay in the market.
The advantages of vertical integration came in handy in the period around 1988 by the SAS, which

is a product of a difficult collaboration of three fleets from Norway, Denmark, and Sweden. Ghoshal
et al. (1988, 44) say that the difficulties in structure of the airline resulted from the fact that the
airline became a consortium and control was distributed among respective governments. The need
for vertical integration was thus motivated by the need for improving decision making and reducing
the inefficiency of everyday operations of the airline. Additionally, there were problems in the route
system of the airline, which needed immediate attention. SAS faced stiff competition from airlines
in Europe,

Marketing Research For Lufthansa Technik Malta
Executive Summary
Recognising the various sources of sustainable competitive advantage is an important area of study.
This report reminds all managers of the importance and value of research. Managers should value
timely information and act on such information. Experience and assumptions are not enough.
Managers need to gather as much intelligence as possible to ensure that they make the most
efficient, effective and productive decisions for their organisation.
This report provides an analysis and evaluation of how research can help Lufthansa Technik Malta
achieve and sustain competitive advantage. This report also investigates how competitive advantage
affects organisational performance. Lufthansa Technik Malta must progress with the marketplace,
and the only way of doing so is by having a continuous flow of information and intelligence. This
can only be provided by research. It is therefore concluded that research can help Lufthansa Technik
Malta maintain and improve the business. Introduction
Several companies strive for a competitive advantage, but very few understand what it is, how to
achieve it and how to actually sustain it. ... Show more content on Helpwriting.net ...
Business market research is the process of collecting data to determine whether the service will
satisfy the needs of customers. With effective market research, Lufthansa Technik Malta can gain
invaluable information about the marketing, the competitors, the customers, and economic changes.
Market research will enable the company make informed choices, thus helping to develop a
successful marketing strategy. It is used to identify and define market targets, opportunities and
problems. It generates well founded marketing objectives. Market research assists in the formulation
of marketing strategies and evaluates the success of these marketing

Organizational Structure, Operational Efficiency, Internal...
Organizational structure allows guidance to employees by laying out the official reporting
relationships that reign the workflow of the company. The formal outline of a organization 's
structure makes it easier to add new positions in the company, as well as, providing a flexible and
ready means for growth. Organizational structure also helps operational efficiency by making clarity
to employees at all levels of a company. A thoroughly outlined structure provides a road–map for
internal promotions, allowing organizations to create solid employee advancement tracks for entry–
level workers.
Keywords: organizational structure, operational efficiency, internal promotion and employee
advancement.
Organizational Structures (Eucharia)
An ... Show more content on Helpwriting.net ...
With the understanding the concept of organizational structure, Air Canada will be used to
demonstrate the achieve implementation of structure as well as organizational strategies, revenue
enhancement, marketing strategies & Competitive Advantages and some suggestions to maintain
effective and efficiency of its organizational structure.
Organizational strategies (T.K.)
According to Collins, (2012) report that Air Canada's goal was highly develop as a leading global
airline to be among these with the highest levels of customer satisfaction, employee engagement and
value setting for shareholders and other stakeholders. This is following four key strategies:
Continually identifying and implementing cost reduction and revenue generating initiatives.
Extending and increasing connecting traffic through international gateways, on eco– sustainable and
basis of profit, and effectively completing in the leisure market to and from Canada.
Engaging customers by continually enhancing the frying experience and offering a consistently high
level of customer experience, with additional emphasis on reward and business passengers and
goods.
Fostering positive culture change through employee engagement programs designed to encourage an
understanding of how the airline and its employees can work together to deliver on the customer
promising, investing in the tools and training required to show a culture.
Revenue enhancement

Effect of Oil Prices on Airlines Industry
International
Oil Inflation &
Airlines Industry
Prepared for
Prof. Mahima Sharma
Faculty Member
Jaipuria Institute of Management
Prepared by
Shailesh Bharadwaj (cft07_128)
Sanjeev Prasad (cft07_130)
Sarita Singh (cft07_131)
Saurabh Bansal (cft07_135)
Shashank Anand ( cft07_138)
Students, PGDM– Trimester–4
July 31, 2008
INTRODUCTION
This report has been made to draw the attention of the people how the aviation industry has been
dependent upon the Oil prices. Since the research has been done in the prospect of International
Business so only those aspects have been covered that shows the dependency of the industry on the
other countries. As we know that India is one of the fastest growing countries. It has become the ...
Airlines are known to take on contract employees such as cabin crew, ticketing and check–in agents.
Variation in domestic & foreign oil price
The time is not going well for airlines industry. It is suffering in a pity condition due to increase in
aviation turbine fuel (ATF). ATF accounts for 35 per cent of the total airline expenses. The price of
ATF is increased 3 times in last 3 years. Just in last 5 months it has increased by 65%. Interesting
thing is that in the market of Singapore & Dubai, it is Rs.45 per liter but in India it has the 21%
higher price. First let's know why its price is higher.

In India the aviation companies have to spend more to purchase ATF. Airlines in India pay the most
for fuel when compared with other Asia Pacific hubs like Singapore, Hong Kong and Colombo,
mainly on account of higher tax rates. Aviation Turbine Fuel or jet fuel in Delhi, the city that houses
the nation 's second busiest airport, costs USD 1,291 per kilolitre while the same in Singapore is
sold at USD 1,067 per kl. It costs USD 1,100 per kl in Hong Kong and USD 1,113 in Colombo. For
airlines, refueling cost in Delhi is 21.73 per cent higher than that in Singapore. Similarly, airlines in
India pay 14.82 per cent and 13.87 per cent more than what those in Colombo and Hong Kong pay
respectively.
Over the past four months, cost of jet fuel in Delhi has risen from USD 1,023 per kl in April to USD
1,291 per kl in August, a

A New Era Of Deep Cooperation
A New Era of Deep Cooperation
Economic 2166F
November 29, 2016
Jingwen Guo
250811379
In recent years, airlines build a closer relationship, especially European airlines and Chinese airlines.
Europe is the headstream of airplane, but compared to North America, European aviation is a little
bit weak on the ridership. In late 1990s and early 2000s, Europe had more interactions with
American aviation. In recent years, Europe set China as a new partner. European aviation is trying to
expand its international market through increasing new cooperation.
In recent years, the relationship between Chinese and European Aviation is getting closer. The
strongest evidence is that Chinese government and European Union have signed a 5–year work
agreement for reducing the economic burden in aviation industry, preserving aviation safety and
environmental compatibility. European Union and China emphasized the importance of this project
by preparing over 10 million euro as its budget. The detailed work plan was reviewed and updated
in September 2016. This is the first official cooperation in European and Chinese aviation, which is
managed by the European Aviation Safety Agency (EASA) and Civil Aviation Administration of
China.
In terms to those individual airlines, there is another event that caught the public attention is that the
chairman of the Executive Board and CEO of Deutsche Lufthansa AG, Carsten Spohr and Mr. Song
Zhiyong, President and Executive Director of Air China

Why Was The Star Alliance
Identify and Explain in detail (a) When was the alliance formed (b) Why was the alliance formed
and (c) Type of alliance used? Equity or Nonequity? Horizontal or Vertical? Star Alliance was
formed in 1997 as the first truly global airline alliance. It was originally founded by five member
airlines and has since expanded to include 27 member airlines. The five original founding members
were United Airlines, Air Canada, Lufthansa, Thai Airways International and SAS–Scandinavian
Airlines. The alliance was formed to enhance the experience of frequent international travelers. With
the highest number of member airlines, daily flights destinations and countries flown to, Star
Alliance is currently the leading global airline network. It is Star Alliance's mission to provide ...
Perhaps one of the most important benefits is access to the Star Alliance branding. As we said
earlier, it is the current leader in the global airline industry. Member airlines are able to participate in
the fare products and business solutions which target multinational companies and meetings and
conventions industry (The Way the Earth Connects, n.d.). By being able to offer programs such as
these, airlines are able to grow their market share by offering new products and services to a new
market. Since participants in the alliance coordinate their networks and schedules, there is likely
also some production and operations cost savings to member airlines. Because of the vast number of
locations that Star Alliance offers as part of its network, another great benefit to the member airlines
is increased exposure to current and new customers. All of these benefits have the ability to lead to
increased revenue for each of the participating airlines in the

Weaknesss And Strengths, Opportunities And Threats
According to Cambridge Dictionary (2016), strategic analysis is the examination of how
successfully or not an organization operates and uses its resources, in order to achieve something
over time. After obtaining information about the operations of the organization, with the use of
certain techniques, we can identify and adjust matters that must be solved. One essential technique
which firstly imposed from Alfred Humphrey in the 60's to 70's, as stated by Boyd(2005), concerns
a discussion of an organization's strengths, weaknesses, opportunities, and threats, which is called
SWOT Analysis ( Strengths, Weaknesses, Opportunities, Threats). SWOT analysis, therefore, is a
strategic planning tool used to analyze an enterprise's internal and external environment when it is
called upon to make a decision in relation to the objectives it has set and in order to achieve
them(Schermerhorn 2015). ... Show more content on Helpwriting.net ...
To put it more simply, being a leader you should be inspiring and always in the center of action
(Stogdill, R. M.1974). Regarding leadership styles, which are recurring patterns of acts presented by
a leader, it is easy to talk about the classic leadership styles which are autocratic, human–relations,
laissez–faire and democratic style (Goleman D. 2000). The autocratic style is based on retaining
authority and information and focuses on efficiency of operations with a command–and–control
fashion. A leader with a laissez–fairre style,also known as ''hands–off'' style, shows little interest for
tasks, gives more authority to the staff and provides little or no direction leaving the decisions to the
group. The democratic style, pays attention to both task and people, encouraging and allowing the
staff to promote and participate in decision making (Schermerhorn J. 2015) (Appendix

Lufthansa Case
Travis Vigneault & Nicola Tschopp
The Business Size–Up
Lufthansa has been impacted by a booming U.S. economy where the value of the USD has been
increasing steadily since 1980. By January 1985 the USD was at record levels against other
currencies. Many signs such as the current interest rate differential between the US and Germany
indicate that the value of the USD might continue to rise. However, there is great speculation as to
where the USD will be valued in a year as many feel that it is over–valued and a decrease would be
beneficial for the world, especially the U.S. economy that has lost an estimated three million jobs
due to lack of competition in international markets. U.S. Congress has a motive to lower the value of
the USD ... Show more content on Helpwriting.net ...
2) Cover some or the entire purchase price by locking in a price and removing any exchange rate
uncertainty with a forward contract. 3) Cover some or all of the cost with a foreign currency put
option that would lock in a maximum price for the aircrafts but also allow Lufthansa to pay a lower
price if the U.S. dollar depreciated as Ruhnau predicts. 4) Borrow DM to buy U.S. dollars today and
invest them for one year which would lock in the price at today's spot exchange.
Analysis of Key Alternatives (For the math behind the key alternatives see Exhibit #2) 1. Doing
nothing is definitely not the best alternative. If Lufthansa doesn't lock in a rate today and the USD
appreciates drastically than the price the company pays for its 20 planes will also drastically
increase since they are uncovered. 2. Similarly, Lufthansa may be no better off using a forward
contract to hedge the entire $500 million U.S. dollars due in a year. This all–or–nothing approach to
dealing with the volatility of the foreign exchange market is not the best solution as our decision to
yield 40% of Lufthansa's foreign exchange risk yields a future value of 640m DM. If Lufthansa
enters into this forwards contract at 3.20 DM/USD and the USD depreciates or the DM appreciates,
Lufthansa will still benefit to the

Emirates Airlines Mission Statement
Introduction
The company that I have chosen is Emirates Airline.
The foundation of Emirates Airline started in the offices of Dnata, when in 1978 Mr Maurice
Flanagan became the director and general manager of Dnata.
Dnata is a company offering aircraft ground handling, cargo, travel, and flight catering services
across five continents.
In 1984 Sheikh Mohammed bin Rashid Al Maktoum and Mr Flanagan discussed launching an
airline in Dubai and with just a 10–man team he produced the business plan for the new airline.
The names he proposed were Dubai Airlines or Emirates airline.
Finally the decision was made and Sheik Mohammed opted for the Emirates Airlines and decided to
launch it on top of the Dnata, which was already settled in the Airline ... Show more content on
Helpwriting.net ...
Even though Emirates Airlines has had some crisis during their evolution such as the 2001 terrorist
attacks which led to the cancellation of all flights going to America.
Emirates Airlines have always resisted the temptation of merging and acquisitions.
The main reason of avoiding merging and acquisition is mainly because it would lower their
flexibility and future decisions would have been done with outside partners.
I believe that this ambition of looking at the future has brought them even more up in the airlines
markets.
Free Competition
Emirates Airlines have also decided to allow free competition.
This decision has brought benefits for the Airline because the fact of raising competition would
mean raise the standards.
By doing this they have putted them in a great position because I believe that they are the leaders in
continuous innovation and development within the industry.
Courage

Another main strength of Emirates Airline is their courage in such market and the fact they were
never scared of the other competing airlines, such as British Airlines or

The Hospitality And Tourism Industry
The hospitality and tourism industry plays an essential role in global growth around the world. One
of the biggest key players is an airline industry. An airline industry contains both hospitality and
tourism. One of the key players to this industry is the cabin crew. However, according to Laszlo "
with recent economic decline the airline industry is not in good health in terms of operation and
customer service organization" said (1999). It is therefore, important to understand that the crews
must perform function as key player in an airline industry by providing various types of customer
service, safety and security threats, sales and promotion.
As cabin crews are playing a crucial role in the industry, they are to be selected carefully by the
human resources. The desired corporate skills sought for the crews are; a motivation to deliver high
standard customer service, team skills and commercial awareness. In addition to these skills, it is
necessary that an individual is interviewed and upon successful application, and to satisfy all other
needs for its industry. An airline cabin crews has been playing an essential role worldwide for more
than decade by comforting dozens of passengers around the world. The definition of providing
comfort to guests is, to also make a profit but as well as to make customers feel satisfied just like
staying at a hotel. Perhaps this might be the reason why an airline attracts many people around the
world. As a result of the popularity

Business Analysis : The Lufthansa Essay
1– The Lufthansa Annual Report is financial accounting document as it provides information for
external users like consolidated income statement, consolidated balance sheet and consolidated cash
flow statement and it gives information about past performance while managerial documents must
be up to date information, since it was published so it is conclusive evidence that it is a financial
document because managerial documents are prepared for internal users. (1)
2–The Lufthansa Airways management Group strategies are, Safeguarding a position as a leading
Flights and the aim of the Lufthansa Group is to be the first choice in the field of Flights for
customers, employees, shareholders and partners. Going forward, so the Lufthansa Group plans to
continue playing a significant role in shaping the global aviation market. The second strategy is hub
airlines intent on improving quality leadership and adapting their products and services in line with
ever changing customer needs is a main mission for all the firms in the Lufthansa Group. The third
strategy is achieving profitable growth for aviation services by exploit more growth opportunities in
a targeted path to get the Lufthansa Group's leading position in the aviation services market. The
fourth strategy is the profitable growth planned for Eurowings in point–to–point traffic and to
develop Eurowings, the Lufthansa Group is building an ingenious and competitive offering for more
price–sensitive consumers in point–to–point

Air Canada Case Study
AIR CANADA
Introduction:
Air Canada was founded in 1937, it was privatized in 1989. After facing net losses from 1990–1993,
entered into profits in 1994. It was a founding member of star alliance in 1997, which has 27
partners headquartered in Montreal.
Air Canada's mission was to connect Canada and the world. For this it followed an international
growth strategy. Making partnerships with Lufthansa and united/continental, helped its growth
strategy and connection mission. To reach the goals it followed a strategy involving engaging with
customers, mainly focusing on passengers and products.
Air Canada mainly depends on IT for their activities. The IT department of Air Canada was made of
both recent applications and the back–end ... Show more content on Helpwriting.net ...
As stated constant innovation to fly high for Air Canada was IT. And its operation with both the
business and IT department leads them to grow high. If I was a part of Air Canada, I will definitely
follow the same strategies implemented by the company in their odd times keeping in mind about
the goals of the

Management and Leadership Paper
Management and Leadership Paper
Charles Lee
University of Phoenix
United Airlines presently manages nearly 3,000 flights daily on United, and United Express. This
includes more than 200 domestic and international flights from Los Angeles, San Francisco,
Washington D.C., Chicago, and Denver. United is recognized as one of the largest international
airlines in the United States, enjoying global air rights in the Asia–Pacific area, in Europe, and in
Latin America (United Air Lines, 2009). United's stock is presently listed under the Stock Market
symbol UAUA. United Airlines is devoted to cost containment, improved revenue, and sustainable
operations that will enhance a very competitive margin. United's selection of services and ... Show
more content on Helpwriting.net ...
The 9/11terrorist attacks seriously affected air travel and led to the demise of many airlines. Scores
of airline industry workers still need to regain what they lost in both wages and benefits, and are
hopeful of an industry turnaround this year (USA Today, 2009). The same negotiations are ongoing
with the pilots' unions also. Scores of pilots are adding on the pressure by threatening to interrupt
flights if not afforded with new contracts. Pilots at United Airlines have recently been accused of
law breaking when they decide on a "sick–out" in 2008 to disrupt flights and force United into
continuing negotiations, the animosity still lingers today (USA Today, 2009). As of January 2003,
the airline industry has lost 75,000 jobs (USA Today, 2009).
Currently no carriers are in the clear. Though most of the major commercial airlines have
discussions about mergers, most believe that their futures are very bleak (USA Today, 2009). Jerry
Glass, a consultant and previous airline executive, believes each side would benefit if airlines gave
workers lower salaries in conjunction with bonuses only if the airline shows a profit, "it's a
common–sense approach," Glass says (USA Today, 2009).
Management and Leadership
Market control played a significant part in shaping the diverse components that United Airlines
offers. United Airlines offers six

Airline Industry Analysis Paper
Airline industry analysis
The airline industry is a typical capital–intensive, technology–intensive, experience–intensive and
labor–intensive with a high–value industry, due to the characteristic of high additional value and the
huge industrial linkage effect, it prompts every country all over the world support its airline industry
to reach sustainability.(Lei, 2014)
The biggest airplane manufacturer company in America, Boeing Company current market
outlook(2016–2035) predicts that in the next twenty years the GDP growth rate will up to
approximately 2.9%, the Revenue Passenger–Kilometers(RPKs) will up to 4.8%, and Freight
Tonne–Kilometers (FTKs) will grow faster than the others two that will up to 5.9%, the Airbus
company global market forecast ... Show more content on Helpwriting.net ...
But under the alliance, it may erode companies profit (Tang &Tseng, 2010). Some scholars have
argued against participating in the strategic alliance because it might bring the negative impact, hold
that opinions, for instance, it is beneficial for airlines to ally with others companies, but it will harm
for customer because they couldn't use the facilities in airplane which is not enroll in the
membership of airline alliance. (Kuzminykh and Zufan.2014)
Parkhe(1993) also believes that once join the alliance may lead to the airline companies become
instability, poor performance, and premature dissolution, furthermore, strategic alliance will also
bring about a high financial cost that it could lead to a bankrupt to the airline companies. (Morrish&
Hamilton,

Organizational Environment And Behavior Method
Abstract
Deutsche Lufthansa AG, also known as Lufthansa (sometimes also as Lufthansa German Airlines),
is the largest German airline and, when combined with its subsidiaries, also the largest airline in
Europe, both in terms of passengers carried and fleet size. In this paper, I will initially examine
Lufthansa organizational environment and behavior method. I will start of by analyzing the
collaborative work environment, specifically discussing collaboration techniques, interaction
between leaders and followers, and supportive communication. Therefore, covering the decision–
making environment, risk management, and how the organization resolves conflict through the
strategic negotiation process. Secondly, I will examine its approach to accomplish team–building
and drive innovation.
Introduction
Today, 90 years ago, the merging of Junkers Luftverkehr AG and German Aero Lloyd AG on
January 6, 1926 in Berlin, was the birth of the German national airline "German air Hansa" known
today as Deutsche Lufthansa. An amazing foundation of historical events that took place after World
War I, the airline has a story of pioneering spirit, expansionism, visions, and is marked by
continuous improvements and innovations. Lufthansa is one of the largest and best–known airlines
in the world. The cooperate headquarters sits in Cologne with major airport hubs located in
Frankfurt, Munich, Zurich, Vienna, and Brussels. The well–known charaterisics of the company are
quality,

Airline 's Total Revenue Growth Essay
A. Total Revenue growth
Figure 2 Lufthansa's Total Revenue Comparing with Its Major Competitors
Source: Amadeus
In 2010, Lufthansa saw a 20 percent growth in revenue. This indicates that it had recovered from the
financial crisis. However, the next two years the growth rate slowed down, mainly due to the soaring
price of fuel. Sales growth in 2013 declined slightly by 0.4 percent despite Lufthansa's all business
segments made a profit. The reason is that the company launched a restructuring program so that
there were lots of one–way renewal expenses (Lufthansa Group, 2013). In the following year,
Lufthansa was surrounded by intense competition and internal strikes, thus the sales staggered.
Lufthansa had the highest growth rate in 2010 but the rate keep declining over the period shown.
Thus in 2016 Lufthansa lagged behind its competitors, with a sales growth only better than Air
France. The SCORE and 7 to 1 strategy implemented in 2012 and 2014 seem to improve the
company's performance but still not enough to catch its competitor's pace.
B. EBITDA margin
Figure 3 Lufthansa's EBITDA Margin Comparing with Its Major Competitors
Source: Capital IQ
The four airlines' EBITDA margin fluctuates from 2010 to 2016 but overall they all have higher
profitability than past years. In comparison with its major competitors, Lufthansa have a more
flattening curve. In 2016, Lufthansa's EBITDA was the third place out of the four companies. As a
big company with solid financial

Strategic And External Environmental Factors
COMPANY PROFILE
SKYChef is a renowned for innovation in air caterer business and very creative in culinary skills
especially in airline environment. They are a global service provider supporting various airlines and
based in various location around the world. They have to do a business case analysis from a country
to country base in terms of what American airlines perceive has a Unique selling point might not be
the same for Qatar airways in middle east or Malaysian airlines in south east asia. This leads to a
change geographically with creativity and innovation in cuisines and culinary skills. These changes
are best mapped with an internal and external analysis has follows
A] DISCUSS HOW INTERNAL AND EXTERNAL ENVIRONMENTAL FACTORS HAVE LED
TO INNOVATION IN THE ORGANISATION
SKYChef was an innovative and creative arm of Lufthansa airlines. The success of the catering led
to the top management thinking of spinning it has a separate entity void of the competition between
airlines has a class in itself.
The biggest challenged posed is the internal and external environment factor and its adaptation.
Innovations in itself has great influence in external as well as internal environmental factors though
innovations leads to growth for a organisation or country bringing radical changes if the future is not
perceived in time.
INNOVATIONS FROM THE EXTERNAL ENVIRONMENT
Innovations from the external environment – The external environment encompasses both general
external

Cathay Pacific, Lufthansa and Thai Airways
p1/19
BBA2 – Marketing 1 – Prof. Taylor Term Paper – SS/02
Cathay Pacific, Lufthansa, and Thai Airways
By Stefan Broda, Dennis Damer, Suttinee Keawsuwan, Yin Tong, and Li Xin
Table of Contents 1. Introduction
............................................................................................................................ 2 2. About the Three
Companies................................................................................................... 3 2.1 Cathay Pacific
Airways Limited ...................................................................................... 3 2.2 Lufthansa Public
Limited Company ... Show more content on Helpwriting.net ...
Due to overcapacities in the airline business, made evident by the major financial difficulties of
Sabena and Swiss Air in the last months, most companies are therefore trying to define, acquire and
keep those customer groups most important to them. Recently the nature of competition has
changed. The creation of Star Alliance and oneworld has resulted in more cooperation between the
members and fiercer competition with other alliances and their member companies. A major
obstacle to comparing companies within the airline market is the highly regulated market structure,
which allows for only imperfect competition. Often the national carriers are seen as symbols of
national pride and enjoy a privileged status domestically.
Term Paper – Marketing1
BBA2
SS/02
p3/19
2. About the Three Companies
Destinations Countries/Territories Daily departures Passengers (000) Fleet RPKs (000,000)

Operating revenue (000) Operating profit (000) Net profit (000) Frequent flyer programme Airport
lounges Major hub airports Year of formation Ownership 571 135 8.511 238 2.023 ––––Yes Yes –
1999 –729 44 124 26 10.728 151 292 11,864 2.058 72 –47,153 –4,426,194 –678,103 –641,691 Yes
Asia Miles Yes First&Business Hong Kong 1997 1946 PLC PLC 93 73 352 35 1,700 244 41,300
18,038 243 81 88,606 42,395 13,356,240 2,869,686 914,727 358,368 605,424 113,656 Miles and
More Royal Orchid Plus First&Business First&Business Frankfurt,

Case Study Of Star Alliance
Executive summary
Since the 1990s the alliances in the airline industries is common and there are three major airline
alliances which are present in the world are OneWorld, SkyTeam and Star Alliance. These alliances
of airlines have covered almost two third of world air traffic industry and the major contribution in
this is Star Alliance. The strategic alliances on the part of the airlines are done because of many
advantages which not only organizations reap but also the other stakeholders which are involved in
this type of alliances. This research paper is evaluation of why the strategic alliances are important
and why the organizations go into the strategic alliances the case study of star alliance was taken as
the reference and the circumstances ... Show more content on Helpwriting.net ...
Learning, specialization and fix cost distribution can spread over larger output with economies of
scales (Albers, Koch and Ruff, 2005). Three strategies were opted as motivation by the airlines to
create an alliance (i) mergers and acquisitions, (ii) setting up low–cost carriers and (iii) air alliances.
Air alliance was considered as the most sustainable strategy by the Star airline. Through the
strategic alliance, the airline had an opportunity to expand and become large but at the same time
they can lower their cost by creating the competitive advantage that is why Start Alliance opted for
this option (Cojohari, 2015).
2.2 Marketing and Branding
Airline behavior could not be explained effectively with changing cost structure. In the bottom line
of any alliance marketing strategies and demand response are important. With Star Alliance, the
airline can offer their consumers large and denser global network of airlines with smooth
connections among airlines. Airlines have demands with competitive prices in Star Alliance due to
economies of scope, scale and density. In Star Alliance partners are able to offer better products and
services due to airlines increased capacity to retain and generate passengers (Cullen, Johnson and
Sakano, 2000).
2.3 Financial

Gava Analysis
Introduction
The purpose of this paper is to conduct a General Aviation Value Analysis (GAVA) to determine
whether one form of transportation is more efficient than another, in order for a group of colleagues
to attend a business meeting. The intent of the assignment was to assess the value of using a
business aircraft (verses commercial aircraft, personal car, train, etc.). The researcher compared and
contrasted two trip locations, with multiple variables of attendees, modes of travel, and expenses
associated with each variable.
Parameters of the Research
The researcher used the majority of the parameters provided by the course syllabus, specifically the
"Course Projects" portion of this document (Embry–Riddle, 2013). The ... Show more content on
Helpwriting.net ...
Due to these facts, the calculations for the commute and parking at the airport were not fully utilized
(other than displaying them on the Excel spreadsheet).
Based upon previously mentioned assumptions and variables, it would cost two colleagues each 720
minutes to drive the 840 miles roundtrip to Prague from Frankfurt (Google, 2013). Assuming that
one travel day would be required to drive there, and one day to drive back, each employee would
drive 360 minutes (six hours) to get to the meeting in Prague. This would cost the company $480 in
wages (6 hours x $80/hour = $480) per employee, per travel day, for whomever goes to the meeting.
It would also cost the company $420 to pay for mileage for each vehicle that drove to Prague for the
meeting (840 miles total x $0.50/mile = $420).
In addition to the $960 in travel day wages (per employee), there is also the cost of wages for the
day of the actual meeting. A nine hour day (0900–1800), would cost the company $720 in wages (9
hours x $80/hour = $720) per employee who attends the meeting. Seeing as every form of
transportation will get the employees to the meeting at the same time, and all employees will spend
the same nine hours at the meeting, this factor is really not an issue for comparison.
Bottom–line: to send two people to the meeting in Prague would cost $960

Discussion Surrounding Global Alliances Operating in the...
The international aviation industry is arguably one of the most competitive and cut–throat
businesses in the world today. Characterised by high revenue but notoriously thin profit margins,
modern international airlines are constantly searching for methods to gain advantages over their
competitors and attract new customers. One of these methods which has become popular since the
late 1990s is that of the global airline alliance. Today there are three major alliances in operation,
each containing different member airlines. These alliances offer airline customers various
advantages over travel with a traditional carrier. Nevertheless, these advantages have been criticised
by some as being anti–competitive, there are several examples of ... Show more content on
Helpwriting.net ...
Another major airline alliance operating today is the Oneworld alliance. Founded on 1 February
1999 by giants such as British Airways, Cathay Pacific, and Qantas, it has expanded to include
twelve member airlines, and has an additional twenty non–voting affiliate members, such as
QantasLink, subsidiary of Qantas, and Dragonair, subsidiary of Cathay Pacific. Oneworld also won
the Skytrax award for best airline alliance in 2010, and has won more international awards than the
other two main alliances (Oneworld, 2011). However, some may argue that the quantity of awards
received is irrelevant, and the awards by Skytrax are recognised by many as the leading airline
awards. Oneworld is also a useful alliance for New Zealand based travellers, as Qantas' membership
allows frequent travellers access to the benefits of this alliance.
Skyteam was the last of the three major airline alliances to be founded, in June 2000. According to
Rodrigue (2005), the Skyteam alliance holds 21 per cent of the market share, when measured by
traffic, making it the second largest airline alliance operating today, after Star Alliance but before
Oneworld. Skyteam is made up of airline heavyweights such as the merged Air France–KLM, in
addition to Delta Airlines, Korean Air, and China Southern Airlines. Whilst the Skyteam alliance is
large, it has also failed to secure any Skytrax airline alliance awards (Skytrax, 2011). This combined
with the fact that there are currently no

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