Lufthansa faced major financial losses in the early 1990s due to economic factors like the Gulf War. This led to a crisis meeting called the Crisis Management Meeting where they discussed the need for drastic action through interdepartmental cooperation and ambitious goals. They implemented Program 93 which involved 131 projects to cut costs, downsize operations, and hold town halls. By 1993, 70% of Program 93 goals were successful in turning the company around. However, further restructuring was needed to address issues like slow decision making and a lack of accountability. Later reforms involved dividing into smaller subsidiaries with clear roles and privatizing in 1997. Partnerships like Star Alliance helped drive growth internationally with improved marketing, services, and technology.

1. FLY ME HIGH
By:
Apoorva
Arindam
Tanmay
Subhanu
Mousumi
Jagswaroop

2.  Lufthansa’s record loss of DM 730M in 1992.
 No Capital for the enlargement of
organisation.
Banks denied to give Loans.
Liquidation Crisis.
 The Gulf War.

3.  There was a necessity for drastic action.
 Awareness that there was a massive
pressure to act.
 Meeting by Jurgen Weber entitled CRISIS
MANAGEMENT MEETING.
Learning about interdepartmental cooperation
Non Bureaucratic problem solving.
Setting of ambitious goals.

4. • Repeat CMM workshop several times.
• Making managers live through the process
of recognising the threats and feeling the
urgency rather than discussing strategy.
• Emotional mobilisation.
• Setting of PROGRAM 93.
Setting of 131 projects.
Cut down of Non Personal Cost.
Downsized fleet.
Town meetings in various departments.
• Monitoring teams who was set up, viz
REDEVELOPMENT CONTROLLING.
• Implementation of PROGRAM 93 by OPS
Team.

5.  In 1993 70% of programm 93 was
successful.
THE CRANE HAS LIFT OFF AGAIN

6.  Superficial Recovery couldn’t guarantee
long term success.
 Division into five departmets.
Finance
Personnel
Maintenance
Sales Marketing
IT

7. LAGS
 Involvement of Top Level Managers in
operational matters.
 Slow decision making process aka
Fragmented Decision making.
 Lack of accountability.
 Lack of transparency.
 Insufficient response to the market.

8. SOLUTIONS
 Divisions of the company into federative
groups of interdependent smaller
subsidaries.
LH Cargo AG LH Technik AG
LH System GmBH LSG Sky Chefs
City Line Condor
 Redefined tasks and responsibilities of
executive board.
 Strengthing of Strategic focus.
 Weightage to Core Business Of Passenger
Service.
 Privatisation in 1997.
 Strategic Cost Saving.

9.  GROWTH THROGH PARTNERSHIP
STRATEGY.
 Introduction of Star Alliance.
 Merging of Lufthansa with Star Alliance in
1999.
 Ground Breaking strategies including
Eye in the Global market
Improved Marketing and Sales
Service and Product Development
Enhanced Information technology

10.  Evolution of an Aviation Group.
 Development of each and every sector into Global
brand with a local outlook
 Internationalization of Relationship
 Radical improvements in Punctuality , Luggage
safety and technical Reliability
 Development of LUFTANSA School of Business to
create world class leaders

11.  STRENGHTS
Emerging as a global brand
Technical Reliability
Improved Hospitality
Emotional Mobilization
Provide space for Reflection and Dialogue
Intensive personal learning

12.  Weakness
No division of jobs
Slow decision makers
Insufficient responsiveness to changing
global trends
MONOLITHIC Organizational Structure

13.  Opportunities
SKY IS THE LIMIT – as far as the Lufthansa is
Concerned the global market is at the
Stake
Inclusion of STAR ALLIANCE – Lufthansa
improved under the Flag as the Union
proved to cater to the needs of the
Public and set a benchmark

14.  Setting a common Goal throughout the
organization is Extremely Important
Program 93 and 15 were a success , Steps should be taken to
introduce more Programs for overall development
 Training And Development for Employees
for Emotional Mobilization
 LOW COST AIRFARE to cater to the middle
class and thus increase revenue
 Development of other Business

15. THANK YOU