Lufthansa strategy analysis

However, as noted above, Germanwings is not sufficiently low cost and its pilots are covered by the same collective wage agreement as the mainline pilots. The network is increasingly being extended to tourist destinations as well. The Lufthansa strategy analysis in the airline group are united in their search for profitable growth.

Profitable growth is a cornerstone of this strategy. The diversification of its investment portfolio of airlines and aviation services creates synergies and constitutes a key strength of the Lufthansa Group. A full rift would mean new strategies for each Perhaps the biggest threat: It must devote all its energies to taking action to fight competition by restructuring its own operations and by developing relevant strategic partnerships.

The travel experience for the customer will become even more convenient, especially through greater personalisation of the products and services along the entire travel chain. Greater Lufthansa group integration would provide greater efficiencies The national airlines in the Lufthansa group continue to operate as distinct brands, each with its own fleet, operations and labour structures.

An instinct to complain about new competitive business models as unfair see below suggests that it is not yet sufficiently focused on putting its own house in order, but the establishment of its new lower cost vehicles has at least given it some options in fighting this competition.

In this context Lufthansa particularly enjoys the benefits of its largely unencumbered fleet and the related flexibility in terms of capacity and cost management. The scatter plot below, of CASK versus average trip length, shows that the group sits well above the trend line for European full service carriers.

Joint venture models gaining in importance Lufthansa and the group airlines follow a diversified network strategy in all global sales markets. Moreover, it has owned Eurowings for as long as it has owned Germanwings, but has apparently only recently woken up to its potential for improving cost efficiency.

Group Strategy

The aim is always to achieve economies of scale and further synergies. Frankfurt and Munich are the largest hubs and cover the full range of products. This will secure its position as one of the three leading providers of direct traffic in Europe and strengthen its role as the biggest carrier of point-to-point traffic in the home markets of the Lufthansa Group.

Lufthansa SWOT Analysis, Competitors & USP

This process began in and has now been completed. Lufthansa positioned itself successfully for this trend at an early date. For these reasons, the Group is organised into efficient and flexible organisational structures in line with production logic.

The network airlines are growing largely by replacing older aircraft with more recent models that boast higher seating capacities and greater fuel efficiency, without significantly increasing the total number of aircraft. Other key drivers of cost reductions include the growth of particularly low-cost production platforms to replace less cost-effective operations within the Eurowings group, as well as the standardisation and streamlining of processes.

In order to optimise connections between them and the European network, the key is to safeguard and expand our position in the home market. The companies also strive to assume their responsibility for conserving natural resources by their sustainable business practices.

To keep refining the Group portfolio, the Lufthansa Group regularly reviews the attractiveness of individual market segments, its current competitive position, potential for future success and the synergies realised from the Group network by the individual operating segments.

Joint venture models are gaining in importance in the competition between the airline alliances. Feeder flights from Europe also improve the load factors for intercontinental flights and expand the range of destinations on offer to local customers.

It is attempting to do these things more than at any time in the past, but must go further and fully overcome the damaging instinct to complain about unfair competition.

Lufthansa SWOT: new low cost platforms are smarter strategy than resorting to protectionism

The two companies have worked together closely since early and offer their customers additional travel advantages: There are a host of historical and cultural reasons why integration within the Lufthansa group and within other large European airline groups has been slower.

Thus, the set-up of a standardised A fleet for the Group enables capacity to be reallocated quickly and cheaply, for example, and also has a positive impact on the cost base.

To continue delivering profitable growth, the Aviation Services in the Lufthansa Group continuously adapt their business models to changes in value chains and competitive conditions. In this context, the strategy aims to systematically develop the Group based on the three pillars of Network Airlines, Point-to-Point Airlines and Aviation Services.

This bundle of activities continues to successfully secure the competitiveness and ability Lufthansa strategy analysis invest of the Lufthansa Group as a leading aviation group in a dynamic market environment, in order to enable profitable growth and support its ability to shape the industry.

Lufthansa Technik, in turn, has access to maintenance licences which are negotiated with the OEMs when the Group airlines order new aircraft and performance data for modern aircraft, collected in subsequent flight operations. Efficiency gains and profitable growth are mutually reinforcing Lufthansa is the number one player in Europe in its industry today and intends to preserve this status in future.

The programme for Europe-Japan traffic is due to start operating in April The simple fact is that, even if the Gulf carriers could be stopped or at least slowed down, there will always be a new competitor with a better way of doing things.

Although CEO Carsten Spohr has shown consistency and resolve in pressing ahead with the establishment of these vehicles, their successful operation will require the cooperation of all staff groups.In terms of a differentiation strategy, Lufthansa constantly tries to come up with a range of innovative ideas to stay ahead of the competition.

A list of these ideas could be seen in the strengths section of my SWOT analysis of Lufthansa. Here is the SWOT analysis of Lufthansa Airlines which is an airlines company that is based out of Germany and the largest there with subsidiaries. The carrier registered a revenue of billion euros in and also has employees.

Lufthansa is facing intense competition from various players globally. This case analysis will discuss the hedging alternatives Ruhnau considered, the decision that was made, an analysis of the criticisms made against Ruhnau and justifications for why Ruhnau should continue his chairmanship of Lufthansa.4/4(4).

Group Strategy Various activities to strengthen position as a leading aviation group. The Lufthansa Group aims to be the first choice for shareholders, customers, employees and partners in the aviation sector and to continue shaping the global aviation market as a key player in the future.

Lufthansa brand covers the brand analysis in terms of SWOT, stp and competition. Along with the above analysis, segmentation, target group and positioning. the tagline, slogan & USP of Lufthansa are also covered.

Lufthansa is one of the premier airlines of the world and one of the largest in Europe, in terms of the number of passengers carried by it.

Lufthansa strategy analysis
Rated 3/5 based on 88 review