Fleet

The aircraft fleet constitutes the largest asset in the consolidated balance sheet. It is the Group’s core operating asset and is at the centre of the value creation process. The Lufthansa fleet includes aircraft from various manufacturers. As well as Boeing and Airbus planes the Canadian manufacturer Bombardier has also supplied a large number of aircraft, which mainly fly in regional traffic. Since February 2009, aircraft from the Brazilian manufacturer Embraer have also been in operation at Air Dolomiti; a total of 30 planes are planned for deployment within the Lufthansa regional group. The way the fleet structure is put together allows us to draw on models with varying seating capacities and ranges, in order to provide optimal service to the individual short, medium and long-haul segments. The Group as a whole therefore has the flexibility to dimension capacity to meet requirements and to respond to demand in individual markets.

The expansion and renewal of the existing fleet in line with requirements is key for future success in competitive markets. By investing in modern aircraft Lufthansa improves the cost-effectiveness and environmental performance of the planes, particularly in terms of fuel consumption and noise emissions. The number and size of new aircraft additions is strictly determined by the passenger numbers and freight volumes expected in the future. Although the new aircraft planned for 2009 are almost exclusively replacements to modernise the fleet, the order programme up to 2015 also reflects the demand growth expected in the medium term. Here too, however, we can adjust the share of growth and replacement investments flexibly in line with actual developments.

Our future flagship, and the backbone of the long-haul fleet for connections with high passenger numbers, will be the Airbus A380. The first plane of this type is to be delivered to Lufthansa in 2010. At the same time the current long-haul fleet is being modernised by orders for the Boeing 747-8i. In order to bridge the capacity requirement until the A380 is delivered, four new Airbus A330s and A340-600s were put into service in 2008. In July, the 15th Airbus A340 was delivered to SWISS as part of the expansion of the Airbus fleet initiated in November 2006. To support profitable growth at SWISS this is to be continued with the expansion of the Airbus A330 fleet in 2009.

Lufthansa has the largest route network in Europe. Via our multi-hub system it serves as a feeder network for the intercontinental routes. The development and modernisation of the intercontinental fleet is therefore accompanied by capital expenditure on the short-haul. This is the only way to guarantee Lufthansa’s high product standard during the entire voyage and exploit the economic benefits of the modern fleet to the full. The existing European fleet is therefore being successively renewed with new Airbus planes. The first A321Enhanced from the new Airbus generation was presented to Lufthansa in October 2007. This was followed in 2008 by five more aircraft from the new generation of the A320 family. Seven of the total order of 60 new planes are already in service.

The ability to adapt capacity to demand flexibly and at short notice is a major competitive advantage. Lufthansa has taken this flexibility into account in its order programme and its fleet policy: The new orders are phased in over time and the existing planes are largely unencumbered. This enables us to adjust growth to different market scenarios or even to postpone it for a time altogether. This mainly takes place by altering the proportion of replacement and growth aircraft within new deliveries. If demand develops in line with the assumptions, older sections of the fleet are successively replaced with more modern aircraft. If, in contrast, demand is weaker than forecast, there is the possibility of reducing capacities. To start with, the standard maintenance intervals can be brought forward, for instance. If demand remains weak older aircraft can be retired from service completely. As the majority of the Lufthansa fleet is owned by the Group and is depreciated over a period of twelve years, aircraft can be decommissioned at short notice without great expense. Lufthansa has also built a fleet structure which allows aircraft to be deployed flexibly at the different airlines in the Group. Uniform cockpit equipment and licences for crews (within the A320 family, for example) provide the option of using aircraft for different airlines and distributing capacities optimally according to changes in demand in individual sales markets.