Course of business

New structure brings new focus

The restructuring of the company under the Jetzt! programme introduced in 2010 enabled Lufthansa Systems to increase its competitiveness significantly in an operating environment defined by margin pressure and unrelenting consolidation. The realignment of the company structure was completed with the implementation of a new customer-oriented structure following the merger of five subsidiaries with Lufthansa Systems AG. The aim of the realignment is to reduce complexity and thereby to cut costs in all areas. The company now delivers its services through the three profit centres Airline Solutions, Industry Solutions and Lufthansa Group Airline Solutions, as well as through the cost centre Infrastructure Services.

In recent months Lufthansa Systems has been working on four central aspects to bolster its competitiveness and return to a growth path. At the same time revenue was boosted by short-term activities. Expenses were also reduced even further compared with the previous year. In the field of innovation many new products were presented or initiated. Specific partnerships with global IT companies were explored to secure the company’s future success.

New organisational structure of Lufthansa Systems (graphics)

Contracts with new customers and product innovation

In a challenging climate still defined by economic uncertainty, Lufthansa Systems was able to report new customer wins and expand its business with existing customers. A major contract was signed with Malaysia Airlines to take over its global data network. Numerous new customers such as Aerolineas Argentinas and Adria Airways decided to purchase various IT solutions to optimise their operating processes. Lufthansa renewed the licence agreements for network planning, medium and short-term flight planning, code-share management and flight plan distribution solutions, which have been running for more than ten years.

The highly successful product innovations last year included the wireless in-flight entertainment system BoardConnect. It is based on a wireless network using the common WiFi standard. Passengers can use their own devices to access films, audio files and other information or to make use of all the opportunities offered by the internet. The first customer for BoardConnect is Condor and more airlines are to follow, with Virgin America and Qantas set to deploy the system in 2012.

Another innovative solution that makes use of the unbroken trend towards mobile devices is the Lido/iRouteManual, which turns an iPad into a mobile pilot’s case and obtained operating approval from the US civil aviation authority in 2011.

Lufthansa Systems also presented deskBase, its new model for the workplace. Based on the principle of cloud computing, this workplace model enables employees to access applications and data stored in the data centre at any time and from anywhere. deskBase is currently being introduced in the Lufthansa Group and is also on offer on the external market.

In addition, Lufthansa Technik and Lufthansa Systems have signed a long-term service agreement for their IT workspaces. This enables Lufthansa Systems to strengthen its long-term position as the main provider of infrastructure services at Lufthansa Technik.

In the field of logistics, Lufthansa Systems ramped up its collaboration with Hamburg Süd, Schenker Deutschland and the Hamburg Port Authority. As a general contractor, Lufthansa Systems is renewing the IT systems that manage all rail traffic at the Port of Hamburg.

The publishers Lippische Zeitungsverlag and Donaukurier Verlagsgesellschaft are using additional functions of the publishing solution VI&VA. Volkswagen also commissioned the introduction of a new company portal. Gesundheit Nord gGmbH has appointed Lufthansa Systems to merge all the SAP systems in the four hospitals that form the Bremen clinic group. Viking River Cruises is the first customer from the river cruise sector.

Lufthansa Systems won the innovation prize from German industry for a system that supports the rapid and secure recovery of IT passwords by means of biometric identification.

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