Lufthansa Passenger Airlines



Lufthansa Passage tail fin (graphics)

Capacity adjustments to the altered environment

Lufthansa Passenger Airlines is aiming for profitable growth as an attractive and efficient company with sustainable structures and intends to maintain its position as a leading European quality carrier. The focus is on the four brand values personal attention, value for a reasonable price, leadership and quality.

Change in unit revenue and unit costs (per ASK) (bar chart)

Carsten Spohr became CEO of Lufthansa German Airlines on 1 January 2011 and as of 1 April 2011 the organisational structure was also adapted to the new market environment with a stronger focus on customers and competitors. Internal decision-making processes were also expedited and management processes optimised as part of the Lean initiative.

In the 2011 winter flight timetable, Lufthansa Passenger Airlines offered services to 199 destinations in 82 countries. The main hubs Frankfurt and Munich are supplemented by a regional hub in Dusseldorf and direct connections throughout Europe, which strengthen the position in the home market. The performance and financial figures for Lufthansa Passenger Airlines include the fully consolidated companies in regional traffic (for example Lufthansa CityLine and Air Dolomiti) and for 2011 Lufthansa Italia as well.

The economic slowdown over the course of 2011 had a very adverse effect on the performance of Lufthansa Passenger Airlines. Customer-focused offers, high market penetration in the corporate and private customer segments, the loyalty programmes and the continued strength of German exports nevertheless enabled Lufthansa Passenger Airlines to respond appropriately to the increasing uncertainty.

The company won market share in European traffic and became more competitive thanks to the sharp reduction in unit costs achieved by deploying larger aircraft and new seats. Intercontinental traffic, by contrast, felt the impact of the global economic slowdown more severely. In this sector, additional capacity could not be sold in full.

These developments meant that planned capacity growth had to be curtailed gradually. In the winter flight plan for instance, the increase in available capacity was reduced by postponing the start of new routes and reducing frequencies. For the full year 2012 projected growth was cut to 3 per cent.

Operations at Lufthansa Italia, which was set up in 2008, were discontinued at the end of the summer flight timetable as part of the above-mentioned adjustment measures. Lufthansa nevertheless remains the most successful foreign airline in Italy. This important inbound and outbound market is now served by Lufthansa Passenger Airlines and Air Dolomiti. The range of destinations and connections to the hubs were improved considerably at the same time.

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