Strong position in competitive markets

An eye on growth markets

Megatrends such as demographic change and the shifting tectonics of global markets are important economic factors. They have a decisive impact on air traffic. Passengers are not only getting older, more individualistic and more discerning – they are also coming from regions which previously were not in focus. Especially in countries like China or Brazil, increasing affluence means greater demand for mobility. We are responding by realigning our global flight network to ensure that we continue to expand our profitable long-haul routes.

Lufthansa profi ts from growth prospects for air travel (graphics)

New destinations

Rush hour in New York City (photo)

There were many new destinations for the
A380 in 2011, for example New York

2011 was defined by the network expansion of the A380. Following New York and San Francisco, Miami became the third destination to be included in the flight plan to the USA. The largest passenger aircraft in the world flies daily to Singapore and Beijing, two important cities in the Asian region. As a strong growth market, China is playing an ever greater role in the entire Lufthansa network too. We have expanded our presence there with connections to Shenyang and Qingdao. Altogether, Lufthansa now offers 55 weekly services to six destinations in the Middle Kingdom, making this one of the most extensive networks of any European airline. In order to enhance services to the important Russian market, two flights a day were started in November 2011 to Moscow-Vnukovo, a new destination in the route network.

Global competition

Dragon procession in the streets of Singapore (photo)

Singapore: more and more of Lufthansa’s
passengers come from Asia

In its intercontinental business Lufthansa is exposed to intense competition. Pressure comes in particular from the massive growth of airlines from the Far East and the Gulf states. We are defending our leading position in the long-haul league with a solid financial base, investment in the product and a modern and efficient fleet, and an attractive global network. Our well-trained and motivated staff also give us a real competitive advantage, because we know that continuous refinement is the basis for satisfying the highest demands of our customers – both corporate clients and private travellers.

Strong competitive standing

The battle for market share is not only fought on the long-haul, but also in European traffic. Low-cost carriers are growing fast and imposing aggressive price policies. In an environment already subject to high cost pressure, this presents us with great challenges. We are therefore stepping up our efforts to achieve our strategic objective of profitable growth. In Europe and worldwide, the aim is to best play Lufthansa’s aces of quality and attractiveness. Alongside the product, revenue management also makes an important contribution to profitability. By managing prices and capacities precisely we were able to carry nearly 10 per cent more passengers in 2011 for example, despite one-off effects and the deteriorating economy.

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