School operation. Current headquarters are based in Cologne, Germany,

School of
Aviation

Girne
American University

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Strategic Report of Deutsche Luftansa
AG

 

ATAKAN SARIGOL

130234013

CIVIL AVIATION MANAGEMENT

 

INTRODUCTION

Formed in 1926 as
Deutsche Luft Hansa, Lufthansa (Deutsche Lufthansa AG) is a German-based air
carrier (and is the ‘flagship’ national carrier), and is currently the largest
airline carrier in Europe, as well as the fourth largest airline in the world
in terms of carried passengers. From a fleet perspective, including all of its
subsidiaries, it is the largest passenger airline fleet on the globe, with over
870 aircraft in operation.

Current headquarters
are based in Cologne, Germany, with it’s main passenger traffic hub based at
Frankfurt Airport in Frankfurt am Main, Germany. The organization currently has
12 subsidiaries (figure1), which includes Lufthansa Cargo, an air cargo company
that is wholly owned by Lufthansa. Lufthansa has 9 (nine) additional operations,
including LSG Sky Chefs, which is the largest airline-catering group on the
globe. LSG accounts for one third of the world’s airline catered meals.

Lufthansa is one of
the founding members of the Star Alliance, which was formed in 1997, and is the
world’s largest airline alliance. In addition to Lufthansa, the founding
members of the alliance were Air Canada, Scandinavian Airlines, Thai Airways
International, and United Airlines. The alliance has grown to include 28 member
airlines, with a global reach of 1,356 airports in 193 countries.

 

Figure1: Group Structure of
Lufthansa

Source:
Annual Reports – http://reports.lufthansa.com

 

 

School of
Aviation

Girne
American University

 

SWOT Analysis

SWOT for Swot Analysis Of Lufthansa Airlines is a powerful tool of
analysis as it provide a thought to uncover and exploit the opportunities that
can be used to increase and enhance company’s operations. In addition, it also
identifies the weaknesses of the organization that will help to be eliminated and
manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would
differentiate the company from competitors, so that the organization can
compete successfully in the industry. The strengths and weaknesses are obtained
from internal organization. Whereas, the opportunities and threats are
generally related from external environment of organization. Moreover, it is
also called Internal-External Analysis.

 

 

STRENGTHS

·        
MarketLeader – largest consolidated
global carrier group.

·        
Biggest Star Alliance member – largest
airline alliance group.

·        
Most profitable of all global carrier
groups.

·        
Reputation for high level of customer
service.

·        
IT Division is strong.

·        
Strategic capability to forecast
future trends and patterns.

 

WEAKNESSES


Big ship to steer-largest consolidated global carrier group

        •
Biggest Star Alliance member – pulling the weight for other partners

        •
Development of low cost airline structure in some sector

        •
Some limits to ‘lighter’ (entertainment) mobile offerings

 

OPPORTUNITIES

        •
Encourage growth of Star Alliance partners

        •
Expand presence in growing market sectors

        •
Use strength of IT division to continue to roll out innovative mobile offerings

        •
Continue to lead user engagement market trend

 

THREATS

        •
Continued cost increases due to supply and regulatory environment

        •
Competing alliances

        •
Competing low cost airlines

        •
Alternative short travel distance options

        •
Rapidity and fluid nature of the mobile sector

 

School of
Aviation

Girne
American University

 

PEST
Analysis

When we
think of airlines, we usually think of luxury and opulence as well as comfort
and convenience. Lufthansa, is
the largest German airline and, when combined with its
subsidiaries, also the largest airline in Europe, in terms of fleet size,
and the second largest airline in terms of passengers carried during 2016.

Thats why
Lufthansa and Germany has relation such as win-win. Todays aviation industry
going to bigger day by day and help to growing the countries economies. Also
countries support the their companies for taking more profit from global
aviation indistry. PESTLE Analysis shows us especcailly how effects the
countries to their companies run. Here is the figure that for focus these
relations in sections which is as political, economical, social, technological,
legal and environmental.

 

Political

Economical

Social

 
-international trade agreements
-governmental support
-political stability
-low barriers of market entry
-assistance provided

 
-high productivity
-competitive market

 
-new acquisitions
-education level
-income level is at a constant increase
-stable social structures
-cultural diversity

Technological

Legal

Environmental

 
-technological problems
-technological scale effects
-technological capacity
-increasing automation

 
-regulations imposed on air traffic by the
administrative authories

 
-regulations
-green products and services
-weather conditions

 

Source: Based
on data from the swotandpestle.com/lufthansa/ (2017)

 

 

 

 

 

 

 

 

 

School of
Aviation

Girne
American University

 

DISCUSSION

The key
objectives of this research that focusing on how run the Lufthansa and what is
their advantages and disadvantages in the sector. Also it can analysis the
strenghts and opportunities for the make better the organization. On the other
hand, it can focusing to weaknesess and threats of firm and prevent the
possible negative senerios against the competitors.

Furthermore,
this research helps to understand the “big picture” via PEST Analysis
to change that company’s exposed to take advantage of the opportunities that
present.

 

REFERENCES

 

Andreas Hagenbring , Anne
Katrin Brodowski, Patrick Winter (2016). Lufthansa Group AG Annual Report.

KC Dochtermann (2012). Evaluation
of Lufthansa Airlines pp. 2-5.

Redpath, N., O’Connell J.
and Warnock-Smith D. (2017). Journal Air Transport Management, Volume 64, Part
B, pp121-128.

UK Essays (2013). The
Turnaround of Lufthansa Airlines Analysis Management