Product details

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Prize winner
Published by: WHU - Otto Beisheim School of Management
Published in: 2002
Length: 13 pages
Data source: Published sources

Abstract

This case presents, for the example of Lufthansa Cargo AG, the status quo of yield management in the air cargo industry. It provides insights into the general structure and provides an overview of the competitive forces in the air cargo business. In particular, it presents Lufthansa Cargo AG as the market leader of the world air cargo market and describes its products and strategic view of the industry. It also shows how the company manages capacity utilisation by allocating space for high-margin express products, standard rate bookings, and long-term contracts. It focuses on the types, terms, and pricing of contracts offered and illustrates how the industry's thinking is moving more and more to a paradigm of flexible contract forms and dynamic pricing.

Teaching and learning

This item is suitable for postgraduate courses.

Time period

The events covered by this case took place in 2001.

Geographical setting

Region:
Europe
Country:
Germany

Featured company

Lufthansa Cargo AG
Employees:
1001-5000
Turnover:
EUR 2.5 Billion
Industry:
Air cargo

Featured protagonist

  • Felix Keck (male), General Manager

About

Abstract

This case presents, for the example of Lufthansa Cargo AG, the status quo of yield management in the air cargo industry. It provides insights into the general structure and provides an overview of the competitive forces in the air cargo business. In particular, it presents Lufthansa Cargo AG as the market leader of the world air cargo market and describes its products and strategic view of the industry. It also shows how the company manages capacity utilisation by allocating space for high-margin express products, standard rate bookings, and long-term contracts. It focuses on the types, terms, and pricing of contracts offered and illustrates how the industry's thinking is moving more and more to a paradigm of flexible contract forms and dynamic pricing.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Time period

The events covered by this case took place in 2001.

Geographical setting

Region:
Europe
Country:
Germany

Featured company

Lufthansa Cargo AG
Employees:
1001-5000
Turnover:
EUR 2.5 Billion
Industry:
Air cargo

Featured protagonist

  • Felix Keck (male), General Manager

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