Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 27.04.2007
Length: 16 pages
Data source: Published sources
Abstract
This case addresses the development of Lufthansa's business within the cyclical and global airline environment. First, we discuss the main features of globalisation, its interrelatedness with complexity and the consequences for the airline industry. Then we analyse how Lufthansa has managed to remain one of the few profitable airline companies in the past by touching on issues such as extraordinary events, low-cost competition, governance structures, financial constraints and culture. For this, we consider passenger transportation data over time on a corporate and industry level. Also, we analyse the trend of flag carriers to co-operate within airline alliances such as Star Alliance, One World and Sky Team on the background of its management implications. Further, we present the evolution of the organisational structure of Lufthansa and the current organisation of Star Alliance. Given that the airline business will remain complex and cyclical, we finally ask if the current strategy of Lufthansa is sufficient to maintain its status as one of the few profitable airlines worldwide in the future.
Location:
Industry:
Size:
EUR18.1 billion
Other setting(s):
1980-2006
About
Abstract
This case addresses the development of Lufthansa's business within the cyclical and global airline environment. First, we discuss the main features of globalisation, its interrelatedness with complexity and the consequences for the airline industry. Then we analyse how Lufthansa has managed to remain one of the few profitable airline companies in the past by touching on issues such as extraordinary events, low-cost competition, governance structures, financial constraints and culture. For this, we consider passenger transportation data over time on a corporate and industry level. Also, we analyse the trend of flag carriers to co-operate within airline alliances such as Star Alliance, One World and Sky Team on the background of its management implications. Further, we present the evolution of the organisational structure of Lufthansa and the current organisation of Star Alliance. Given that the airline business will remain complex and cyclical, we finally ask if the current strategy of Lufthansa is sufficient to maintain its status as one of the few profitable airlines worldwide in the future.
Settings
Location:
Industry:
Size:
EUR18.1 billion
Other setting(s):
1980-2006