Key business strengths
Lufthansa concentrates its activities on the core competencies of its five strategic business segments:
- passenger business
- logistics
- MRO
- catering
- IT services
Passenger business
The airline is the world's fifth largest airline in terms of overall passengers carried, operating services to 209 destinations in 81 countries. Together with its partners Lufthansa services over 410 destinations. It has the second-largest passenger airline fleet in the world, when combined with Lufthansa CityLine, Air Dolomiti, Eurowings, Germanwings, Augsburg Airways, Contact Air, and SWISS. The Lufthansa Group operates more than 400 aircraft and employs 105,261 people worldwide. In 2007, 83.1 million passengers flew with Lufthansa including all subsidiaries.
MRO
Lufthansa Technik is one of the world’s leading providers of maintenance, repair and overhaul (MRO) services for civil aircraft. The Group is divided into six product divisions: Maintenance, Overhaul, Engines, Components, Landing Gear and VIP Completion. Besides its MRO base in Hamburg, the company’s main maintenance centers are at Frankfurt and Munich.
Hamburg is the most important base for aircraft maintenance and overhaul, completion, engine and components inspection. It also houses a logistics centre plus the company’s own development and production facility. The largest maintenance stations are at Frankfurt, Munich and Berlin. Further stations are maintained at more than 50 locations worldwide. The Lufthansa Technik group encompasses 28 technical maintenance facilities worldwide. Lufthansa Technik has direct or indirect stakes in 54 companies.
Logistics
Lufthansa Cargo is the logistics services provider in the Lufthansa Group. The Lufthansa subsidiary, which is based in Kelsterbach, is one of the world’s largest cargo carriers. It offers customers time-definite services and guarantees high quality standards.
Lufthansa Cargo’s freighter fleet comprises 19 MD-11F aircraft. The company also charters additional freighters as required. Furthermore, Lufthansa Cargo markets the belly capacities of all of Lufthansa’s passenger fleet as well as the capacities of Jade Cargo International from Europe.
The Lufthansa Cargo route network includes about 360 destinations worldwide which are served by cargo and passenger aircraft as well as by contracted trucking companies. The bulk of air cargo is handled at the Lufthansa Cargo Center at Frankfurt Airport, Lufthansa’s main hub. The company also operates hubs at Munich and Leipzig.
Lufthansa Cargo’s service portfolio covers all three air cargo product segments: Standard, Express and Specials, for example for the transport of temperature-sensitive products, live animals or valuable items. Lufthansa Cargo also offers additional logistics services which fully complement and augment its core airfreight business.
Catering
The LSG Sky Chefs group is the world’s leading provider of in-flight catering services and has a global market share of about 30 per cent. It encompasses around 119 companies and has almost 200 facilities in 47 countries. The group is divided into two business segments: “Airline Catering”, which supplies airlines worldwide with food, drinks and other inflight items, and “Inflight Solutions”, which together with the “Airline Catering” segment offers related services and products and supports airlines in all aspects of inflight service.
In a stabilised market environment, LSG Sky Chefs exploits opportunities for profitable growth and further differentiation and tailors its strategy to the differing stages of maturity and growth of the regional airline catering markets. While the company is focusing on further geographical expansion in growth markets such as Asia, Eastern Europe and the Middle East, its main aim in the saturated European and American markets is to optimise cost structures and expand its presence through partnerships.
IT services
Lufthansa Systems is one of the world’s leading providers of IT services for the airline and aviation industry. It offers a comprehensive portfolio of services, ranging from IT solutions for airlines and infrastructure services for companies in other sectors. In recent years, revenue from customers outside the Lufthansa Group has risen sharply.
Lufthansa Systems’ customer base encompasses about 200 customers worldwide. The largest group comprises airlines from all over the world, international network carriers as well as no-frills airlines and regional carriers. Furthermore, Lufthansa Systems works for banks and financial services providers, logistics companies, printing houses and customers from numerous other branches of industry.
Other Subsidiaries
In addition to its main operation, Lufthansa has subsidiaries. The most important are:
- SunExpress, Airline based in Antalya, Turkey; 50% owned by Lufthansa (50% Turkish Airlines)
- Swiss International Air Lines, an airline based in Zurich, Switzerland owned by Lufthansa
- Lufthansa Regional, a brand operated by an alliance of several small regional airlines, including Lufthansa CityLine
- Lufthansa CityLine, a regional carrier, wholly owned by Lufthansa
- Air Dolomiti, an airline based in Trieste, Italy
- Delvag, an insurance company specializing in air transport
- Lufthansa Flight Training, a provider of flight crew training services to various airlines and the main training arm for the Airline's own pilots
- Condor, a charter carrier, of which Lufthansa holds 24.9%
- Lufthansa holds 13% of Luxair.
- 49% of Eurowings a regional carrier, which in turn has a full stake in Germanwings, a low-cost subsidiary operating short-haul point-to-point flights from a number of bases in Germany
- 30%, minus 1 share, of BMI, a UK airline
- Lufthansa has a 19% stake in JetBlue
- Lufthansa Commercial Holding, containing over 400 service and finance companies of which Lufthansa holds shares
Fleet
As of March 2008, the average age of the Lufthansa fleet was 12.8 years.
Lufthansa Cityline
The Lufthansa Cityline fleet consists of the following aircraft:
-
: 18
-
: 26
-
: 20
-
: 12 (15 on order)
-
: (30 on order- Wich 6 of them are planed for )
Lufthansa Cargo
The fleet consists of the following aircraft:
Future approach
- Investment in environmentally compatible and modern fleet (35 new aircraft orders)
- Investment in environmental measures
- Lufthansa Aviation Center in Frankfurt
- Strengthening of position in the future market in China
- New First and Economy-Class on long-haul routes
- Expansion of premium passenger traffic
- New ground products (boarding card print-outs on home PCs)
Lufthansa pursues flying towards success. The Company is growing steadily more attractive, as is demonstrated impressively by the continuous growth of encouragement of all stakeholders. Our strategy is working. In financial year 2007 we boosted our operating profit by 63.1 per cent to EUR 1,378m, and we take pride in the fact that this result was driven by both cost management and higher revenue. Lufthansa continues to grow and is increasing profitability.
We have further enlarged our sound financial base and at the same time engaged in forward-looking capital expenditure. Your company’s economic result is by no means all that it has to show for itself either. The Lufthansa brand is stronger than ever.
