Deutsche Lufthansa AG: Company Strategy & Performance Analysis
Deutsche Lufthansa AG (Lufthansa) participates in several segments of the aviation sector. The company operates 540 subsidiaries worldwide. In FY2016, it operated 617 aircraft with an average age of 11.3 years. Lufthansa provides services across Europe, North America, Asia-Pacific, Central and South America, the Middle East, and Africa. The company operates through five business segments, namely Passenger Airline Group, MRO, Catering, Logistics and Others. The passenger airline group segment constitutes the core business of Lufthansa.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading airline companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: number of seats sold, number of seats available, number of passenger kilometres available, number of revenue generating passenger kilometres available, load factor and revenue per passenger.
Eurowings strengthened the position of Lufthansa Group in the European market
The company started Eurowings airlines to cater to price-sensitive and service-oriented customers in the growing European market. The brand has helped the company to enhance its point-to-point route connections in Europe. This has allowed the company to strengthen its presence in European countries, particularly in Germany, Austria, Switzerland and Belgium.
The company posted an increase in available seat miles and revenue passenger miles
Lufthansa Group’s available seat miles stood at 178.1 billion in 2016, in comparison to 170.2 billion in 2015, indicating a growth rate of 4.6%. The increase was primarily due to the deployment of larger aircraft, which led to growth in aircraft capacity. Capacity growth was particularly strong in the American, European and Asian regions.
Lufthansa acquired Brussel Airlines
In December 2016, Deutsche Lufthansa acquired 55% of the shares in SN Airholding, the parent company of Brussels Airlines. The transaction was completed in early January 2017. The acquisition of Brussels Airlines and a lease agreement with Air Berlin significantly strengthened Eurowings’ position as a leading point-to-point airline in the German market. It also captured third position in the European market.