Lufthansa Business Plan 2010

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Lufthansa Investor Day 2010 Group Strategy and Development

Wolfgang Mayrhuber, Chairman of the Executive Board & CEO Deutsche Lufthansa AG Frankfurt am Main / June 28, 2010

Our Vision Where are we going?

We…
… want to grow profitably … want to distinguish ourselves from competitors in terms of superior quality, service, operational and technical competency as well as innovation … want to maintain a strong balance sheet … are open for partnerships, whether in alliances or by consolidation … want to offer products in all segments … will stay an Aviation Company and an Airline Group … want to stay flexible, responsive and stable within a changing environment … have a leadership strategy that builds on entrepreneurship and a modular setup 2 Lufthansa Group

Our formula for success is sustainability: Based on respecting stakeholders’ interests… Ca. 340,000 shareholders Cash value added Sustainable development

Shareholders
Synergies Profitable growth

Ca. 80 m customers p.a. Seamless travel Flexibility (network) Take over responsibility

Ca. 117,000 Employees 149 nations

Customers
High quality products Competitive fares

Individual caring Mobility à la carte

Employees

Fair HR Team spirit

Entrepreneurship

Job security/perspectives

3

Lufthansa Group

Our formula for success is sustainability: …and on creation of value and growth Strong capital structure Value creation Solid asset base

Profitable growth
Financial stability Rating

Investing in strategic opportunities

Modular Setup New technologies Innovation Group development Integration Stronghold Europe

Connecting Europe with the world

Competency

Market
5 local European markets

Emerging economies

Learning organisation

Management of networks

4

Lufthansa Group

Lufthansa A mobility company with focus on passenger airline business External revenue split External revenue [in m EUR]
3,475 4,184

73%

Passenger Airline Group

462

10%

Logistics

558

630

Technik 10%

MRO

586

61

1%

IT Services

59

387

6%

Catering

371

Q1 2009 Q1 2010

5

Lufthansa Group

Growth perspectives – Increasing relevance of Asia, while Europe and North America relatively lose importance in 2028 Growth of passenger air traffic 2008 to 2028 within regions (in RPK) RPK in bn 2008

North America
( +2.5% p.a. to 1.580 bn)

Europe ( +3.4% p.a. to 1.280 bn)

RPK in bn 2028

Asia/Pacific
660 bn 980 bn

Middle East ( +6.2% p.a. to 140 bn)
40 bn

( +6.9% p.a. to 3.080 bn)

Africa Latin America ( +6.4% p.a. to 430 bn)
120 bn ( +6.4% p.a. to 120 bn) 30 bn 810 bn

Souce: Boeing Current Market Outlook 2009

6

Lufthansa Group

Growth perspectives – The North Atlantic traffic remains the intercontinental market with the highest volume, despite emerging markets Growth of passenger air traffic 2008 to 2028 between Europe and the world (in RPK) RPK in bn 2008

North America ( +4.6% p.a. to 1.060 bn)

RPK in bn 2028

430 bn

Europe
180 bn 130 bn

Asia/Pacific ( +5.5% p.a. to 900 bn)

Latin America ( +4.3% p.a. to 410 bn)

180 bn

Middle East ( +5.5% p.a. to 330 bn)

310 bn

Africa ( +5.4% p.a. to 360 bn)

Souce: Boeing Current Market Outlook 2009

7

Lufthansa Group

Business environment Strong market upturn temporarily interrupted by the ash plume in April… International passenger and air freight volumes seasonally adjusted

14 13 12
FTK, billions

260 RPK 240
RPK, billions

220 200 FTK 180 160 2005
8

Ash impact

11 10 9

2006

2007

2008

2009

2010

Source: IATA

Lufthansa Group

Business environment - …but pre-recession levels almost regained by May with a distinct positive trend… International passenger and air freight volumes seasonally adjusted

14 13 12 11
FTK, billions

260 240
RPK, billions

May rebound RPK

220 200 FTK 180 160 2005
9

10 9 2006 2007 2008 2009 2010
Source: IATA...
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