LUFTHANSA 2003 : ENERGIZING A DECADE OF CHANGE
Heike Bruch
UII;rcrs;t)' (ljSt. GallclI/LlljtlllH/Stl Schoo! oj
BIISIIICSS
l.ufthansa \\~S almost bankrupi 111 1991. Ten vears larcr, 1uühansa had bccomc ene of rhc mO)1 robust airlincs and 10p aviation groups in rhc wo rld.
By 2002, l.ufthansa hall undcrgone J decade of fundamental change. After the turn.tround was initi ated, rhc Executive and Supervisor)' Board, systemati cally maintained the change morncnturn. Lufthansa was transforrncd trom a statc owncd, monolithic,
In 2003, whcn the Weber era ended , Lufthanva \\d\ a prwately owncd, proflrable aviation group J\piring 10 becomc rhc lcading providcr of air transportauon oplt· ('tIlII'tlI prt1(1/(1' 111'11' II';lIkillg alld IICllIIg 111 '''1' old suuaure«.
111(lrlla 10 1Ic1,irlle 11 m,I "'1'111111 rlIIIIIgl', W.. l'III't' tcI renructure Lu/,lwlIslI, rreillf uansparcno; and 5'I$Ialll (OSI(OIlSClOIISII('SAS",/,,I,is P"'I"t'SS 15 ","eI, Illwl,'r 1111111 acute crisis '1II11rage",clII.
From State-Owned Airline to Private
Aviation Group
At lile outset of ihe rurnaround, Lufthansa began nego ríaring prlvarizarion with thc German governmcm. A crirical srurnbllng block was replacing ihe ~\ BL" pen vion fund (\'RI.-Versorgl1l1gSJmlalt dl'\ Rundes und der Lander), bínding Lufthansa ro the Germán srare. 11
IIas extrernelv difficult 10 break rhcse wgolden chains,"
In ~la)' i994, ihc problem of the pcnsion fund was revolved. The Gl.'rman governmenl dilull.'d il\ holding.
10 36 l'ercent amI agrccd 10 a paymcnl of (nI I billion inlo Ilu: VAl !t' cover dilhllr~ell1Cnh !ti pre"'cnl rl.'lirl.'es
•h ",di .1\ 10 oOcr .In aliowancl.' Jno gll JrJ 01ce íor con sliluling a separale Lufthallsa pension fundo Luflhan~a bccallll.' fuUy privalilcd in 1997.
Al Ihe t>eginning of the 19905. Lufthansa had
~ix dcpartmenls (finalice, pcrsonncl. sales.
UII;rcrs;t)' (ljSt. GallclI/LlljtlllH/Stl Schoo! oj
BIISIIICSS
l.ufthansa \\~S almost bankrupi 111 1991. Ten vears larcr, 1uühansa had bccomc ene of rhc mO)1 robust airlincs and 10p aviation groups in rhc wo rld.
By 2002, l.ufthansa hall undcrgone J decade of fundamental change. After the turn.tround was initi ated, rhc Executive and Supervisor)' Board, systemati cally maintained the change morncnturn. Lufthansa was transforrncd trom a statc owncd, monolithic,
In 2003, whcn the Weber era ended , Lufthanva \\d\ a prwately owncd, proflrable aviation group J\piring 10 becomc rhc lcading providcr of air transportauon oplt· ('tIlII'tlI prt1(1/(1' 111'11' II';lIkillg alld IICllIIg 111 '''1' old suuaure«.
111(lrlla 10 1Ic1,irlle 11 m,I "'1'111111 rlIIIIIgl', W.. l'III't' tcI renructure Lu/,lwlIslI, rreillf uansparcno; and 5'I$Ialll (OSI(OIlSClOIISII('SAS",/,,I,is P"'I"t'SS 15 ","eI, Illwl,'r 1111111 acute crisis '1II11rage",clII.
From State-Owned Airline to Private
Aviation Group
At lile outset of ihe rurnaround, Lufthansa began nego ríaring prlvarizarion with thc German governmcm. A crirical srurnbllng block was replacing ihe ~\ BL" pen vion fund (\'RI.-Versorgl1l1gSJmlalt dl'\ Rundes und der Lander), bínding Lufthansa ro the Germán srare. 11
IIas extrernelv difficult 10 break rhcse wgolden chains,"
In ~la)' i994, ihc problem of the pcnsion fund was revolved. The Gl.'rman governmenl dilull.'d il\ holding.
10 36 l'ercent amI agrccd 10 a paymcnl of (nI I billion inlo Ilu: VAl !t' cover dilhllr~ell1Cnh !ti pre"'cnl rl.'lirl.'es
•h ",di .1\ 10 oOcr .In aliowancl.' Jno gll JrJ 01ce íor con sliluling a separale Lufthallsa pension fundo Luflhan~a bccallll.' fuUy privalilcd in 1997.
Al Ihe t>eginning of the 19905. Lufthansa had
~ix dcpartmenls (finalice, pcrsonncl. sales.