swot analysis of lufthansa airlines

Topics: Lufthansa, Airline alliance, US Airways Pages: 6 (424 words) Published: April 23, 2014
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SURYA KORITALA

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FINAL PROJECT

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NAME :

SURYA KORITALA

COURSE CODE :

ILT101-81

SECTION :

EET

SEMESTER :

VIII

INSTRUCTORS NAME :

YELENA RUDINSKAYA

TITLE :

SWOT ANALYSIS OF LUFTHANSA
AIRLINES

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HISTORY
Lufthansa, Its is the second largest airline industry in Europe and its been established in 1926. The name lufthansa came from the two dutch companies which has been merged together and formed a name in 1933. As in 1930’s war has become a huge disadvantage for the company because of the cancelling of the transport flights and soon after the war it has begun a fresh start to the company. At that time the technology has been developed very rapidly were propellor has been replaced by jet engines and the travelling time has became very fast.

Despite in several crises it has soon adopted into wide body aircrafts and made into the cargo industry as well, As the time progressing lufthansa has been modifying its needs and requirements according to the costumer satisfaction. But then the major crises in early 1990’s has threatened the airline industry lufthansa sought the star alliance corporation and eventually found the way out of the crises and transformed from airline to aviation group.

Swiss international airline has become a part of the lufthansa, and established a following take over the british midland and as well a the austrain airlines. In 2013, Lufthansa achieved top rankings at the “World

Airline Awards 2013” in the categories “Best Transatlantic Airline”, “Best Western European Airline”, and “Best First Class Airline Lounge”.

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Strengths

• Flexibility in flying
• Full performance and reliability
• Global Operations.
• Refocusing of Diversification and establishment or “Divisions”. • Strategic ability to predict future trends.

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Focus on quality complimentary global network, none of its members declared as bankrupt and its the second biggest alliance market share in north america. Its been the second largest airline operating in Europe and its been successful in connecting various destination across the Europe and as well as the global market.

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Weakness


Weak industry conditions due to slowing economic growth.



Participation in the cyclical, price-competitive, and capital intensive airline industry.



Profitability sensitive to volatile fuel costs.



Highly competitive domestic and European markets.

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Opportunities
• Encourage growth of star alliance
• Increase ownership stake in different markets
• Use IT division to develop operational stakeholder relationships • Use wet leasing to improve regional network
• Expand presence in growing market.

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Threats
• Other alliances
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• Low cost providers
• Alternate tool for shorter distance



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WORK CITED
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http://reports.lufthansa.com/2008/ar/toourshareholders/ourstrengthsindetail.html !
http://www.lhconsulting.com/career/career-opportunities/

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Cited: !
http://reports.lufthansa.com/2008/ar/toourshareholders/ourstrengthsindetail.html
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http://www.lhconsulting.com/career/career-opportunities/
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Page 6
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