M&a Case Lufthansa and Austrian Airlines
2083 International Mergers and Acquisitions The Case of Lufthansa and Austrian Airlines Briefing Paper
Author: Ines Haitzinger, 0753017 Supervision: Dr. Christian Herbst, LLM and Dr. Sascha Hödl, LMM Date: April 30, 2011
11. INTRODUCTION: BRIEF BACKGROUND INFORMATION ON LH AND AUA
The Lufthansa Group, which is led by its parent company Deutsche Lufthansa AG, is a listed company that has more than 400 subsidiaries and affiliates. Approximately 108.200 people work for the Lufthansa Group, which registered EUR 22.4 billion in the fiscal year of 2007. Within the last five years, the operating margin of the group has improved by a total of 5.5 percentage points to 6.9 % in the fiscal year 2007. Deutsche Lufthansa Group is meanwhile being regarded as one of the most profitable airlines in Europe. The group is active in five business segments, Passenger Transportation, Logistics, engineering (MRO), IT Services and Catering. Each of which holds a leading position in their respective industry. Passenger transportation offers mobility not only for passengers but also for freight. The Passenger Transportation segment has been growing substantially in the past business years with the tendency of continuous increase in profitability. Following companies are part of the groups Passenger Transportation business segment: Lufthansa, City line, Euro wings, SWISS, Air Dolomiti, German wings. Furthermore, it includes stakes in British Midland, Sun Express and JetBlue. The Austrian Airlines Group was a publicly traded company that unites three strong brands: Austrian Airlines, Lauda Air and Tyrolean Airways. Austrian Airlines started its “Focus East” in 2004 and offers a dense route network and functions as a hub between East and West, centered on Vienna and focusing on services to Central and Eastern Europe and the Middle East, completed by flights to Northern America and Asia. “Focus East” is supported by ongoing improvements in performance at the Group’s Vienna hub and the
Author: Ines Haitzinger, 0753017 Supervision: Dr. Christian Herbst, LLM and Dr. Sascha Hödl, LMM Date: April 30, 2011
11. INTRODUCTION: BRIEF BACKGROUND INFORMATION ON LH AND AUA
The Lufthansa Group, which is led by its parent company Deutsche Lufthansa AG, is a listed company that has more than 400 subsidiaries and affiliates. Approximately 108.200 people work for the Lufthansa Group, which registered EUR 22.4 billion in the fiscal year of 2007. Within the last five years, the operating margin of the group has improved by a total of 5.5 percentage points to 6.9 % in the fiscal year 2007. Deutsche Lufthansa Group is meanwhile being regarded as one of the most profitable airlines in Europe. The group is active in five business segments, Passenger Transportation, Logistics, engineering (MRO), IT Services and Catering. Each of which holds a leading position in their respective industry. Passenger transportation offers mobility not only for passengers but also for freight. The Passenger Transportation segment has been growing substantially in the past business years with the tendency of continuous increase in profitability. Following companies are part of the groups Passenger Transportation business segment: Lufthansa, City line, Euro wings, SWISS, Air Dolomiti, German wings. Furthermore, it includes stakes in British Midland, Sun Express and JetBlue. The Austrian Airlines Group was a publicly traded company that unites three strong brands: Austrian Airlines, Lauda Air and Tyrolean Airways. Austrian Airlines started its “Focus East” in 2004 and offers a dense route network and functions as a hub between East and West, centered on Vienna and focusing on services to Central and Eastern Europe and the Middle East, completed by flights to Northern America and Asia. “Focus East” is supported by ongoing improvements in performance at the Group’s Vienna hub and the