Lufthansa Case Study Essay

The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were

The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

In this assignment I was assigned the task of comparing 2 different airlines, one being a full service carrier and the other being a lost cost carrier, from United States of America, namely the Delta Airlines and South West Airlines. The points of comparison were market strategies, financial benefits, load factors, contrasting yield, revenues and passenger/cargo loads. The analysis was done on the business model and a long term strategy. Through this it would be known that which airline is performing better than the other. The disruption of air travel through various incidents like the terrorist attacks and global downturn, which can be considered as economic, political and social conditions, effect airlines adversely.

2. What were key elements of JetBlue’s strategy in 2008? How has the company chosen to attract customers in sufficient volume to earn profits? How does JetBlue offer its customers value?

The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards of legacy carriers? Southwest Airlines encapsulates its strategy in a simple statement: “Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel (Grant, p.23). As a pioneer in low cost air travel, Southwest has successfully brought down airfares through its short route point-to-point business model, “no-frills” service, single flight strategy, and highly productive employees (Cederholm, 2014). In the following analysis we will investigate Southwest Airlines standing within the industry as a whole and their differentiation models driving success. We will also identify the firm’s competitive advantages as they relate to similar firms in the industry.

The airline industry is interpreted as being very unstable due to the immediate reaction to tragedies. The airline industry was affected following the September 11th tragedy and it affected other industries indirectly. The airline industry plays a key role in

Being the world’s largest airlines regarding revenue and fleet size, American Airlines operates extensive networks both the local and international. The company has its headquarters based in Fort Worth, Texas. United Airlines is the biggest airline in the United States by some destinations served. American Airlines becomes the second largest Airline regarding the number of destinations served. It has a vast area of operation, operating from its main hub at Fort Worth to Washington D.C. other hubs of operation are at, Los Angeles, Charlotte, Chicago-O’ Hare, Miami, New York-JFK, York-LaGuardia, Philadelphia, and Phoenix (McNally et al, 2013). The main maintenance base for the American Airlines is at Tulsa International Airport.

Lufthansa should also provide assistance and guidance to employees as the working environment is very stressful. They could offer a wide range of services to its employees. For instance, courses on yoga for stress reduction, arranging for dry-cleaning services and meeting with health professionals and so on.

“The merger of the two operating airlines into one corporate entity has also enabled savings on operating costs such as Engineering and Ground Handling, Insurance and Catering. Employee costs have also been addressed through an integrated organization which enabled the Company to terminate the contracts of most expatriate staff and impose a hiring freeze on new appointments.”

Managers in some budget airlines are often accused of ignoring every lesson that is taught to students at business schools. To what extent is this true as far as its HRM policies and practices are concerned? Justify your answer.

Overall, Cathay Pacific has done the best practices of service to the customers and makes them enjoy the flight time. It is trusting that provide the best service and give consumers a well experience in a specific time; they can be the loyal customer of the company and promote the company to their friends and

Lufthansa should establish some common monitoring and incentives programs within the alliance to strengthen the cooperation and extract as many benefits as possible from economies of scale, while working on maintaining its internal competitive advantages and keeping up its high reputation. Additionally it should consider further expansion through acquisition in order to strengthen its market position and increase its sphere of influence

2-The Lufthansa Airways management Group strategies are, Safeguarding a position as a leading Flights and the aim of the Lufthansa Group is to be the first choice in the field of Flights for customers, employees, shareholders and partners. Going forward, so the Lufthansa Group plans to continue playing a significant role in shaping the global aviation market. The second strategy is hub airlines intent on improving quality leadership and adapting their products and services in line with ever changing customer needs is a main mission for all the firms in the Lufthansa Group. The third strategy is achieving profitable growth for aviation services by exploit more growth opportunities in a targeted path to get the Lufthansa Group’s leading position in the aviation services market. The fourth strategy is the profitable growth planned for Eurowings in point-to-point traffic and to develop Eurowings, the Lufthansa Group is building an ingenious and competitive offering for more price-sensitive consumers in point-to-point

AI Airlines Limited is a new consumer airline, a wholly owned subsidiary of Air India Limited. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Delhi. The gap in the availability of low-cost service in and out of the Mumbai hub coupled with the demand for passenger travel on selected routes from Mumbai indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub.