Lufthansa Case Analysis
ESCUELA SUPERIOR POLITÉCNICA DEL LITORAL
GUAYAQUIL-ECUADOR
APPLIED MANAGEMENT CASE ANALYSIS
“LUFTHANSA 2003: ENERGIZING A DECADE OF CHANGE”
INTEGRANTS:
IVÁN CARO
SAMUEL JARAMILLLO
KARLA MANOSALVAS
ANALY VILLAFUERTE
FERNANDO MARRIOTT
LEONARDO SORIANO
LUFTHANSA´S BACKGROUND:
Lufthansa had become one of the most robust airlines and top aviation groups in the world. Lufthansa is the largest airline located in Europe in terms of passengers carried. In the 1980s, Lufthansa pursued a policy of rapid fleet expansion based on the belief that only the largest airlines would survive in a global area.
From the brink of bankruptcy, Lufthansa turned a record loss of €350 million in 1992 into a pre-tax profit of €952 million in 2002. This financial result reflected Lufthansa’s major competitive advantage – its ability to respond rapidly, act flexibly, and withstand crises.
By 2002, Lufthansa had become one of the strongest airlines and top aviation groups in the world. Lufthansa went from a record loss of €350 million to a profit of €718 between 1992 and 2002. The number of passengers increased from 33.7 million in 1992 to 43.9 million in 2002.
FRAMING
KEY QUESTIONS: * Which was the main strategy that explains Lufthansa’s Succeed? * Which was the Lesson Learned about Expansion without screening the market? * How can a Bankruptcy Company Succeed in a Competitive Environment?
FLIPPING AND SKIMMING: * The Case is resumed in 22 pages. * The Turnaround (1992-1993), basically explains the crisis process. * Financial Data Analysis and Ratios * Lufthansa’s Organizational Structure and Business Segments * Lufthansa’s Competitive Position and Alliances * Project’s Explanations and Programs Applied * Re-Energizing the Ongoing Change * Challenges in 2003
BEGINNING OF THE CASE: * Lufthansa was transformed from a state-owned, monolithic, unprofitable national airline into one of the most profitable, privately
GUAYAQUIL-ECUADOR
APPLIED MANAGEMENT CASE ANALYSIS
“LUFTHANSA 2003: ENERGIZING A DECADE OF CHANGE”
INTEGRANTS:
IVÁN CARO
SAMUEL JARAMILLLO
KARLA MANOSALVAS
ANALY VILLAFUERTE
FERNANDO MARRIOTT
LEONARDO SORIANO
LUFTHANSA´S BACKGROUND:
Lufthansa had become one of the most robust airlines and top aviation groups in the world. Lufthansa is the largest airline located in Europe in terms of passengers carried. In the 1980s, Lufthansa pursued a policy of rapid fleet expansion based on the belief that only the largest airlines would survive in a global area.
From the brink of bankruptcy, Lufthansa turned a record loss of €350 million in 1992 into a pre-tax profit of €952 million in 2002. This financial result reflected Lufthansa’s major competitive advantage – its ability to respond rapidly, act flexibly, and withstand crises.
By 2002, Lufthansa had become one of the strongest airlines and top aviation groups in the world. Lufthansa went from a record loss of €350 million to a profit of €718 between 1992 and 2002. The number of passengers increased from 33.7 million in 1992 to 43.9 million in 2002.
FRAMING
KEY QUESTIONS: * Which was the main strategy that explains Lufthansa’s Succeed? * Which was the Lesson Learned about Expansion without screening the market? * How can a Bankruptcy Company Succeed in a Competitive Environment?
FLIPPING AND SKIMMING: * The Case is resumed in 22 pages. * The Turnaround (1992-1993), basically explains the crisis process. * Financial Data Analysis and Ratios * Lufthansa’s Organizational Structure and Business Segments * Lufthansa’s Competitive Position and Alliances * Project’s Explanations and Programs Applied * Re-Energizing the Ongoing Change * Challenges in 2003
BEGINNING OF THE CASE: * Lufthansa was transformed from a state-owned, monolithic, unprofitable national airline into one of the most profitable, privately