Case: Lufthansa

Team name: A Team

Members:
Augusto Bazán
Victor Hugo Bazán
Monica Cristina Bazán
September 2006
Caso Lufthansa
 The quality of economy class seats will
improve until it makes vanish off the business
class. In the future, both will be almost the
same.
 In a few years, the economy class seats
between countries of European Union and
Western Europe will be the standards of the
flights.
Causes:
 The flight seats between countries of European Union
and Western Europe have increased in 118%, it is
due to growth in the economy class seats.

 A little of this growth is explained by new flight routes

between European Union and Western Europe
Question:

 How can Lufthansa stay in the flight

business?

 Attacking itself
 Becoming smaller and effective to stay alive
(no efficient) -- > very important !
How: (1)
 Create a low cost company to offer economy class
seats between countries of European Union and
Western Europe and between countries of European
Union too
 Each unite (from each country) will be independent
economically, if they fail to get their break even point
they be closed.
 The Lufthansa profit will reduces, in spite of this, your
benefit will increase because they can double (or
more) the sales of seats.
 Important: the new company don’t be publicly link
with Lufthansa (because the strategy)
How (2) :
 Offer low cost seats from 3 countries with the
high GDP from European Union (United
Kingdom, Italy, France) to the 4 countries
from the Western Europe (Poland, Czech
Republic, Hungary, Romania); with all
possible permutations in a first stage of the
strategy.
 Then include the next European countries
according to GDP.