1. Company overview
Lufthansa (derived from Luft, the German word for air, and Hansa, the powerful medieval trading group) is the world's fifth largest airline in terms of overall passengers carried (62 900 in 2007), operating services to 209 destinations (842 destinations in 157 countries, with the partners in Star Alliance). Apart from the main activity, Passengers transport (71.2 % revenue), the other divisions include Logistics (11.7%), Maintenance (9%), Catering (7%), and IT services (1.1%).
Lufthansa – Key Milestones
• 1926: Foundation
• 1936: Lufthansa opens the first trans-oceanic, scheduled airmail service across the South Atlantic
• 1960: Lufthansa enters the jet age, initially on long-haul routes, with the arrival in the fleet of the Boeing 707
• 1997: Star alliance created
• 2006: Lufthansa Cargo founds the cargo airline AeroLogic with DHL Express.
Key Financial data for first half of 2008 (compared with first half of 2007)
| |Jan-Jun '08 |Jan-Jun'07 |Change (%) |
|Revenue (€M ) |12,056 |10,089 |19.4 |
|EBITDA(€M ) |1317 |1381 |-4.6 |
|Net Liquidity(€M ) |916 |703 |30 |
|EPS(€) |0.88 |2.17 |-59.4 |
2. Airline industry
The main objective of an airline industry is to provide air transport services both for passengers and freight. Airlines own or lease their aircrafts to provide those services. In the early days the industry was highly state-regulated. Since the partial and progressive deregulation of airline companies (beginning in the USA in 1978, and in EU in the early 1990s), the industry became highly competitive, driving to the bankruptcy some of the...