Case study "The Passenger Air Transport Industry" Lufthansa

Thèmes abordés

Lufthansa - labor cost - Easyjet - Human Resources

Résumé du document

Context and opportunities:
-Big competitors in low cost market in Europe (Ryan Air, Easyjet).
-Target: Logistics and Equipment
-Use smaller and older airplanes from our filiales
-Second zone airports to avoid big slots and taxes of the hubs
- Target: Service and Human Resources
Automatization of booking and boarding : all online, using NTIC for the booking and inventory process with new software of the air transport industry, from AMADEUS or SABRE

Reduce the labor costs by outsourcing the human resources to Manpower for the cabin crew, cleaning, and company agent in the airports. It could reduce the cost of 40% : from 30% to 15% of the total cost of the company as it currently happens in the industry
Make 5% profit more by proposing additional services: hotels and restaurants, cars rent, tourism operator online, extra snack during the flight, easy boarding, and seat choice

Extraits

[...] Develop employees' skills and redistribute administrative and personal costs Make people learn new languages Subcontract the personal needs Limit the dismissal Use NTIC for administration % of people trained % of subcontract employee % of employee saved Acquire new computer program Attend 50% of people trained Subcontract 15% of the contracts Save 50% of the employees Reduce 20% of the administration costs Objective Planning APPENDICES EVOLUTION OF THE TRANSPORT MODE BETWEEN 2 CITIES EVOLUTION OF THE AIRLINE TRAFIC WITHIN 2025 EVOLUTION OF THE AIRLINE TRAFIC WITHIN 2025 EVOLUTION OF THE AIRLINE TRAFIC WITHIN 2025 TURNOVER RANKING IN 2012 http://www.fb-bourse.com/classement-2012-compagnies-aeriennes/3/ TURNOVER RANKING IN 2011 CLIMB: COST REDUCTION BOEING MARKET OUTLOOK Trends in the industry in the coming years Increase of the traffic in Europe, and almost with the growing market of South America and Middle Orient, and Asia Doubling the fleet worldwide Trends in the industry in the coming years Green Industry: development of low-consumption, biofuel and solar airplanes, lighter and more quiet Today: start of more ecological planes with the Gulfstream G450 (business plane) ; 747-8 Freighter (fret plane) of Boeing Future (around 2050): project Zehst ("Zero Emission High Speed Transport) by Airbus, and the Solar Impulse by a Swiss manufacturer. Trends in the industry in the coming years Airports use experiment with the latest virtual technologies to improve customer service (less waiting time, and more services) ; Customer service agents and cabin crews use Ipad for booking, in-flight entertainment device, self-service kiosk, customer survey tool, or as a food ordering tool. [...]

[...] It could reduce the cost of 40% : from 30% to 15% of the total cost of the company as it currently happens in the industry Make profit more by proposing additional services: hotels and restaurants, cars rent, tourism operator online, extra snack during the flight, easy boarding, and seat choice Develop Germanwings : the actual low cost filial of Lufthansa Strategy n°2 – Develop the Asian market, signing an alliance with a big local airline company Partnership with China Airlines (leader in China) and take advantage of the Star Alliance membership (Qatar Airways, Air India) and SWISS, Edelweiss, Brussels Airlines (actual filial) Context and opportunities: Chinese airline traffic has risen from sixth to third in the world in terms of passengers and freight transported by strong growth in recent years per annum). The airline industry has a potential for development and experts agree that growth will remain around year over the next twenty years. [...]

[...] Target: Logistics and Equipment Use smaller and older airplanes from our filiales Second zone airports to avoid big slots and taxes of the hubs - Target: Service and Human Resources Automatization of booking and boarding : all online, using NTIC for the booking and inventory process with new software of the air transport industry, from AMADEUS or SABRE Reduce the labor costs by outsourcing the human resources to Manpower for the cabin crew, cleaning, and company agent in the airports. [...]

[...] Stimulate the Asian market by creating new offers Rise the number of international flights between Europe and Asia Create national flight in Asia Insert the Chinese market Develop the business class Evolution of the number of international flight between E&A Number of new flights created Take a part of the Chinese Market Evolution of the business ticket sold Pass from 52 to 100 weekly flight between E&A Attend the creation of 50 flights /week Attend 15% of the Chinese market Sell 15000 business seats / week Internal Process 3. Develop our Know-how in Asia Use and improve the performance of the fleet Acquire innovative airplanes Develop our system abroad % of our fleet re-used for this market Number of new airplanes Use of the system abroad Attend 70% of the airplanes capacities Renew 50% of the oldest fleet Acquire 110 new airplanes Learning 4. [...]

[...] Target : Market Share Growing market share in order to be leader on the Airline Market. Attract new costumers who travel more and more around the world. [...]