Global Challenges and chances in the Near and Middle ... - NuMOV

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Global Challenges and chances in the Near and Middle ... - NuMOV

Global Challenges and chances in

the Near and Middle East region

www.lufthansa.com

German – Near and Middle East

Aviation Conference

Berlin

09 June 2010


Challenges having an effect on the air transport industry are numerous

...global financial crisis:

2008 – kicked off by Goldman Sachs

2009 – „a lost year“- shift in demand affects yields

2010 – recovery (to former levels?)

... ongoing disturbance by „sub-crises“

January – storm in Germany and Europe

February – pilot‘s strike

March – heavy snowfall

April – volcanic ash

May – (?)

... further economic development in Europe

the Greek tragedy – value of the Euro (?)

... bilateral relations

discrimination

protectionism

subsidization / state aids


Challenges....

...in the regulatory field

European Emission Trading Scheme (ETS) vs. worldwide solution

Infrastructure constraints

Safety / Security

... in external factors

where will the fuel price go?

... in competition

by low-cost/no-frill carriers

on short haul routes in Germany and Europe

on intercontinental routes (Gulf carriers)

... to be encountered by strengthened local / regional competence!

... with particular focus on Near and Middle East markets

... Lufthansa‘s strong position in their variety of business units make the

company robust against external threats!


Lufthansa: who we are and what we do.....

On any one day, Lufthansa…

makes more than 2,250 take-offs and landings,

carries about 193,000 passengers and more than

5,200 metric tons of freight,

serves more than 1.17 million meals,

answers to about 27,400 phone calls,

and services more than 1,000 aircraft (own and

third party) through its Lufthansa Technik unit.


The Lufthansa Group and its five business segments

Passenger Airline Group

Logistics

MRO

IT Services

Catering

The Group’s airlines rank among

the world’s leading carriers.

Lufthansa Cargo –

One of the world's leading cargo carrier

in international air traffic.

Lufthansa Technik –

Leading supplier of engineering services

in the world's airline business.

Lufthansa Systems –

One of the world’s leading IT service providers

for the airline and aviation industry.

LSG Sky Chefs –

World's largest provider of airline

catering

and integrated in-flight solutions.


Lufthansa passenger airline: destination portfolio

Summer schedule 2010 – 205 destinations in 82 countries worldwide

North America

Germany

21 destinations

17 destinations

in 2 countries Middle East

South America

4 destinations

in 4 countries

Destination map refers to the summer timetable 2010.

Europe (w/o Germany)

106 destinations

in 37 countries

Africa

16 destinations

in 14 countries

14 destinations

in 11 countries

Asia Pacific

27 destinations

in 13 countries


From Germany to the Near and Middle East

In the summer 2010 schedule period ...

.... 17 passenger carriers operate

.... 243 weekly flights from Germany

.... to twelve countries

.... and 20 destinations

in the Near / Middle East region

Capacity increased by 11pct

compared to 2009

Lufthansa is # 1 in weekly frequencies

and seats offered


The Lufthansa Passenger Airline is well established and represented

.... eleven countries

.... fourteen destinations

.... 79 weekly flights from Germany

(plus seven compared to 2009)

.... 17,100 seats per week and direction

.... 1.82 mill. Passengers (2009)

.... plus 29pct vs. 2008


Most valuable asset is Lufthansa‘s long-term dedication and reliability

The first flights to the region

landed in September 1956 –

Teheran / Beirut

The youngest achievement – Erbil –

looks back at a „history“ of

six weeks

Challenge: new destinations?

(Bagdad)

Beirut: twelve weekly flights (12-09-56)



Amman: daily flights (02-04-85)



Riad: ten weekly flights (01-04-87)







Jeddah: daily flights (07-05-69)

Doha: daily flights (15-06-98)

Bahrain: daily flights (02-04-85)

Abu Dhabi: six weekly flights (01-11-76)

Dubai: 12 weekly flights (03-05-76)

Muscat: six weekly flights (30-09-83)



Erbil: four weekly flights (25-04-10)

Sana: two weekly flights (30-03-86)

Teheran: daily flights (12-09-56)

Bagdad: four weekly flights (30-09-10)

Kuwait: daily flights (05-07-63)

Dammam: three weekly flights (26-03-00)


Passenger airlines within the Lufthansa Group

Passenger transport is the core business of the Lufthansa Group.

The group recently acquired a number of airlines and is a driving force in the

consolidation of the European air transport sector.

Together with its airline subsidiaries, Lufthansa German Airlines carries some 80

million passengers a year.

In addition to Lufthansa German Airlines, the following major airlines are part of

the Lufthansa Group:

Swiss International Air Lines March 2005

Zurich, Switzerland 100% stake

JetBlue January 2008

New York JFK, USA 15.6% stake

Brussels Airlines June 2009

Brussels, Belgium 45% stake (target 100%)

British Midland September 2009

London Heathrow, UK 100% stake

Austrian Airlines September 2009

Vienna, Austria 100% stake


Presence of the Lufthansa Group in Near and Middle East

Nearly 200 passenger flights per week to twelve countries and 16 destinations in the region

BEY

DAM

AMM

JED

EBL

BGW

RUH

KWI

DMM

SAH

DOH

THR

BAH

AUH

DXB

MCT

Destination map refers to the summer timetable 2010.

1 „Flight“ refers to a round trip (multileg flights counted twice).

Lufthansa

101 weekly flights to 14 cities

Hubs: Frankfurt and Munich (Germany)

Swiss International Air Lines

14 weekly flights to 2 cities

Hub: Zurich (Switzerland)

Austrian Airlines

33 weekly flights to 5 cities

Hub: Vienna (Austria)

BMI British Midland

43 weekly flights to 7 cities

Hub: London-Heathrow (UK)


Our new flagship: the Lufthansa-Airbus A380

The delivery of the first Airbus A380 on May 19, 2010 marked the beginning of a

new era in the history of Lufthansa

The A380 is the biggest commercial passenger aircraft in the world

During 2010 Lufthansa adds four units of the new aircraft to its fleet

Length:

72.7 m

Wingspan:

79.8 m

Height:

24.1 m

# of seats:

526

First/Business/Economy

8 / 98 / 420

Range:

12,000 km


Logistics

Within the Lufthansa Group, Lufthansa Cargo AG is

responsible for the sale and operation of freight

transport.

Lufthansa Cargo has 19 Boeing MD-11F freighter

aircraft at its disposal. It also uses the freight

capacities of Lufthansa passenger aircraft.

Additional capacities are chartered as needed.

In 2009, the airline’s route network comprised

about 300 destinations worldwide.

Lufthansa Cargo has joined forces with DHL

Express to found the freight airline AeroLogic,

which started operations in 2009.


Aerologic – Lufthansa Cargo‘s Joint Venture with DHL Express

Aerologic GmbH was founded

in September 2007 as a joint

venture between Lufthansa

Cargo and DHL Express.

After the ramp-up phase and the

delivery of the first Boeing 777F

in May 2009, AeroLogic started

its operations in June 2009.

Three more aircraft joined the

fleet during 2009.

Another four Boeing 777F

will complete the fleet.


Maintenance / Repair / Overhaul

With a market share of 15 percent, Lufthansa

Technik AG is the world’s leading provider of

maintenance, repair and overhaul (MRO) services

for civil aircraft.

The Hamburg based wholly owned Lufthansa

subsidiary offers a broad service portfolio in

maintenance, repair and overhaul of civil aircraft

to more than 600 customers worldwide.

Lufthansa Technik is the world’s first company in

the MRO industry to hold an integrated

certification in accordance with ISO 14001

(quality), EMAS (environment) and OHSAS 18001

(job safety).

To take specific advantage of the growth potential

in emerging countries in Asia, the company has

operated the joint-venture Ameco Beijing in

cooperation with Air China for 19 years.


Lufthansa Technik Group: An overview

690 customers worldwide

2,000 aircraft under exclusive contracts

500 jetliners under Total Technical Support TTS ®

1,700 aircraft inspections per day

31 subsidiaries and affiliates worldwide

60 line maintenance stations with Lufthansa Technik staff worldwide

5.9 billion Euros in revenue*

26,000 employees worldwide

*Lufthansa Technik AG and all companies of Lufthansa Technik Group in 2009.


Lufthansa Technik: Global presence for more than 670 customers

Selected customers, March 2009


Lufthansa Technik – current activities

Reference Customers

Ethihad Airways Gulf Air Qatar Airways

Saudi Arabia Airlines Royal Jordanian Jazeera Airways

Current Business

Main Business:

Component Support

Engine Maintenance

Landing Gear Services, Base

Maintenance, Cabin Modification, etc.

Main Barriers

No access to specific markets due to

current Embargos (e.g. Iran)

Competition


Lufthansa Technik – future opportunities

Aircraft Growth

from 2009 to 2010:

573 (+ 107 AC) = 680

800

600

400

200

0

324

36

213

357

52

271

2009 2010

Airlines in the ME Region increased their

capacity in October 2009 by 15,8% with an

increase in demand by 14,3%.

Emirates and Etihad have a combined

order backlog of more than 260 A/C.

Young fleets are dominated by WBs

(>50%)

Fleet of NME carriers is growing by 20% in

2010.

The Middle East offers excellent

opportunities for cooperation and

market growth

Narrow-Bodies (e.g. A320, B737, etc.)

Regional Jets (e.g. CRJ200, ERJ190, etc.)

Wide-Bodies (e.g. A340, A380, B777, etc.)


The return of the Super Star - Comeback of a legend....

... and another challenging project for Lufthansa Technik!

The Super Star was the

culmination in the history of

propeller driven transport

aircraft.

To make a last Lockheed

L-1649A airworthy again is

a special honour and

challenge for Lufthansa

Technik.


Catering

LSG Sky Chefs is the worldwide leader in

providing solutions for airline catering and inflight

management.

In 2008, the wholly-owned Lufthansa

subsidiary produced 427 million meals for

more than 300 airlines, which corresponds to a

market share of about 30 percent of global

airline catering.

In addition to other ground services, LSG Sky

Chefs also operates airport lounges and retail

outlets.


Competence worldwide in 202 locations

North/

Latin America

Wholly-owned facilities 51

Joint venture facilities 43

Number of CSCs 94

Europe/Middle East/

Africa

Wholly-owned facilities 52

Joint venture facilities 16

Strategic partnerships 8

Number of CSCs 76

Asia/Pacific

Wholly-owned facilities 8

Joint venture facilities 23

Strategic partnerships 1

Number of CSCs 32


IT-Services

Founded in 1995

Head office in Kelsterbach near Frankfurt/Main,

with branches in 14 countries

Around 3,000 employees worldwide

Revenue in 2009: EUR 605 million

Lufthansa Systems is one of the leading IT service

providers for the airline and aviation industry.

The system integrator looks after more than 200

customers worldwide and offers the entire spectrum

of services based on information technology.

The business segment includes the divisions Airline

Management Solutions, Passenger Airline

Solutions, Airline Operations Solutions, Industry

Solutions and Infrastructure Services.

Its computer center – located at the company’s

headquarters – is one of the most advanced and

highest performing facilities of its kind in Europe.


A synopsis of Lufthansa Systems’ activities in the Middle East

Important regional market for Lufthansa Systems

25 customers (airlines, VIP operators)

23 further prospects

Revenue from customers in the Middle East has steadily

increased over the years and is forecast to continue its growth

Local Service Management Office in Dubai

Airlines in the Middle East have traditionally been early

adopters of new products and services from Lufthansa

Systems, e.g.

Lido/Flight: Emirates

Electronic Route Manual: Emirates

Integrated Operations Control Center: Tunisair

SkyConnect: Etihad


Airlines in the Near and Middle East using Lufthansa Systems‘ services

and products

Tunisair

Nouvelair

EgyptAir

Lotus Air

Syrian Air Iran Air

Middle East Airlines

Iran Aseman Airlines

Royal Jordanian

Kuwait Airways

Gulfair

Saudi Arabian Qatar Airways

Airlines

Yemenia

Emirates

Etihad

Air Arabia

FlyDubai


Lufthansa Consulting – offering its internal and external experts‘ network


Clients are distributed all over the world


STAR Alliance – to the benefit of the customer


Lufthansa. There is no better way to fly!


Peter Schnoelzer

Director

International Relations

& Government Affairs

Deutsche Lufthansa AG

FRA CP

Lufthansa Aviation Center (B0.608)

Airportring

60546 Frankfurt

Phone +49 69 696 57900

Fax +49 69 696 98 57900

Email: peter.schnoelzer@dlh.de

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