On the German passenger market, airlines approach different business concepts in order to cope with the threats and to be successful. The case of the Lufthansa Passenger Airline and its subsidiary Germanwings has been discussed many times currently. Together they have implemented a restructured concept of the Low Cost Carrier Germanwings in order to overcome their weaknesses. The purpose of this paper is to evaluate the potential of economic success of this strategy change. Therefore, the paper comprises three main areas. The first one is the theoretical part, which explains the differences between Full Service Network Carriers, Low Cost Carriers, Regional Carriers and Leisure Carriers. Secondly, the analysis takes place by applying Porter’s five forces model. Subsequently, the strengths and weaknesses of the Lufthansa Passenger Airline and Germanwings are highlighted and the new business concept is introduced. Finally, all findings are put into relation using the SWOT-analysis.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Research Objectives
- Overview of the Study
- Research Methodology
- Strategic Airline Marketing
- The Classical Marketing and the Marketing Management Process
- The Marketing Mix Applied by Airlines
- Product Policy
- Price Policy
- Place Policy
- Promotion Policy
- Applied Business Concepts of Airlines
- Full Service Network Carriers
- Marketing Mix
- Advantages and Disadvantages
- Low Cost Carriers
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This Master's thesis aims to evaluate the economic success potential of the restructured business concept implemented by Lufthansa Passenger Airline and its subsidiary, Germanwings. This strategy involves integrating elements of Low Cost Carriers (LCCs) into the existing Full Service Network Carrier (FSNC) model.
- Analyzing the differences between FSNCs, LCCs, Regional Carriers, and Leisure Carriers within the German passenger airline market.
- Assessing the competitive landscape of the German passenger airline market using Porter's Five Forces model.
- Identifying the strengths and weaknesses of Lufthansa Passenger Airline and Germanwings.
- Evaluating the effectiveness of the new business concept using a SWOT analysis.
- Exploring the potential for success of this combined FSNC-LCC model.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction lays out the research objectives, providing an overview of the study's scope and methodology. Chapter 2 delves into the theoretical framework of strategic airline marketing, covering the classical marketing management process and the application of the marketing mix within the airline industry. The third chapter explores various applied business concepts of airlines, focusing on Full Service Network Carriers and Low Cost Carriers, analyzing their respective marketing mixes and advantages/disadvantages.
Schlüsselwörter (Keywords)
This Master's thesis focuses on strategic marketing concepts within the German passenger airline market, specifically analyzing the restructuring of the Lufthansa Passenger Airline and Germanwings. The study explores concepts like Full Service Network Carriers, Low Cost Carriers, Porter's Five Forces model, and SWOT analysis, evaluating the potential economic success of the new business model.
Frequently Asked Questions
What is the difference between a Full Service Network Carrier (FSNC) and a Low Cost Carrier (LCC)?
FSNCs like Lufthansa offer a wide range of services, global networks, and multi-class cabins, while LCCs like Germanwings focus on point-to-point connections, simplified services, and lower operating costs.
Why did Lufthansa restructure Germanwings?
The goal was to overcome weaknesses in the European point-to-point market by combining the efficiency of a low-cost model with the quality and network of a premium airline.
How does Porter’s Five Forces model apply to the airline industry?
The model analyzes the competitive landscape by looking at the threat of new entrants, the bargaining power of buyers and suppliers, the threat of substitutes, and the intensity of rivalry among existing competitors.
What is the Marketing Mix in the context of airlines?
It refers to the 4Ps: Product (routes, service), Price (fare structures), Place (distribution channels like GDS or web), and Promotion (advertising and loyalty programs).
What are the main challenges in the German passenger market?
Key challenges include intense competition from international LCCs, rising fuel prices, and the need for traditional carriers to adapt their cost structures.
What does a SWOT analysis reveal about the Lufthansa-Germanwings strategy?
The analysis highlights strengths like brand reputation and network, but also weaknesses such as high labor costs and the complexity of managing two different business models.
- Citation du texte
- Susanne Bölke (Auteur), 2013, Strategic Marketing Concepts of Airlines in the German Passenger Market. Present Challenges, Munich, GRIN Verlag, https://www.grin.com/document/271090
