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DBA and LTU - Counterpart to Lufthansa?

Title: DBA and LTU - Counterpart to Lufthansa?

Seminar Paper , 2006 , 7 Pages , Grade: 1,0

Autor:in: Felix Leuschner (Author)

Business economics - Business Management, Corporate Governance
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Summary Excerpt Details

On February 17th, 2006, Hans-Rudolf Wöhrl announced that his investment holding INTRO had acquired an equity stake of 60% in LTU, a German charter airline, for an undisclosed amount. INTRO also holds 59.9% in Deutsche BA (DBA), a German low-cost carrier. DBA was founded in 1992 as a German subsidiary of British Airways. It was launched to enhance competition upon Lufthansa, actively targeting business travellers within Germany. In 1999 DBA comprised of 20 Boeing 737-300 aircrafts representing one of the world’s most modern fleets with an average age of only 1.5 years. It was repeatedly ranked by the German Capital magazine as the airline with the best price / performance ratio, reaching a 99% on-time average. In 2002 the company changed its business model towards being a low-fare airline, while maintaining the present quality level. Up to that point in time, DBA has not had one profitable year in history. One needs to keep in mind though that British Airways had founded the company to pressurize Lufthansa’s margins within Germany, and not necessarily to earn money. Nevertheless, British Airways decided to divest the business in 2003, as losses continued to exceed acceptable amounts. On July 1st, 2003, Hans-Rudolf Wöhrl’s investment holding INTRO acquired the airline for the symbolic amount of €1, while further being granted €70mm in cash from British Airways to buy itself off its loss making subsidiary. Wöhrl had been a member of DBA’s advisory board from 1994 up to 2001 and therefore is an expert of both the company and the aviation industry. By the end of 2004 DBA successfully accomplished the turnaround, after only 1.5 years under new ownership, and made its first profits in history. In April 2004 Wöhrl resigned as DBA’s CEO and became head of the airline’s advisory board. DBA’s two top managers Martin Gauss and Peter Wojahn jointly operated the firm since then, who at the time both acquired a 10% stake in DBA. In March 2005 DBA acquired Germania Express, a competing German low-cost carrier, which added 12 airplanes and 15 new routes to the company. On February 13th, 2006, ATON investment holding bought a 25.1% stake in DBA. ATON is controlled by Lutz Helmig, who recently sold 94% of the Helios Hospital Group, which he had founded, for €1.5bn. Helmig simultaneously became a member of DBA’s advisory board. [...]

Excerpt


Inhaltsverzeichnis

  • Introduction
  • Analysis of present situation
  • Lufthansa
  • Scenarios for the German market

Zielsetzung und Themenschwerpunkte

Dieser Text analysiert die Entstehung und Entwicklung der DBA/LTU Allianz unter der Leitung von Hans-Rudolf Wöhrl, mit dem Ziel, die Machbarkeit des globalen Low-Cost-Modells im Vergleich zu etablierten Fluggesellschaften wie Lufthansa zu beurteilen.

  • Bewertung des Geschäftsmodells der DBA/LTU Allianz
  • Analyse der Wettbewerbslandschaft im deutschen Luftverkehrsmarkt
  • Bewertung der Erfolgsaussichten der DBA/LTU Allianz
  • Diskussion der strategischen Herausforderungen und Chancen für beide Fluggesellschaften
  • Einfluss des traditionellen Chartergeschäfts und der sich ändernden Urlaubsgewohnheiten auf die Strategie der Allianz

Zusammenfassung der Kapitel

Introduction

Der Text beginnt mit der Ankündigung von Hans-Rudolf Wöhrls Investition in die deutsche Charterfluggesellschaft LTU und der damit verbundenen Absicht, ein globales Low-Cost-Netzwerk mit der bereits bestehenden DBA zu schaffen.

Analysis of present situation

Dieses Kapitel beschreibt die Geschichte der DBA und LTU, beleuchtet ihre jeweilige Geschäftsentwicklung und zeigt die jeweiligen Stärken und Schwächen beider Unternehmen auf. Es hebt besonders die wirtschaftlichen Schwierigkeiten und die Notwendigkeit eines Turnarounds hervor.

Lufthansa

In diesem Abschnitt wird die Positionierung von Lufthansa im deutschen Markt und ihre aggressive Strategie gegenüber Low-Cost-Carriern dargelegt. Lufthansa profitiert von seinem etablierten Netzwerk und der Fähigkeit, verschiedene Strecken durch Quersubventionierung zu finanzieren.

Scenarios for the German market

Der Text analysiert verschiedene Szenarien für den deutschen Luftverkehrsmarkt. Es werden die Herausforderungen der DBA/LTU Allianz im Wettbewerb mit etablierten Fluggesellschaften und anderen Low-Cost-Carriern beleuchtet. Es werden auch die strukturellen Einschränkungen und die Wettbewerbsintensität im deutschen Markt diskutiert.

Schlüsselwörter

Die zentralen Themen dieses Textes sind die Wettbewerbslandschaft im deutschen Luftverkehrsmarkt, die Herausforderungen des Low-Cost-Modells im Langstreckenverkehr, die strategischen Herausforderungen und Chancen der DBA/LTU Allianz sowie die Bedeutung von Skaleneffekten und finanziellen Ressourcen im Wettbewerb mit etablierten Fluggesellschaften.

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Details

Title
DBA and LTU - Counterpart to Lufthansa?
College
Otto Beisheim School of Management Vallendar  (Herbert Quandt Endowed Chair for International Management)
Course
Lufthansa Lecture on Airline Management
Grade
1,0
Author
Felix Leuschner (Author)
Publication Year
2006
Pages
7
Catalog Number
V55483
ISBN (eBook)
9783638504157
Language
German
Tags
Counterpart Lufthansa Lecture Airline Management
Product Safety
GRIN Publishing GmbH
Quote paper
Felix Leuschner (Author), 2006, DBA and LTU - Counterpart to Lufthansa?, Munich, GRIN Verlag, https://www.grin.com/document/55483
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