Dealing with low-cost competition in the airline industry (A): The case of Lufthansa Harvard Case Solution & Analysis

In 2002 the management team of Deutsche Lufthansa AG was contemplating the upcoming threat from low-cost airlines in the context of an increasingly complicated and competitive strategic environment. Finally the decision was taken to respond to the initiation by starting an own low-cost carrier, Germanwings in late 2002. But over time the business model of Germanwings was changed repeatedly.

The case series covers * Lufthansa's concerns about various alternatives to react to the competitive challenges brought up by the emerging low-cost airlines such as easyJet or Ryanair in 2002 (Case A), * the foundation of Germanwings in late 2002 and some early successes until 2005 (Case B), and * some more recent changes in the Germanwings business model in the subsequent five years until end of 2010 (Case C).

PUBLICATION DATE: November 19, 2015 PRODUCT #: ES1651-HCB-ENG

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Dealing with low-cost competition in the airline industry (A): The case of Lufthansa

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