Dealing with low-cost competition in the airline industry (B): The foundation of Germanwings Harvard Case Solution & Analysis

In the year 2002, the management of Deutsche Lufthansa AG was evaluating the approaching threat from low-cost airlines in the context of an increasingly sophisticated and competitive strategic environment. Eventually the decision was taken to respond to the innovation by opening an own low-cost carrier, Germanwings in late 2002.

But over time the business model of Germanwings was changed repeatedly.

The case series encompasses* Lufthansa's concerns related to variant options to react to the competitive challenges brought up from the emerging low-cost airlines such as easyJet or Ryanair in 2002 (Case A), * the foundation of Germanwings in late 2002 and a few early successes until 2005 (Case B), and * some more recent changes in the Germanwings business model in the ensuing five years until end of 2010 (Case C).

PUBLICATION DATE: November 19, 2015 PRODUCT #: ES1661-PDF-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION

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Dealing with low-cost competition in the airline industry (B): The foundation of Germanwings

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