Dealing with low-cost competition in the airline industry (C): Germanwings’ repositioning Harvard Case Solution & Analysis

In the year 2002 the management team at Deutsche Lufthansa AG was contemplating the upcoming 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 modified repeatedly.

The case series covers * Lufthansa's concerns regarding various options 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 following five years until end of 2010 (Case C).

PUBLICATION DATE: November 19, 2015 PRODUCT #: ES1671-PDF-ENG

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