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

In 2002 the upcoming threat was being considered by Deutsche Lufthansa AG's management team from low-cost airlines in the context of an increasingly sophisticated and competitive tactical environment. Eventually the decision was taken to respond to the innovation by starting an own low-cost carrier, Germanwings in late 2002. But over time Germanwings' business model was altered repeatedly.

The case series covers * Lufthansa's concerns regarding various options to respond to the competitive challenges brought up by the emerging low-cost airlines like easyJet or Ryanair in 2002 (Scenario 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 following five years until end of 2010 (Case C).

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

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