Airline Industry
- This is a preview of the essay.
To view the full text you must login!
The muted world economic climate and weak macroeconomic momentum in our domestic market Germany are continuing to hamper the development of the Lufthansa Group. In the 2002 financial year we coped with the crisis much better than our competitors. The factors in our success were and are a high degree of flexibility, systematic value-oriented cost and revenue management as well as our financial soundness and continuity. The top priority of all our business segments remains enhancing the Group's market value.
Experience has demonstrated that Lufthansa's strategy of a broadly based aviation group also pays off in difficult times. Our decentralised business segment structure enables us to achieve a high degree of flexibility and short decision-making channels within the business segments. The market-oriented character of both our internal and external customer/supplier relationships has substantially enhanced our efficiency and thus created additional leeway for mastering the crisis. At the same time we are continuing to exploit the synergies of the Group network. During the past few years those business segments that are not directly engaged in air travel have been expanded on an above-average scale so as to better offset segment-specific risks within the Group. The business segments Maintenance, Repair and Overhaul, Catering and IT Services have continuously increased their share of business with external clients...