Economic Trends In Lufthansa

Taking foreign holidays, participating in face-to-face business meetings abroad or eating out-of-season fruits are all experiences that have become common-place thanks to the air transport sector.
In particular the air transport sector has gone through an immense development and transformation throughout the years. Not only because of the increased legislation and regulation from market regulators, but the change in the industry is also a response to the increased competition and the rapid changing market place.

In the European Union, the air transport industry has been subject to severe attention, especially during the last 25 years. These legal initiatives and regulatory changes have nonetheless been easy to manage as the different member

the composition of firms. The weight of the analysis will be on the main phases of economic integration, meaning the way the European air transport market has developed and what effects and consequences followed by this.

The second part of the paper will address the how the current and long-term EU socio‐economic trends as well as the regulatory regime will affect the industry and the case-in-point will be the German company, Lufthansa. Lufthansa is reviewed as a case study of a major international player integrating into an ever-changing air transport market facing fierce competition. When performing the analysis, the analytical framework presented in the Sanchez and Heene textbook will be utilized and applied. More specifically, the paper will aim to clarify how Lufthansa has responded to the European integration.

Finally, we will discuss and give recommendations as to how Lufthansa should adapt 1) The business concept, 2) the organization concept. These two concepts are closely interlinked and the therefore the logical process will be to adapt the business concept to the new market situation following the regulatory trends and successively adapt the organization concept in order to achieve the business concept

The common-factor for the information in this paper is that they are all based on thorough-evaluated research. The sources in the paper include EU reports, many of them directly from the EU Commission, Council and Parliament, reports from the Danish Ministry of Transport, interviews with relevant persons from the industry and the academic literature overall.
After outlining the history of economic integration and studying the relevant directives, the paper will make use of the analytical framework presented in the Sanchez and Heene textbook, covering the business concept and organization in order to reach a strategic logic in the operating model of Lufthansa.

Finally, the paper concludes with a series of recommendations based on the obtained knowledge of the air transport market integration in Europe. These discussions and followed conclusions come from our lengthy analysis with the aim of trying to see where the industry is going and how the market situation and industry structure might look in the nearest future.
The suggestions for the case company, Lufthansa will solely be based on our individually chosen analyses and the scope of the paper and will not be the only fitting solution. Nor will they be exhaustive, but rather serve as guideline and potential recommendation based on the findings in this