Swot Analysis Of Lufthansa

• Contains strong brands - Lufthansa 's brand and its major subsidiaries Swiss and Austrian derives strong loyalty in their home markets. Lufthansa aims to be Europe 's only 5 star rated airline.

• Multiple passenger brand positioning - The subsidiary airlines occupy positions across a series of market segments, both in terms of product/service and national geographies within the Lufthansa group. The Lufthansa brand is inclusive of premium and economy cabins for both long haul and short haul while offering a full range of services. “Germanwings” is in the short haul point to point lower fares segment. The growing Euro wings subsidiary, with lower unit costs than Germanwings, aims to extend the group 's presence in the budget segment, both

These include airline catering (LSG Sky Chefs) and MRO (Lufthansa Technik), both of which are the biggest in the world in their respective fields. These activities have provided more stable levels of profit through the cycle than the more volatile flying businesses. Lufthansa aims to increase the proportion of its revenues generated outside its core hub-based flying operations from 30% today to 40% by 2020 (this includes revenues from its growing point to point flying

Nevertheless, and in spite of owning its low cost subsidiary Germanwings for many years, Lufthansa did not start to use its own LCC aggressively until 2013. Moreover, Germanwings is not even the right vehicle, since its cost base is too high to be classed as a true LCC. Lufthansa 's more recent decision to transfer a large number of Germanwings routes to Euro wings, which it will also use to expand its budget offer into Austria and Switzerland in addition to long haul markets, highlights this point. Moreover, it has owned Euro wings for as long as it has owned Germanwings, but has apparently only recently woken up to its potential for improving cost