1. FLY ME HIGH
By:
Apoorva
Arindam
Tanmay
Subhanu
Mousumi
Jagswaroop

2.  Lufthansa’s record loss of DM 730M in 1992.
 No Capital for the enlargement of
organisation.
Banks denied to give Loans.
Liquidation Crisis.
 The Gulf War.

3.  There was a necessity for drastic action.
 Awareness that there was a massive
pressure to act.
 Meeting by Jurgen Weber entitled CRISIS
MANAGEMENT MEETING.
Learning about interdepartmental cooperation
Non Bureaucratic problem solving.
Setting of ambitious goals.

4. • Repeat CMM workshop several times.
• Making managers live through the process
of recognising the threats and feeling the
urgency rather than discussing strategy.
• Emotional mobilisation.
• Setting of PROGRAM 93.
Setting of 131 projects.
Cut down of Non Personal Cost.
Downsized fleet.
Town meetings in various departments.
• Monitoring teams who was set up, viz
REDEVELOPMENT CONTROLLING.
• Implementation of PROGRAM 93 by OPS
Team.

5.  In 1993 70% of programm 93 was
successful.
THE CRANE HAS LIFT OFF AGAIN

6.  Superficial Recovery couldn’t guarantee
long term success.
 Division into five departmets.
Finance
Personnel
Maintenance
Sales Marketing
IT

7. LAGS
 Involvement of Top Level Managers in
operational matters.
 Slow decision making process aka
Fragmented Decision making.
 Lack of accountability.
 Lack of transparency.
 Insufficient response to the market.

8. SOLUTIONS
 Divisions of the company into federative
groups of interdependent smaller
subsidaries.
LH Cargo AG LH Technik AG
LH System GmBH LSG Sky Chefs
City Line Condor
 Redefined tasks and responsibilities of
executive board.
 Strengthing of Strategic focus.
 Weightage to Core Business Of Passenger
Service.
 Privatisation in 1997.
 Strategic Cost Saving.

9.  GROWTH THROGH PARTNERSHIP
STRATEGY.
 Introduction of Star Alliance.
 Merging of Lufthansa with Star Alliance in
1999.
 Ground Breaking strategies including
Eye in the Global market
Improved Marketing and Sales
Service and Product Development
Enhanced Information technology

10.  Evolution of an Aviation Group.
 Development of each and every sector into Global
brand with a local outlook
 Internationalization of Relationship
 Radical improvements in Punctuality , Luggage
safety and technical Reliability
 Development of LUFTANSA School of Business to
create world class leaders

11.  STRENGHTS
Emerging as a global brand
Technical Reliability
Improved Hospitality
Emotional Mobilization
Provide space for Reflection and Dialogue
Intensive personal learning

12.  Weakness
No division of jobs
Slow decision makers
Insufficient responsiveness to changing
global trends
MONOLITHIC Organizational Structure

13.  Opportunities
SKY IS THE LIMIT – as far as the Lufthansa is
Concerned the global market is at the
Stake
Inclusion of STAR ALLIANCE – Lufthansa
improved under the Flag as the Union
proved to cater to the needs of the
Public and set a benchmark

14.  Setting a common Goal throughout the
organization is Extremely Important
Program 93 and 15 were a success , Steps should be taken to
introduce more Programs for overall development
 Training And Development for Employees
for Emotional Mobilization
 LOW COST AIRFARE to cater to the middle
class and thus increase revenue
 Development of other Business

15. THANK YOU