Regional Market Page Europe
Europe is an increasingly challenging market for the aviation industry. A growing number of constraints such as additional taxes, a rising number of night curfews, changing customer behavior or growing competition mean that aviation businesses have to continuously update their strategy and efficiency to ensure sustainability. To support you in dealing with upcoming challenges, we keep track of the latest industry developments and continuously develop our service portfolio.
Lufthansa Consulting enjoys a strong market presence in our European home region and we have a long-standing track record of successfully completed project assignments. Although our focus is on the aviation industry - airport, airlines, investors and service providers are our key clients - we also serve adjacent industries such as tourism, logistics and other modes of transportation in elaborating customized solutions.
Please contact me to discuss your business venture.
Lufthansa Consulting’s Air Service Development (ASD) experts will be present at the World Route Development Forum from 10 – 12 October 2021 in Milan, Italy. Senior Partner Ronald Schulz together with Consultants Luisa Grasshoff and Johann Gies welcome visitors to their exhibition stand P26 and will present their services for airports and the wider aviation industry, tailored to the needs of a post-COVID recovery.
”During and after the crisis, Air Cargo has gained much in importance for passenger carriers. It has become an important factor to consider when convincing airlines of operating a new route. Hence, Lufthansa Consulting now offers an enhanced ASD product including Air Cargo”, says Ronald Schulz.
Air Service Development aims at increasing airports’ and destinations’ connectivity and accessibility to the mutual benefit of airports and operating carriers, as well as to the travelling public. With traffic picking up and pandemic related travel restrictions being eased, the industry has started its recovery journey. More than ever before it is critical for airports to find themselves on carriers’ route maps again. Lufthansa Consulting supports them with its unique ASD product offering the clear benefits of increased connectivity as well as improved aeronautical and non-aeronautical revenue generation.
Lufthansa Consulting, thus, provides airports with experience both in passenger as well as cargo planning and operations, aided by access to various data bases, proven methodology, and deep expertise of the consultants. Its ASD projects help airports to transform their commercial aspirations into clear and compelling Route Studies targeting specific airlines on individual basis. This now covers both, Cargo-ASD for freight carriers, and ASD+Cargo for passenger carriers. “When we look at passenger services, the level of cargo reflection in Route Studies can be individualized as per airport and route-specific requirements,” Schulz says.
Air transport plays a fundamental role in Africa’s socio-economic development. The sector is a catalyst for promoting tourism and fostering trade and regional development. However, Africa represents less than 3% of global air traffic and over the past 15 years, the continent has had the lowest level of market consolidation compared to the other regions in the globe.
The African Airlines Association (AFRAA), Lufthansa Consulting and Kenya Airways staged a high level workshop on 14th September 2021 on African airlines consolidation to discuss the reasons for few partnerships and limited airline consolidation, the challenges and benefits of consolidation and measures for action by industry stakeholders to address the situation.
Mr Abdérahmane Berthé – AFRAA Secretary General, in his remarks stated: “The aviation sector is reeling from the impacts of Covid-19 pandemic. We need to devise new approaches of doing business in the face of increasing concerns on the sustainability of African Airlines. A crucial element in the success of the African airlines is consolidation and collaboration. The engagement of States, airlines and all the relevant stakeholders is necessary to effectively achieve the required outcomes on airline consolidation in Africa.”
Speaking during the workshop, Kenya Airways CEO Allan Kilavuka said: ”It is crucial to retrace and learn from the footprints of consolidation from different parts of the world as we reset Africa’s aviation towards our collective dream for flying to a better future. Consolidation and collaboration are essential ingredients for resilience and sustainable business operations of airlines. The ripple effect of strengthened collaboration amongst airlines will be an increase in the industry’s contribution to the sustainable development of Africa and therefore we must elevate the tenor of discourse and make the airline industry matter in and for Africa”.
Ms. Catrin Drawer - Head of Market Africa, Lufthansa Consulting stated: “We require to meet the challenges of the “New Normal”, a reset in our thinking and approach. We require new business models, meaningful innovations in operations, adaptive management open to change, a growing true synergistic relationship between airlines and other relevant stakeholders. New challenges need new solutions now and in future to bring both resilience, and sustained success. Thus, synergy and meaningful partnering, whether through existing contracts and alliances or new agreements, will be essential. We cannot bring back yesterday but we may together shape the future.“
Lufthansa Consulting experts provided an in-depth analysis and background of consolidation of airlines from a global to an African perspective. The impacts of consolidation for African airlines, passengers, cargo, air transport growth and connectivity were discussed. Case studies were presented at C-level by Kenya Airways, Air Afrique and Ethiopian Airlines to enrich the discussions with first-hand experiences on the challenges, benefits of consolidation as well as the lessons learnt.
The forum articulated the following recommendations for action by the industry:
i. Consideration of various models of consolidation including equity partnerships between two airlines or across a group of investments, cooperation between two or more well-matched airlines, or the formation of a new common airline. The concept of “Air Afrique” remains a valid consideration for Africa.
ii. Implementation of appropriate corporate governance structure is necessary for consolidation. Political interference in the airline management is to be avoided.
iii. Call to Development Finance Institutions (DFIs) to finance the feasibility study of consolidation models.
iv. Call for uniform implementation of harmonized regulations and the establishment of an enabling working relationship between regulators, airlines and Regional Economic Communities (RECs).
v. Enhancement of cooperation among African airlines (alliance of airlines, pooling resources, code sharing and interlining).
vi. Call for support and commitment from Governments for airline consolidation in Africa.
vii. Urge airlines to carry out careful evaluation of potential consolidation/partnerships based on factual data.
viii. Exploration of cargo opportunities for air cargo consolidation.
ix. Call for government and private sector collaboration to achieve concrete steps in airline consolidation.
x. “Walk the Talk” - translate ongoing discussions into action in the interest of delivering accelerated benefits to the aviation ecosystem
The important workshop brought together over 200 participants comprising airline CEOs, C-level representatives from airports, CAAs and other African air transport decision makers as well as the media.
The African Airlines Association, also known by its acronym AFRAA, is a trade association of airlines from the member states of the African Union (AU). Founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry. The Association envisions a sustainable, interconnected and affordable Air Transport industry in Africa where African Airlines become key players and drivers to African economic development.
AFRAA membership of 46 airlines cuts across the entire continent and includes all the major intercontinental African operators. The Association members represent over 85% of total international traffic carried by African airlines. Follow us on Facebook, LinkedIn, Twitter and YouTube.
About Kenya Airways
Kenya Airways, a member of the Sky Team Alliance, is a leading African airline flying to 41 destinations worldwide, 34 of which are in Africa and carries over four million passengers annually. In 2020 KQ was named Africa’s Leading Airline by the World Travel Awards. It continues to modernize its fleet with its 32 aircraft being some of the youngest in Africa. This includes its flagship B787 Dreamliner aircraft. Kenya Airways services cargo flights including London, Amsterdam, Guangzhou, Sharjah, Mumbai and over 25 intra-Africa routes in addition to its passenger network. The on-board service is renowned and the lie-flat business class seat on the wide-body aircraft is consistently voted among the world’s top 10. Kenya Airways takes pride in being at the forefront of connecting Africa to the World and the World to Africa through its hub at the new ultra-modern Terminal 1A at the Jomo Kenyatta International Airport in Nairobi. For more information visit www.kenya-airways.com Follow us on Twitter, Facebook, LinkedIn and Instagram
About Lufthansa Consulting
Comprehensive advisory services - Aviation is our business
Lufthansa Consulting is an aviation and management consulting company, which is dedicated to assist international clients from the aviation sector and related industries to meet the challenges of the future successfully. Since 1988 the company has provided services and solutions to the air transportation industry in more than 3500 projects worldwide and is an independent subsidiary of the Lufthansa Aviation Group (Deutsche Lufthansa AG).
Lufthansa Consulting is in the unique position of offering comprehensive consultancy and expertise to aviation specific client groups: air carriers, airport authorities, civil aviation authorities, governments, investors, financial institutions, manufacturers, other industries and service related entities. We know the aviation business and we take pride in implementing our solutions.
Follow us on LinkedIn and Twitter and listen to our podcasts on Spotify, Apple Podcast and Amazon Music
African Airlines Association (AFRAA), in partnership with Lufthansa Consulting and Kenya Airways will hold a high level virtual workshop on Airlines Consolidation on 14 September 2021 from 13:00 – 16:30hrs (East Africa Time) in virtual format.
Objectives and Target Audience
This important workshop for airline CEOs, C-level representatives and African air transport decision makers at policy level will provide an in-depth background of consolidation of airlines and an awareness of the challenges as well as the benefits of consolidation. Case studies will be made by selected airline CEOs during the workshop to enrich the discussions with first-hand experiences. The workshop will:
- Analyze the current market situation in Africa, overcapacities and its consequences;
- Analyze the impacts of consolidation for African airlines, passengers, cargo, air transport growth and connectivity;
- Share consolidation experiences among African airlines to provide stakeholders an understanding of the attributes and challenges of consolidation.
- Discuss possible consolidation strategies for African Airlines
- Sensitize stakeholders on the regulatory framework governing airlines consolidation
- Sensitize States, Regional Economic Communities, financial institutions, multilateral agencies and African airlines on the benefits and challenges of consolidation.
Please click here to visit the AFRAA event page and register
Click here to view the agenda
Ground Operations resembles one of the key pillars in aviation. Lufthansa Consulting’s initiative “GO 2030 – Ground Operations 2030”, is the umbrella for various deep dives into five focus topics of Ground Operations. In this podcast episode, our expert Eric Kuhn presents the identified focus topics, major challenges of Ground Operations, as well as solutions to those challenges. Together with the new podcast host, Sebastian Kaiser, he also gives an outlook on how aviation mega trends will affect the future of Ground Operations.
Listen to the podcast on Spotify, Apple Podcast and Amazon Music
You can also listen to the podcast here
Sebastian Kaiser – Consultant in the Solution Group Customer Experience
Eric Kuhn – Consultant in the Solution Group Infrastructure & Operations
Besides this podcast episode you can also read the lead article of GO2030 which has been published already.
Throughout the upcoming months, Lufthansa Consulting will share various deep dive articles reflecting the focus areas of GO2030. The series of articles and the podcast episode aim at answering the core questions outlined in the article as well as giving a solid base for preparing for the future Ground Operations.
Ground operations and the interaction of the parties involved are essential for a hassle-free journey. Low performance and low collaboration lead to additional cost and jeopardize the success of the overall operations. A close look into solving the current problems, combined with an assessment of future trends enable companies to prepare for the changes in aviation.
Introducing the “GOMT”
To discuss the way forward in aviation ground operations, we first need to find a common understanding of what Ground Operations (GO) stands for. Ground Operations involves all aspects of aircraft handling at airports as well as aircraft movement around the aerodrome, except on active runways. These aspects are usually handled by three big players – the airport operator, the airline and the ground handler – which together form the Ground Operations Magic Triangle, the GOMT
Clustering the core problems
As the (three) parties of the GOMT tend to have different focal points in their development, challenges within the collaboration are inevitable. Several problems need to be solved in the near future to enable smoother operations. Lufthansa Consulting has categorized the core problems in five action areas for future ground operations:
- need for a new way of innovative stakeholder collaboration,
- future requirements of the right infrastructure at an airport,
- what the customer journey will look like and how it can be integrated and implemented in the current operating system,
- how the GOMT will actively prevent disruptions – and how in the worst-case irregularity management 2.0 can be conducted and
- how ramp operations are carried out without any direct human interaction.
In addition, these problems need to be solved with a focus on global trends. But what are the global mega trends in aviation? What are the questions that need to be answered for future aviation operations?
Ground Operations 2030 by Lufthansa Consulting
Now the tricky part starts – answering those questions above. This includes matching the clustered core problems with the identified mega trends and turning them into successful and tailored solutions. Lufthansa Consulting has accepted this challenge and our experts have performed an in-depth analysis into how an airport of the future and especially Ground Operations in 2030 can and should look in order to achieve pole position in successful aviation operations.
Ground Operations 2030 by Lufthansa Consulting provides a high-level overview with different action fields clustered into the five core areas. In this series further articles will cover deep dives into each of the core fields of GO2030.
Airport marketing efforts on behalf of the German Airport and a tailored route study convince targeted Russian airline to commence services from the German airport to Russia and CIS.
The charter airline required support in entering the scheduled commercial aviation market. The Lufthansa Consulting team analyzed the market, facilitated cooperation with a major scheduled carrier and recommended a commercial and fleet plan.
Fuel policies and procedures were evaluated and benchmarked against best practice to identify potential fuel saving initiatives. The recommended implementation program promises considerable yield savings.