Regional Market South America

About Lufthansa Consulting South America

Since the opening of the first intercontinental flight from Europe to Rio de Janeiro in 1956, aviation has become an important part of the economy of South America.

Although it has faced many challenges, the aviation industry in South America has been growing constantly during the last years. The numbers of passengers travelling within the continent are increasing rapidly, thus demanding more from airlines. Economic stability and higher income allow an increasing number of South Americans to travel for leisure and business purposes. The necessity for improvements in security measures leads to better decision making by airlines and airport companies, as well as by the highest authority­­­ in aviation-the Civil Aviation Authority.

The demand derived from international events, such as the World Soccer Championship 2014 and the Olympic Games 2016, speed up growth and create the necessity for detailed planning and appropriate solution finding. Lufthansa Consulting supports the effective, fast and transparent development of such projects.

 

Latest activities

  • Podcast: Covid-19 as an opportunity to boost operational efficiency

    Airport operations came to a standstill so that the impact of Covid-19 could not only be felt, but also seen. Nevertheless, a standstill creates an opportunity to re-evaluate processes in order to re-start in an efficient and lean way while not “over-reacting” and not making processes redundant.

    In this podcast, Elena Plaumann and Dennis Uderhardt give us an insight about what “over-reacting” could mean, how efficient processes pave the way for new revenue resources and why resource management plays an incremental role for the upcoming airport operations.

    Host: Florian Schwendner, Senior Consultant 
    Expert: Elena Plaumann, Consultant and Dennis Uderhardt, Associate Consultant

    Listen to Lufthansa Consulting Aviation Talk Podcast Episode 004

  • The return of the state-owned carrier?

    The COVID-19 pandemic has hit the travel and tourism industry hard. The virus has brought travel almost to a standstill, as countries shield their population by enforcing lockdowns and travel bans. Airlines worldwide were forced to cut capacity up to 95%. Hence, airlines have been facing the problem of idle capital while continuing to have fixed cost and no income as bookings went down to almost nil. IATA analysis suggests that the median global airline had cash reserves for only two months at the end of 2019. As the pandemic induced crisis has continued now for more than three months, most (if not all) airlines are close to insolvency. 

    Those airlines which are privately owned and commercially run now have to seek help from their government to secure financial support as a last resort. Options range from financial guarantees to complete nationalization of the carrier. In cases of previously profitable airlines, governments have been willing supporters. Does that mean the return of the state-owned carrier? 

    For most countries air travel is vital for the economy. It connects and integrates markets, it provides access for inbound and outbound travel (pleasure and business), it is a major employer and economic driver for their communities. Governments have long recognized the importance of airlines for the national infrastructure. Actually, in terms of numbers most airlines worldwide are state owned.  
    The question is whether government involvement will lead to positive governance or public (i.e. political) control. Cautionary tales are numerous, but as history has shown, not all state-owned carriers are doomed for competitive disadvantages.

    Read the full article and accompanying analysis here

    To learn more and discuss how your organization could benefit from Lufthansa Consulting’s expertise on Crisis Recovery, please get in touch at ALcrisis-solutions@LHConsulting.com

    Further insights from Lufthansa Consulting’s aviation experts are available here.

  • Is your IOSA renewal audit due in the current difficult times?

    A preparation for the IOSA audit always means a lot of work. Now the situation is further complicated: the operations are reduced, availability of staff is limited and often the experts are even leaving the companies, both voluntarily and involuntarily, taking their know-how away. Moreover, due to travel restrictions, IATA is introducing a remote renewal audit as an addition to the usual on-site audit – simplified, yet a potentially more complex process as it is another new thing for airlines to deal with in current challenging times. Initial registration audits remain possible on-site only.

    Based on years of Lufthansa Consulting’s experience in supporting airlines in audit preparation, it is clear to us that as in other areas of the business, apart from the technical expertise, the most important factor is a robust strategy, followed by a structured and consistent execution.

    The ultimate benefit of passing the audit is obvious – the safety. But do not underestimate also indirect benefits, such as increased reputation, market recognition and cost savings due to more efficient processes. If you are preparing for an initial or renewal audit in any form and need support, do not hesitate to contact us. We are ready to support you!

    Learn more about our extensive experience in Safety and Quality Management

     

  • Podcast: Airline operations restart – getting the basics right

    After the initial shock and often a complete stop in airline operations, aircraft are getting back in the air. A return to the original levels of traffic will most likely take years, but it is important to start acting now and apply the learnings from the past. The gap between successful and unsuccessful airlines is increasing not only in the commercial areas, but also on the operational side. Only the airlines who revamp their operations to be robust, sustainable and efficient at the same time, will be the long-term winners.

    In this podcast, Lufthansa Consulting’s Associate Partner Martin Sedláček and Senior Consultant Anna Sauer discuss the future of airline operations planning, steering and performance management. The talk is based on our extensive study about the pre-Covid-19 state of airline operational excellence and focuses on key learnings to be applied during the immediate restart, mid-term adjustment to the new normal and a long-term stabilization. 

    Host: Florian Schwendner, Senior Consultant 
    Experts: Martin Sedláček, Associate Partner and Head of Flight Operations and Safety Management Solution Group and Anna Sauer, Senior Consultant

    Listen to Lufthansa Consulting Aviation Talk Podcast Episode 003

    Also read the article by Martin Sedláček:
    Operations 2.0: Leveraging the Covid-19 disruption to meet the challenges of future airline operations

  • Airports have lost their mantra of being a safe, long-term investment opportunity in the Covid-19 crisis

    The fairy tale of the fabulous wealth of private airport investors has been nourished by spectacular deals, billions of dollars in profits after a few years of holding and exaggerated valuations based on market-driven (but not always economically justified) EBITDA multiples. Too much inexperienced money, trusting in the supposedly crisis-proof and constantly growing airport investment, has driven prices up - that is now over. The Covid-19 crisis has suddenly shown that an entire industry can be economically destroyed in days. 

    So, what does it take to manage an airport profitably? Some airports are managed as if it were enough to build a runway and a terminal. But without additional income from non-aeronautical revenues an airport cannot survive. An airport ecosystem of airlines, shops, restaurants, hotels, suppliers, service companies has usually been cultivated over decades. It requires active promotion, partnership contracts, joint decisions, involvement of politicians and tourism promoters, marketing at home and abroad. The Corona crisis has destroyed the sensitive airport ecosystems.

    Such a crisis was foreseeable, but hardly any airport has mitigated the risks in terms of processes or, more importantly, with its cost and capital structure - neither private airports, nor those in government ownership.

    In an article published by ACI Airport World News Issue 3 2020, Associate Partner Catrin Drawer and Managing Director Dr. Andreas Jahnke discuss the following points:

    •    Airports have never been a risk-free investment class
    •    The Covid-19 crisis will accelerate airport sales and lower market prices
    •    Not all airports will recover from the crisis; it is important for new investors to choose the right           airports and manage them actively 

    Read the full article in Airport World News here

    To learn more and discuss how your organization could benefit from Lufthansa Consulting’s expertise on Crisis Recovery, please get in touch at APcrisis-solutions@LHConsulting.com

    Further insights from Lufthansa Consulting’s aviation experts are available here.

Projects

Network optimization and fleet plan validation

Brazilian airline

To secure the future viability and growth of the airline, Lufthansa Consulting optimized the route network and identified new potential markets. Recommendations for short and long term fleet planning were defined to support the network optimization.

Cargo terminal enhancement

Brazilian airport

The efficiency of the existing cargo terminal facilities was improved to handle the future cargo demand until at least 2018. The client is the number one freight airport in Brazil with a terminal area of 96,000sqm handling 439,000t of cargo per year.

Operational Readiness and Airport Transfer (ORAT)

Airport in Brazil

Full support for operational readiness of a new terminal. The objective of the ORAT project was the coordinated approach to prepare all airport stakeholders for the operations in and at the new terminal. Preparation and execution of different operational trial scenarios to fully test and prove all aspects and to ensure a seamless transition into the operations.


Clients

Award

Best of Consulting

For the second time in a row Lufthansa Consulting has been awarded the renowned consultancy prize "Best of Consulting" by the German weekly business news magazine WirtschaftsWoche. The “Excellent” award went to a successful Air Service Development project with Auckland International Airport, the largest airport of New Zealand and the third busiest international airport in Australasia. Lufthansa Consulting and its client Auckland International Airport are incredibly pleased about the award and that the WirtschaftsWoche jury could also be convinced of this successful project. Both look very much forward to their further productive and prosperous cooperation.