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

  • Shaking up the foundations of revenue management and pricing

    Within a couple of weeks, historic data as the foundation to monitor trends and performance has become irrelevant, shaking up the foundations of revenue management and pricing. Real-time data will play a significant role for airlines to make decisions by considering market-specific factors. Based on these insights, revenue management and pricing have to be done differently. Lufthansa Consulting's Revenue Management and Pricing experts have identified the importance of approaching data as the foundation of decision making in a different manner and the key measures to adapt the steering of revenue management and pricing to build the foundations for a sustainable future. 

    Revenue Management and Pricing in the time of crisis recovery

    Imagine starting over with a clean sheet of paper and changing the way of doing revenue management and pricing. What should be done differently? Within a couple of weeks, historic data as the foundation to monitor trends and performance has become irrelevant, shaking up the foundations of revenue management and pricing. Many variables have changed or are unknown within the equation forecasting future demand and predicting demand patterns. IATA estimates an industry drop in per passenger revenue of $314 billion and a full-year demand decline by 55% compared to 2019 based on a scenario with domestic travel restrictions up to three months and international restrictions beyond three months.  Airlines have to come up with a quick answer of how to make decisions and how to adapt the steering of revenue and pricing to recover from this crisis and to build the foundations for a sustainable future.

    The impact of the Covid-19 pandemic forces airlines to change their revenue management and pricing approach. A hybrid approach, combining machine learning and human interaction, allows the automation of processes with the option of human intervention. 

    This is also an opportunity to change fare structures by offering more flexible fare conditions to gain customers back. New models could allow customers increased flexibility without requiring the airline to sell tickets at a price too low to make a profit.   

    Finding creative and tailored solutions will significantly impact the ability of airlines to recover revenues. 

    Read the full article and insights here

    Further insights from Lufthansa Consulting’s aviation experts are available 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

     

  • Loyalty programs during COVID-19 – a silver lining in times of crisis

    After weeks of abandoned airports and grounded aircraft, borders are slowly reopening, making air travel possible again – theoretically. But who is willing to travel and which airline will succeed in filling up the empty seats? While it is too early to nominate a winner from the crisis yet, it seems obvious that every airline needs to evaluate their individual assets and apply them to their best advantage. One of these assets is certainly the loyalty of an airline’s customers.

    Customer loyalty – a helping hand out of the crisis

    Which aviation businesses will, in the end, succeed in recovering from the crisis will largely depend on which airline’s customers will fly again soon. Certainly, airlines that have already invested time and resources into building up a base of delighted and loyal customers through a customer centric approach supported by attractive frequent flyer programs are better positioned to make it out of the crisis. 

    However, anxiety and confusion about what’s coming next reflect to a certain degree the change in customer habits, requirements and expectations. Proactively listening and addressing the members needs enables airlines to position themselves in a way that allows fast adaption to the new situation. 

    This is the opportunity to launch improved and innovative offerings in the market, to serve customer needs as of today, as well as creating synergies for the future.

    This article focuses on the competitive advantage of airline loyalty programs in times of crisis illustrating how loyalty programs can support the airline in its decision-making for the upcoming operational re-start. Furthermore, the article highlights what airlines must in turn do for their members in these uncertain times to reinstate passenger confidence and begin to drive the much-needed revenue recovery.

    Read the full article here 

    Further insights from Lufthansa Consulting’s aviation experts are available 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

    Together, we can make it through to better days.

  • Revamping passenger demand models for a post-COVID aviation world

    With the aviation world slowly initiating a recovery from the capacity shock resulting from Covid-19, stakeholders within the industry – airports, airlines, regulators, governments, investors and lessors – require reliable demand forecasts in order to strategize and plan for the future. However, existing forecasts are invalid. Traditional forecasting methods must be adapted to the new conditions. In the article, Lufthansa Consulting proposes three key adaptations for revamping passenger demand models for a post-COVID aviation world.

    1.    A new reality requires new indicators of demand, including elements such as Covid-19 related trends, traveler sentiment and post-crisis passenger behavior. This also necessitates new modes of data collection and management, often in real time 

    2.    The future should be approached as four distinct segments, ranging from the immediate near term revival in 2020 to long term growth over a 20 year period. Each segment varies in the level of uncertainty and hence the factors driving traffic and the duration. Segregation of the forecast and applying a different approach to each allows one to group elements of uncertainty and tailor forecasting to the most relevant factors.

    3.    Flexibility and inventiveness are essential to navigate a dynamic environment. That translates to regular updates of the forecasts and quick ‘test and learn’ trials for short term planning, and incorporating the potential effects of future shocks into mid or long term planning scenarios.

    Read the article in full 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

    Together, we can make it through to better days.  

  • Regional airports: alliances and cooperation for better connectivity

    As global air passenger capacities fall in the aftermath of the Covid-19 pandemic, airlines are likely to focus on their core routes, particularly those feeding their hubs. Regional airports and the communities living in their vicinities are at risk of seeing a significant reduction in service. To revive traffic and meet the travel needs of the local population, regional airports will need to think creatively – including exploring greater cooperation among themselves to ensure viable service.

    Regional airports are an important element of the aviation industry in all parts of the world. These airports generally have a significant impact on the local economy, as the local community leverages better connectivity and more employment opportunities.  

    In recent years, regional airports in Europe have had to undergo significant restructuring to comply with EU regulations on state aid. Competition between airports has intensified, with airports often relying on strong incentives to attract service. These challenges are not unique to the European continent; they occur in varying levels of severity in most aviation markets around the world.

    Airports must unite for the greater good

    There is a strong case to be made for regional airports coming together to jointly develop an action plan, avoiding internecine battles to attract service.

    The current pandemic has had a devastating impact on aviation. However, as the industry recovers, this is also the best time to pursue bold initiatives such as deeper collaboration among regional airports.  An integrated approach that aims for mutual support and growth could be a blueprint for more stable and viable regional airport networks in the future.

    Read the full article here

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

    Together, we can make it through to better days.  

  • Hannes Müller appointed as Managing Director of Lufthansa Consulting

    Effective May 2020, Hannes Müller (44) joins the Lufthansa Consulting Management Board as Managing Director. Mr. Müller together with Dr. Andreas Jahnke, will further grow the Lufthansa Group’s aviation-focused management consulting business internally within the Group and also externally as part of the global competitive market. In addition to the significant challenges posed by the COVID-19 crisis, their focus will also include opportunities related to the digitalization of customer interfaces, processes and business models.
     
    "I am very excited and looking forward to working with Hannes Müller, an experienced colleague who has a deep understanding of the aviation industry with its strategic and operational challenges" says Andreas Jahnke.
     
    Hannes Müller has worked in various business units and management positions within the Lufthansa Group, most recently as Senior Director Infrastructure Strategy & Business Analytics, and prior to that as Director Segment Strategy in Corporate Strategy. He started his career at the Lufthansa Group with an apprenticeship of Airline Commercial Management (CCI). Mr Mueller studied at the Universities of Cologne and Mainz and holds a Master of Business Administration. 


    About Lufthansa Consulting:
    Lufthansa Consulting is one of the leading management consultancies in the aviation industry. The independent subsidiary of the Lufthansa Group develops individual solution concepts for its international client groups, including airlines, airports, public authorities, institutes and related industries. Specific project teams advise clients professionally, comprehensively and successfully. Many years of expertise in aviation, combined with profound methodological competence and a multinational team of consultants, guarantee clients tailor-made and implementable solutions.
     

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.