Regional Market Asia-Pacific
The dynamic Asia-Pacific region is still driving global growth and aviation remains a key factor to economic and social development. Asia-Pacific leads the world traffic growth with a robust increase in passenger travel and a currently recovering air cargo market. These challenging developments and resulting requirements show a demand for solutions from airlines, airports and related organizations in the area and a necessity for detailed planning and appropriate optimization support.
Our assignments and business cover the entire South East Asia region. Please contact us to learn more about our activities in this area and how we can support you as an airline, MRO provider, airport operator or investor with our customized solutions.
This article is part of Lufthansa Consulting’s ongoing series: Shaping flexible organizations: how to deal with COVID-19-induced uncertainties.
Airlines are yet to fully come to grips with a COVID-19-affected reality, over six months since the industry was upended. As they seek to manage short term challenges and build resilience for the long term, airlines are increasingly finding that there is strength in numbers. Hence, among a range of actions to preserve cash and plot their future, they are turning to partnerships and cooperation agreements – even with erstwhile rivals.
Partnerships bring mutual benefit in a time of uncertainty and financial strain, and allow airlines to balance the desire for expansion with the risk of overcapacity. Higher load factors can be achieved by two (or more) cooperating airlines observing mutual capacity discipline. Partnerships could also deliver deeper market access, generate additional revenue streams or drive higher efficiency in sourcing and operations.
The industry was already inching towards partnerships and consolidation in recent years, but COVID-19 has served – and will continue to serve - to significantly accelerate this in order to provide a lifeline to airlines and ensure sustainable recovery.
In this article, Lufthansa Consulting lays out three key types of partnerships one is likely to see emerge through the pandemic
• Erstwhile competitors in a domestic market
• International operators and regional/domestic champions
• Two or more international airlines
We are certain to see more announcements in this context in the coming months – from simple codeshares through to acquisitions – as airlines evaluate opportunities and strategies in the light of a disastrous 2020 and the prognosis for a slow recovery over the next three years.
To learn more and discuss how your organization could benefit from Lufthansa Consulting’s expertise on Airline Strategy and Crisis Recovery, please get in touch at ALcrisis-solutions@LHConsulting.com.
Further insights from Lufthansa Consulting’s aviation experts are available here
COVID-19 continues to pose the most significant challenge to the aviation industry in history. Traditional approaches to transforming business models, organizations and their finances are bound to be insufficient to address the ongoing uncertainties and dynamics in the medium-term. Lufthansa Consulting will take a detailed look at how to approach strategy, market, customer and operations to shape organizations for optimum flexibility in the months to come. We build on our aviation consulting expertise to shed light on the most pressing issues in shaping flexible organizations along the entire aviation value chain.
Lufthansa Consulting’s experts will publish in-depth articles on the COVID-19-induced flexibilization need in the weeks to come. These will be of interest to all stakeholders in aviation. – If you are working for an airline, airport, ground handler, OEM, MRO or an aviation authority, we invite you to follow our article series on shaping flexible organizations.
Nearly six months since the World Health Organization officially declared Covid-19 a pandemic, the
world is still in a state of near-emergency. Aviation as a whole is, as is well documented, being hit hard by the ongoing restrictions in travel. The air cargo business has also been affected, but to a lesser extent.
Cargo is a short-term winner for the industry
At the peak of the crisis in April, global cargo capacity was 44% lower than in the same period in 2019. However, the demand decline was not quite as steep, at just 33% against 2019. This, coupled with extraordinarily high demand for personal protective equipment (PPE) and medical goods resulted in air cargo rates skyrocketing by up to 200% on the most important trade-lanes.
As a result, cargo has emerged as a lifeline for many airlines. It was the most profitable business
segment for Lufthansa Group in Q2 2020, and helped Korean Air and Asiana avoid operating losses for the same period. American Airlines recently completed its 1000th successful belly-cargo-only flight since the start of the pandemic. Clearly, cargo is no longer only a byproduct or afterthought of airline operations. It has become a significant factor in airlines’ strategic planning, necessitating a robust view of its development as the industry recovers from the effects of COVID-19.
Lufthansa Consulting addresses the outlook for the industry on three dimensions – volume (demand), capacity (supply) and yield levels.
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.
Airports, airlines and ground handlers form the magic triangle in the aviation industry. Without ground handling companies, not a single aircraft could leave the airport nor any passenger board their favorite airline.
In this episode of the Lufthansa Consulting Aviation Talk podcast, we discuss the importance of ground handling operators and their options to act now – even in the midst of suppressed demand – in order not to be left behind when operations return to normal.
Arvind Chandrasekhar and Eric Kuhn provide insights into why those companies are hit by the pandemic as hard as any airline, and what they can already do now to emerge from the crisis stronger than before.
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
Performance improvement potentials identified along the service chain at all customer touch-points. Recommendations defined in an implementation plan to achieve sustainable customer satisfaction and enable the airline to meet requirements for joining a large airline alliance.
Planning and conceptual design of professional and customer oriented MRO hangar facility for the maintenance of different types of aircraft. Preparation of a specification book including detailed technical, functional and operational requirements for the construction of a hangar which complies with international standards.