In 2002 Deutsche Lufthansa AG's management team was considering the approaching threat from low-cost airlines in the circumstance of an increasingly complicated and competitive tactical environment. Finally the decision was taken by starting an own low-cost carrier, Germanwings in late 2002, to react to the innovation. But over time the business model of Germanwings was modified repeatedly. The case series covers * Lufthansa's concerns regarding various options to react to the competitive challenges brought up from the emerging low-cost airlines like easyJet or Ryanair in 2002 (Event A), * the foundation of Germanwings in late 2002 and some early successes until 2005 (Case B), and * some more recent changes in the Germanwings business model in the following five years until end of 2010 (Case C).
PUBLICATION DATE: November 19, 2015 PRODUCT #: ES1651-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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