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Different kind of partnerships built the former cooperative concept

LR - Lufthansa Regional The new concept of Lufthansa „Lufthansa Regional LR“ is focussing on integrating all activities of all regional carriers within the LH group. Different kind of partnerships built the former cooperative concept. Franchise. Joint Venture. Different kind of partnership.

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Different kind of partnerships built the former cooperative concept

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  1. LR - Lufthansa RegionalThe new concept of Lufthansa „Lufthansa Regional LR“ is focussing on integrating all activities of all regional carriers within the LH group • Different kind of partnerships built the former cooperative concept Franchise Joint Venture Different kind ofpartnership Autonomous Subsidiary Code Share ACMICharter

  2. Profitability Growth Growth • Costs • Yield LR - Lufthansa RegionalThe regional segment encountered „severe turbulences“Lufthansa has further developed its strategy

  3. LR - Lufthansa RegionalThe aim is to realize longterm far-reaching synergetic effects • Optimisation of... • Synergies, Reduction of complexity, Economies of scale, Best Practice, Flexibility... • Quality Improvements as... • Harmonised high quality in product and operation, Punctuality and Reliability, Harmonisation of operational standards... • Cooperation Basis as... • all Partners with ACMI-charter agreements, Fairness, open book policy and comparability amongst all Lufthansa partners • Clear Responsibilities... • Lufthansa takes the commercial responsibility, LH Regional is focussing on high quality and enhanced flexibility of its production

  4. LR - Lufthansa RegionalMain strategic Lufthansa Regional Partners are cooperating in this business • Air Dolomiti, EN (Verona, Italy) • 5 CRJ 100/200, 10 ATR 42, 6 ATR 72 • Augsburg Airways, IQ (Augsburg, Germany) • 5 Dash 8-300, 5 Dash 8-400 • Contact Air, KI (Stuttgart, Germany) • 6 ATR 42, 3 Fokker 50 • Eurowings, EW (Dortmund, Germany) • 12 CRJ 200, 3 ATR 42, 16 ATR 72, 8 BAE 146 • Lufthansa CityLine, CL (Cologne, Germany) • 43 CRJ 100/200, 20 CRJ 200, 18 Avro RJ85 • LR-Fleet = 160 aircrafts March 2004

  5. LR - Lufthansa RegionalCommon interests are pursued by different projects (examples) • Catering: Creating of one single onboard product for all partners • Ground Handling: Adjustment of passenger handling, standard procedures and audits • Increasing the efficiency of flight schedule planning: Optimisation of destinations, creation of common rules in planning (incl .joint operations and maintenance spare aircrafts) and identification of cost factors • Facing the competition of No-Frills in the regional market: Identification of cost driving factors and establishment of competitiveness • One common IT-Standard Synchronisation and Alignment of different IT-Standards and tools/products • One joined Operational Center Joining all Operational and Dispatch acitivities and initiating one common IT-Platform(NetLine)

  6. LR - OCC Shared IT-platform OPS-control: „NetLine“ Sita Jeppesen Shared IT-platform Dispatch: „Lido OC“ LR - Lufthansa RegionalA new cooperative concept for operations control is implemented • One unit (LR OCC) is responsible for the entire daily operation of the LR fleet • LR OCC is located in CGN at CL with a remote operation position in TRS to meet the special requirements of an Italian operation • CL, KI, IQ are dispatched by CL (with Lido OC), EW and EN have their own dispatch systems

  7. LR - Lufthansa RegionalBenefits and Requirements of a consolidated OCC have to be evaluated very closely Benefits: • fast and flexible operations control • the new market-driven products (new product domestic (NPI)) require an overall operational fleet control and decision process • Cost optimisation (AC as a reaction on No Frill-competition) • optimised rotation planning • optimised irregularity handling (shared operational reserves) • optimised use of human and IT-ressources Requirements: • IT-driven fleet assignment and future technologies (i.e. DST) • Adjustment of aircraft sizes according to changed demand • Decision support tool to enhance a complex operational environment • single point of responsibility for the operation in the OCC • Shared and moreover integrated IT-platforms • Harmonising the needs and demands of 5 different airlines • Combining Scheduling, Crew Planning, Ops-, Maintenance- and Dispatch-Control

  8. LR - Lufthansa RegionalThe verification of an Decision Support Tool (DST) to optimise decisions and costs Starting point: • complex structures while controlling the operations over LR-fleet • cross operational actions necessary but difficult to handle and pursue • effects of irregularities not dircetly visible and forecast is difficult • Tool to make the problems visible and workable First Steps: • defining targets of optimisation • defining main problems and the requested display • integrating Operations Controller to participate in this development Final Target: • identification of problems in the operation in a timely manner in advance • finding optimised and cost efficient solutions according to the defined targets • displaying different alternatives of actions • The final decision is made by the operations controller

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