As time flies by

The History of Lufthansa - The chronicle of events

Lufthansa can look back on an eventful history. It has included many glorious moments but the course of events has not always been smooth. History is always a reflection of people and their times. The challenges facing air transport have become increasingly complex, yet Lufthansa has always found the strength to learn and renew itself. That ability has gained the company its lead position in the international airline business.

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  • 1 January 1951

    Liquidation of the old Lufthansa begins, on orders from the Allied powers.

  • 29 May 1951

    Transport Minister Dr. Seebohm appoints Hans M. Bongers to advise the Federal Government on “issues relating to future German aviation.” Bongers sets up his office in Cologne; graduate engineer Gerhard Höltje takes on responsibility for the technical side of the business.

  • 9 November 1951

    Organizational meeting of the “Preparation Committee Aviation” (PCA) appointed by the German Transport Minister.

  • 26 September 1952

    The German cabinet decides to form a preparatory company for the planned air transport activities.

  • 18 November 1952

    The PCA presents its final report, which states that the “key issues have been cleared.”

  • 6 January 1953

    Founding of the “Aktiengesellschaft für Luftverkehrsbedarf” (Corporation for Air Transport Requirements), “Luftag” for short, with headquarters in Cologne and a share capital of DM 6 million. Dr. Kurt Weigelt, of Deutsche Bank, is appointed Chairman of the Supervisory Board. Hans M. Bongers is named board member in charge of commercial operations, and Gerhard Höltje is appointed board member in charge of technical engineering.

  • 26 June 1953

    Luftag orders its first aircraft: four Super Constellations from Lockheed.

  • 28 September 1953

    A firm order is placed for four Convair 340s at Consolidated Vultee Aircraft Corporation.

  • November 1953

    The first regular training courses for German pilots and navigators are begun at Luftag’s premises in Cologne. Here they are able to regain their licenses.

  • 16 November 1953

    An extraordinary Luftag general meeting approves a capital increase to DM 25 million.

  • 2 December 1953

    Luftag signs a long-term lease with the operators of Hamburg Airport. The large maintenance and overhaul hangar is built. This is later to become the home of Lufthansa’s technical base.

  • 6 August 1954

    Luftag’s Annual General Meeting votes to change the company name to “Deutsche Lufthansa AG.” The name was acquired beforehand from “Deutsche Lufthansa AG in Liquidation.” The capital is increased to DM 50 million.

  • 25 November 1954

    The new Lufthansa takes over all shares of the airline’s self-insurance firm, “Deutsche Lufthansa Selbstversicherungs-Aktiengesellschaft” (Delvag), from “Deutsche Lufthansa AG in Liquidation”.

  • 29 November 1954

    The first two Convair aircraft arrive in Hamburg.

  • January to February 1955

    The first training course for flight attendants takes place at the Lufthansa school in Hamburg. A total of 50 courses are held here. Lufthansa relocates the school to Frankfurt in 1964, for organizational and capacity reasons.

  • 31 March 1955

    The maintenance hangar at the Hamburg base is officially inaugurated in the presence of 800 guests of honor and 1,200 Lufthansa employees.

  • 1 April 1955

    Things take off: Lufthansa starts up operations on German routes with special permission from the Allies.

  • 5 May 1955

    The Paris Treaties go into effect: They grant the Federal Republic of Germany its sovereignty, including its air sovereignty.

  • 15 May 1955

    The first international routes are inaugurated. Lufthansa now also flies to Madrid, London and Paris.

  • June 6 to June 8, 1955

    Meeting of the Executive Committee of the International Air Transport Association (IATA) in Montreal: Lufthansa is accepted as a member with immediate effect, and receives representation and voting rights in the IATA Traffic Conference.

  • 8 June 1955

    The first North Atlantic flight of the new Lufthansa: with a Super Constellation from Hamburg via Dusseldorf and Shannon to New York’s Idlewild Airport.

  • 5 July 1955

    Annual General Meeting in Stuttgart: Lufthansa has evolved from state-owned company to a privately-owned, market-driven Group. And most importantly, Lufthansa leaves the loss zone behind and flies into the profit zone again.

  • 21 August 1955

    Special flight of the German national track-and-field team aboard a Lufthansa aircraft to Helsinki

  • 8 September 1955

    Two special Lufthansa aircraft arrive at Moscow’s Wnukowo Airport: with Chancellor Konrad Adenauer and a German delegation aboard.

  • 1 October 1955

    The first training course begins at the Lufthansa flight academy in Hamburg Fuhlsbüttel.

  • 4 October 1955

    Capital increase to DM 80 million.

  • 21 December 1955

    Lufthansa takes a participation in the newly incorporated “Deutsche Flugdienst GmbH,” which is later to become “Condor Flugdienst GmbH.”

  • 11 February 1956

    A preliminary contract is signed with Boeing for the acquisition of four Boeing B707-400s. The price per aircraft is about DM 22 million.

  • 1 May 1956

    Lufthansa opens its own flight academy in Bremen with a training course for 12 pilots-to-be.

  • June 17 to July 31, 1956

    First freight services on German routes.

  • 15 August 1956

    Inauguration of Lufthansa’s first South America route: Hamburg–Dusseldorf/Frankfurt–Paris–Dakar–Rio de Janeiro–São Paulo– Buenos Aires.

  • 12 September 1956

    Lufthansa launches its “Orient Service” – a Middle Eastern route to Istanbul, Baghdad and Teheran.

  • 5 November 1956

    The “Paper Jet” project takes off: A simulation program prepares Lufthansa for the jet age.

  • 4 December 1956

    A further capital increase to DM 120 million is approved.

  • März 1957

    The last British pilots leave Lufthansa. British and American pilots had served in the cockpits of Lufthansa aircraft and trained German colleagues, as long as there was still a shortage of licensed pilots.

  • 1 April 1957

    A new profession at Lufthansa: The first Commercial Aviation Managers begin their apprenticeship training.

  • 5 July 1957

    Hightech: Lufthansa orders its first Boeing B707 simulator.

  • 5 September 1957

    Lufthansa pilots train in the first flight simulator for the Super Constellation.

  • 4 December 1957

    Inauguration of freight services between the Federal Republic and the USA. It operates twice a week with a chartered DC-4 flying the Lufthansa colors.

  • 16 December 1957

    Lufthansa takes on the first graduates from its own flight academy as copilots.

  • 29 January 1958

    The Berlin city office opens on Kurfürstendamm.

  • 17 March 1958

    Lufthansa now serves its North Atlantic routes with the Lockheed “Super Star,” the most modern large aircraft of the day.

  • 31 July 1958

    Lufthansa welcomes its millionth passenger since it started up services in 1955.

  • October 3 to November 8, 1958

    Special flight carrying Federal Economics Minister Ludwig Erhard. This is the new Lufthansa’s first flight to the Far East.

  • 10 October 1958

    First scheduled flight of the four-engined turboprop aircraft Vickers Viscount at Lufthansa.

  • 6 November 1958

    For the first time, Lufthansa First Class passengers enjoy its exclusive “Senator Service” on the route to New York.

  • 11 January 1959

    The Lockheed Super Constellation registered D-ALAK crashes in Rio de Janeiro. All 29 passengers lose their lives. Three of the ten-member crew survive the accident.

  • 22 September 1959

    Professor Wolfgang A. Kittel (left) and Professor Hans Süssenguth are named deputy members of the Lufthansa Executive Board.

  • 27 October 1959

    Capital increase to DM 180 million.

  • November 1 to November 3, 1959

    First scheduled flight on the southern route to Asia with a Super Constellation: Hamburg–Dusseldorf–Frankfurt–Rome–Cairo–Karachi–Calcutta–Bangkok.

  • 7 February 1960

    Special flight for the German Olympic Team to Reno, Nevada for the Winter Olympics in Squaw Valley.

  • 17 March 1960

    Lufthansa enters the jet age by introducing the Boeing B707 on its North Atlantic routes.

  • 29 March 1960

    The “Butterfly Hall,” the maintenance hangar taking its name from its distinctive roof lines, is inaugurated at Frankfurt Airport. By now, Frankfurt has become Lufthansa’s base for intercontinental flights.

  • 13 May 1960

    Lufthansa launches services to its first destination on the US West Coast: Flights to San Francisco are operated with the new Boeing B707.

  • 22 July 1960

    Professor Wolfgang A. Kittel is named member of Lufthansa’s Executive Board.

  • 16 September 1960

    A Lufthansa aircraft is christened for the first time: At Lufthansa’s Frankfurt base, Willy Brandt, then mayor of Berlin, gives a Boeing B707 the name “Berlin.”

  • 12 December 1960

    Dr. Hermann Josef Abs, member of Deutsche Bank’s Board of Management, replaces Dr. Kurt Weigelt as chairman of the Supervisory Board. Dr. Weigelt remains honorary chairman of the Supervisory Board until his death on August 4, 1968. The company’s capital is increased to DM 250 million.

  • 23 January 1961

    The Far Eastern route changes over to Boeing B707 service: via Bangkok to Hong Kong and Tokyo.

  • 20 May 1961

    First scheduled flights of the Boeing B720B, a smaller version of the Boeing B707, on the South Atlantic routes.

  • 1 July 1961

    Lufthansa switches its services to the Middle East from propeller to jet aircraft; Boeing B720Bs now fly these routes.

  • 1 September 1961

    Lufthansa inaugurates its night airmail network on routes within Germany, on behalf of the German Post Office.

  • 10 September 1961

    Lufthansa welcomes its 1-millionth passenger for the year 1961.

  • 1 November 1961

    “Deutsche Flugdienst GmbH,” a fully-owned Lufthansa subsidiary since 1959, is renamed “Condor Flugdienst GmbH.”

  • 4 March 1962

    First flight to Lagos, Nigeria. Kickoff of Lufthansa’s “Africa Year.”

  • 14 May 1962

    Lufthansa adds Johannesburg to its network. The routing is via Athens, Khartoum and Nairobi.

  • 24 October 1962

    Günter Lenz, the first graduate of Lufthansa’s flight academy, is promoted to the rank of captain.

  • 5 November 1962

    The US Federal Aviation Agency (FAA) authorizes Lufthansa’s engineering workshops to service, maintain, overhaul and test the aircraft and engines of American aircraft operators. The Hamburg base thus receives international recognition for its outstanding performance in aircraft maintenance

  • 1 April 1963

    Following the model of shuttle flights in the USA, Lufthansa launches its domestic “Airbus” service with Super Constellations. Aircraft leave at specified intervals, and ticket sales on board eliminate inconvenient reservations and check-in procedures. There is no inflight service, and fares are reduced. These shuttle flights are offered until March 1970.

  • 16 December 1963

    Professor Hans Süssenguth is named member of the Executive Board. His areas of responsibility are: sales, field organiza_tion, inflight service and marketing.

  • 16 April 1964

    The “Europa Jet” takes to the skies: the first scheduled flight of a Lufthansa Boeing B727, from now on the aircraft of choice for European and Middle Eastern routes.

  • 28 May 1964

    A Lufthansa Boeing B707 flies for the first time across the North Pole on the routing Frankfurt– Hamburg–Copenhagen–Fairbanks (Anchorage from September)–Tokyo. This is Lufthansa’s second Far Eastern route.

  • 20 July 1964

    Lufthansa’s flight attendant school moves from Hamburg to Frankfurt. Since January 3, 1955, the airline has trained about 1,300 flight attendants. At the new Frankfurt location, the school’s 51st course prepares participants for their new tasks in the air.

  • 2 November 1964

    Dr. Herbert Culmann is named member of the Executive Board.

  • Dezember 1964

    Lufthansa achieves a major goal: The airline presents its first positive annual financial statements. Ten years after its foundation, the new Lufthansa thrusts forward into the profit zone with a net income for the year of DM 36.9 million.

  • 31 December 1964

    Hans M. Bongers and Professor Wolfgang A. Kittel take their retirement.

  • 19 February 1965

    Lufthansa becomes the “Launching Customer.” Its Supervisory Board approves the acquisition of 21 Boeing B737s. Lufthansa had initiated the construction of this short-haul jet, which was to become the world’s best-selling aircraft.

  • 3 April 1965

    After protracted negotiations on traffic rights, the first Lufthansa aircraft takes off on a scheduled flight to Australia. The routing is Frankfurt–Athens–Karachi–Bangkok–Singapore–Darwin–Sydney.

  • 20 July 1965

    The Annual General Meeting approves a capital increase of DM 150 million, to DM 400 million. The federal government does not exercise some of its subscription rights, giving private investors their first opportunity to buy Lufthansa shares. There is lively interest. Shares for DM 325 million are subscribed for, and must thus be allotted. Lufthansa shares are also traded on the stock exchange from April 1966 onward.

  • 23 July 1965

    A baby girl is born aboard Lufthansa flight LH 408 from Frankfurt to New York. The parents – impressed by the unusual delivery room – name her “Barbara Lufthansa.”

  • 27 September 1965

    The dissolution of the predecessor company “Deutsche Lufthansa AG in Liquidation,” which continued to exist on paper, is concluded in Berlin.

  • Dezember 1965

    Lufthansa’s four Boeing B720Bs leave the fleet. They are exchanged for Boeing B707s.

  • 28 January 1966

    The Convair Metropolitan 440 registered D-ACAT crashes near Bremen. All 46 aboard perish. The cause of the accident has never been determined.

  • 26 April 1966

    Incorporation of “Lufthansa Service GmbH.” The airline’s inflight service operations in Frankfurt, Hamburg, Munich and Cologne are merged into this fully-owned subsidiary.

  • 27 June 1966

    Lufthansa orders three Boeing B747s, taking its first steps into the wide-body jet age. The first aircraft are to be delivered in 1970. The price is DM 105 million each.

  • Dezember 1966

    In the financial year 1966, Lufthansa’s revenues exceed DM 1 billion for the first time.

  • 1 March 1967

    Lufthansa put its first electronic reservation system into service.

  • 1 May 1967

    An offshoot in the desert: Lufthansa’s flight academy shifts the bulk of its flight training activities to San Diego, California (from 1970: Phoenix, Arizona).

  • 6 October 1967

    Last scheduled flight of a Lufthansa Super Constellation.

  • 1 January 1968

    Lufthansa takes over all shares of the charter group “Südflug.”

  • 10 February 1968

    A world premiere: The “City Jet,” the Boeing B737, takes off for its first scheduled Lufthansa flight. With the introduction of the City Jet, short-haul routes join the jet age too.

  • 6 May 1968

    The “Little Red Riding Hood Service” makes its debut in Frankfurt. It provides special assistance for unaccompanied children, and for passengers who are ill or otherwise in need of help.

  • 14 March 1969

    The ATLAS Agreement is signed in Paris. Lufthansa, Air France, Alitalia and Sabena agree to cooperate on the maintenance of their Boeing B747 fleets. Iberia becomes the group’s fifth member in 1972. Later, the agreement also covers Douglas DC-10s and Airbus A300s.

  • 20 June 1969

    Gerhard Frühe is appointed to the Executive Board as head of Human Resources. In 1979 he is named employee relations director.

  • December 1 to December 5, 1969

    The first worldwide Lufthansa Sales Conference takes place in Berlin.

  • Januar 1970

    In Cologne, headquarters moves from the former buildings of Cologne University to a high-rise on the banks of the Rhine.

  • 26 April 1970

    The Boeing B747, the world’s largest passenger aircraft, begins scheduled services on its first Lufthansa route: Frankfurt–New York.

  • 9 June 1970

    Dr. Herbert Culmann is named spokesman of Lufthansa’s Executive Board.

  • 31 July 1970

    Graduate engineer Reinhardt Abraham is named deputy board member.

  • 15 January 1971

    START GmbH is incorporated. Via a computerized system, it provides travel agents access to the reservations and information systems of Lufthansa, Deutsche Bundesbahn, Touristik Union and other touristic vendors.

  • 29 January 1971

    Lufthansa’s ground staff go on strike for better pay settlements and improved internal salary structures. Work resumes on February 8, following arbitration discussions.

  • 31 March 1971

    Provisional end of the propeller era at Lufthansa: The Vickers Viscount is withdrawn from service.

  • 10 May 1971

    Lufthansa inaugurates its new air cargo center in Frankfurt. At the time, “Frachthof 3” is the world’s largest air cargo hall.

  • 5 February 1972

    Lufthansa now also flies to Moscow.

  • 21 February 1972

    On the flight from Delhi to Athens, the Boeing B747 “Baden-Württemberg” is hijacked and forced to fly to Aden. Its passengers have already arrived safely in Germany aboard special flights, when aircraft and crew are released against payment of a US$ 5 million ransom.

  • 19 April 1972

    Lufthansa becomes the first airline to operate the all-freighter version of the Boeing B747 on scheduled flights between Frankfurt and New York.

  • 1 July 1972

    Graduate engineer Reinhardt Abraham becomes a full member of the Executive Board, succeeding Professor Gerhard Höltje, previously responsible for the airline’s Engineering Division. Höltje leaves the company after 40 years of dedicated work in the service of aviation.

  • 4 August 1972

    Dr. Herbert Culmann is appointed chairman of Lufthansa’s Executive Board. Dr. Walter Hesselbach (below), chairman of the Management Board of Bank für Gemeinwirtschaft AG, succeeds Dr. Hermann J. Abs as chairman of the Supervisory Board. Abs will later become honorary chairman of the Supervisory Board.

  • August 26 to September 10, 1972

    Lufthansa operates 323 special flights to the Olympic Games in Munich.

  • 29 October 1972

    Another hijacking: On a flight from Beirut to Munich, the Lufthansa Boeing B727 “Kiel” is forced to land in Nicosia, Cyprus. The hijackers’ goal is to force the release of the three imprisoned Arabs who participated in the terrorist attack during the Olympic Games in Munich. The terrorists are taken aboard the “Kiel” after it lands in Zagreb. Passengers and aircraft are only released later on, in Tripoli.

  • 1 November 1972

    For the first time, a flight captain is appointed to the Executive Board: Werner Utter

  • 20 December 1972

    The Supervisory Board approves an order for three Airbus A300s.

  • 27 February 1973

    Lufthansa inaugurates Europe’s most advanced passenger reservation system. Its control center is located at the Lufthansa Base in Frankfurt.

  • 12 March 1973

    The first Lufthansa aircraft to land in the German Democratic Republic: a special flight from Frankfurt to Leipzig.

  • 19 April 1973

    Now Lufthansa also has its own freight terminal in New York.

  • 21 May 1973

    Special flight of a German business delegation to Beijing.

  • 31 May 1973

    A “go slow” by the German air traffic controllers forces Lufthansa to cut its domestic and part of its international flights to 75 percent of planned departures. This industrial action only ends on November 28 – because of the oil crisis – after an appeal from Chancellor Willy Brandt to the controllers. In December Lufthansa is able to resume its full flight program. Bottom-line for Lufthansa alone: a loss of DM 172 million. After drawn-out negotiations and a judgment by the court of arbitration, the Federal Government, as the air traffic controllers’ ultimate employer, reimburses the airline DM 163 million.

  • 5 August 1973

    Start of operations to Tokyo on the trans-Siberian route, Lufthansa’s third Tokyo route. Services on this route are halted in 1984 due to problems related to traffic rights.

  • 6 August 1973

    Lufthansa’s capital is increased to DM 600 million.

  • 1 November 1973

    Worldwide oil crisis: Problems with kerosene supplies lead Lufthansa to combine flights that are insufficiently filled.

  • 13 December 1973

    The Lufthansa training center in Seeheim, near Frankfurt, is inaugurated. Lufthansa employees from all around the world are trained here.

  • 17 December 1973

    Terrorism: After a gunfire attack on a Pan Am Boeing B707, the Lufthansa Boeing B737 “Worms” is hijacked from Rome via Athens and Damascus to Kuwait. There the terrorists surrender after negotiations. Hostages and aircraft are released on December 18.

  • 19 December 1973

    While landing in Delhi, the Boeing B707-300 “Dusseldorf” touches the “inner marker,” the last beacon of the approach lights, which causes it to crash-land. Luckily, the worst can be avoided: All 109 aboard survive. It took only 90 seconds to evacuate the aircraft.

  • 27 December 1973

    “Lufthansa Commercial Holding” is incorporated. Lufthansa regroups all sales-related participations, especially those in the hotel sector, into this fully-owned subsidiary. (Until January 25, 1974 it bears the name “Lufthansa Dienstleistungs GmbH.”)

  • 14 January 1974

    Lufthansa operates its first scheduled flight with a Douglas DC-10. The new type of aircraft flies on the Far Eastern route Frankfurt–Rome–Karachi–Delhi–Bangkok–Hong Kong–Tokyo.

  • 20 November 1974

    Nairobi: The Boeing B747-100 “Hessen” crashes on takeoff because its leading edge flaps are not extended. Tragic result: 58 dead, 97 injured.

  • 25 June 1975

    The purchase contract of three Airbus A300s is signed, and options for nine more A300s are placed.

  • 31 December 1975

    For the first time in its history, Lufthansa carries more than 10 million passengers in a single year.

  • 2 February 1976

    The first Airbus A300 is delivered to Lufthansa. The “short-haul Jumbo” flies routes in Germany and to London, Paris and Madrid.

  • 19 November 1976

    Lufthansa acquires 25.3 percent of the capital of “Hansa Luftbild GmbH” in Munster.

  • 10 March 1977

    The freight business is becoming ever-more important. Lufthansa incorporates its subsidiary “German Cargo Services GmbH” (GCS) for cargo charter flights.

  • 3 April 1977

    First scheduled nonstop flight to Los Angeles with a Boeing B747SL, a version specifically developed for extreme long-hauls.

  • 14 July 1977

    The Supervisory Board approves the most comprehensive investment project to date: a fleet modernization program valued at about DM 1 billion, comprising five Boeing B747s, six Boeing B727s and options for four more Boeing B747s.

  • October 13 to October 17, 1977

    Terrorists hijack the Lufthansa Boeing B737 “Landshut” on the flight from Palma de Mallorca to Frankfurt to obtain the release of the imprisoned “Red Army Faction” terrorists. After an odyssey via Rome, Larnaca and Bahrein, the aircraft lands in Dubai, then in Aden, Yemen. There, the terrorists murder Captain Jürgen Schumann. At the airport in Mogadishu, Somalia, a detachment of the GSG 9 elite troops of the Federal Border Guard is finally able to free the hostages.

  • 3 November 1977

    RAF terrorists threaten to blow up Lufthansa aircraft. Imprisoned RAF terrorists had taken their own lives when the demands for their release were not met during the hijacking of the Lufthansa Boeing “Landshut.” For each dead prisoner, one Lufthansa aircraft was to be blown up in flight. Following the publication of the bomb threats, reservations for Lufthansa flights drop off drastically.

  • 1 April 1978

    The introduction of the “Holiday Fare” marks the start of a new pricing structure for leisure travelers. It applies first to flights to the USA.

  • 3 April 1978

    The cornerstone for the Lufthansa Cargo Center (LCC) is officially laid at Frankfurt Airport.

  • 29 June 1978

    The Supervisory Board approves a 26-percent Lufthansa participation in the “Deutsche Regional Luftverkehrsgesellschaft mbH” (DLT). Lufthansa increases its capital to DM 900 million.

  • 1 July 1978

    Professor Dipl. rer. pol. Günter O. Eser succeeds Hans Süssenguth on Lufthansa’s Executive Board. Süssenguth takes his retirement.

  • 1 January 1979

    The “Flexible Three-Class System” – First, Business and Economy – is introduced on North Atlantic routes.

  • 22 March 1979

    The contract for 32 advanced Boeing B737-200s is signed, and an option for another 24 aircraft of this type is placed.

  • 2 April 1979

    Lufthansa orders 25 Airbus A310s, and places options for another 25 aircraft with Airbus Industrie.

  • 26 July 1979

    An error at air traffic control causes the crash of the Boeing B707-300C “Essen” north of Rio de Janeiro, claiming the lives of the freighter’s three-member crew.

  • 12 September 1979

    Hijacking with an undramatic ending: All 130 passengers and crew aboard a Boeing B737 hijacked on a flight from Frankfurt to Cologne are released unharmed following negotiations led by State Minister Hans-Jürgen Wischnewski. The hijacker is arrested.

  • 7 April 1980

    Lufthansa inaugurates scheduled services to Beijing.

  • 1 November 1980

    The “Fly & Save” fare is introduced on German routes, offering savings of up to 40 percent on full fares.

  • 19 November 1980

    Pope John Paul II concludes his visit to Germany by flying to Rome on a Lufthansa Airbus.

  • 3 December 1980

    Lufthansa takes over the nominal capital of Airport Catering Services Deutschland GmbH, which is simultaneously renamed Lufthansa Service Berlin GmbH (LSG Berlin).

  • 21 December 1980

    The first of a total of 36 Boeing B737-200 Advanceds lands in Frankfurt.

  • 23 June 1981

    Hans M. Bongers, one of the new Lufthansa’s founders, dies at the age of 82.

  • Oktober 1981

    A new marketing instrument: The “Lufthansa Savings Passbook” makes it easier to plan low-cost leisure trips. It lists all special fares and their conditions at a glance.

  • November 1981

    Business Class is now available on all long-haul routes.

  • 30 November 1981

    Incorporation of the “MVP-Versuchs- und Planungsgesellschaft für Magnetbahnsysteme mbH,” a company to plan and develop magnetic train systems, in Munich. Lufthansa now holds a 33.3-percent share in the development of the Transrapid train.

  • 8 February 1982

    The Lufthansa Cargo Center (LCC) is inaugurated at Frankfurt Airport. It is the world’s largest air freight center.

  • 27 March 1982

    Maiden voyage of the Lufthansa Airport Express from Dusseldorf Central Station, via Cologne and Bonn, to Frankfurt Airport.

  • 1 April 1982

    Heinz Ruhnau is named deputy chairman of Lufthansa’s Executive Board.

  • 1 May 1982

    Door-to-door air freight: “c+d Luftfracht-System GmbH” in Frankfurt, a joint-venture of Schenker & Co. and Lufthansa, makes its debut in the market.

  • 30 June 1982

    Chairman of the Executive Board Dr. Herbert Culmann hands his responsibilities over to Heinz Ruhnau.

  • 5 July 1982

    Dr. Richard von Weizsäcker, then mayor of Berlin, names a Boeing B747 “Berlin.”

  • 1 August 1982

    Dr. Günther Becher assumes his responsibilities on Lufthansa’s Executive Board. He is in charge of finance, accounting, controlling, data services and the company’s centralized functions.

  • 29 March 1983

    The first Airbus A310s are handed over to Lufthansa and Swissair in Toulouse. Both companies had a significant share in the development of this type of aircraft.

  • mid-May 1983

    New services to Calgary and Vancouver on Canada’s Pacific Coast.

  • 14 July 1983

    The chairman of Lufthansa’s Supervisory Board, Dr. Walter Hesselbach, hands his responsibilities over to Gerd Lausen.

  • 1 September 1983

    Lufthansa’s comprehensive frequent flyer service program takes off. It grants waiting list priority at check-in, increased baggage allowances, advantages at Lufthansa partner hotels and check-in at Business Class counters.

  • 14 February 1984

    Joint-venture agreement between Lufthansa and Cathay Pacific Airways. Daily flights between Frankfurt and Hong Kong are operated as joint services.

  • 18 July 1984

    First Lufthansa Annual General Meeting held in Berlin since the war.

  • 30 August 1984

    Lufthansa starts special fair services between Frankfurt and Leipzig. Flights to Dusseldorf, Hamburg and Stuttgart are operated by Interflug.

  • 5 December 1984

    Graduate engineer Frank Beckmann succeeds Professor Günther O. Eser on Lufthansa’s Executive Board. He is responsible for sales, marketing, in-flight services and field organization.

  • 6 December 1984

    Berlin: The incorporation contracts for the foundation of “Lufthansa Informationstechnik und Software GmbH” (LIS) are signed. Lufthansa holds 51 percent of the nominal capital, which amounts to DM 1 million. The remaining 49 percent is held by “PSI Gesellschaft für Prozessteuerungs- und Informationssysteme mbH.” LIS primarily offers aviation-related computer programs.

  • 12 December 1984

    Lufthansa carries the 500,000th ton of freight in the course of a single year – a pallet of telephone equipment to Australia.

  • 31 December 1984

    The Boeing B707 makes its final flight for Lufthansa.

  • 31 December 1984

    Board member Professor Günther O. Eser leaves Lufthansa to become the IATA’s Director General.

  • Januar 1985

    DLT increases its capital from DM 16 to 40 million, and Lufthansa raises its stake from 26 to 40 percent.

  • 27 February 1985

    On a flight from Frankfurt to Damascus, a Lufthansa Boeing B727 is forced to make an unscheduled landing in Vienna. The offenders, two deported asylum seekers, allow all passengers to leave the aircraft and can later be persuaded to surrender.

  • 27 March 1985

    Terror continues: The Lufthansa Boeing B727 “Ludwigshafen” is hijacked on a flight from Munich to Athens. The Syrian hijacker demands to be flown to Libya. In Istanbul passengers and cabin crew are released. Turkish police are able to overpower the offender.

  • 17 July 1985

    The Supervisory Board approves an order for 33 aircraft – Airbus A320s, Airbus A300-600s, Boeing B737-300s and Boeing B747-200s – plus options for 38 more.

  • 2 September 1985

    The 500th flight attendant training course since the founding of the new Lufthansa begins in Frankfurt.

  • 1 January 1986

    Captain Martin Gaebel succeeds Chief Pilot Werner Utter as head of the airline’s Flight Operations Department.

  • 21 April 1986

    The first women start their pilot’s training at Lufthansa: Evi Lausmann and Nicola Lunemann.

  • 6 May 1986

    Additional tanks allow nonstop operations with Boeing B747s to Bangkok and Hong Kong.

  • 6 June 1986

    A Lufthansa-acquired Junkers Ju 52 receives its airworthiness certificate after a comprehensive restoration and modernization, and is inscribed in the aircraft register.

  • 13 June 1986

    To maintain and operate its Junkers Ju 52, Lufthansa forms the “Deutsche Lufthansa Berlin Foundation.”

  • 1 August 1986

    Dr. Heiko Lange is named deputy member of Lufthansa’s Executive Board.

  • September 1986

    The most comprehensive reorganization in Lufthansa’s history is approved: Decision-making processes are to be tightened and hierarchies to be flattened. Responsibilities for the development of Lufthansa services are focused into route management units and brought together under a single Marketing management in Frankfurt. Regional administrations replace district administrations. A restructuring of all stations aims at improving the quality of services they provide. This reorganization is completed in 1987.

  • 15 October 1986

    Lufthansa and VEBA OEL sign the memorandum of association for the incorporation of Aviation Fuel Services GmbH (AFS) with headquarters in Hamburg.

  • 1 November 1986

    A number of service improvements on European routes help raise standards in Economy Class to previous Business Class levels.

  • 21 November 1986

    At a ceremony in Frankfurt, the president of aircraft manufacturer Boeing, T.A. Wilson, presents Lufthansa with its 200th Boeing aircraft.

  • 22 November 1986

    Boeing presents the city of Berlin with a Boeing B707, which can now be admired at Tegel Airport as a museum aircraft carrying the traditional Lufthansa livery of the 1960s.

  • 22 December 1986

    The joint venture agreement to construct the Beijing Lufthansa Center is signed in Beijing. Lufthansa intends to offer consulting services and facilities to businesses without representation abroad.

  • Januar 1987

    After more than 30 years in Lufthansa’s service, board member Gerhard Frühe takes his retirement. Dr. Heiko Lange succeeds him in the Human Resources Department and as Employee Relations Director.

  • 15 January 1987

    Starting signal for the construction of the Airbus A340: The Supervisory Board approves a preliminary contract with Airbus Industrie for deliveries of 15 Airbus A340s, plus 15 options.

  • end of January 1987

    Flight engineer Michele Jett becomes the first woman to work in a Lufthansa cockpit when she starts flying on Boeing B727s.

  • 29 March 1987

    As the summer timetable goes into effect, Lufthansa changes the distribution of smoking and nonsmoking seats aboard its aircraft. Now 70 percent of all seats are reserved for nonsmokers. At the same time the new four-digit flight numbers come into effect.

  • 1 April 1987

    Lufthansa’s first scheduled flight to the US capital Washington, D.C.

  • 20 June 1987

    In Paris, Lufthansa, Air France, Iberia and SAS sign a framework agreement which clears the way for the development of “Amadeus,” a shared travel distribution system.

  • 1 July 1987

    The Supervisory Board appoints Dr. Klaus G. Schlede as the member of Lufthansa’s Executive Board heading the Finance Department. He succeeds Dr. Günther Becher in this position.

  • 8 July 1987

    Lufthansa’s 34th Annual General Meeting in Munich approves an increase of the share capital by DM 300 million to DM 1.2 billion.

  • 21 December 1987

    Lufthansa bundles its hotel participations into the “Lufthansa Hotelgesellschaft mbH” (LHG), which takes effect on January 1, 1988.

  • 1 January 1988

    Lufthansa’s wholly-owned subsidiary “Lufthansa Consulting GmbH” starts up operations in Cologne. Lufthansa takes a 24.5-percent share in “Cargolux Airlines Int. S.A.” in Luxembourg.

  • 24 February 1988

    Iberia and Lufthansa found the charter airline “Vuelos Internacionales de Vacaciones, S.A.” (Viva Air). They each hold a share of 48 percent; the remainder of shares is held by private Spanish investors.

  • 3 March 1988

    The Supervisory Board approves an order for 20 Boeing B737-300s and B737-500s, with options for a further 20 aircraft.

  • 25 April 1988

    The Siberian Clause in the German-Soviet Air Transport Agreement again allows flights across Siberia, and thus nonstop operations between Frankfurt and Tokyo.

  • 26 May 1988

    Lufthansa officially inaugurates its freight terminal in Los Angeles.

  • 24 June 1988

    Lufthansa and Interflug sign a contract covering maintenance and overhaul of the Airbus A310-300 fleet operated by Interflug. Starting in June 1989, Lufthansa supports Interflug with its introduction of the Airbus aircraft.

  • 1 July 1988

    Lufthansa introduces advance seat assignment on intercontinental routes in Economy Class as well.

  • 19 August 1988

    Berliner Flughafengesellschaft and Lufthansa found “Berliner Lufthansa Airport Service GmbH” (BLAS), which starts operations as the winter timetable goes into effect in late October.

  • 9 September 1988

    Air France and Lufthansa incorporate the French airline “EuroBerlin France” in Paris. Two months later the new carrier already flies exclusively between the Federal Republic and Berlin. Air France holds a share of 51 percent, while Lufthansa holds 49 percent of the share capital of 250,000 French francs.

  • 27 October 1988

    Amadeus One, the fist stage of the new electronic travel distribution system, goes online in Germany and is available on all START terminals.

  • November 1988

    Incorporation of “Lufthansa Design Center GmbH” with headquarters in Cologne.

  • 10 December 1988

    Lufthansa takes delivery of its first Airbus A310-300.

  • 1 April 1989

    Graduate Engineer Jürgen Weber is named deputy member of Lufthansa’s Executive Board. On January 1, 1990 he succeeds Graduate Engineer Reinhardt Abraham as the board member responsible for the Engineering Department.

  • 25 May 1989

    The first Boeing B747-400 arrives at Frankfurt Airport.

  • 12 June 1989

    Lufthansa’s first twin-engined scheduled flight across the North Atlantic: Now Airbus A310-300s fly on the Frankfurt– Montreal–Philadelphia route under the rules for Extended Range Operations.

  • 22 June 1989

    Lufthansa and Deutsche Bundesbahn sign a joint declaration concerning cooperation between air and rail transport.

  • 1 July 1989

    Dr. Falko von Falkenhayn is appointed board member for the new department “Marketing and Product Development,” separating it at the board level from the Sales Department.

  • 5 July 1989

    The Annual General Meeting approves a capital increase by DM 310 million to DM 1.52 billion. As the Federal Republic does not exercise its subscription rights, the state’s shareholding declines to 52.62 percent.

  • 10 August 1989

    Lufthansa starts scheduled flights on the Frankfurt–Leipzig route.

  • 11 September 1989

    Lufthansa and Turkish Airlines incorporate the charter airline “SunExpress” with headquarters in Antalya; Lufthansa holds a share of 40 percent. SunExpress starts services on April 4, 1990, flying between Nuremberg and Antalya with Boeing B737s.

  • 15 September 1989

    Lufthansa and Air France sign a comprehensive cooperation agreement.

  • 22 September 1989

    The Supervisory Board approves the acquisition of 20 Airbus A321s and the placement of 20 options for this type of aircraft.

  • 16 October 1989

    The first Airbus A320 starts revenue services on Lufthansa routes.

  • 29 October 1989

    Short-haul flights now also feature three-class cabins: First, Business and Economy Class.

  • 30 November 1989

    Dr. Alfred Herrhausen, member of Lufthansa Supervisory Board and chairman of the Management Board of Deutsche Bank, is murdered by RAF terrorists.

  • 28 December 1989

    For the first time Lufthansa carries over 20 million passengers in a single year.

  • 16 January 1990

    The Supervisory Board approves the expansion of the intercontinental fleet by three Boeing B747-400s and one Airbus A310-300 starting in 1992, and the placing of options for a further 12 Boeing B747-400s. The continental fleet is also set to grow in 1992 by five Boeing B737-500s, three Airbus A320s and one A310.

  • 7 February 1990

    The subsidiary company “Lufthansa Airport and Ground Services GmbH” is incorporated in Frankfurt. It also acts as the holding for existing Lufthansa participations in handling and operating companies.

  • März 1990

    Lufthansa announces its plan to invest DM 70 million in the construction of its own cargo terminal in Chicago. The facility is slated to start operations in 1992.

  • 6 March 1990

    On a tour of the German Democratic Republic, Lufthansa’s historic Junkers Ju 52 aircraft returns after almost 45 years to Dessau, the city where the Junkers aircraft company had its headquarters.

  • 5 April 1990

    Moscow: The “Airport Moscow/ Joint Venture Aeroflot-Lufthansa and Partners” is incorporated.

  • 27 May 1990

    The Lufthansa Airport Express now runs twice daily between Stuttgart and Frankfurt.

  • 28 September 1990

    A Lufthansa Boeing B747-400 is christened in festivities at Berlin’s Schönefeld Airport: By naming the Jumbo “Potsdam,” Lufthansa now starts carrying the names of cities in the former German Democratic Republic all around the globe.

  • 1 October 1990

    Jürgen Weber, Executive Board member in charge of Engineering, is named Deputy Chairman of the Executive Board. The Supervisory Board appoints Dr. Adrian von Dörnberg as deputy member of the Executive Board. On January 1, 1991 he will succeed Frank Beckmann as Board member in charge of Sales and Passenger Business.

  • October 2/3, 1990

    Special Lufthansa flights carry members of the German parliament from Cologne/Bonn and Hamburg to Berlin to participate in the festivities marking German reunification.

  • 28 October 1990

    Lufthansa’s first scheduled flight to Berlin after 45 years: The airline now offers 289 weekly connections between Berlin Tegel and destinations in Germany, as well as 89 flights a week to key destinations in Europe. In addition, Lufthansa offers intercontinental connections to and from Berlin.

  • 17 January 1991

    As the Gulf War begins on January 17, Lufthansa cancels all flights to the region. Only flights to Dubai are maintained.

  • 1 March 1991

    The day after the end of the Gulf War, Lufthansa is the first European airline to resume flights to Tel Aviv. According to IATA calculations, the Gulf War cost airlines about DM 3 billion. Lufthansa lost revenues of DM 580 million.

  • 14 May 1991

    The Supervisory Board appoints Jürgen Weber (49) as successor to Heinz Ruhnau, who is to leave office at the end of August. Dr. Klaus Nittinger is named the new head of the Engineering division.

  • 18 May 1991

    Premiere of the Lufthansa art collection “Max Ernst – Prints and Books” at Stuttgart’s Württembergischer Kunstverein. Following in the wake of “Contemporary German Prints” and “Contemporary German Drawings,” this exhibition is the most important in terms of artistic quality and value that the airline has ever presented to the public.

  • 3 July 1991

    At the 38th Annual General Meeting in Leipzig, Chairman of the Supervisory Board Gerd Lausen announces the Board’s decision to name Dr. Klaus Schlede the new Deputy Chairman of the Executive Board, effective September 1.

  • 31 August 1991

    At an employees’ party in Berlin Schönefeld, Heinz Ruhnau is bid farewell by his successor, Jürgen Weber.

  • 1 September 1991

    Jürgen Weber takes up his new position as Chairman of the Executive Board.

  • 4 October 1991

    Airbus Industries presents the first European-made four-engine wide-body aircraft, the A340. As a “launching customer” Lufthansa has had a significant influence on the A340’s development. The airline has 15 A340s on firm order and holds options for another 15.

  • 4 December 1991

    The Supervisory Board approves the Executive Board’s proposal to restructure the strategic business segments “Passenger Business” and “Cargo.” Dr. Adrian von Dörnberg is named head of the division Passenger Business, and Wilhelm Althen is appointed General Manager for the business segment Cargo. Dr. Falko von Falkenhayn, previously head of Marketing, leaves the company at the end of the year.

  • 7 January 1992

    The Amadeus reservations system goes online. Only one week later, all 15,000 terminals across Lufthansa’s external organization are connected to the data center in Erding. By February, all Lufthansa offices worldwide are online. Beginning in May, the travel agencies follow suit, gaining access to the offerings of more than 300 airlines with 400,000 point-to-point connections and 2.3 million routings.

  • März 1992

    Three renowned publications name Lufthansa “Airline of the Year” for 1991: The subscribers of “Travel Trade Gazette” TTG honor Lufthansa as “Top European Airline,” the readers of the magazine “Holiday” choose Lufthansa as their favorite airline, and in the magazine “Hotel and Food Service” frequent flyers vote Lufthansa into the number one position.

  • April 1992

    As the summer timetable goes into effect, Tallinn, Wilna and Minsk join Lufthansa’s route network. The airline now flies to 201 destinations in 87 countries.

  • 16 May 1992

    During the night of May 16 to 17, Munich Airport moves from Riem to Erding. Movers shift 17,000 items. On May 17, at 6 a.m. sharp, a Lufthansa Jumbo, flight LH 6175, becomes the first commercial airliner to take off from this airport, for a “premiere” flight over the Alps.

  • 2 July 1992

    Lufthansa takes delivery of the first of ten Boeing B737-400s.

  • 9 July 1992

    Lufthansa becomes the sole shareholder of Lufthansa CityLine by acquiring the shares held by AGIV AG.

  • 19 August 1992

    The new Jumbo hangar at the Hamburg Base is officially inaugurated.

  • 1 September 1992

    The new “Continental Product” is launched following the reconfiguration of 113 Boeing B737s and Airbus A320s. No more First Class, but instead a significantly improved Business Class. Business Class lounges open in Munich and Frankfurt.

  • 4 October 1992

    The Boeing B727 registered D-ABKT takes off for its last flight with the Lufthansa crane on its horizontal stabilizer – from Frankfurt to the Engineering Base in Hamburg. Thus, after 28 years, the era of the “Europa Jet” comes to an end.

  • 25 October 1992

    Lufthansa Express – a new division for German domestic services – takes up operations on routes with high levels of demand. By shortening check-in times, introducing a new fare structure and increasing the flexibility of its offerings, Lufthansa aims to cut costs and thus attain cost coverage for domestic routes.

  • November 1992

    As the winter timetable goes into effect, Lufthansa starts services to Cape Town, Windhuk and Alma-Ata.

  • 19 January 1993

    The Miles & More bonus program, launched on January 1, already counts 129,000 members with a total balance of 87.9 million flight miles.

  • 17 March 1993

    Dr. Ernst-Adrian von Dörnberg requests the Supervisory Board to release him from his responsibilities. He leaves the Executive Board on March 31.

  • 28 March 1993

    Turku, Finland, becomes a new destination with the introduction of the summer timetable.

  • 22 April 1993

    The Supervisory Board appoints Hemjö Klein to succeed Dr. von Dörnberg as Executive Board member in charge of the segment Passenger Business. He takes up his new office on June 1.

  • 1 May 1993

    German Cargo Services (GCS) is renamed “Lufthansa Cargo Airlines.” At the same time, the freighter fleets of Lufthansa Cargo and German Cargo are merged.

  • 4 July 1993

    Lufthansa operates its first flight from Frankfurt to Taipei, Taiwan (via Bangkok). For transport policy reasons, the Boeing B747-400 carries the Condor logo.

  • 7 July 1993

    During the 40th Annual General Meeting, Jürgen Weber presents his vision of Lufthansa 2000 “as a streamlined, high-performance company with a global presence, one that again flies profitably.”

  • 1 August 1993

    The Supervisory Board appoints Dr. Karl-Friedrich Rausch as the new Managing Director of Lufthansa CityLine. Headquarters are in Cologne, where Lufthansa CityLine has established its operational base.

  • 16 August 1993

    Asmara, Eritrea becomes a Lufthansa destination.

  • 24 September 1993

    A new air transport agreement between Germany and the USA is signed in Bonn.

  • 4 October 1993

    In Frankfurt, Jürgen Weber and Stephen M. Wolf sign an agreement on a comprehensive cooperation between Lufthansa and United Airlines.

  • 21 October 1993

    The US Environmental Protection Agency (EPA) gives Lufthansa its award for protecting the ozone layer. Lufthansa became the first airline worldwide to eliminate ozone-destroying chemicals in its aircraft maintenance and overhaul.

  • Januar 1994

    Lufthansa and the Lufthansa Partner Offices hold 50 percent each in the newly founded “City Center GmbH,” which currently operates 165 Lufthansa City and Travel Teams.

  • Januar 1994

    By acquiring a 25-percent share in the US airline caterer “Sky Chefs,” LSG becomes one of the world’s largest airline catering companies – measured by revenues it is even the largest.

  • 27 January 1994

    Lufthansa takes delivery of the first of the 20 Airbus A321s it has on firm order.

  • März 1994

    With the start of the summer timetable, Lufthansa now flies to Shanghai, Ekaterinburg (Urals) and Novosibirsk (Siberia).

  • April 1994

    The first automatic check-in stations become operational.

  • 1 June 1994

    Jürgen Weber and David Coltman, Vice President Atlantic Division at United Airlines, see off the two airlines’ first code-share flights: LH 444 to Atlanta and UA 941 to Chicago.

  • 5 July 1994

    Gerhard Höltje, long-standing Executive Board member and “intellectual father” of the Boeing B737, dies shortly before his 87th birthday.

  • 6 July 1994

    During the 41st Annual General Meeting Jürgen Weber announces that for the first time in five years Lufthansa is in the profit zone for the first six months of the year – by about DM 100 million before taxes.

  • 1 December 1994

    A festive roll-in of the DC-10 registered D-ADLO ends the era of this type of aircraft at Lufthansa after more than 20 years. A fleet of up to eleven DC-10s carried more than 42 million Lufthansa passengers without accident.

  • Februar 1995

    By naming Lufthansa “Airline of the Year 1994,” aviation magazine “Air Transport World” bestows this honor on the airline for the second time. The award acknowledges the Group’s successful restructuring and its adaptation to the challenges within the airline industry.

  • März 1995

    Baku (Azerbaijan) and Odessa (Ukraine) become new destinations in the summer timetable 1995.

  • 27 March 1995

    Lufthansa’s first Environmental Report documents a reduction in fuel consumption to 5.5 liters per 100 passenger kilometers on average, despite a 6.3-percent increase in the number of passengers carried. The share of “quiet” aircraft is set to increase this year from 95.6 percent to 98 percent, which puts Lufthansa at the head of its class in environmental issues as well.

  • 11 May 1995

    In Copenhagen, Jürgen Weber and Jan Stenberg, CEO of SAS, sign a cooperation agreement that aims at creating Europe’s largest and most comprehensive route network.

  • Oktober 1995

    On October 29, with the beginning of the winter timetable 1995/96, Lufthansa takes up joint services with Thai Airways. Lima (Peru) and Quito (Ecuador) are again served by Lufthansa’s own aircraft. Montreal and Sydney are taken off the list of Lufthansa destinations.

  • 1 November 1995

    Reinhardt Abraham, member of Lufthansa’s Executive Board for many years, dies in Seeheim at the age of 66.

  • 15 December 1995

    The cooperation agreement between South African Airways and Lufthansa is signed.

  • Januar 1996

    New destinations in the summer timetable: Ashgabat, Nizhniy Novgorod and Samara.

  • 29 March 1996

    40 years of Condor: By commissioning the world’s largest airborne work of art, Condor gives its passengers and employees an eye-catching birthday pres_ent. The “Rizzi Bird,” a Boeing B757 painted with motives created by New York-based artist James Rizzi, is set to be in the limelight for the duration of the jubilee year.

  • 30 April 1996

    InfoFlyway, Lufthansa’s Internet presence, goes online at www.lufthansa.com, offering schedules, information, the SkyShop and a Chat Café.

  • 21 May 1996

    Lufthansa and United Airlines get the green light to further expand their alliance, when the US Department of Transportation grants them antitrust immunity.

  • 13 June 1996

    Lufthansa and Boeing jointly create the Reinhardt Abraham Scholarship. It aims to support students and graduates in aviation technology and civil aviation at the Technical University Berlin.

  • 25 July 1996

    Festive roll-in of the first Airbus A319 at Lufthansa, christened after Frankfurt an der Oder.

  • September 1996

    Condor becomes the first customer for the Boeing B757-300.

  • September 1996

    Lufthansa Cargo complements its long-haul freighter fleet by adding five MD-11Fs.

  • 1 November 1996

    Flying without a ticket: As of today Lufthansa becomes Germany’s first airline to introduce ticketless travel for all D308passengers on domestic routes.

  • 11 November 1996

    Warning strike by Lufthansa employees in the DAG union. They demand an improved offer in comparison with the collective bargaining agreement reached with the ÖTV union. 21 German and 14 European flights have to be canceled.

  • Dezember 1996

    Shortly before year-end, the Federal Government sells its share of 35.7 percent in Lufthansa’s equity capital to the Federal Republic’s own Kreditanstalt für Wiederaufbau (KfW). The Bonn government uses the revenues of about DM 2 billion to reduce its budget deficit.

  • 12 December 1996

    The second warning strike organized by DAG causes an estimated loss of DM 20 million. Lufthansa’s Executive Board asserts that there is no scope for an agreement better than that signed with ÖTV.

  • 1 January 1997

    Lufthansa Flight Training is incorporated as a freestanding “GmbH,” a company with limited liability.

  • Januar 1997

    With the introduction of the summer timetable 1997, two new destinations join Lufthansa’s route network: Perm and Kazan, both in the former Soviet Union.

  • März 1997

    25 years of Jumbo freighters at Lufthansa: The airline has operated the all-cargo version of the world’s largest standard aircraft since 1972.

  • 19 March 1997

    Lufthansa CityLine transfers its last Fokker 50 aircraft to our partner Contact Air. This ends the era of propeller-driven aircraft at Lufthansa.

  • 1 April 1997

    Europe is now a Single Market: All European airlines can market their flights in all EU countries without any restrictions.

  • 14 May 1997

    The “Star Alliance” is founded in Frankfurt. It is the first truly global airline alliance: Together, its founding members – Air Canada, SAS, Thai Airways International, United Airlines and Lufthansa – serve 578 cities in 106 countries and operate 1,334 aircraft.

  • September 1997

    Services to Beirut are resumed as the winter timetable 1997/98 goes into effect.

  • 17 September 1997

    Lufthansa and Karstadt AG combine their touristic activities in a joint holding. Subject to approval by Germany’s Federal Cartel Office, the Supervisory Boards of both companies vote to incorporate “C&N Condor Neckermann Touristik AG.”

  • 13 October 1997

    Lufthansa’s privatization is complete: On the first day of trading the 143 million shares that have now passed into the possession of private or institutional investors, Jürgen Weber pronounced the result of the placement on the Frankfurt Stock Exchange a resounding vote of confidence from investors, “who count on the performance of our employees and concepts.”

  • 22 October 1997

    VARIG is welcomed as a new member in the Star Alliance. With its flights to all important destinations in South America, VARIG gives customers throughout the Alliance access to that continent.

  • 24 November 1997

    Lufthansa and Singapore Airlines agree on a far-reaching cooperation including the operation of codeshare flights.

  • Dezember 1997

    Initial steps toward a global air cargo alliance: Lufthansa Cargo, United Airlines, VARIG, Thai Airways International and Air Canada intend to cooperate more closely in the air freight business.

  • 1 January 1998

    C&N Touristik AG kicks off the starting blocks.

  • 5 February 1998

    Dr. Herbert Culmann, former Chairman of Lufthansa’s Executive Board, dies at the age of 76.

  • März 1998

    “Condor Berlin GmbH” launches its summer flight program with a fleet of brand-new Airbus A320s. Three aircraft will be available in April; the remaining three are expected in the course of the year.

  • April 1998

    The 1,000th training course for flight attendants begins.

  • 1 April 1998

    Worldwide premiere of shared check-in desks for all Star Alliance partners at Frankfurt Airport. In Hall B, the global alliance now has a unified presence on the ground as well.

  • 6 May 1998

    “Rotkäppchen Service” (“Little Red Riding Hood”) turns 30: This service, providing extra attention for passengers in need of special assistance, was created in 1968.

  • Juni 1998

    The “Lufthansa School of Business” is founded: It now combines all activities and initiatives that concern management and organizational development on the corporate level at Lufthansa. It follows the example of “corporate universities” in the USA and England.

  • Juni 1998

    Annual General Meeting 1998 – “Fit for the 21st century”: This year’s goal is a pretax profit that “breaks through the sound barrier” of DM 2 billion, as Jürgen Weber announces during the AGM in Hamburg.

  • Juli 1998

    Lufthansa Cargo begins revenue service with its first of three Boeing MD-11 freighters. The MD-11F is the world’s most efficient and environmentally-compatible wide-body cargo aircraft.

  • Juli 1998

    Lufthansa Commercial Holding GmbH (LCH) creates a strategic business unit for Information Technology (IT).

  • August 1998

    A unique service from Lufthansa Technik: Airline Support Teams repair aircraft engines within hours at any location around the world.

  • 23 August 1998

    Female pilots celebrate their 10-year anniversary at Lufthansa: The first two women copilots started flying for Lufthansa in 1988. The number of women pilots has since risen to 44, but remains at low levels in comparison with their almost 3,000 male colleagues.

  • September 1998

    The Star Alliance gets a competitor: British Airways and American Airlines intend to launch the “oneworld” alliance at the start of 1999. Together with partners such as Canadian Airlines, Qantas and Cathay Pacific, BA and AA want to gain the leading edge over the Star Alliance grouped around Lufthansa.

  • 1 September 1998

    Dr. Karl-Ludwig Kley joins the Executive Board as Chief Financial Officer.

  • 16 September 1998

    An investment of US$ 2.3 billion in the expansion of the fleet: Orders are placed for 42 aircraft to be delivered to Lufthansa Passenger Airline, Lufthansa CityLine and Lufthansa Cargo starting in 2000.

  • Dezember 1998

    Lufthansa is being prepared for the change into a “Euro company”: From January 1999, all Group companies will be able to account for all business activities both in their respective local currencies and in Euros.

  • Januar 1999

    Transformation from an airline into a leading global Aviation Group. Its strategic orientation: integrated efforts among all employees in its seven strategic business segments Passenger Business, Logistics, MRO (Maintenance, Repair and Overhaul), Catering, Leisure Travel, IT Services and Ground Services. Its goal: leading positions in the world markets for all seven.

  • Februar 1999

    ETIX, electronic tickets, are offered on German routes at more favorable fares than traditional paper tickets.

  • 9 February 1999

    Condor takes delivery of two of the 13 Boeing B757-300s it has on order.

  • 28 March 1999

    Ansett Australia and Air New Zealand are now official members of the Star Alliance.

  • April 1999

    The Supervisory Board approves the acquisition of 60 Fairchild Dornier 728 aircraft.

  • 3 May 1999

    The Star Alliance partners sign a joint Environmental Declaration. Now in their third year of shared operations, all member airlines agree to keep the environmental impact from their activities as low as possible. The number of airlines in the Star Alliance is set to rise to nine in October.

  • 16 June 1999

    Annual General Meeting 1999: Key topics include the Group’s performance in 1998 and the delays related to air traffic control. In this second context, the approval by the state of Hesse to expand Frankfurt Airport is welcomed.

  • 19 July 1999

    The first City Star Office (CSO) opens in Paris. It offers services for all Star Alliance partners under one roof.

  • 22 September 1999

    Lufthansa acquires a share in Air Dolomiti, Italy’s leading privately-held regional airline.

  • Oktober 1999

    New in the fleet: the Airbus A320-200. Outwardly indistinguishable from A321-100, this new model features an increased maximum takeoff weight and optimized performance – and that means an improved payload-range ratio.

  • 15 October 1999

    All Nippon Airways is welcomed as the Star Alliance’s ninth member.

  • Dezember 1999

    Lufthansa becomes a World Partner of EXPO 2000 in Hanover. The Boeing B747-400 D-ABVK “Hanover” now features the EXPO logo.

  • 1 January 2000

    Wolfgang Mayrhuber is appointed member of the Executive Board of the Lufthansa Group. From 1994 onwards, he had guided Lufthansa Technik AG as that company’s Chairman of the Executive Board.

  • 1 January 2000

    A smooth flight right across the millennium line: Thanks to comprehensive Y2K checks, all data processing systems handle the dreaded date change without a hitch.

  • Februar 2000

    Airline of the Year 2000: The renowned aviation magazine “Air Transport World” pays tribute to Lufthansa for its “success in the rough climate of international competition.”

  • 23 February 2000

    Die Austrian Airlines Group (mit Tyrolean und Lauda Air) tritt der Star Alliance bei. Mit British Midland vereinbart Lufthansa Gemeinschaftsflüge, die das Europanetz verdichten.

  • April 2000

    Postal alliance in the area of air freight: “Aerologic GmbH” is the name of the new company that is to combine the interests of Lufthansa Cargo and Deutsche Post.

  • 7 April 2000

    Singapore Airlines becomes the 11th member of the Star Alliance.

  • Mai 2000

    Pretax profit of nearly DM 2 billion – Lufthansa is fit for the 21st century: Jürgen Weber presents the record result for the Financial Year 1999 at the airline’s accounts press conference.

  • Juni 2000

    Under the motto “Together in a moving world,” Lufthansa pres_ents itself as an Aviation Group, with all its business segments, at the EXPO 2000 in Hanover.

  • 26 June 2000

    British Midland and Mexicana join the Star Alliance: At their conference in Vienna, the 13 members approve a more efficient organization, headed by a Chief Executive Officer and a Deputy.

  • 27 June 2000

    Dr. Heiko Lange, Employee Relations Director of the Lufthansa Group, takes his retirement. As a member of the Executive Board, Lange headed the Human Resources Division from August 1986.

  • August 2000

    Stefan Lauer is named new head of Human Resources, taking over the responsibilities of Dr. Heiko Lange.

  • 19 August 2000

    Green light for the “Northwest Variation”: This is the decision reached by Hessia’s Minister President Roland Koch and the CDU-FDP faction in the state parliament concerning the expansion of Frankfurt Airport.

  • 20 September 2000

    Jürgen Weber is to remain Chief Executive Officer until 2003: His mandate on Lufthansa’s Exective Board is extended as an acknowledgment of his outstanding achievements for the Group.

  • Oktober 2000

    Code-share flights on the routes from Frankfurt to Beijing and Shanghai: The cooperation with Air China begins with the introduction of the winter timetable.

  • 4 October 2000

    Lufthansa’s second call center for Germany opens in Berlin: It represents an investment of DM 5 million in future-oriented technology and creates 300 new jobs.

  • November 2000

    The “Online Travel Portal” is established: Lufthansa operates this new Internet travel site together with eight other leading European airlines.

  • Dezember 2000

    Compensation and clarification: Following the decision of Lufthansa’s Executive Board in November 1999 to participate in the fund compensating victims of forced labor under the Nazi regime, Lufthansa commissions an academic investigation entitled “Lufthansa and its Foreign Workers during World War II.”

  • Januar 2001

    Miles & More welcomes its 5-millionth member. New perspectives open up for this frequent flyer program as Germany’s “rebate law” is repealed.

  • 1 January 2001

    Wolfgang Mayrhuber assumes full responsibility for Lufthansa’s Passenger Business. He is named Chief Executive, Passenger Airlines, assuming responsibility for Lufthansa’s scheduled passenger business.

  • 15 January 2001

    Lufthansa commemorates the company’s 75th anniversary with a New Year’s concert in Berlin.

  • März 2001

    The pilots’ union Vereinigung Cockpit (VC) uses industrial action to underscore its demands. An initial warning strike on March 28 is followed by more strikes in May. Former federal minister Hans-Dietrich Genscher is named as arbitrator and manages to conclude negotiations successfully on June 8. A pay settlement covering ground and cabin staff had already been signed on March 24.

  • 25 March 2001

    Lufthansa and Eurowings jointly operate about 1,500 weekly code-share flights on 39 German and European routes.

  • Mai 2001

    Ban on the carriage of animals caught in the wild: In the area of animal and species protection, Lufthansa Cargo agrees to implement a comprehensive catalogue of measures. These measures aim at ensuring that wild animals are transported by air only when they are to be released in natural habitats, they are part of scientifically managed breeding programs or their lives depend on it.

  • 27 June 2001

    C&N Touristik AG becomes Thomas Cook AG, Germany’s second-largest tourism group. The new company counts 30,000 employees, 4,000 travel agencies, 73,000 hotel beds and 85 modern aircraft around the world.

  • Juli 2001

    Alliances: The European competition authority in Brussels approves the cooperation between Lufthansa, British Midland and SAS. This new alliance is set to expand its market presence on domestic routes in the UK and on routes between Britain and Spain as well as Britain and Italy.

  • 11 September 2001

    “September 11” enters the annals of history as a black day – in aviation as well. Four passenger aircraft operated by American Airlines and United Airlines are hijacked on the morning of September 11 and crash on the East Coast of the USA. Two of these aircraft smash into the towers of the World Trade Center in New York, subsequently causing the buildings to collapse. These acts of terrorism trigger mourning and shock worldwide. Air transport is thrown into profound crisis. Given the difficult economic situation, Lufthansa agrees with the unions Verdi and Vereinigung Cockpit on comprehensive measures to limit personnel costs for ground personnel, cabin and cockpit crews. This includes a hiring freeze, a reduction of overtime and accumulated vacation days, a cutback in additional flying hours for flying personnel and an increase in available part-time models and unpaid leave.

  • November 2001

    Trust: Lufthansa inserts advertise_ments in major German daily newspapers featuring well-known political and business personalities who express their trust in air transport in general and in Lufthansa in particular.

  • Dezember 2001

    Future: Following a recommendation by Lufthansa’s Executive Board, the company’s Supervisory Boards approves an order for 15 Airbus A380-800 wide-body aircraft.

  • Januar 2002

    After ordering 15 Airbus A380s shortly before the end of 2001, Lufthansa places a further order with Airbus Industries, this time for ten Airbus A330-300s. Another newcomer to the Lufthansa fleet will be the A340-600, the world’s longest passenger aircraft.

  • Januar 2002

    The switch to the “Euro” on January 1 passes without a problem at Lufthansa. All systems function impeccably.

  • Januar 2002

    Within just a few months, the latest generation of Lufthansa uniforms are distributed to about 25,000 employees working on the ground, in the cabins and in the cockpits. The new outfits blend elegance and classical touches with a contemporary look.

  • 11 March 2002

    The Lufthansa Supervisory Board elects Wolfgang Mayrhuber as Deputy Chairman of the Executive Board. Thereby, the Supervisory Board gives a clear signal concerning the succession of Jürgen Weber, due to step down in 2003.

  • 1 April 2002

    “WOW” is the name of a three-way cargo alliance between Lufthansa Cargo, SAS Cargo and Singapore Airlines Cargo. On July 5, Japan Airlines Cargo becomes the alliance’s fourth member.

  • Mai 2002

    Eurowings Luftverkehrs AG announces its entry into the market segment of so-called “no-frills airlines.” Regional carrier Eurowings will use the brand name “Germanwings” for this venture, which is to be its second source of revenues.

  • 14 May 2002

    The world’s most successful airline linkup, the Star Alliance, celebrates its fifth anniversary. Soon thereafter, on June 1, the Alliance’s members approve the inclusion of carriers Asiana, LOT and Spanair.

  • August 2002

    A new AIRail route: Following successful operations on the Stuttgart–Frankfurt route, partners Lufthansa, Deutsche Bahn AG and Fraport AG launch a new rail link: Cologne–Frankfurt.

  • September 2002

    1,000 thanks to 1,000 helpers: In cooperation with Thomas Cook AG and Mitteldeutscher Rundfunk, three special flights are scheduled to take 1,000 emergency aid workers to Mallorca for a relaxing weekend. These helpers had worked hard during the severe flooding of the river Elbe the month before.

  • November 2002

    World premiere: On a test flight from Frankfurt to Washington with the Lufthansa Boeing B747-400 “Sachsen-Anhalt,” Lufthansa project members and “Connexion by Boeing” team members successfully send the first e-mail ever from an airborne aircraft.

  • 2 December 2002

    Cornerstone ceremony for our new administration building, the Lufthansa Aviation Center, in Frankfurt.

  • Januar 2003

    Lufthansa joins the “UN Global Compact.” Its goal is a voluntary covenant between corporations, organizations and institutions on nine principles covering the areas of environmental protection, labor standards and human rights.

  • Januar 2003

    Miles & More celebrates its 10th anniversary: New partners and awards make Lufthansa’s frequent flyer program even more attractive.

  • 15 January 2003

    For the first time, the broadband Internet access FlyNet is tested comprehensively under routine conditions on scheduled flights between Frankfurt and Washington aboard the Lufthansa Boeing B747-400 “Sachsen-Anhalt.” Lufthansa now offers visitors to its lounges fast wireless Internet access. Lufthansa is the world’s first large international airline to equip all its 55 airport lounges at 30 destinations with state-of-the-art “Wireless Local Area Network” (WLAN) technology.

  • Februar 2003

    In February, the effects of the respiratory disease SARS, the war in Iraq and the stagnating economy force the Executive Board to approve a second round of aircraft groundings, following those in 2001, and an immediate hiring freeze. In April, additional measures are introduced to secure the company’s financial performance. These include short-time work for cabin personnel and a work-time reduction for ground personnel to 35 hours a week. These shortened working hours remain in force until August 31.

  • 20 March 2003

    At his final accounts press conference, Jürgen Weber presents the Group’s results for Financial Year 2002, which are excellent when compared to the industry’s performance.

  • 25 March 2003

    Wolfgang Mayrhuber announces further streamlining of the Group’s structure: From now on, there will be only three instead of four members of the Executive Board, while the number of divisions of the Business Segment Passenger Airlines is reduced from five to four.

  • Mai 2003

    35 years of “Rotkäppchen” (“Little Red Riding Hood Service”): In May 1968, Lufthansa started offering assistance to passengers with special needs and children traveling on their own, while departing, arriving or transiting at Frankfurt Airport.

  • Juni 2003

    Under the umbrella of the new “Lufthansa Regional” brand, partner airlines Air Dolomiti, Augsburg Airways, Contact Air, Eurowings and Lufthansa CityLine reorganize their cooperation with Lufthansa.

  • 18 June 2003

    New top management: At the Annual General Meeting, Jürgen Weber changes over to the Supervisory Board. He is succeeded as CEO by Wolfgang Mayrhuber. At an event attended by about 1,500 employees on June 23 in Frankfurt, the company’s “keys” are handed over symbolically.

  • 27 June 2003

    On June 27, just under three and a half years after construction began, the new Terminal 2 at Munich Airport is opened with a festive ceremony. Lufthansa is the first airline to assume partial responsibility for planning, financing, construction and operation of a passenger terminal in Germany. Costing around V 1.2 billion, the building doubles the capacity of Munich Airport to 50 million passengers a year.

  • Juli 2003

    On July 10, the world’s largest solar power-generation system located at a civil airport is inaugurated on the roof of Terminal 2 in Munich.

  • 22 September 2003

    22 September Lufthansa’s work for environmental protection and sustainability is again acknowledged by Zurich-based Sustainable Asset Management Indexes GmbH (SAM). SAM awards the airline the top position in the Dow Jones Sustainability Index World (DJSI) and the pan-European Dow Jones Sustainability Index STOXX.

  • 29 September 2003

    Germany’s “Air Transport Initiative” starts up its work. At a meeting in Berlin, the representatives of airlines, airports and government agencies reiterate their intention to strengthen Germany’s attractiveness as a location for air transport.

  • Oktober 2003

    At a press conference held in October at Frankfurt Airport, CEO Wolfgang Mayrhuber and VP Marketing and Sales Thierry Antinori unveil the top-quality products featured in the new Business Class. These include the new multifunctional seat (“PrivateBed”) and the improved in-flight entertainment system.

  • 16 January 2004

    Wolfgang Mayrhuber is among the twelve leaders from business and science invited by Chancellor Gerhard Schröder to the Federal Chancellery to work together in the initiative “Partners for Innovation.”

  • Februar 2004

    Wolfgang Mayrhuber receives the “Vernon A. Walters Award” for his commitment to German-American partnership. This prize is bestowed by the organization “Atlantik-Brücke” in commemoration of former US ambassador to Germany, Vernon A. Walters.

  • 10 February 2004

    The new Patient Transport Compartment (PTC) now allows intensive patient care during flight. This service is unique worldwide and available on almost all Lufthansa long-haul flights.

  • 3 March 2004

    More comfort, greater environmental compatibility and improved economic efficiency are the hallmarks of the first Lufthansa Airbus A330-300, which the airline takes delivery of on this day. Ten aircraft of this type are to be delivered by the end of 2005. On March 16, this first A330-300 starts scheduled service.

  • 28 March 2004

    A number of innovations are introduced in the framework of the project “Future Continental.” Keeping the middle seat in Business Class vacant now enables passengers to enjoy enhanced private space, freedom of movement and storage space. The in-flight service concept on European routes is completely reviewed and new tableware is introduced in Business Class.

  • 3 April 2004

    Lufthansa Cargo’s new round-the-world freighter service takes off twice a week from Frankfurt and heads east. Operated with a Boeing MD-11F, this flight is the international air cargo industry’s fastest around-the-globe service.

  • 19 April 2004

    A biometrics test begins in Frankfurt and is to conclude on August 6. 800 Lufthansa employees test three biometrical procedures – to identify finger, face and iris characteristics – for their usefulness in practical applications. With this project, Lufthansa supports an initiative of Germany’s Federal Bureau of Criminal Investigation and the Federal Office for Information Security.

  • 17 May 2004

    Lufthansa FlyNet makes its debut under routine conditions on a flight from Munich to Los Angeles. This makes Lufthansa the first airline worldwide to offer fast broadband Internet access, which passengers can use during flights with their laptop computers and other mobile devices by means of Wireless LAN.

  • 24 May 2004

    Under the motto “Lufthansa is added value,” the airline announces a 20-percent increase in capital. Shareholders are offered subscription rights at a ratio of 5:1; the subscription price is V 9.85 a share.

  • 1 June 2004

    Lufthansa and United Airlines celebrate the ten-year anniversary of their cooperation. What started with 40 jointly operated flights a day has since evolved into more than 600 daily code-share flights worldwide.

  • 18 June 2004

    The Lufthansa Festival of Baroque Music in London celebrates its 20th anniversary. Under the motto “Behind the Mask – Music for Commedia and Carnival,” 12 concerts take place in St. John’s and Westminster Abbey.

  • 1 August 2004

    Ameco Beijing, the joint venture of Lufthansa and Air China, is to be continued for another 25 years. China’s Ministry of Economics approves the new joint-venture contract.

  • 4 October 2004

    Blue1, a subsidiary of Scandinavian Airlines, becomes the first regional carrier to join the Star Alliance. Blue1’s membership strengthens the Alliance’s position in the Finnish market.

  • Dezember 2004

    2004 sees the start of transferring the provisions for pensions into a securities investment fund. About V 550 million is to be paid into the fund annually for a period of 10 to 15 years. An external trust company administers the fund’s assets in a fiduciary and appropriated manner.

  • 1 December 2004

    The Lufthansa First Class Terminal and the two new First Class Lounges are opened in Frankfurt. Here, Lufthansa passengers traveling on a First Class ticket and members of the HON Circle are offered the highest level of service and individual care.

  • 15 December 2004

    Croatia Airlines and Adria Airways become new regional members in the Star Alliance. They are to strengthen the Alliance’s offerings in the markets of southeastern Europe.

  • end of December 2004

    In 2004, Lufthansa carried more than 50 million passengers for the first time – a record in the company’s history.

  • 7 January 2005

    In a video message and an open letter, Wolfgang Mayrhuber appeals to all Lufthansa employees and asks them to donate one work hour each to help the victims of the tsunami catastrophe in Asia. The monetary equivalent value of this donated work time is to be given to the HelpAlliance.

  • 17 January 2005

    The musical start of the new year also reflects the tragic flood disaster. Opening the Lufthansa New Year’s Concert, Wolfgang Mayrhuber reminds the audience of the victims, which also include Lufthansa customers, employees and their relatives. The RIAS Youth Orchestra plays a program of solemn music by Tchaikowsky and Mozart.

  • 18 January 2005

    A new chapter of aviation has begun. The world’s largest civil aircraft, the Airbus A380, is presented to the public at the rollout ceremony in Toulouse.

  • 21 January 2005

    The Prime Minister of the state of Hessia, Roland Koch, inaugurates the European Center for Aviation Development (ECAD) in Darmstadt. This scientific research institution is to develop into a competency center for all issues concerning the development of aviation.

  • 31 January 2005

    The in-company fundraising drive for the victims of the tsunami in Asia is concluded. 5,237 Lufthansa employees have donated a total of 13,841 hours, which is equivalent to about V 300,000. Lufthansa increases this amount to V 1 million.

  • Februar 2005

    Lufthansa publishes its new summer timetable: 177 cities in 73 countries are served weekly with 12,700 flights. Hyderabad, India, and Port Harcourt, Nigeria, are new Lufthansa destinations.

  • 1 March 2005

    Miles & More reaches a membership of ten million. The frequent flyer programme is growing at an annual rate of 20 per cent and is one of the most successful customer loyalty programmes in the world.

  • 22 March 2005

    The Lufthansa Supervisory Board and the Board of Directors of SWISS approve the integration of SWISS in the Lufthansa Group. SWISS remains a largely autonomous airline based in Switzerland with its own fleet.

  • 24 March 2005

    Lufthansa launches “JetFriends”, a club for kids and teens. It has its own website where information about the Lufthansa Group is presented in a child-friendly way.

  • 27 March 2005

    The A380 takes off on its maiden flight. Initial tests are carried out on the flight, which lasts for four hours.

  • 29 March 2005

    “Lufthansa Private Jet” gives passengers the opportunity of flying quickly and individually to Lufthansa’s Munich hub in a private jet.

  • 1 April 2005

    Lufthansa celebrates the 50th anniversary of the “new” Lufthansa on 1 April 1955. An Airbus A321 is repainted especially for the occasion as a “retro jet” in the traditional Lufthansa livery of the early 1960s.

  • 17 May 2005

    Lufthansa becomes “Official partner of the German Football Association”. In the years ahead, the teams and members of the German Football Association will fly to matches with Lufthansa.

  • 16 August 2005

    In Berlin, Lufthansa tests barcode check-in and barcode boarding on routes to Frankfurt until the end of October.

  • 22 September 2005

    Wolfgang Mayrhuber and Dr Klaus Schlede are elected to the Board of Directors of SWISS. At the same time, the Board of Directors is reduced from eight to five members.

  • 15 October 2005

    Lufthansa’s flight capacity from Hamburg is expanded by 40 per cent to a total of 23 direct connections in Germany and Europe. As part of the reorganisation of decentralised traffic, Lufthansa stations seven Boeing 737-300s in Hamburg to serve the new routes.

  • 29 October 2005

    Premiere for the Airbus A380 in Frankfurt. The world’s largest passenger jet lands at the Lufthansa base in Frankfurt, three years before it is planned to enter service there. It is the first time that the aircraft with serial number 004 is put through its paces at an international airport.

  • 30 October 2005

    At the beginning of the winter flight timetable, Lufthansa and SWISS fly local traffic routes as code-shares. Passengers at the hubs in Frankfurt, Munich and Zurich, as well as at Basel and Geneva, now check in at the same desks.

  • 11 November 2005

    Lufthansa announces its intention to acquire a majority of voting shares at Eurowings. An agreement with the majority shareholder Albrecht Knauf provides for his 51 per cent share of voting rights in Eurowings to be transferred to Lufthansa. Lufthansa maintains its 49 per cent stake in the common shares, however.

  • 7 December 2005

    The Supervisory Board of Lufthansa approves the purchase of twelve CRJ900s, an 84-seater, short-haul aircraft.

  • 9 January 2006

    Lufthansa adds 56 new weekly connections in Düsseldorf. Lufthansa intends to grow faster in Düsseldorf than elsewhere in 2006.

  • 18 January 2006

    Germanwings is the first low-cost airline in Europe to launch a frequent flyer programme, the Boomerang Club. Registration takes place online for a one-off fee of four euros.

  • Februar 2006

    Installation of the new Economy seats begins for the European fleet. The whole cabin gets a modern new outfit to go with the high-quality leather seats in muted colours. Fuel consumption is reduced thanks to the lightweight new seats.

  • 26 March 2006

    The A380 passes the evacuation test for approval by the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA). The crew of 20 Lufthansa staff evacuates 853 passengers in 78 seconds.

  • 1 April 2006

    In the course of integrating SWISS, its frequent flyer programme SWISS Travel Club is merged with Miles & More. SWISS will represent Miles & More in Switzerland and provide services to the members and partners there.

  • 7 April 2006

    SWISS joins the Star Alliance. A ceremony is held in Zurich to welcome the 17th member of the alliance.

  • 2 May 2006

    German Chancellor Angela Merkel lays the cornerstone for N3 Engine Overhaul Services in Arnstadt, Thuringia. 500 new jobs are to be created at the engine overhaul centre, a joint venture between Lufthansa Technik and Rolls-Royce.

  • 9 June 2006

    The 18th football World Cup takes place in Germany. 50 aircraft from the Lufthansa fleet are decorated with a football nose cone. They carry the World Cup from Germany out into the world.

  • 18 July 2006

    The new Group headquarters are officially opened at Frankfurt Airport. The Lufthansa Aviation Center is designed by star architect Christoph Ingenhoven and stands out for its transparency and energy efficiency.

  • 15 August 2006

    In Shenzhen, the launch of Jade Cargo International, a cargo airline founded by Lufthansa Cargo, Shenzhen Airlines and DEG, is celebrated with a traditional dragon dance and water fountains.

  • 4 September 2006

    An A380 takes off for a long-haul flight with passengers for the first time. Lufthansa provides the 23 cabin crew members for this test flight.

  • 22 September 2006

    Lufthansa passengers are now able to choose their seat for the flight from their computer at home or work and to print their boarding pass themselves. The boarding pass has a 2D bar code and is simply held under a scanner before boarding.

  • 6 October 2006

    Lufthansa Flight Training inaugurates a simulator centre in Vienna. The new building has room for four full-flight simulators.

  • 29 October 2006

    From the start of the winter flight timetable, the neighbouring seat in Business Class is kept free on all flights with the Lufthansa regional fleet. This service is offered on all domestic and European routes from Lufthansa.

  • 6 December 2006

    The Lufthansa Supervisory Board approves the purchase of 20 Boeing 747-8I wide-bodied jets. This makes Lufthansa the launch customer for the passenger version of this latest edition of the legendary Jumbo Jet. On the very same day, the order for seven Airbus A340-600s is approved.

  • 19 January 2007

    Lufthansa is the official carrier for the Men’s Handball World Championship taking place in Germany until 4 February.

  • 20 February 2007

    LSG Sky Chefs signs a joint venture agreement with China National Aviation Group Ltd to set up a production facility for frozen meals in Qingdao.

  • 17 March 2007

    Lufthansa carries out the first route-proving flights with the A380. The manufacturer’s test plane is equipped with a complete passenger cabin and makes route-proving flights from Frankfurt to New York, Washington, D.C., Chicago and Hong Kong. The flights conclude with a short detour to the Lufthansa hub in Munich.

  • 25 March 2007

    The code-share agreement with Turkish Airlines comes into effect. The positive effects include coordinated flight timetables and cooperation in frequent flyer programmes.

  • 1 April 2007

    Electronic tickets only are issued for domestic flights in Germany.

  • 22 May 2007

    Lufthansa Technik delivers its first VIP aircraft, an A318 Elite.

  • 14 June 2007

    Lufthansa and Egypt Air sign a code-share agreement in Cairo.

  • 1 July 2007

    The integration of SWISS is complete. Lufthansa acquires all the shares in Swiss International Air Lines AG via AirTrust.

  • 14 August 2007

    The new First Class Lounge is opened in Munich. Lufthansa First Class customers and HON-Circle members can enjoy a gourmet restaurant, a bar, working areas, a cigar lounge and exclusive bathrooms in the 860-square-metre lounge, which extends over two floors.

  • 17 September 2007

    By partnering with the Swiss non-profit organisation MyClimate, Lufthansa and SWISS give their passengers the opportunity to donate voluntary carbon offsets for each kilometre flown.

  • 20 September 2007

    Lufthansa Cargo and DHL Express announce the establishment of a joint cargo airline in Leipzig.

  • 28 October 2007

    Between Frankfurt and New York there is now a connection with a Boeing 737 equipped as a pure business jet.

  • 5 November 2007

    Lufthansa expands its AIRail capacity between Frankfurt Airport and the main stations in Stuttgart and Cologne, while establishing a new departure and arrival station at Siegburg.

  • Dezember 2007

    Deutsche Lufthansa Berlin Stiftung (DLBS) acquires three Lockheed L-1649A Super Stars. In the late 1950s, this aircraft was Lufthansa’s flagship on long-haul routes. One of these three Super Stars is to be restored to full working order in the USA and will be flown in future by DLBS as a legacy aircraft.

  • 11 January 2008

    The A380 maintenance hangar in Frankfurt is opened. Two Airbus A380s or three Boeing 747s can be serviced simultaneously in the 25,000-square-metre hangar.

  • 22 January 2008

    Lufthansa acquires an interest of 19 per cent in the US low-cost airline jetBlue. From its base at New York’s John F. Kennedy Airport it operates a fleet of 104 Airbus A320 and 30 Embraer 190 jets.

  • 14 February 2008

    Lufthansa wins a prize for Best Corporate Brand for the first time. The “best brands” awards were set up by the journal Wirtschaftswoche and the German Brands Association and were conferred for the fifth time.

  • 19 March 2008

    One of the world’s largest hangars for technical aircraft servicing is formally opened at AMECO Beijing. The maintenance hangar is 350 metres long and 110 metres wide and has space for up to four Airbus A380s to be serviced at once.

  • 9 April 2008

    SunExpress, a joint venture between Lufthansa and Turkish Airlines, opens a new aviation hub in Istanbul. The airport Sabiha Gökcen is its third hub, alongside Antalya and Izmir.

  • 30 April 2008

    Staff and guests at Düsseldorf Airport celebrate the arrival of the first three Airbus A340 long-haul aircraft stationed here. The first aircraft is welcomed with a water fountain by the airport fire brigade and in the evening there is a party for around 3,000 guests in the maintenance hangar.

  • 15 May 2008

    LSG Sky Chefs moves its plant to Gateway Gardens. All the catering for all Lufthansa flights from Frankfurt will be run from the new LSG site. The move clears the way for adding urgently needed capacity at the Frankfurt hub.

  • Juni 2008

    In mid June, the refit is completed of the two long-haul A330 and A340-600 fleets with individual screens in Economy Class. Passengers can now compile their own personal entertainment programme from their seat.

  • 16 June 2008

    Lufthansa sets new targets for environmental and climate protection with its strategic environmental programme. Its 15 principles define how Lufthansa intends to make further substantial progress in environmental efficiency by 2020.

  • 24 September 2008

    The Lufthansa Supervisory Board approves an investment to acquire 45 per cent of Brussels Airlines. The airline traditionally operates a tightly woven network of connections to destinations in Africa.

  • 5 December 2008

    Lufthansa and the Austrian state holding company ÖIAG agree on the full integration of Austrian Airlines in the Lufthansa Group.

  • 31 December 2008

    Lufthansa acquires an interest of 50.9 per cent in Eurowings. AK Industriebeteiligung accepted the purchase offer for the shares.

  • 1 January 2009

    Eurowings Luftverkehrs AG sells its shares in the low-cost airline Germanwings to Deutsche Lufthansa AG.

  • 26 January 2009

    The first Welcome Lounge is opened at Frankfurt Airport. After landing, travellers in First and Business Class and status passengers can shower and have an unhurried breakfast in the lounge.

  • 2 February 2009

    Six Airbus A319s are to fly to European destinations from Milan under the brand name of Lufthansa Italia. The maiden flight on 2 February is headed for the Spanish port of Barcelona.

  • 1 March 2009

    Lufthansa expands its communication for children and teenagers with a new brand strategy under the JetFriends label. It focuses on Lu the crane, who has been a popular figure for more than 20 years. He is now accompanied by the crane chick Cosmo.

  • 2 April 2009

    The mobile boarding pass is also available on long-haul routes. The first destination for the new service is Vancouver in Canada. This makes Lufthansa the first airline in the world that is able to send passengers a boarding pass for an intercontinental flight to their mobile phone as a 2D bar code, both for flights from Germany and from Canada.

  • 24 April 2009

    The first of 15 new Bombardier CRJ900 jets for Eurowings completes its ferry flight from Canada to Germany. By mid 2010 the other 14 aircraft are delivered.

  • 12 May 2009

    Lufthansa tweets. Lufthansa’s Twitter stream offers a wide range of information, from special prices, new products and attractive prize draws to exclusive downloads and the latest news.

  • 19 June 2009

    Aero Logic, a joint venture between Lufthansa Cargo and DHL Express, is launched. Its maiden flight takes the brand-new Boeing 777F wide-bodied freighter from the Aero Logic hub in Leipzig-Halle to Asia.

  • 1 July 2009

    Lufthansa acquires 50 per cent plus one share of British Midland plc (bmi) and thus controls 80 per cent of bmi shares.

  • 1 July 2009

    Last flight for an Airbus A300-600 in Lufthansa livery. Lufthansa staff wistfully bid farewell to an aircraft model popular with both passengers and crew at a big send-off at the Lufthansa base in Frankfurt. The retirement of the A300-600 brings to an end the success story for the A300 series at Lufthansa that began in 1976 with the delivery of the original Airbus A300B2.

  • 3 September 2009

    Lufthansa, Austrian Airlines and Österreichische Industrieholding AG conclude the takeover of AUA by Lufthansa. Austrian Airlines thus becomes part of the Lufthansa Group.

  • 6 October 2009

    The great crane lifts into the skies for the first time. The first Lufthansa Airbus A380, with a more than four-metre long crane on its tail fin, takes off from Toulouse for its maiden flight. Three days later the aircraft lands in Hamburg, where its interior completion is to be carried out.

  • 1 November 2009

    Lufthansa’s British holding company (LHBD) acquires an additional 20 per cent of the shares in British Midland (bmi). From now on, Lufthansa is the sole shareholder of the British airline bmi.

  • 11 November 2009

    Lufthansa and JetBlue Airways start joint flights, with which the two airlines link their route networks via New York and Boston. JetBlue now operates connecting flights for Lufthansa on Lufthansa flight numbers to twelve destinations in the USA and Puerto Rico.

  • 1 December 2009

    Germanwings is the new airline partner in the Miles & More programme. This gives programme members the extra option of redeeming their award miles for flights with Germanwings.

  • 26 January 2010

    The first of Lufthansa CityLine’s nine Embraer E190s takes off from Frankfurt to Stuttgart with tail number D-AECA and flight number LH1354.

  • 15 April 2010

    The eruption of the Icelandic volcano Eyjafjallajökull in April precipitates widespread airspace closures throughout Europe. Some countries close their airports completely, while in Germany, only some departures and landings are permitted. From 16-19 April, Lufthansa has to cancel all flights from Frankfurt on the instructions of air traffic control.

  • 15 May 2010

    Lufthansa adopts the first demoiselle crane chick to be born in Frankfurt Zoo since 1962. Demoiselle cranes are the smallest and one of the most common species of crane.

  • 19 May 2010

    Lufthansa takes delivery of its first mega-Airbus A380. On the same day, the A380-800 with registration D-AIMA is given the name Frankfurt am Main by Petra Roth, the mayor of Frankfurt.

  • 19 May 2010

    The new Lufthansa First Class celebrates its global premiere on board the first Airbus A380-800. Its luxurious seats can be converted into beds that are 207 cm long and 80 cm wide.

  • 6 June 2010

    The German football team takes off on board the A380 D-AIMA for a special flight to the World Cup in South Africa.

  • 11 June 2010

    The first Airbus A380 takes off from Frankfurt at 2.32 p.m. on its first scheduled flight to Tokyo.

  • 29 June 2010

    The Lufthansa Training & Conference Center in Seeheim is designated a Certified Business and Certified Conference Hotel. This certificate from the German Travel Management Association accredits the centre as a professional conference hotel for business travellers.

  • 27 July 2010

    An MD-11 flown by Lufthansa Cargo crash-lands at Riyadh Airport in Saudi Arabia. Both pilots are injured and taken to hospital.

  • 2 September 2010

    Lufthansa’s third A380, the D-AIMC, is given the name Peking after its first scheduled flight to the Chinese capital. Its name is also written on the fuselage in Chinese characters. This marks the beginning of a new chapter for Lufthansa: in future, the aircraft in the A380 fleet will be named after great international cities.

  • 22 September 2010

    The Lufthansa Supervisory Board clears the way for the order of 48 jets. They include eight Airbus A330-300 wide-bodied jets and 40 aircraft for European routes and are destined for the Group companies SWISS, Lufthansa German Airlines and Germanwings. The list price of the order is approximately EUR 3.5bn.

  • 11 November 2010

    The first Lufthansa Boeing 747-8I takes shape in Everett near Seattle. The individual fuselage segments are put together in the final body join.

  • 22 November 2010

    Austrian Airlines presents the first aircraft completed with the modern new cabin layout. By September 2011, AUA will have refitted 32 of its aircraft in the new design, including jets from the Airbus A320 family and Boeing 737s.

  • 1 December 2010

    Lufthansa passengers on long-haul routes can now surf the internet from above the clouds. Together with its long-standing partners Panasonic Avionics Corporation and Deutsche Telekom, Lufthansa becomes the first airline to provide its passengers with broadband internet access on intercontinental flights.

  • 2 December 2010

    Completion of the shell for the future A-Plus pier at Frankfurt Airport is celebrated with a symbolic topping-off ceremony. On going into service it will increase the handling capacity of Terminal 1 by six million passengers a year.

  • 1 January 2011

    Dr Christoph Franz succeeds Wolfgang Mayrhuber to become Chairman of the Executive Board and CEO of Deutsche Lufthansa AG.

  • 1 January 2011

    The air traffic tax is introduced for all departures from Germany. €8 per passenger are charged for domestic and short-haul flights. For European flights the rate is €25 and for long-haul routes €45.

  • 16 March 2011

    Lufthansa Supervisory Board approves order for 35 new aircraft. They include 30 aircraft from the Airbus A320neo family for the passenger airlines in the Group. Five Boeing 777F freighters are intended for the Logistics segment.

  • 8 June 2011

    Flight operations start at the new airline SunExpress Deutschland. Three Boeing 737-800s fly from Frankfurt to Antalya and Malatya, and from Stuttgart to Gaziantep.

  • 15 June 2011

    Lufthansa is the first airline in the world to test biofuels in everyday scheduled operations. The Airbus A321 selected for the programme shuttles between Frankfurt and Hamburg. The test phase lasts for six months.

  • 1 July 2011

    Surf the net for free in the Lufthansa lounges. Guests in the Lufthansa lounges around the world can use the Wi-Fi provided by Deutsche Telekom to access the internet for free.

  • 8 July 2011

    A novel kind of long-term monitoring of the Earth's atmosphere takes place under the name of IAGOS. The data on atmospheric trace elements collected on board a Lufthansa Airbus A340 is available to research centres almost in real time.

  • 2 September 2011

    The first Boeing 747-8 Intercontinental leaves the manufacturer’s paintshop in Lufthansa livery.

  • 29 October 2011

    Lufthansa cancels its Lufthansa Italia brand introduced in 2008. The brand is discontinued when the summer flight timetable comes to an end. The Airbus A319 aircraft used by Lufthansa Italia are deployed in flight operations elsewhere in the Lufthansa Group from the winter flight timetable 2011/2012.

  • 6 December 2011

    Lufthansa opens a new centre for temperature-sensitive goods at Frankfurt Airport. The Lufthansa Cargo Cool Center was built in just six months.

  • 1 January 2012

    All airlines departing from and landing in Europe are included in the EU Emissions Trading Scheme. This was decided by the European Parliament on 8 July 2008. 85 per cent of the emissions trading certificates are allocated free of charge and 15 per cent are auctioned. Emissions trading costs Lufthansa millions.

  • 5 March 2012

    Lufthansa launches a new advertising campaign and presents the new slogan, “Nonstop you”. The aim of the campaign is to emphasise that the Lufthansa brand is open, surprising and accessible for all target groups – a quality airline for all.

  • 8 March 2012

    With Lufthansa Holidays, the airline offers an all-round holiday package. At www.lufthansaholidays.com, holidaymakers travelling from Germany can book not only flights, but also complete trips.

  • 1 April 2012

    The J+ joint venture is launched between Lufthansa and All Nippon Airways (ANA) from Japan. On routes between Europe and Japan, the two long-term partners can now market a joint product range to their sales and business partners.

  • 19 April 2012

    Lufthansa completes the sale of British Midland Ltd (bmi) to International Airlines Group (IAG) for a gross sales price of GBP 172.5m (approx. EUR 207m).

  • 2 May 2012

    Lufthansa is the first airline in the world to take delivery of a Boeing 747-8 Intercontinental. The new generation of Jumbos is much quieter and fuel-efficient than its predecessor.

  • 22 May 2012

    The new Business Class starts scheduled operations from Munich Airport. The Airbus A330-300 with registration D-AIKP is the first to be fitted as standard with the latest Lufthansa cabin: it has 48 seats with an integrated air-cushion system that open out into a fully-flat bed.

  • 1 June 2012

    Lufthansa is the first airline in the world to start scheduled operations with the new Jumbo, the Boeing 747-8 Intercontinental, on the Frankfurt–Washington, D.C. route. The aircraft with registration D-ABYA lands on schedule at 12.45 a.m. at Dulles International Airport in Washington.

  • 1 July 2012

    Austrian Airlines completes the transfer of operations to its subsidiary Tyrolean Airways. This step cuts production costs for AUA by up to one quarter. The “Austrian” brand and the “OS” code are maintained.

  • 21 September 2012

    Just in time for the launch of the new Passbook app for the iPhone operating system iOS6, Lufthansa passengers can have their boarding pass issued in the matching format. Passengers can use the mobile boarding pass via the Passbook function on their iPhone.

  • 23 September 2012

    Lufthansa CityLine operations now concentrate on Frankfurt and Munich. Reducing the number of fleets to just two – CRJ and Embraer – not only reduces the organisational and operational parameters for flight operations and MRO, but also cuts costs significantly.

  • 2 October 2012

    After a construction period lasting about four years, the A-Plus pier at Frankfurt Airport opens on time. The 800-metre-long western extension to Terminal 1 will mainly be used by Lufthansa and its Star Alliance partners.

  • 1 March 2013

    Lufthansa receives its first A320ceo with sharklets. The raked wingtips were designed by Airbus and deliver fuel savings of up to four per cent compared with the previous version.

  • 13 March 2013

    Lufthansa’s Supervisory Board approves the purchase of 108 aircraft for the Group. Six Boeing 777-300ERs are to be deployed on long-haul routes at the Lufthansa subsidiary SWISS, with two Airbus A380s and 30 Airbus A320neos going to Lufthansa German Airlines. Furthermore, the Executive Board was authorised to finalise ongoing negotiations for the purchase of a further 70 Airbus A320/321neo aircraft.

  • 23 April 2013

    The measuring kit to analyse any pollutants is now ready for use and is due to set off on its maiden voyage on the A380 route to Singapore. The specific aim is to record the change in the composition of cabin air during a “smell event”. In general terms the aim is to identify and quantify substances which may potentially be present in cabin air.

  • 8 June 2013

    Interested members of the public can find out about the dream of flying and attractive jobs in aviation at the first Aviation Day, which takes place at more than 20 sites in Germany. Lufthansa is also taking part in the project.

  • 1 July 2013

    New Germanwings takes off as Germany’s biggest low-cost airline and presents its business with a maiden flight. Three fare types will be on offer in a single Economy Class.

  • 20 July 2013

    The Lufthansa Ju52, affectionately known as Aunty Ju, completes 10,000 flying hours since her restoration on a flight from Frankfurt to Saarbrücken.

  • 31 August 2013

    Lufthansa’s First Class service collected the coveted International 5 Star Diamond Award in New York. No fewer than three Lufthansa Services were singled out: the Lufthansa First Class product on board the long-haul fleet, the Lufthansa First Class Terminal in Frankfurt and the Lufthansa First Class Lounge at JFK airport in New York.

  • 19 September 2013

    Lufthansa announces the biggest aircraft order in the company’s history. 25 Airbus A350-900s and 34 Boeing 777-9X wide-bodied jets will rejuvenate the Lufthansa Group’s long-haul fleet from 2016 onwards. With an investment volume at list prices of EUR 14bn, this is the largest single private investment in the history of German industry.

  • 26 October 2013

    Lufthansa’s last propeller flight. The ATR 72-500 aircraft operated by Lufthansa regional subsidiary Air Dolomiti flies from Munich to Trieste. In future, Lufthansa will solely deploy Embraer 190/195 and Bombardier CRJ700/900 jet aircraft, which can carry upwards of 70 passengers, in its regional fleet.

  • 19 November 2013

    Lufthansa Cargo takes delivery of the first Boeing 777F freighter aircraft. This new aircraft model is to successively replace the Boeing MD-11F fleet at Lufthansa’s cargo subsidiary.

  • 2 February 2014

    Lufthansa’s Supervisory Board appoints Carsten Spohr to succeed Dr Christoph Franz as Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. Spohr, who is the Executive Board member responsible for Lufthansa Passenger Airlines at the time, officially takes up the appointment on 1 May 2014.

  • 5 March 2014

    World premiere at the International Tourism Exhibition (ITB) in Berlin. Lufthansa presents the new Premium Economy travel class, which is situated between Business Class and Economy Class on long-haul routes.

  • 2 April 2014

    The Lufthansa Group is to reorganise its IT division. One emphasis is on organisational changes at Lufthansa Systems AG, which is to be split into three companies.

  • 7 April 2014

    Lufthansa announces that 40 new aircraft from the A320neo family will be equipped with the quiet and highly efficient LEAP-1A engines from General Electric. Deliveries are due to take place from 2021. 60 more A320neos are to be delivered from 2016 onwards, with comparable PW1100G engines from Pratt&Whitney.

  • Mai 2014

    The redesigned Lufthansa Business Class and the new Lufthansa Premium Economy long-haul travel class win the Red Dot Award from an international jury for their outstanding design.

  • 1 May 2014

    Carsten Spohr becomes Chairman of the Executive Board and CEO of Lufthansa.

  • 15 July 2014

    The new football world champions are flown straight back to the fan mile in Berlin on the Lufthansa Boeing 747-8 with its “Siegerflieger” lettering.

  • 15 September 2014

    Lufthansa Group orders 15 more A320neo and ten A320ceo aircraft for its Group companies. It takes the total number of aircraft on the Group’s order list to 265, with a list price of EUR 30bn.

  • 2 October 2014

    New Premium Economy Class takes off. The new travel class is part of the biggest product upgrade in Lufthansa’s history.

  • 22 November 2014

    All Lufthansa’s Boeing 747-8Is have been retrofitted with the new Premium Economy Class.

  • 27 November 2014

    Lufthansa hands over to the German government the world’s first evacuation plane for the transport and treatment of Ebola patients. At the request of the Federal Foreign Office, Lufthansa Technik spent the last few weeks converting what was previously a passenger aircraft called the “Villingen-Schwennigen” so that it could be used for this special humanitarian mission. Under its new name, the “Robert Koch”, it now serves as the world’s only evacuation facility for highly contagious patients.

  • 3 December 2014

    Carsten Spohr, Lufthansa’s Chairman of the Executive Board and CEO, presents the new Group strategy “7to1” on 3 December. Its key elements are: to relaunch the Eurowings subsidiary as a low-cost platform, initially in parallel with Germanwings, with a homogeneous A320 fleet. To station up to seven new, leased Airbus A330-200 wide-bodied jets in Cologne Bonn. To sign a letter of intent to operate the Eurowings long-haul routes with SunExpress cockpit crews.

  • 16 December 2014

    Presentation of the long-haul programme Jump. Attractive new destinations are to be added to the Lufthansa route network from December 2015. Flights to the new long-haul tourist destinations will be from Frankfurt under LH flight numbers.

  • 1 January 2015

    Flight Captain Martin Gaebel is named deputy member of Lufthansa’s Executive Board.

  • 1 February 2015

    The first Airbus A320 takes off in the new Eurowings livery for its maiden flight from Hamburg to Prague.

  • März 2015

    As of spring, the Lufthansa Group will be fuelling its aircraft at Oslo Airport with a biokerosene mixture. The Group recently became the first airline group to sign this kind of contract with the Norwegian oil company Statoil Aviation.

  • 4 March 2015

    Official sales start for short- and long-haul flights with the new Eurowings. Eurowings intercontinental flights depart from Cologne Bonn Airport starting on 1 November 2015. The cheapest tickets on the long-haul routes are already on offer from EUR 99.99 per route. The first flights will take off to the Caribbean, Dubai and Thailand.

  • 24 March 2015

    The 24 March 2015 marks the date of the worst tragedy in the history of the Lufthansa Group.

    At 10:41 that morning, an Airbus 320 bearing the flight number Germanwings 4U9525 and en route from Barcelona to Düsseldorf came down in the French Alps, 140 kilometers to the northeast of Marseilles. All 144 passengers and six crew members perished in the crash. The victims were from 17 different countries, although most hailed from Germany and Spain.

  • 22 August 2015

    Tante Ju

    Lufthansa JU 52 receives a globally unique honour: Tante Ju" (Auntie Ju) becomes a flying monument

    The "Tante Ju" has been bestowed an honour as no passenger aircraft before: As the world's first and only historic commercial aircraft certified for commercial flight operations, the Office for Heritage Preservation of the Hamburg Department for Culture has designated the Ju 52 a heritage asset as a "mobile monument". This underlines the importance of the aircraft as an example of the history of architecture, engineering and aviation, the use and conservation of which lie in the public interest.

  • 1 October 2015

    New Economy Class fares for European routes

    Lufthansa, Austrian Airlines and Swiss are launching a new Economy Class pricing concept on European routes, allowing passengers in all Economy booking classes to choose from three fare options: Light, Classic and Flex. Each of these involves fixed conditions which differ according to price. Those travelling with hand-luggage only will be able to do so cheaper with the new Light fare, while business travelers can purchase flexible tickets (changes free of charge) with the Flex fare, meaning passengers only pay for the services they actually use.

  • 1 November 2015

    The launch of the new Eurowings

    Intercontinental flights operated by the new Eurowings are now starting up out of Cologne-Bonn Airport. The first services will fly to the Caribbean, Dubai and Thailand, with the cheapest long-haul fares available from just 99,99 Euros per leg.

  • 20. January 2016

    Acquisition of the first A320neo

    Lufthansa was the first customer to acquire the first of these quiet aircraft.

    The A320neo has new engines and improved aerodynamics which have made significant progress in terms of noise and emission reduction possible. Lufthansa has ordered a total of 116 aircraft of the A320neo family.

  • 22. January 2016

    With biokerosine from Oslo

    Lufthansa Group fuels their aircraft at Oslo Airport with a fuel mixture that contains five percent biokerosine. It is the first airline group in the world that has signed a regular procurement agreement of this kind with a supplier.

  • 26 April 2016

    Satellite terminal at Munich Airport

    Munich Airport and German Lufthansa put the new satellite terminal at Munich Airport into operation.

    Munich Airport and German Lufthansa put the new satellite terminal at Munich Airport into operation. The satellite has 27 aircraft parking positions near to the building and offers passengers attractive restaurants and shopping opportunities over an area covering 7,000 square metres. The CO2 emission is 40 percent lower in comparison to existing terminals.

  • 20 September 2016

    Joint Venture with Air China

    Lufthansa and Air China sign a contract for a commercial joint venture in Beijing.

    Lufthansa and Air China sign a contract for a commercial joint venture in Beijing. Code-sharing connections, flight plan coordination and joint tariff offers should intensify the business collaboration.

  • 19 December 2016

    Acquisition of the first A350

    Lufthansa acquires its first A350-900 in Hamburg.

    Lufthansa acquires its first A350-900 in Hamburg. The twin-engine long-haul aircraft is to a great extent made from composite materials and is the most modern and environmentally friendly aircraft on the market. For Lufthansa it is their entry into the 2-litre class.

  • 1 January 2017

    Ulrik Svensson becomes Chief Financial Officer

    Ulrik Svensson is appointed to the Executive Board of Deutsche Lufthansa AG and takes over leadership of the financial department. He succeeds Simone Menne, who resigned from the Executive Board on 31st August 2016.

  • 9 January 2018

    Acquisition of Brussels Airlines

    Acquisition of Brussels Airlines.

    Lufthansa exercises a call option to purchase the remaining 55 per cent of the shares and takes over 100 per cent of SN Airholding. Brussels Airlines will be fully integrated into the Lufthansa Group from 2018 and fly under the roof of the Eurowings Group.

  • 1 February 2017

    Cooperation with Etihad

    Etihad Aviation Group and Lufthansa announce an extension of their cooperation.

    Etihad Aviation Group and Lufthansa announce an extension of their cooperation. Code-share flights between Frankfurt, Munich and Abu Dhabi will be offered and further connections to Rio de Janeiro and Bogotá will be added later. Lufthansa subsidiary LSG Sky Chefs is taking over the catering for Etihad in 16 European, Asian and American cities. A declaration of intent for the maintenance, repair and a general overhaul of aircraft was signed with Lufthansa Technik.

  • 13 October 2017

    Contract for the purchase of parts of the Air Berlin Group signed

    Contract for the purchase of parts of the Air Berlin Group signed.

    Lufthansa Group and Air Berlin Group sign agreement to acquire NIKI Luftfahrt GmbH and Luftfahrtgesellschaft Walter mbH (LGW). The capacity at Eurowings is to be further increased by these two airlines. In mid-December 2017 the EU Commission prohibits the acquisition of NIKI.

  • 4 December 2017

    Lufthansa is the only European five-star airline

    Lufthansa is the only European five-star airline.

    Lufthansa is the first airline outside Asia to receive the five-star seal of Skytrax, the British management consultancy specializing in aviation. It has thus joined the select circle of ten airlines that now hold the coveted award. The Skytrax jury has been awarding Lufthansas First Class a five-star rating for many years now, now the entire airline is receiving the award.

  • 7 February 2018

    Lufthansa presents new brand design – origin meets future

    Lufthansa presents new brand design – origin meets future.

    At two major events at its hubs in Frankfurt and Munich, Lufthansa presents its new, modernized brand identity to customers and employees. The most visible sign of this change is the new paint scheme for the aircraft. A darker blue becomes the leading brand color. On the occasion of the 100th anniversary of the Lufthansa crane, every detail of the design was revised - above all with a view to the requirements of the digital age. The new Lufthansa appearance lends the individual elements to a new, modern quality and sharpens their effect. The designers attached great importance to picking up on the unique design tradition of the Lufthansa brand and leading it into the future.

  • 25 March 2018

    Lufthansa stations five Airbus A380s at Munich Airport

    Lufthansa stations five Airbus A380s at Munich Airport.

    With the start of the summer flight schedule, Deutsche Lufthansa is deploying a total of five Airbus A380 long-haul aircraft at Munich Airport. From its Bavarian hub, the airline with the largest passenger aircraft in the world will now take off daily for Los Angeles, Beijing and Hong Kong. After London, Paris and Frankfurt, Munich will thus become only the fourth European location to station Airbus A380 wide-body aircraft.

1926 -1950

The history of first Lufthansa from the origins until 1945

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The 1950s

A new beginning: Starting over with fresh spirit

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The 1960s

Jets replace propellers: Time savings on all routes

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The 1970s

Despite several crises: Flying in wide-body dimensions

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The 1980s

Global challenge: Competing for customers

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The 1990s

From airline to Aviation Group

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The 2000s

Taking off into the new millennium

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The 2010s

The Lufthansa Group: Mobility and ecological efficiency

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The history of Lufthansa from the origins until 1945

It was only at the beginning of the last century that the human race first began to see its dream of flight come true. The pace with which international aviation has developed since then is truly fantastic, and German aviation played a significant role in this grand adventure.

1920s

A pioneering era: from adventure to routine operations

Fly in open aircraft, in the dead of winter? Could such a thing really be possible? It just had to work. And the time was now: the beginning of the 1920s, right after the war. Politicians and journalists were the first to crouch on uncomfortable planks, “air-cooled” and surrounded by mail bags and parcels. They were real pioneers. But it wouldn‘t be long until they‘d be sitting in full-fledged passenger aircraft, equipped with heated cabins. By now a number of a small aviation companies had sprung up in Germany. Their aircraft made wobbly trips, back and forth, from one city to another – preferably along rail lines and during the day. Pilots didn‘t have radio contact with the ground yet. Only two airlines survived the all-out competitive battle: Deutscher Aero Llyod and Junkers Luftverkehr. For the subsidies-paying German state, however, this was still one too many. After the two joined forces to found “Deutsche Luft Hansa AG” on January 6, 1926, the flight path started to point upward.

With the introduction of the summer timetable 1928, Lufthansa offered a special air freight service: During certain periods of the year, the airline operated daily cargo flights covering a route network measuring 3,855 kilometers.

In 1926, a “path of lights” marked the way for the pilots of the first night flight from Berlin to Königsberg. Rotating floodlights had been installed every 25-30 kilometers; in between, neon lights or gas beacons were perched on masts or atop gables – like little lighthouses – every four or five kilometers. The aircraft itself was equipped with floodlights and electrically lit magnesium lights on its wings, and the cockpit instruments were also illuminated. Onboard radio equipment was still in the experimental stages.

1930s

Growing trust: Further, faster and more comfortably

Experienced pilots, with thousands of flight kilometers under their belts, found themselves back at school: They squeezed into a tiny cockpit with blacked-out windows blocking any view to the outside. There pilots learned to fly by instruments alone, to fly under adverse weather conditions and at zero visibility. This was a giant step forward for aviation, passengers and mail. Airlines were better able to adhere to their timetables, even in fall and winter.

Flying lost its seasonal character. What‘s more: Larger aircraft could now fly longer routes – and therein lay the future, not in the “hop-and-skip-routes” of the early years, which merely cost subsidy money. For Lufthansa, South America and the Far East now drew within reach.

The 1937 Pamir expedition across the Hindu Kusch mountain range to China aimed at exploring possible routes for scheduled flights to the Far East.

Passengers aboard a Ju 52 enjoy the comfort and fantastic views offered by its large rectangular windows.

1940s

The war years: The fight for survival

Europe was in the grips of war – one that was soon to escalate into a world war. The Reich‘s government obligated Lufthansa by law to provide services, transport flights and technical operations. All Lufthansa documents, including the annual report, were stamped “Secret!” Despite all the difficulties, it was business as usual.

Connections to neutral countries were particularly of great importance. That‘s where businessmen, diplomats and agents continued to fly: that‘s where post and information were exchanged. During the war years, timetables were always subject to changes at short notice. At the beginning of the decade, even Tempelhof, the airline‘s home airport, had to be evacuated for a time. And finally – in 1945 – came the “over and out” for Germany and for Lufthansa.

Publications

In the Sign of the Crane

Joachim Wachtel and Günther Ott’s richly illustrated book “Im Zeichen des Kranichs” (In the Sign of the Crane), about the beginnings of Deutsche Luft Hansa, founded in 1926, is the story of human triumph over gravity, distance and time. It also covers the Second World War period through the start of the company’s dissolution in 1951. Deutsche Lufthansa AG is publishing the book in spring 2016 on the occasion of the 90-year anniversary of the founding of the first Lufthansa.

Order (ISBN: 978-3-492-05788-2)

Study

On behalf of the company, Dr. Lutz Budraß examined the role that foreign employees played at Lufthansa during the Second World War. His study has been available free of cost since 2001 at Lufthansa’s historical archive. A bound edition is now also available for the first time in book stores as a supplement to Wachtel and Ott’s book “Im Zeichen des Kranichs”.

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The 1950s

A new beginning: Starting over with fresh spirit

Courage and drive were behind Lufthansa’s fresh start. But these were troubled and insecure times, the years of the Cold War. Almost at the same time, two companies named Deutsche Lufthansa took to the skies – one on each side of the Iron Curtain. American and British pilots sat beside their German colleagues in the cockpits of Lufthansa aircraft in the West, while Russian and German pilots shared the controls in the East. This set-up was not meant to last. Yet Allied regulations in the former capital of the Reich did not allow the young, up-and-coming Federal Republic to fly through the air corridors to West Berlin, to Tempelhof and Tegel Airports. And as things turned out, this restriction was to remain in place for decades to come. Consequently, the new Lufthansa developed in new centers. First in Hamburg and Cologne, and then in Frankfurt.

Nucleus for rebirth

The postwar era brought about great change. The first democratic government under Chancellor Konrad Adenauer had been in office since 1949. Rationing coupons – a reminder of the war and the country’s state-controlled economy – had just been abolished in 1950. Now the time seemed to be ripe to put those long-held plans for the reconstruction of a national airline to the test of real-life conditions. During the years of the “economic miracle,” the up-and-coming Federal Republic of Germany increasingly gained in self-confidence. It found itself courted militarily by other nations, and was right on track to regain its sovereignty, including sovereignty over its air space.

Early on, the first Federal Transport Minister, graduate engineer Hans-Christoph Seebohm, had pointed out the necessity and economic significance of a national airline. At a 1949 conference of the transport ministers of the German states in Berlin, he had already reflected on the “fundamental right of a state to decide on all modes of transport on its own authority”.

Graduate engineer Gerhard Höltje, a seasoned technical hand, decided on the first aircraft orders.
Graduate engineer Gerhard Höltje, a seasoned technical hand, decided on the first aircraft orders.

As the 1950s began, there were many convincing reasons that spoke for founding a new, wholly German airline – at least from a German perspective. Rebuilding the economy, reestablishing business relationships dating back to the prewar years, these matters required intact links abroad, links that were independent of the purely commercial considerations of foreign companies. It was also becoming clear that air transport was set to develop into an important economic force and source of employment. No one could foresee, though, the actual scope this development would eventually take.

When the Ministry of Transport finally started, with Allied consent, preparing the way for an independent German air transport industry, business consultant Hans M. Bongers was the obvious man for the job.

Bongers had long since presented plans for such an endeavor. On May 29, 1951, Transport Minister Seebohm named Bongers his advisor on air transport issues. His brief was to “advise the Federal Government on the issues of future air transport and work actively as an expert in this field.” Above all, he was to dedicate himself to the “problems of establishing and operating a new German airline.” The “Bureau Bongers” moved to Cologne, closer to the country’s “provisional capital,” Bonn.

Looking back, Bongers’ sparsely furnished planning office was to become the basic nucleus for the rebirth of the airline. This also explains why the new Lufthansa was incorporated in Cologne, and established its headquarters there.

Bongers was one of the few in Germany who had learned the airline business from the bottom up. In 1924, when he was working at Junkers, he had started developing an operating cost reporting system for air transport. He was concerned with profita-bility at a time when everybody else still thought in terms of subsidies. At the old Lufthansa, Bongers had worked his way up from workshop manager, manager with power of attorney and division director to head of operations for the entire company.

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“Bureau Bongers, 1st floor”: The sign on the door of the Cologne consultancy.
“Bureau Bongers, 1st floor”: The sign on the door of the Cologne consultancy.
Shaping the future of German avia-tion:  Hans M. Bongers
Shaping the future of German avia-tion: Hans M. Bongers

To his office on Cologne’s Kaiser-Wilhelm-Ring, Bongers had attracted a team of aviation experts – former Lufthansa colleagues. Walter Issel, for instance, who had served on the board of Deruluft, had been corporate lawyer at Lufthansa and an employee of the Zeppelin Group. And Captain von Engel, who had flown routes across the North and South Atlantic.

Since September 1951, Bongers’ contact at the Ministry in Bonn had been the “De-part--ment of Air Transport” under Ministerial Director Kurt Knipfer. Knipfer, himself a member of Lufthansa’s Supervisory Board from 1926 to 1944, was intimately familiar with all the problems concerning the airline and the air transport industry in general.

Bongers found the ideal partner on the technical side of the business in graduate engineer Gerhard Höltje. At the old Luft-hansa, Höltje had taken part in the development of seaplanes. And he had been a certification engineer at several of the larger German aircraft manufacturers before head-ing the testing department of the Technical Development division at Lufthansa. After the war, he was active in the maintenance of the American transport aircraft stationed at Tempelhof Airport, which kept him in touch with the latest developments in modern aviation.

Everything that Bongers planned was purely theoretical at first. Plenty of paper paved the path toward the new Lufthansa. His expertises, calculations and analyses served as a basis for the work of the “Preparation Committee Aviation” (PCA). The committee was made up of eight representatives of the Federal Government, the German states and industry. Dr. Kurt Weigelt, the last deputy chairman of the old Luft-hansa’s Supervisory Board, was appointed chairman of the PCA.

The PCA evaluated the possibilities for German commercial aviation and drew up guidelines for a German airline that was yet to be incorporated. All of this was accomplished with the awareness that “reestablishing German air transport is an extremely difficult task for our impoverished, torn and struggling country.”

Theory and practice

The planners were busy planning, but their plans didn’t quite match reality – at least not timewise. According to optimistic projections, German aircraft were to be in the air again by 1953. But the negotiations with the Allies concerning the new treaty for the Federal Republic dragged on, and without a treaty there was no green light.

Progress was slow at first, made one step at a time. On September 26, 1952, the cabinet approved a preparatory company for the planned air transport activities. And on January 6, 1953, a highly symbolic date as this was also the anniversary of the old Lufthansa, the founders gathered in the conference room of the Chamber of Commerce in Cologne to launch the “Aktiengesellschaft für Luftverkehrsbedarf” (Luftag). Its shareholders were the Federal Republic, the German Railway and the state of North Rhine-Westphalia. Together, they put up a share capital of DM 6 million. Dr. Kurt Weigelt was named Chairman of the Super-visory Board.

Bongers and Höltje now headed Luftag in Cologne, turning theory into practice. Finally, there was something like a perceptible “propeller wind.”

Luftag was authorized to purchase aircraft, hire and train employees, and create a ground organization. Starting August 6, 1954 it was also allowed to call itself “Deutsche Lufthansa Aktiengesellschaft” – a visible expression of its identification with the great model. It did not become the former airline’s legal successor, however, as it had merely acquired the name from the “Deutsche Lufthansa Aktiengesellschaft in Liquidation.”

At the top of the agenda was the choice of suitable aircraft. Unlike the situation before the war, there were no German aircraft manufacturers. No Junkers, Heinkel, Dornier or Focke-Wulf, which would have worked closely with the airline to develop aircraft in accordance with its needs. Now the centers of technical development were concentrated exclusively in America and England.

Limited means – the shareholder capital had to be quickly increased to DM 25 million and shortly thereafter to DM 50 million – left no room for experiments when it came to selecting aircraft. The final choice was four Convair CV 340s for short and medium-hauls and four Super Constella-tions for long-hauls, all factory-new American airplanes.

And to fly these aircraft, the airline needed pilots. Luftag applied strict exams to select a few pilots from the former Lufthansa pool as suitable candidates for the necessary retraining. In early November 1953, five pilots and five flight engineers began their training at the Luftag offices in the former building of Cologne University. In the end, this course was to take them to the aircraft factories on America’s West Coast.

Three women with a “dream job”:  Lufthansa stewardesses in the 1950s.
Three women with a “dream job”: Lufthansa stewardesses in the 1950s.

And flight attendants were sought after too. During the tough postwar years, being a stewardess was considered the veritable “dream job” for women. The whole world was thought to be at their feet. Here a quote from the press of the day: “Smartly uniformed, gracious, helpful, almost all-knowing and altogether charming, the girls who look after the well-being of passengers aboard civil airliners are passionately envied for their job, which appears to be cloaked in the mystery of romance and travel. But how few of the teenyboppers who dream today of joining this profession realize just how much responsibility and effort serving aboard the giants of the air implies, how high the expectations that airlines must have of applicants actually are, and how many sacrifices one has to make if one chooses this task!” Not surprisingly, applications came in by the basketful, even though standards were set so very high.

In the meantime, new hangars arose at Fuhlsbüttel Airport. They were to make Hamburg Lufthansa’s engineering base, and the home base for its fleet. Venturesome and far-sighted, as is fitting for a Hanseatic city, Hamburg’s senate had agreed to construct hangars and buildings for Lufthansa, giving the city a second port, this time an airport. The city put up DM 11 million for these investments. At the time, Hamburg appeared to be the most promising point of origin for intercontinental connections.

A lot was improvised, and certain things were downright primitive. The station manager in Frankfurt, for example, had a provisional office in the hangar. The furniture consisted mainly of a table that had been nailed back together, a typewriter, a cashbox with precious little money, some files and a few forms. The station manager and his assistant “resided” on upturned boxes. Such was the pioneer era at the new Lufthansa…

“Chocks away!”

In March 1955, after the Allied authorities and the German Ministry of Transport had given their approvals, Lufthansa began with trial flights over the Federal Republic. British captains flew with German copilots: practical training for the new, the second start.

The Federal Government, which had played a key role in Lufthansa’s comeback, provided the organizational framework for Germany’s newly-constituted air transport. It organized air traffic control, created the necessary legal basis and put the state’s aviation administration in place.

On the international scene, too, the country started joining in again. In 1954, at the request of the European Council, representatives of the Federal Republic of Germany took part in a conference on the coordination of air traffic in Europe, organized by the International Civil Aviation Organization (ICAO). This conference lead to the foundation of the European Civil Aviation Confer-ence (ECAC), whose constituting session took place at the end of 1955, once more with the Federal Republic of Germany participating.

A year later, Germany joined the treaty on international civil aviation and the transit agreement, which had been passed on December 7, 1944 at the international aviation conference in Chicago. This made the Federal Republic of Germany a member of the ICAO, a specialized United Nations organization, whose major task is to simplify the rules that govern worldwide air transport.

On April 1, 1955, Lufthansa, this “late homecomer of German industry,” once again started flying its flag – bearing the crane so rich in tradition and the colors

blue and yellow. Exactly 10 years had come and gone since the total hopelessness in the face of the ruins of 1945 and the modest, new beginning, noted more in passing by the wider public.

On the morning of April 1, two Convairs took off almost simultaneously in Hamburg and Munich for a day of regular scheduled services. Each time the planes made a stopover, speeches and receptions marked the occasion.

Pan American welcomed Lufthansa in newspaper ads: “Hello Lufthansa! We welcome this ‘new’ old member into the ranks of world airlines. We’re delighted by this addition to the family, and are convinced that Lufthansa’s long-standing tradition will determine its future performance too. Chocks away!”

Loading mail.
Loading mail.
A Convair CV340 in front of the terminal at Frankfurt Airport shortly after operations started  up again.
A Convair CV340 in front of the terminal at Frankfurt Airport shortly after operations started up again.

First flights

Lufthansa’s first timetable was no more than a simple flyer, offering just four flights, Monday-Friday, on routes within Germany.

On May 5, 1955, the Paris Treaties went into effect. The Federal Republic regained its sovereignty, including sovereignty over its air space. By mid-May, Lufthansa was once again able to fly to Paris.

On May 15, 1955 at Madrid’s Barajas Airport, the airline reopened the historically important route linking Germany to the Iberian peninsula, a route that had been served by Lufthansa aircraft until 1945. The next day, the routes from Hamburg and Munich to London, the center of European air transport, were inaugurated with festive ceremonies. And the day after that, Hans Bongers and Monsieur Lemaire, the head of civil aviation in France, gave speeches to mark the kickoff of services at Orly Airport in Paris.

The opening of the first long-haul routes didn’t have long to wait, either. The first scheduled North Atlantic flight took place on June 8, 1955. American carrier TWA provided pilots for the Super Constellations – ten to start with. Their numbers would increase to 20 by the end of April 1957. And at the end of March 1956, the first all-German cockpit crew took off on a flight to the USA. Super Constellations flew scheduled nonstop services on the routes from Frankfurt and Dusseldorf to New York. The “Super Conny” had been equipped with additional fuel tanks, so-called wing-tip tanks. The sleek “Queen of the Skies,” as it was affectionately known, was an elegant, reliable high-performance aircraft with a cockpit crew of at least five, including navigator and radio operator.

The flagship of the Lufthansa fleet: the Super Constellation from Lockheed. Their characteristic vertical stabilizers made these aircraft unmistakable.
The flagship of the Lufthansa fleet: the Super Constellation from Lockheed. Their characteristic vertical stabilizers made these aircraft unmistakable.
The first training course for flight attendants took place from January 3 to February 12, 1955.
The first training course for flight attendants took place from January 3 to February 12, 1955.

Rapid reconstruction

In these early pioneer years, the new Lufthansa employed about 1,100 people. After one year of operations, the balance sheet of their work read like this: Lufthansa had carried about 104,000 passengers on scheduled and special flights, covering a distance of 5,066,000 flight kilometers in 15,900 flight hours. It had also flown about 1,000 tons of freight and 500 tons of mail. And it served 12 airports.

Parallel to expanding German and European services, parallel to taking those much more difficult first steps on intercon-tinental routes, first to North America in 1955 and then to South America and the Far East in 1956, Lufthansa could now begin to secure its international transport interests by negotiating contractual agreements.

The first bilateral air transport agreements were signed in 1955, with the USA and Great Britain in July and with France in October. In the years and decades to follow, the Federal Republic of Germany signed more than 80 such agreements, thus acquir--ing an extensive list of assets in the form of traffic rights by exchanging comparable rights in Germany.

In all negotiations with other countries to establish air services over the years, the Federal Government has designated Luft-hansa as the German airline authorized to exercise the agreed-on traffic rights. This has made Deutsche Lufthansa the carrier that represents national air transport interests abroad. In the process, the airline has acquired not only the rights but also the duty to offer, within the limits of its economic possibilities, a comprehensive worldwide route network.

Lufthansa also became a member of the International Air Transport Association (IATA) again. At a meeting of its executive committee June 6-8, 1955 in Montreal, the IATA, which represents the interests of international airlines, accepted Lufthansa as a member with immediate effect. The airline received the rights to attend and vote at IATA traffic conferences. Since its reinstatement as a member, Lufthansa has proven its positive attitude toward the IATA by participating intensely in the work of numerous committees and work groups.

During this period of rapid reconstruction, the number of employees grew year by year: At the end of 1957 the airline had almost 5,000 employees, and by the end of 1958 this number had already exceeded the 6,000 mark. The number of pilots rose as the route network expanded and the fleet grew. The airline added such new aircraft as the four-engined Lockheed L 1649 A “Super Star” for long-haul routes as well as the twin-engined Convair 440 and the Vickers Viscount.

With regard to training pilots, Lufthansa made an important decision early on – it established its own flying school, which opened on May 1, 1956 in Bremen. Twelve trainee pilots took part in the first training course.

Highest standards of service

The new Lufthansa took to the skies in 1955 with a route network of about 8,000 kilometers. By the end of 1959, its routes had already expanded to cover almost 93,300 kilometers. In the first reporting year, 74,000 passengers traveled aboard Lufthansa aircraft. In 1959, the last year of the propeller era, this number climbed to 786,000. These figures all reflect the performance of the expanding Lufthansa sales organization and the IATA agents working on its behalf.

In competing with the established car-riers, who were already operating faster jets such as the Boeing B707, service quickly became a top priority, especially on the North Atlantic route. That is why Lufthansa launched a luxury service by the name of “Senator” in November 1958 – first once a week, a year later twice a week – on the Hamburg–Frankfurt–Dusseldorf–New York route. While the “Super Star” carried up to 86 passengers on all-Economy Class flights, its “Senator” services offered only eight First Class seats, 18 Deluxe seats and four beds, for a grand total of 30. The walls of the elegant lounge were covered in leather. And the cabin crew was upgraded to include the airline’s own specially trained, in-flight chef, who prepared dishes à la carte, including potato pancakes, a dish highly appreciated and frequently requested by passengers. Inbuilt tape recorders and loudspeakers saw to it that there was plenty of entertainment aboard. Flying had become a “Senator” Class pleasure…

Fulfilling the highest expectations in matters of comfort, Lufthansa’s “Senator” service rapidly won the approval of captains of industry, stars of show business and other VIPs. It was even popular with crowned heads: King Ibn Saud chartered a Lufthansa Super Constellation on August 31, 1959 to fly from Geneva to Cairo on a state visit – an enormous prestige plus for the airline. Later, Lufthansa offered “Senator” service in the First Class cabins on all its intercontinental routes, modifying it as needed for the shorter flying times. Today, the red rose still symbolizes the highest standards of service.

Nor did the airline lose sight of regular air tourists, a growing market segment at a time of rising incomes. On December 21, 1955, Norddeutscher Lloyd, Hamburg-Ameri--ca Line, the German Railways and Lufthansa jointly founded Deutsche Flugdienst GmbH, later to become Condor Flugdienst GmbH. On March 29, 1956, its entire fleet – consisting of three Vickers Vikings – took off for its first touristic flights. Its first passengers were pilgrims flying to the Holy Land.

Top-level comfort in First Class: Lufthansa has been offering its Senator Service since November 1958.
Top-level comfort in First Class: Lufthansa has been offering its Senator Service since November 1958.
Inauguration of the South Atlantic route on August 15, 1956. Also aboard: the Lufthansa chef, who looked after the passengers’ culinary well-being.
Inauguration of the South Atlantic route on August 15, 1956. Also aboard: the Lufthansa chef, who looked after the passengers’ culinary well-being.
Lufthansa hosts the VIPs: Ski champion Toni Sailer in front of a Lockheed Super Star.
Lufthansa hosts the VIPs: Ski champion Toni Sailer in front of a Lockheed Super Star.

Two, side by side

And something else had happened, something almost absurd: A second – strictly speaking a third – Lufthansa appeared in the eastern part of the divided Germany, in the German Democratic Republic (GDR). By the mid-1950s, civil aviation started taking shape in that country, too, oriented in its organization toward the Soviet Union and thus Aeroflot.

The GDR’s council of ministers appointed the first directors of that Deutsche Lufthansa on July 1, 1955. This was considered its official date of incorporation.

Flight operations began in September, first on domestic routes in a network extending from Berlin Schönefeld to Dresden, Leipzig, Chemnitz (at the time called Karl-Marx-Stadt), Erfurt and Barth. In the same year, the East German Lufthansa also start-ed flying to Eastern Block countries – its preferred routes. Beginning in 1957, the airline was ready and able to fly with its own, German crews.

An aircraft of the “other” Lufthansa, from the German Democratic Republic, at Moscow Airport.
An aircraft of the “other” Lufthansa, from the German Democratic Republic, at Moscow Airport.

The fleet comprised up to 25 twin-engined Iljushin IL-14s, plus multipurpose airplanes and helicopters. These aircraft, too, carried the crane as the airline’s corporate logo on their horizontal stabilizers.

In the international arena, however, two “Lufthansas” flying side by side with the same corporate design were bound to have difficulties. As early as 1958, the first retrenching battles were fought in the East by incorporating “Interflug” as a company with limited liability, in which the East German Lufthansa and other state-owned companies held shares. Interflug flew with aircraft and crews of Lufthansa East, and started operations exclusively as a charter airline.

After years of effort, the legal department of the Cologne-based Lufthansa finally suc-ceeded in imposing its name and logo internationally – against opposition above all from the Eastern Block. But it was not until 1963, following a lawsuit filed in Bel-grade, that the GDR Lufthansa would be absorbed by “Interflug, Gesellschaft für inter-nationalen Flugverkehr mbH”. Interflug took over all flight operations on September 1, 1963.

Planning for the jet age

Circumstances had put Deutsche Lufthansa off to a late start, and that at a time when technology was undergoing radical change. The “golden age” of piston-engined passenger aircraft over the North Atlantic, the world’s most important routes, was drawing to a close. With the Lockheed Super Star L 1649 A, which Lufthansa also added to its fleet in 1957, this technology had finally reached the acme of its development.

In July 1954, the prototype of the Boeing B707, the legendary “Dash 80,” had flown its maiden flight in the USA. Even at that time, those responsible recognized that the future belonged to jet aircraft in the civil domain as well.

Lufthansa – still in the planning phase at the time – found itself facing some difficult choices. The task of establishing a modern airline with comparatively modest capital resources was difficult enough. Dealing with major technical difficulties, or even the usual teething problems of new types of aircraft, meant far too many hurdles for the fledgling airline to overcome. The new Lufthansa had to fly, and fly reliably. It could not afford to burden itself with the risks of a revolutionary technology. This explains the airline’s purchase of tried-and-tested propeller aircraft. Investments running into the millions…

On the other hand, everybody knew what lay ahead, what was just around the corner – an almost schizophrenic situation the young Lufthansa simply had to cope with. The planning process had been up and running since November 5, 1956. Dubbed “Paper Jet,” this project simulated flight operations between Frankfurt and New York. Theory was to prepare the way for a new era: Lufthansa carefully analyzed the performance data provided by the jet prototype, now in the air for a year and a half.

Many participated in this project. The German Weather Service collected meteo-rological data relevant for jet operations. German Air Traffic Control addressed the issues of controlling jets flying at high altitudes. These paper-based flight operations considered not only the wind’s force and direction but also all important parameters in realistic combinations, including visibility at the destination and the traffic situation. This resulted in data that closely simulated real-life conditions concerning take-off weights, attainable cruising altitudes, flying times and fuel consumption rates.

The project was run just like actual flight operations, including precise flight preparations. Flight dispatchers used weather forecast maps to calculate the minimum time track, the fastest route on which an inter-continental aircraft can reach its destination. Back then, in the precomputer age, this was a time-consuming and laborious task.

Jet aircraft can only fly economically at high altitudes. What this meant in practice, though, first had to be worked out. In their calculations, the planners quickly discovered the trick of accounting for detours to side-step strong headwinds, taking advantage of the favorable “jet streams” at high altitudes as a tail wind. Even detours of 700 to 800 kilometers proved economically advantageous on flights between Frankfurt and New York.

Final assembly of a Convair CV 340 at the factory in San Diego, USA, in 1954.
Final assembly of a Convair CV 340 at the factory in San Diego, USA, in 1954.
Roll-out of the first Boeing B707 for Lufthansa in November 1959.
Roll-out of the first Boeing B707 for Lufthansa in November 1959.

When Lufthansa ordered its first four jet aircraft, it chose the Boeing B707. The final contract was signed on January 23, 1957. This was a decision against the competing model, the Douglas DC-8. Outwardly, though, these aircraft shared a striking resemblance. And traditional “Douglas airlines” like Swissair had ensured a well-filled order book for the Boeing B707’s archrival.

After this basic choice in favor of the Boeing B707 had been made, the question of the engine type was still open. The stand-ard engine for both the Boeing B707 and the Douglas DC-8 was the Pratt & Whitney JT4A-3. Unlike other airlines, Lufthansa had put off its final selection. Expectations were that there would soon be a second version with the Rolls-Royce Conway 10 dual-circuit engine.

In-depth analyses had shown that the Boeing B707 with the Rolls-Royce turbo-fan engine, due to its lower engine weight and fuel consumption, promised a valuable increase in maximum payload on the criti--cal route from Frankfurt to New York. This, added to certain price advantages, was the decisive reason for specifying this type of engine. Lufthansa was the very first airline to order the Conway engines, with a thrust of 7,940 kilopond each, for the Boeing B707.

What’s more, this engine promised to be slightly quieter, as Rolls-Royce had accomplished pioneering work in the area of sound absorption. This was an important consideration in light of the emerging public debate about jet noise.

At the time when Lufthansa placed its order, the Pratt & Whitney engine had without a doubt reached a higher level of development than the Conway engine. However, Rolls-Royce’s excellent reputation and its technical facilities helped to convince the airline that its engines would be available on schedule, and perform as guaranteed.

In November 1959, Lufthansa’s first Boeing B707 rolled out of an assembly hangar at the Boeing plant in Renton, USA. And a new era began…

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The 1960s

Jets replace propellers: Time savings on all routes

The principle is deceptively simple: Air is sucked into the engine, compressed and burned with kerosene; the backward thrust of the hot exhaust gases propels the aircraft forward. These new jet aircraft, with their higher speeds, increased capacities and improved ranges, revolutionized world air transport as never before. Like night and day. And passengers were not the only ones to feel the difference. Starting in 1960, the four-engined Boeing B707s flew on Lufthansa’s long-haul routes; The airline restructured its entire route network. Fares dropped as capacities rose sharply, especially on the North Atlantic routes. These were challenging times for the young company, the more so as the world was shaken by political turmoil in the early 1960s, and even found itself briefly on the brink of a new war.

Stepping into the jet age

What a spectacular way to start the 1960s at Lufthansa! It was actually there, sitting on the tarmac in Fuhlsbüttel: the new super bird from Seattle in the blue-and-yellow Lufthansa livery. Its sheer dimensions, its compact power, its sleek silhouette unencumbered by propellers confirmed all the talk about a revolution in aviation: Lufthansa's first Boeing B707 had arrived.

“At 11.51 a.m.,” reported a journalist on March 2, 1960, “the giant aircraft zoomed down from the hazy skies and touched down on the runway. Out of habit, all those waiting pricked up their ears, but they hardly heard a thing. It was only when the aircraft taxied to the apron that it became clear what those headphone-like gray contraptions dangling around the necks of the ground personnel were. They were simply “ear muffs” that the men put on against the noise - and that was necessary too. Those invited had to improvise with their own hands.”

At the controls for Lufthansa's first Boeing B707 flight to Germany: Chief Pilot Rudolf Mayr and Flight Captain Werner Utter.
At the controls for Lufthansa's first Boeing B707 flight to Germany: Chief Pilot Rudolf Mayr and Flight Captain Werner Utter.
They were enthusiastically welcomed on arrival at Hamburg's Fuhlsbüttel Airport at 11.51 a.m. on March 2, 1960.
They were enthusiastically welcomed on arrival at Hamburg's Fuhlsbüttel Airport at 11.51 a.m. on March 2, 1960.

The two pilots Rudolf Mayr and Werner Utter had flown the “Oskar-Bravo” - its full registration was D-ABOB - from the United States, covering the route of about 8,100 kilometers in a fantastic flying time of just 9 hours and 47 minutes. It was Lufthansa's first giant step into the jet age.

At the time, Utter, later Chief Pilot and member of the Executive Board, described the sensation of changing from the “Super Conny” to the Boeing B707: “The power of the engines and the aircraft's dimensions give you the feeling of running a giant industrial complex with just a few, easy flicks of the wrist at a computer.”

Internally, Lufthansa warned staff of the critical areas in front and back of the jet aircraft: “The 'vacuum cleaner effect' around the jet engines' air inlets is an especially serious danger. This powerful suction can easily suck up a person at a distance of about 10 meters, and lightweight objects and headgear even at a distance of about 12 meters. That means: Extreme caution with the suction around the air inlet!”

An unprecedented wonderland of flight unfolded. For passengers, the “jet feeling” was like a totally new experience, one they took in with astonishment: The smooth, practically vibrationless flight was also much quieter than what they had been used to up to now. And there were no more long flames jutting out of the exhaust turbines, menaces that had previously cost many anxious passengers a good night's sleep. Passenger seats in both First and Economy Class featured red upholstery with black pinstripes. The charcoal-gray carpet and beige cabin walls were a harmonious complement to the primary color red.

Some of the smaller amenities that Lufthansa publicized were not without entertainment value. The airline spoke of beer on tap, and shavers hygienically sealed in plastic bags. And the Boeing B707 was the first aircraft with water-flushing toilets.

What was gone, though, was the exclusiveness of flying - except in the comfort of First Class, where nothing was left to be desired. 120 passengers were seated in Economy Class, three on each side of the central aisle. Nonsmokers and smokers were mixed together, by the way. And everyone was entertained by tape-recorded music: a new sense of community for those traveling in the B707's wide and long cabin. The new wonder aircraft carried twice as many passengers as the largest piston-engined airplanes of the day. Flying twice as fast, it sliced flying times in half. One Boeing B707, so went the rule of thumb, was equal to about four Super Constellations.

An early frequent flyer, Chancellor Dr. Konrad Adenauer was a welcome guest in the cockpit. As he took a keen interest in flying, Adenauer found a competent conversation partner in Chief Pilot Rudolf Mayr.
An early frequent flyer, Chancellor Dr. Konrad Adenauer was a welcome guest in the cockpit. As he took a keen interest in flying, Adenauer found a competent conversation partner in Chief Pilot Rudolf Mayr.
For gourmets: The Lufthansa in-flight chef created delicious dishes for passengers.
For gourmets: The Lufthansa in-flight chef created delicious dishes for passengers.
For gourmets: The Lufthansa in-flight chef created delicious dishes for passengers.
For gourmets: The Lufthansa in-flight chef created delicious dishes for passengers.
An early frequent flyer, Chancellor Dr. Konrad Adenauer was a welcome guest in the cockpit. As he took a keen interest in flying, Adenauer found a competent conversation partner in Chief Pilot Rudolf Mayr.
An early frequent flyer, Chancellor Dr. Konrad Adenauer was a welcome guest in the cockpit. As he took a keen interest in flying, Adenauer found a competent conversation partner in Chief Pilot Rudolf Mayr.

Frankfurt now the focus

The decision to introduce jet-engined long-haul aircraft, the result of intense competitive pressures, actually came too early for Lufthansa, with its fleet of propeller aircraft. The airline still depended on the subsidies from the federal government, and was no-where near its own set goal of profitability.

The Boeing B707 - the “Intercontinental Jet” as Lufthansa called it - was expensive at DM 25 million each, and forced the airline into a far-reaching reorganization of its fleet. In spring 1960 Lufthansa switched all its services to the USA and Canada to Boeing B707s, within just a few weeks - a remarkable organizational achievement. Gerhard Höltje talked about a “plethora of technical problems.” However, “retraining the flight crews and technical staff on the ground meant that all difficulties could be overcome.”

Flying jets on scheduled services also entailed a dramatic shift of emphasis within Lufthansa's organization: Hamburg, which had been the point of origin for long-haul services for many years, became the “ever-expanding” maintenance base for aircraft, engines and equipment. Frankfurt increasingly assumed its natural role of European air transport hub, and became the operational focus of the Lufthansa route network. Accordingly, it also evolved into the airline's maintenance base for day-to-day operations and the fleet's home airport. Since then, the “Frankfurt Base,” as the administrative center at the airport's northwest flank is known, has been in charge of organizing and controlling the scheduled and charter flights operated by Lufthansa and its subsidiaries.

Just a few days after launching its North American services with Boeing B707s, Luft-hansa inaugurated its “Butterfly Hall,” so called because of its distinctive rooflines, at Frankfurt Airport. At that time, it was Europe's largest and most modern aircraft hangar. The impressive reinforced concrete building was 176 meters long, 16 meters tall and 56 meters deep. And it served as Lufthansa's maintenance center for the first generation of jets. Each side of the double hangar could accommodate up to six jet aircraft parked side by side.

A famous piece of architecture: The “Butterfly Hangar” at Frankfurt Airport took its nickname from its distinctive shape.
A famous piece of architecture: The “Butterfly Hangar” at Frankfurt Airport took its nickname from its distinctive shape.

Flying becomes more affordable

Those airlines that wanted to hold their own now needed money, and lots of it. The 1960 Annual General Meeting (AGM) approved a capital increase to DM 250 million, following increases to DM 120 million in 1958 and DM 180 million in 1959.

Two experienced Lufthansa managers, Wolfgang A. Kittel and Hans Süssenguth, had since joined the Executive Board. Dr. Kurt Weigelt, who had accompanied Lufthansa's fortunes since the 1920s, resigned as chairman of the Supervisory Board on account of his age. Hermann J. Abs, member of the Management Board at Deutsche Bank, was elected as his successor. This appointment brought in one of the most distinguished personalities of German industry to head the airline's Supervisory Board.

Times were difficult enough. Yet passenger numbers did increase as expected. They even skyrocketed, spelling the end for luxury liners on the Atlantic and for sealiners in general. At Lufthansa, the number of passengers increased from about 786,000 in 1959 to over 1,237,000 in 1960, and to about 1,553,000 in 1961. Passenger numbers had thus doubled between 1959 and 1961. On the North Atlantic routes alone, this meant an increase from about 96,700 to 200,700 passengers.

Above all, it was the passengers who benefited from the switch to jets. These bigger, faster aircraft had to be filled. And fare structures were the key to opening up air transport to new customer segments, and thus to reinforcing the bridges created between Europe and America after the war. In 1961, the cheapest return fare on the Frankfurt-New York route was DM 1,703. In 1959, the last “propeller-only year,” the same flight had cost DM 500 more - a lot of money for a trip by air at a time when the average monthly salary for German employees was just under DM 700 and a VW “Beetle” cost almost DM 4,000.

Air fares tumbled. In these hectic months, however, the fundamental balance between supply and demand was profoundly disturbed, an effect that was to last. Every day new jets rolled out of the manufacturers' assembly plants, boosting capacities further. A slump was foreseeable; it came as soon as 1961. For a while, the world stood poised on the brink of a direct confrontation between the superpowers, and thus a catastrophe. The crisis mood provoked by the construction of the Berlin Wall in 1961 and the Cuban Crisis that followed in 1962 were hardly conducive to stimulating the public's desire to travel.

In 1961, Hans M. Bongers referred to the airline's unexpectedly high operating loss as a “catastrophic result.” While sales increased, overall utilization had dropped off significantly. And despite increased revenues and reduced costs, Lufthansa found itself set back. Its key goal of breaking away from subsidies, approached and almost achieved, slipped once again into the distant future. These dangerous developments forced Lufthansa to write off a substantial portion of the value of its Super Constellation fleet, which had been outmoded in a single year. The faster jet traffic had made these aircraft uncompetitive, and devalued them prematurely. Even after the jet age had begun, Lufthansa continued to operate improved Lockheed Super Star L 1649 A propeller aircraft on the routes to South America and the Far East. In 1961, the Bangkok flight received mention as its new evening departure had cut its flying time to as little as a day and a half. Yet that was still too slow to compete with jets.

And so the changeover continued at Lufthansa too. After the delivery of the first four Boeing B720Bs, a smaller version of the Boeing B707, the airline also switched its routes to the Middle East from propeller to jet aircraft. This move cut travel times be-- t-ween Frankfurt and Teheran, for example, by one-third.

Starting September 1, 1961, the propeller aircraft freed up in this way started flying on the German night airmail network, which Lufthansa has operated on behalf of Deutsche Bundespost ever since. To begin with, four Convair 440s and one Viscount 814 flew on the star-shaped network linking Germany's major cities.

Lufthansa employees at the Frankfurt reservations center: The latest reservations data were conti- nuously relayed by telex to the travel agencies.
Lufthansa employees at the Frankfurt reservations center: The latest reservations data were conti- nuously relayed by telex to the travel agencies.

Lufthansa becomes profitable

It was to take until 1964 for the advantages of the new jet fleet to take full effect, and for the overseas routes to North and South America, Africa (flown since 1962) and the Far East to become profitable. In 1965, Australia became the last continent to join the Lufthansa route network.

Just in time for its ten-year anniversary, Lufthansa was finally in a position to present a positive annual result - and thrust well into the profit zone: by DM 36.9 million. Profitability, the declared goal at both the old and the new Lufthansa, was achieved for the first time in the company's history.

The world of aviation, having passed through the turbulences associated with introducing jet aircraft, was in good order again when Hans M. Bongers and Wolfgang A. Kittel left the airline's Executive Board at the end of 1964. A new triumvirate, consisting of graduate engineer Gerhard Höltje, graduate engineer Hans Süssenguth and Dr. Herbert Culmann, took over the airline's management. Culmann, an aviator and lawyer, had joined the Bureau Bongers team early on and assumed the direction of Lufthansa's “central office” in 1957. The company's administration was still housed in the former buildings of Cologne University.

During the 1960s, Lufthansa's course, like that of the Federal Republic's entire economy, was fully set for expansion. While the increasing size of operations allowed a more favorable distribution of fixed costs, the airline still had a lot of catching up to do.

Practice had shown that the existing capacity reserves were not always enough to handle the fast-growing passenger traffic during seasonal peaks. This combined with expected growth in demand led to investment programs worth more than DM 1 billion over five years. The main goal here was to expand and modernize the fleet.

The company's capital was increased from DM 250 million to DM 400 million. And for the first time, private investors had the opportunity to acquire Lufthansa shares. Since April 1966, the airline's shares have been openly traded on the stock exchange.

Technical competence

The issue of fleet modernization would occupy Lufthansa again and again in the decades ahead. In each case it was driven by the demands of flying profitably. During the 1960s, the most pressing issue was replacing the propeller fleet on short and medium-haul routes with jet aircraft. Lufthansa dared to venture far forward in this area. At the time, there were still many who maintained that jet transport was purely a domain for long-haul routes, and hardly suitable for short and medium-haul routes. Lufthansa became the first European airline to order three-engined Boeing B727-30s, 12 of them, thus jointly launching the model's production with United Airlines. A good thing for everyone: Operating the “Europa Jet” meant that Lufthansa was the first carrier to offer jet-age comfort and speed on European and Middle Eastern routes. And the B727 became one of Boeing's best-selling models.

The next step was even more self-assured: Lufthansa convinced Boeing of the necessity to build a jet for short-haul routes. By doing so, Lufthansa initiated the development of the Boeing B737. The construction and specifications of this progressive model, which was to be modified many times in the years to come, are due in large part to the insistence of Professor Gerhard Höltje, then Lufthansa's board member in charge of engineering. For the first time since the war, Lufthansa had proven its technical competence. And this made it once again a sought-after partner for the aviation industry.

By ordering the Boeing B737, Lufthansa pursued a consistent fleet policy that stretched from the Boeing B707 to the Boeing B727 and Boeing B737, and on to the planned Boeing B747 - the “Jumbo.” The airline saw significant economic and operational advantages in acquiring a homogeneous fleet from a single manufacturer.

A bird's-eye view of Frankfurt Airport around 1960.
A bird's-eye view of Frankfurt Airport around 1960.
Preparing for takeoff: A Boeing B707 is refueled.
Preparing for takeoff: A Boeing B707 is refueled.

Progress in air cargo

In the decade since its new start in 1955, Lufthansa had worked its way up to the top, now ranking sixth among the world's airlines. On the North Atlantic routes, the most competitive of all markets, it even ranked number five.

And it wasn't just the passenger numbers that rose. Air freight, still often referred to as a “sleeping giant” back then, grew as well.

In 1965 Lufthansa carried more than 56,000 tons of freight, more than three times as much in a single year as the old Lufthansa had flown over a period of 15 years. While worldwide air cargo volumes tripled from 1958 to 1965, Lufthansa managed to increase its freight performance twelve-fold. By the end of the decade, the airline had also reached a leading position in air cargo.

As a result, Lufthansa ordered ten Boeing 727-30s in the “Quick Change” version. These aircraft, swiftly convertible from passenger to freight configuration, were intended for the expansion of the European air cargo network. Seat rows could be quickly and easily removed and replaced. In addition, the airline modernized its ground handling facilities at important destinations in Germany and abroad.

In fact, the jet age had steered air cargo in new directions as well. The Boeing B707 freighter, Boeing B707C for short, featured loading surfaces equipped with roller pallets and tracks, a first and important step toward rationalizing air cargo handling. Thanks to these improvements, pieces of freight no longer had to be loaded individually as so-called “bulk freight.” Instead they were now loaded on the aircraft as one compact unit. The advantage: While the aircraft was underway, consignments could be readied on pallets at the cargo center.

Packages and parcels were now loaded into so-called “igloos,” lightweight containers made from fiberglass-reinforced plastic, whose contours are fitted to the cross-section of the aircraft's fuselage. They significantly sped up loading of individual cargo items and offered effective protection from the elements. The turnaround time for the Boeing B707C now dropped to a mere two hours in Frankfurt. Speeding up cargo on its way also did its part to increase revenues from air cargo shipments.

The “Quick Change” version of the Boeing B 727 and B737 made it easy to switch between passenger and cargo configurations.
The “Quick Change” version of the Boeing B 727 and B737 made it easy to switch between passenger and cargo configurations.
Igloos and pallets made better use of the aircraft's cargo spaces, and cut loading and unloading times significantly.
Igloos and pallets made better use of the aircraft's cargo spaces, and cut loading and unloading times significantly.

Time-saving electronics

In 1966 Lufthansa's revenues passed beyond the magic barrier of DM 1 billion. Around 3.7 million passengers flew to their destinations on Lufthansa aircraft. World air transport had gained about 70,000 passengers a day over the last four years, according to reports in 1967.

Lufthansa met the needs of its many first-time flyers, unaccompanied children, and passengers who were ill or needed extra care by creating a special assistance service. The “Little Red Riding Hood” service made its debut in Frankfurt, and was later extended to other stations.

As rapid growth continued - Lufthansa carried 5.9 million passengers in 1969, 18 percent more than in the preceding year - new service methods at the airports were needed if the time saved in the air was not to be wasted on the ground.

With the introduction of jet aircraft, electronics also appeared on the scene in many areas of the company.

In 1964 Lufthansa put its first computer, a mainframe located in a separate building at the Frankfurt base, into operation. And starting in 1967, an electronic system was used in Frankfurt to handle transfer and international passengers.

On March 1, 1967, computer systems replaced manual reservations, speeding up the process many times over. The data processing system, the fruit of many years of cooperation between Siemens and Lufthansa, was linked via 40 telex lines provided by Deutsche Bundespost to 200 Lufthansa reservation desks in city and airport offices throughout Germany. This system was unique worldwide at the time. Over the years, it was regularly adapted to increasing requirements.

Two generations of technology: propeller and jet aircraft.
Two generations of technology: propeller and jet aircraft.
Two generations of technology: propeller and jet aircraft.
Two generations of technology: propeller and jet aircraft.
On March 1, 1967, Lufthansa inaugurated its first electronic reservations system.
On March 1, 1967, Lufthansa inaugurated its first electronic reservations system.

Parent and offspring

Touristic flights too gained in importance during these years of increasing affluence. Condor Flugdienst GmbH, a traditional name that had since become a fully-owned Lufthansa subsidiary, benefited from the trend toward long-haul tourism. After weathering a crisis that had threatened its very existence in the early 1960s, Condor now soared into profitability based on the rapid growth for air tourism. Internally, Lufthansa prepared for the future by restructuring: The parent company now gave birth to offspring. The profitability of the airline's inflight service organization was promoted by incorporating Lufthansa Service GmbH (LSG) as a subsidiary in 1966. To begin with, the inflight service operations in Frankfurt, Hamburg, Munich and Cologne/Bonn were merged into the new company. LSG, which provided Lufthansa and other airlines with meals and other passenger amenities, quickly set its course for expansion as well.

The 1968 AGM approved a name change for “Deutsche Lufthansa Selbstversicherungs-AG” to “Delvag Luftfahrtversicherungs-Aktiengesellschaft.” This Lufthansa self- insurance subsidiary dates back to “Aero Lloyd AG,” which was founded in Berlin on August 12, 1924. At the same time, the business mission of this insurer specializing in the area of aviation was broadened.

At the end of the 1960s, the Lufthansa Group, with its subsidiaries and participations, formed around the airline. And Lufthansa presented its first consolidated financial statements for the Financial Year 1967.

In 1966 Lufthansa took shares in Deutsche Hotelgesellschaft für Entwicklungsländer mbH (DHG). This company invested primarily in upper mid-range hotel projects in developing countries wishing to promote tourism but lacking sufficient available hotel capacities.

A skeleton agreement with Intercontinental Hotels Corporation also called for the construction of new hotels, this time in Germany. Lufthansa also participated in the European Hotel Corporation, a company held by five airlines and five banks, whose “Penta Hotels” offered upper economy range standards.

The ATLAS Group was formed with the signing of the incorporation contract on March 14, 1969. Representing Lufthansa were Dr. Herbert Culmann and Professor Gerhard Höltje.
The ATLAS Group was formed with the signing of the incorporation contract on March 14, 1969. Representing Lufthansa were Dr. Herbert Culmann and Professor Gerhard Höltje.
Electronics also supported the work of Lufthansa's Frankfurt-based Operations Center. Here aircraft deployment is being coordinated.
Electronics also supported the work of Lufthansa's Frankfurt-based Operations Center. Here aircraft deployment is being coordinated.

International cooperation

Civil aviation is only conceivable at the international level, and thus strongly requires international cooperation. In the mid-1960s, however, the plans drawn up primarily under economic criteria to “integrate certain tasks of different companies” were scuttled by political squabbling and government interference. The “Air Union,” this vision of a giant aviation corporation, came to naught. Yet a new attempt got underway in 1967. Representatives from ten European airlines met for informal talks on opportunities for cooperation in the context of introducing and operating future types of aircraft. The “Montparnasse Committee” was founded.

In 1968 Air France, Lufthansa, Alitalia and Sabena agreed to form the ATLAS Group. The articles of incorporation were signed a year later. The official title of the document was: “Protocol of an agreement between Air France - Alitalia - Deutsche Lufthansa - Sabena for technical cooperation in the operation of their B747s.” On behalf of Lufthansa, this contract bears the signatures of Professor Gerhard Höltje and Dr. Herbert Culmann. It aimed at an efficient division of labor in stocking spare parts and overhauling the participating airlines' Boeing B747 fleets. Lufthansa assumed the entire engine overhaul process for all partners.

The restriction to purely technical areas - simulator training was added later on - proved to be a smart idea. An expansion to other types of aircraft, such as the Douglas DC-10 and the Airbus models, was provided for from the start, and later implemented. This European cooperation, expanded to five members when Iberia joined in 1972, advanced year by year, and has long since established itself.

The ATLAS Group operates - on a non-profit basis - without its own administration through the work of numerous committees. They are directed by the ATLAS Management Committee at the board level, the Sub-Committee at the management level, and working groups at the expert level.

Yet not everything that appeared forward-looking at the time actually fulfilled its promise. The best and most costly example in this arena is the supersonic aircraft. By the mid-1960s, the Franco-British Concorde project had been launched. And Boeing's engineers in Seattle were already considering their SST project, the “Super Sonic Transport.” This was the design for an aircraft to be equipped with swinging wings, larger than the Concorde and planned for 250 passengers.

Nothing came of either project, at least not at Lufthansa. While the airline was keen to remain on the leading edge of world aviation, it maintained its position of careful circumspection.

Lufthansa's newly designed logo: the traditional crane in a yellow circle.
Lufthansa's newly designed logo: the traditional crane in a yellow circle.
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The 1970s

Despite several crises: Flying in wide-body dimensions

Space. Breadth. Room to move. Everything was new and different aboard the wide-body jets, the “Jumbos,” which arrived at Lufthansa just in time to kick off the new decade. Instead of just the one down the middle, two aisles now led along a much wider cabin, dispelling all notions of confinement – and making service and communication much easier on long flights. A liberating feeling, a new era in aviation. But the joy wasn’t to remain unadulterated for very long. Prices for crude oil, raw material for the kerosene so indispensable to flying, exploded. First in 1973 and then again in 1979 – two oil crises. This resulted in turbulences in the world economy, striking international civil aviation with consequences that were tough to deal with. Lufthansa’s engineers, as well as aircraft and engine manufacturers, applied their combined expertise to reduce fuel consumption – and were successful in their quest. A new awareness, a greater understanding in using our resources began to shape the collective thinking process.

A shift in thinking

How triumphantly the 1960s had ended - with the landing of American astronauts Neil Armstrong and Edwin Aldrin on the moon in July 1969, an event that riveted people all over the world to their television screens. And before the decade was out this grandiose venture was backed by a second landing in November. American optimism had yet again shifted the boundaries of perception, and demonstrated that almost any vision can be realized technically, given the will and the budget. Trust in technological progress seemed unbroken.

Yet the year before, a shift in thinking had started to establish itself in an entirely undramatic fashion, almost unnoticed at first by the broader public. The “Club of Rome” had published a study on the “Limits to Growth,” which would eventually set in motion a farreaching process of changing awareness and redefining values all around the world. “Energy has become scarce, and from now on economic development must be evaluated under ever stricter ecological criteria.” This new way of thinking would also have an impact on air transport, at least in countries such as the Federal Republic, where politically active, critically thinking constituencies forced legislators to adopt a tougher line.

A Lufthansa flight captain studying route maps.
A Lufthansa flight captain studying route maps.

Lufthansa certainly had great understanding for the measures restricting aircraft noise, even if the tightened regulations on night flights now caused it problems. The airline had identified the issue quite early on. As far back as in 1956, it had considered noise levels a significant criterion in selecting an engine type for the Boeing B707-400. And when placing its order for the modified Boeing B707-300 in October 1961, Lufthansa insisted, as probably the first airline to do so, that the manufacturer guarantee and deliver specific maximum noise values.

During the 1970s, Lufthansa invested millions of deutsche marks in noise reduction measures: to convert engines, try out new landing procedures, introduce noise protection measures at airports and monitor departure procedures. It modernized its fleets and acquired the latest, most environmentallyfriendly engine technologies through comprehensive replacement programs.

Additional investments were also made at the Lufthansa maintenance bases, covering many areas. Comprehensive environmental protection now had significant influence on planning, decisionmaking and working. And it reshaped how Lufthansa perceived itself, and how the airline presented itself to its publics.

Frankfurt: the Lufthansa fleet's home airport.
Frankfurt: the Lufthansa fleet's home airport.
Aircraft maintenance and overhauls - safety has  top priority at Lufthansa.
Aircraft maintenance and overhauls - safety has top priority at Lufthansa.
A Douglas DC-10 taxiing on the apron at  Frankfurt Airport.
A Douglas DC-10 taxiing on the apron at Frankfurt Airport.
A Lufthansa First Officer checks the aircraft's  exterior in preparation for departure.
A Lufthansa First Officer checks the aircraft's exterior in preparation for departure.
The aircraft that embodies the 1970s:  the Boeing B747. beim Start.
The aircraft that embodies the 1970s: the Boeing B747. beim Start.
Getting ready for departure: Lufthansa  stewardesses on their way to the aircraft.
Getting ready for departure: Lufthansa stewardesses on their way to the aircraft.

New dimensions

The 1970s got off to a momentous start for Lufthansa. At the end of March 1970, the first Boeing B747-100 landed in Hamburg, attracting great public interest. Lufthansa was the first European airline to fly the “Jumbo” on its long-haul routes. And its offshoot, the “holiday airline” Condor, soon followed suit.

Aviation thrust forward into new dimensions with the Boeing B747. Fully fueled, it had a takeoff weight of 322 tons. The cabin of this wide-body aircraft seated 361 passengers - and they had plenty of room to move, which was an entirely new sensation. One journalist noted that merely boarding this giant airplane put folks in a “champagne mood.”

And thanks to the two aisles, inflight service had now become smoother and more individual. There was more comfort all around: films, music programs, even a spiral staircase leading up to the First Class Lounge. Passengers were quite taken with it all. On the inaugural flight from Frankfurt to New York on April 26, 1970, they spontaneously burst into applause as the aircraft accelerated for takeoff and then lifted off the runway, amid exclamations such as “That's fantastic!” and “That's magnificent!” It made people really want to fly.

Lufthansa played a key role in its development:  the Airbus A300.
Lufthansa played a key role in its development: the Airbus A300.
The freight version of the “Jumbo Jet” features a front loading door, the “nose,” which allows smooth loading - of even bulky items.
The freight version of the “Jumbo Jet” features a front loading door, the “nose,” which allows smooth loading - of even bulky items.
The “Jumbo's” hold offers a generous 628 cubic meters of cargo space for containers and high-value goods.
The “Jumbo's” hold offers a generous 628 cubic meters of cargo space for containers and high-value goods.
The freight version of the “Jumbo Jet” features a front loading door, the “nose,” which allows smooth loading - of even bulky items.
The freight version of the “Jumbo Jet” features a front loading door, the “nose,” which allows smooth loading - of even bulky items.

The 1970s ushered in the era of wide-body aircraft at Lufthansa. The next jet had three engines and was manufactured by Douglas: The DC-10, much appreciated by pilots, incorporated a broad range of new technological features. From 1974 the long-haul version DC-10-30 flew on routes where passenger demand was insufficient for the “Jumbo.” These were particularly flights to destinations in South America and the Far East. Eventually, Lufthansa added eleven Douglas DC-10s to its fleet.

Two years later, in February 1976, Lufthansa took delivery of its first Airbus A300, the first twinengined wide-body aircraft designed for medium-haul routes. This model had been taking shape on the drawing boards since 1967, and the Federal Republic and France had signed the initial government contract for its bilateral development in 1969. This contract led to the official incorporation of Airbus Industrie in December 1970. Lufthansa's Supervisory Board decided as early as December 1972 to buy the Airbus A300. The airline invested a great deal of time and expertise in the development of this new model, the European alternative to American manufacturers in the intensely competitive international aircraft market. With the arrival of the A300, passengers on short and medium-haul routes also began to enjoy wide-body comfort.

The technological progress of the last ten to fifteen years had opened up air transport to new passenger segments. This development influenced air transport in many areas, including product design and fare structures. The bilateral regulations concerning traffic rights also needed to be adapted to increasing passenger numbers. On long-haul routes, aircraft with increased ranges allowed faster connections with fewer stops. Networks were restructured; additional routes were opened.

But increasing passenger numbers also caused problems. Everything required new dimensions: airports, baggage handling systems, computer systems, engine workshops, maintenance facilities and overhaul hangars.

To accommodate this trend, Lufthansa inaugurated Hangar V at Frankfurt Airport in October 1970 - at the time the world's largest aircraft maintenance hall. Its architectural design aroused worldwide interest because of its structural originality: The roof is both spatial divide and supporting element in one. With this giant hangar, providing space for six wide-body aircraft, Lufthansa adapted to the new aircraft generation.

In 1972 Lufthansa became the world's first airline to operate the all-freighter version of the Boeing B747. This “Jumbo” featured an upward-swinging front loading door, the “nose,” and was capable of carrying more than 100 tons of freight, including bulky items such as machines.

In the area of air cargo operations, too, the giant jets pushed things beyond the usual and the conventional. Frankfurt Airport soon became home to one of the world's largest cargo hangars, where many pro-cesses became automated. State-of-the-art freight terminals were already at work in New York and London as well.

The art of survival

But the soaring optimism of the 1960s soon hit its ceiling in the 1970s. The worldwide trend toward higher costs, especially during the oil crisis, was increasingly difficult to deal with. The gap between rising overheads and declining earnings widened further and further. While passenger numbers continued to climb from one year to the next, the yield per passenger fell continuously, as more and more customers took advantage of heavily discounted fares.

The trend was obvious: Despite continuous rationalization and significant increases in productivity, scheduled services were running the risk of no longer being able to generate the profits needed to operate them. At a time when the traveling public was increasingly demanding lower fares and ever more passengers were yielding to the offers of charter airlines, the profitability of the scheduled carriers declined. Their average yields fell as they tried to compete with the offensive from the charter airlines by offering heavily discounted special fares. Naturally, the situation was complicated further by the price-driving inflationary tendency of the economy as a whole.

In a world of continuously rising costs, the air transport industry had constantly lowered the price of its product, thus passing the economic advantages of technolo-gical progress on to its customers. But, as Lufthansa warned at the time: “A further decline in profit margins would be a serious threat to the very existence of many companies.”

Economically speaking, these were turbulent and insecure years. The revaluation of the deutsche mark in 1970 and 1971 caused many problems, as fares in international air transport were set in US dollars, thus causing widespread losses. Later calculations showed that the operating results from 1969 to 1971 would have been significantly better without the altered exchange rates for the German currency.

In addition came the strike of Lufthansa's ground personnel, the “go-slow” of German air traffic controllers, the unfavorable economic development in many countries, the declining fares particularly on the North Atlantic. Not to mention the steady advances of the charter airlines with cut-rate prices causing a proper “fare war.” Difficult times - yet again.

Then, in 1972, followed the second “go-slow” of the air traffic controllers, with all of its unpleasant consequences, just as in 1971. Worse still: two hijackings of Lufthansa aircraft, 23 threats of hijackings, 92 bomb warnings and two blackmailing attempts involving bomb threats. A year of terror.

1973: Worldwide inflation, the loss of the very basis of the world monetary system, rising interest rates, the oil crisis, the hijacking of a Lufthansa aircraft in Rome, and another go-slow by German air traffic controllers. Lufthansa summarized: “1973 was a tough year, especially on the operational side.” The airlines had to cope with a 6.3-percent decline in passenger numbers, as the German and European networks had been severely restricted for months by the “work-to-rule” industrial action of the German air traffic controllers.

1974: Worldwide recession, energy crisis, inflation, fluctuating rates of exchange, problems with the balance of payments - all difficulties that had a lasting negative effect on the development of world air transport. And that with continuously increasing costs and, during certain periods, ruinous competition. The result: “The profitability of world aviation has again reached a low point.”

1975: For the first time, Lufthansa carried more than 10 million passengers in one year. Freight volumes dropped, though. There were rising tensions in the area of traffic rights, especially in South America. The IATA airlines increased their fares. One bright spot on the horizon: Despite negative economic developments, Lufthansa achieved a net profit of DM 33.1 million for the year.

1976 finally brought the long-awaited economic turnaround. The positive business trend in some of the key industrialized countries revived demand, while the oil-exporting countries followed a relatively moderate pricing policy. Lufthansa was able to pay a dividend of 7 percent and make provisions of DM 70 million.

Round the clock: Lufthansa's crisis manage- ment team during the hijacking of a Lufthansa Boeing B747 to Aden, Yemen.
Round the clock: Lufthansa's crisis manage- ment team during the hijacking of a Lufthansa Boeing B747 to Aden, Yemen.
The hijacked “Baden-Württemberg” on the tarmac  in Aden on February 24, 1972.
The hijacked “Baden-Württemberg” on the tarmac in Aden on February 24, 1972.
Relief: The men of the GSG 9, an elite troop  of the Federal Border Guard, managed to free  passengers and crew of the “Landshut” from the  hands of the hijackers.
Relief: The men of the GSG 9, an elite troop of the Federal Border Guard, managed to free passengers and crew of the “Landshut” from the hands of the hijackers.
On October 18, 1977, the passengers of the  hijacked “Landshut” arrive back in Frankfurt  aboard a Boeing B707.
On October 18, 1977, the passengers of the hijacked “Landshut” arrive back in Frankfurt aboard a Boeing B707.

And then, in October 1977, came another, terrible shock - when terrorists hijacked the Boeing B737 “Landshut” on its flight from Palma de Mallorca to Frankfurt as it passed over the island of Elba. It was to develop into one of the most dramatic and most brutal hijackings in the history of civil aviation. After landings in Rome and on Cyprus, in Bahrain and in Dubai, the aircraft had to land beside the runway in Aden, Yemen. Captain Jürgen Schumann was murdered aboard the aircraft by one of the kidnappers. The copilot Jürgen Vietor flew the “Landshut” to Mogadishu by himself.

There, a detachment of the GSG 9 elite troops of the Federal Border Guard was finally able to free the 82 passengers and four crew members. Passengers and crew alike endured enormous, hardly imaginable psychological stress during these weeks and months of terror. And yet, life had to go on.

Dramatic changes also occurred at the international level at that time: Deregulation of air transport began in the United States, resulting in a reform of the IATA. US policy aimed at completely abolishing the distinction between scheduled and chartered services, and at subjecting IATA's future agreements to antitrust control.

The second oil crisis, in 1979, caused additional strains. Conserving fuel became a question of survival for the company in the face of skyrocketing kerosene prices. In 1973 Lufthansa had paid about DM 200 million for kerosene; in 1974 this cost item already far exceeded DM 500 million. And there were certainly no alternatives to crude oil derivatives in sight: Air transport was dependent on kerosene. Yet Lufthansa was able to identify a number of internal possibilities to relieve pressures on the cost side.

An entire catalogue of measures was developed. Capacity restrictions ranked first, especially consolidating the North Atlantic flight program. Followed by fuel-conserving procedures for a flight's climbing, cruising and descending phases. And finally, a more resourceful internal disposition.

Eventually, the interdisciplinary work group “Fuel Conservation” developed about 200 suggestions for the areas of engineering and flight operations - ranging from adapting engines and deploying flight performance computers to reducing the aircraft's drag and using more lightweight freight containers. Realizing these ideas was to bring considerable containment of Lufthansa's fuel costs in the years to come.

1980, however, was to be the worst year in the history of world aviation. Commercial air transport lost more money than ever before. Together, the IATA airlines amassed losses of US$ 2.1 billion - or DM 5.6 billion - essentially due to the oil crisis. Despite this adverse situation, Lufthansa achieved a profit of DM 5.6 million for the year. And talk about the “art of survival” made the rounds at Lufthansa.

Customer service: a member of Lufthansa's ground staff at a counter.
Customer service: a member of Lufthansa's ground staff at a counter.

Planning to secure the futuree

During this decade of setbacks and turbulences, the company's healthy financing policy paid off. Behind this approach stood one Dr. Herbert Culmann. In August 1972, he had been named Chairman of the Executive Board, heading a top management team that soon expanded to five members in the wake of a restructuring shortly after he took office.

A conservative depreciation policy had long been one of the key principles of sound financing at Lufthansa. It provided the healthy business basis for investments running into the billions, above all for the fleet. Lufthansa aircraft were written off over a period of ten years to a residual value of 5 percent of the purchase price. Deprecia-tion charges were regularly between 6 and 9 percent of total annual expenditure, or between DM 400 and 500 million. This amount was sufficient to finance about 70 percent of the investments in aircraft from internally generated funds. And that gave Lufthansa a much-envied leading financial position in international aviation.

Efficient aircraft had an increasingly de-cisive impact on airlines' profits and losses. In 1970, when Lufthansa flew its first Jumbos, it was following the trend toward wide-body aircraft. This move took the growing demand into account, and helped avoid further strain on already densely traveled air routes at a time when traffic volumes were rising.

But just seven years later, Lufthansa sold these “first generation” Boeing B747s and ordered seven new Jumbos to replace them. These were “second generation” B747s, equipped with more modern, fuel-efficient and environmentally friendly engines. The timing was well chosen. When this replacement deal was approved, the aircraft manufacturers were desperately looking for buyers and therefore offering discounted prices. This was not to be the only instance of anti-cyclical buying for Lufthansa. Its Jumbo swap was followed by the modernization of its entire Boeing B737 fleet.

When Lufthansa ordered the Douglas DC-10 in 1970, it was also following a capacity policy guided by moderation. Four of these aircraft were ordered in a version particularly economical to operate: Part of the passenger deck was equipped for loading baggage containers, making the hold space entirely available for freight. Experience with this mixed-version DC-10 was later applied to operating the Boeing B747 Combi, a combined cargo-passenger version.

A Shorts 330 operated by Lufthansa subsidiary DLT.
A Shorts 330 operated by Lufthansa subsidiary DLT.
Lufthansa's headquarters in Cologne: on the banks of the Rhine, across from the cathedral.
Lufthansa's headquarters in Cologne: on the banks of the Rhine, across from the cathedral.

Early in 1979, Lufthansa and Swissair jointly became the “launching customers” for the Airbus A310, as the first carriers to order this model. They also made significant contributions to the design of this advanced, efficient aircraft. Lufthansa alone invested about 20,000 engineer hours in optimizing the custom-made wide-body jet - a landmark in aircraft construction.

Lufthansa Technik has always played a leading role in implementing a profitability-driven fleet development policy, in cutting fuel consumption and in reducing aircraft noise. Starting in 1972 it was headed by graduate engineer Reinhardt Abraham. He had previously led the expansion of the Frankfurt maintenance base to its current size and importance, and now assumed responsibility for the engineering function at the board level.

Since the late 1970s, Lufthansa Technik has provided services for external customers, thus making an increasing contribution to the company's revenues. Its expertise ranges from aircraft conversion and aircraft or engine overhauls to technically demanding repairs of components and spare parts, for which Lufthansa holds a special license.

Following the trends of demand, Lufthansa had also acquired participations in hotel companies, intensified its cooperation with touristic organizations and signed a worldwide cooperation agreement with a rental car company, Avis. In addition, it stepped up its involvement in the travel agency business in Germany. The airline's diverse sales-supporting participations were integrated into the Lufthansa Commercial Holding (LCH) in 1973.

Diversity in the Lufthansa Group: shareholdings  in Avis, the car rental company, and Kempinski Hotels, a chain of luxury establishments.
Diversity in the Lufthansa Group: shareholdings in Avis, the car rental company, and Kempinski Hotels, a chain of luxury establishments.
Diversity in the Lufthansa Group: shareholdings  in Avis, the car rental company, and Kempinski Hotels, a chain of luxury establishments.
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1980er

Global challenge: Competing for customers

The world was now on our doorstep, thanks to more nonstop connections and ever-denser route networks. At the same time, air space had become more crowded, resulting in more time spent flying in holding patterns. The aircraft had evolved into a means of mass transport. Lufthansa was increasingly transforming itself into a competitive corporation with modern organizational structures: Its watchwords were now market orientation, a newly-designed corporate identity, more efficient structures, responsibility in environmental issues, employee communications. And at the end of the decade, the realization of a long-held dream dawned on the horizon: a reunited Germany and Lufthansa’s return to its home town – to Berlin.

Liberalization creates dynamic markets

The 1980s - they were to become the decade of growth and record-setting performance in world aviation. Industries across the board boomed to a degree long unseen in the Western world, passenger numbers grew from one year to the next, companies filled the jet cargo holds with high-valued express goods. World aviation became the growth industry par excellence: That was the message of this decade characterized by calm in world politics.

Increasing affluence among many segments of society in the industrialized countries changed the way people went on holiday. More leisure time drove a trend toward second, even third vacations throughout the year or toward shorter last-minute trips. This meant that the ratio of business to leisure travelers shifted in favor of tourists during the 1980s - which had an impact on route networks, fare structures and seat distribution by class of in-flight service. The era of the “jet set” was gone for good, that much had become clear. Fast jets now served everybody. And air travel, when measured in terms of national income and price development, was now cheaper than before.

International: Lufthansa has its own city offices in many of the countries and destinations it serves.
International: Lufthansa has its own city offices in many of the countries and destinations it serves.

But the market's explosive growth also brought problems with it. Passengers experienced this mainly in the guise of overcrowded air space around large airports, often causing hour-long delays. In 1989 alone, waiting in lines and flying in holding patterns cost Lufthansa about DM 190 million. For a while it looked as if air transport had reached the outer limits of its growth.

Restlessness, even a hectic atmosphere dominated this decade in aviation, as the industry felt the effects of deregulation in the United States and braced for the approach of market liberalization within the European Union. The competing travel distribution systems around the world fought fierce battles over future markets, whereas mergers, cross-shareholdings and cooperations proliferated among airlines.

Competition - a word that implies challenges, demands, but also threats - now became the red thread weaving its way, as never before, through all scenarios, planning and visions of the future. Lufthansa, a latecomer for historical reasons, had been flying against established competitors since its initial operations, back in 1955. The airline was used to competition - in 1982 it already had to share its market with more than 80 other carriers and, fully aware of its own performance, had never shied away from competition.

But the increasing fierceness that was being imported from the United States, leading to full-blown “predatory competition” over the North Atlantic around the middle of the decade, indicated a new type of rivalry, a different pace.

Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets  its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.
Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets  its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.
Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets  its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.
Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.
Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets  its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.
Being busy, in a hurry, pressed for time - these are all features of everyday life. Lufthansa meets  its customers' needs by using state-of-the-art reservations systems and ground handling, offering a timetable in tune with demand and painstakingly maintaining aircraft of the latest generation.

Starting in 1985, the airline industry be-gan to see a perceptible shift in com-petitive rankings; the memorandum of the European Union was heatedly debated. A year earlier, the first market liberalization had been implemented between the Federal Republic and Great Britain, removing old restrictions and giving Lufthansa equal opportunities in the British market. And that was just the beginning. More flexibility and a little less bureaucratic red tape - that was how Luft-hansa defined its vision of a conceivable new market order in air transport. From January 1, 1987, the bilateral agreement was further relaxed, permitting capa-city increases of up to 20 percent in other countries.

During the 1980s, the world of civil aviation experienced more change than ever since World War II. These were years of deep-rooted shifts and new ways of thinking, years of setting course for a future that would function in entirely new ways.

In 1989, following intense discussions across the entire company, Lufthansa defined its “position markers” for the 1990s. Growth and high quality, both building on a clear corporate identity - these were the company's goals on its path to becoming “the leading European air transport company.” Customer service became an even more important task, along with engineering expertise and operational reliability. Refer-- r-ing to the European Single Market to be launched in 1993, a position paper published in 1989 stated that Lufthansa would be a “German company with a European home market.” A company that would not “change course abruptly, but adapt to new developments.”

Growth areas viable and correct

The outlook at the beginning of the 1980s had been gloomy. The second oil crisis in 1979 caused a drawnout economic downturn. In the Federal Republic, this meant a recession, rising numbers of unemployed and a dramatic “turnaround” in the country's political landscape.

During the “most critical year in the history of civil aviation” - as the 1980 annual report referred to it - Lufthansa was one of the few international airlines to present a balanced, even slightly positive annual financial statement. While major investments in the fleet affected the balance sheet negatively, these advanced aircraft were to effectively improve profitability in the years to follow - they helped lower operating costs.

From the second half of 1980, however, Lufthansa also began to feel the effects of worldwide economic developments. In civil aviation these effects were intensified by America's “open skies” policy. The situation resulted in stagnating, even declining sales figures. Passenger numbers rose by only 1.5 percent in 1980, while cargo fell by 0.6 percent. These developments were exacerbated by rising fuel prices, falling fare levels across the board and the strengthening US dollar.

Starting in fall 1980, the company reacted by implementing a range of cost savings measures, by withdrawing from unprofitable routes and by selling or chartering off aircraft it no longer needed. Investments were postponed with regard to liquidity, and certain routes were switched to operations with more efficient types of aircraft.

During this critical business phase, a change in leadership took place at Lufthansa. From 1982 onwards - still a year of economic stagnation - former Under Secretary Heinz Ruhnau guided the company's fortunes as chairman of its Executive Board. In his capacity as representative of the Federal Ministry of Transport, he had been a member of the airline's Supervisory Board for many years. In 1986 he was confirmed as chairman for a further five years. Until 1989, his deputy on the five-person board was to be Reinhardt Abraham, head of Lufthansa's Technical Division.

Gradually, by carefully increasing its capacities, making investments from its own capital resources and continuing its modernization programs, the company set its course in 1983 for success. And productivity increased perceptibly.

Ruhnau's policy of “targeted, step-by-step expansion” coincided with a speedy recovery of the economy that was soon to result in a sustained boom. The worldwide economy grew ever closer together based on intensive exchanges between Europe, America and Asia - the so-called “Big Three.” Germany's export industries attained new records. By 1984 the forces of economic growth were in evidence across entire markets. At Lufthansa this was a year of “successful work” and “significant effort.” Financially, it was the best year so far in the company's history.

Lufthansa's management team had pinpointed Asia, cargo and European regional routes as the key areas for growth. These prognoses, which drove the business strategies of those years, turned out to be viable and correct.

The Pacific Rim countries played an increasingly important role. Lufthansa took up this challenge by intensifying its commitment to these markets, serving new destinations and offering fast, increasingly nonstop services. The airline had served Beijing since 1980; additionally, it negotiated comprehensive consulting agreements with China and opened its own Lufthansa Center in Beijing. Services to Seoul followed in 1984. And after lengthy negotiations with the Soviet Union, the time-saving Siberian route to Asia was once again opened to Lufthansa. By the end of the 1980s, the Asia/Pacific region had reached nearly the same sales volumes as the North America routes.

Not to be overlooked were Lufthansa's innovative, entrepreneurial efforts in the area of air cargo, which promised higher growth rates than passenger transport. Although the volume and weight of the transported goods declined, their value increased.

Here Lufthansa continued to invest: The “Lufthansa Cargo Center” (LCC), its new air freight handling facility at Frankfurt Airport, was officially inaugurated on June 30, 1982. It had taken six years of planning and four years of construction to realize the world's largest and most modern cargo center. Of the total investment of DM 250 million, DM 110 million was spent on the building, DM 35 million on conveyance systems, and DM 105 million on IT infrastructure. In its initial phase of operation, the LCC was designed to handle up to 450,000 tons of cargo a year. Yet its modular concept allowed for the expansion of each functional area without interrupting operations - and expansion was necessary quite soon.

Handling air freight at the LCC.
Handling air freight at the LCC.
Electronic data services mean efficiency at the LCC.
Electronic data services mean efficiency at the LCC.

Like few other scheduled airlines, Lufthansa optimistically counted on air cargo as a growth market. As far back as 1981, the airline had joined forces with Schenker & Co. to found “c+d Luftfracht System GmbH,” a subsidiary that had helped develop more and more new markets with door-to-door services. And it had provided its air freight subsidiary, German Cargo Services, with a fleet of highly efficient aircraft, Douglas DC-8-73s.

Starting in 1984, worldwide economic recovery meant unusually high growth rates for air cargo. Lufthansa expanded its all-freighter fleet further, invested in data services and built cargo centers at the key hubs in its globespanning network. Since 1986 Lufthansa has been the number one in scheduled air cargo. And in 1989, the airline carried 909,000 tons of express freight.

Welcome guests: Lufthansa specializes in transporting animals in general, and horses in particular.
Welcome guests: Lufthansa specializes in transporting animals in general, and horses in particular.
The Lufthansa Cargo Center (LCC) in Frankfurt is one of the world's largest hubs for air freight.
The Lufthansa Cargo Center (LCC) in Frankfurt is one of the world's largest hubs for air freight.
Loading a Boeing B747 freighter is made easy by  its front loading door, the “nose” that swings up.
Loading a Boeing B747 freighter is made easy by its front loading door, the “nose” that swings up.
The LCC's state-of-the-art warehouse, equipped with vertical racks.
The LCC's state-of-the-art warehouse, equipped with vertical racks.
Loading a freight container.
Loading a freight container.

The company also recognized the growing importance of regional services at an early stage. In 1978 this had prompted Lufthansa to take a share in “Deutsche Luftverkehrsgesellschaft mbH” (DLT) which was increased repeatedly in later years. Ever since, Lufthansa has taken an active role in creating a comprehensive network of regional and complementary air transport. DLT, which continuously modernized its fleet by acquiring Fokker 50s and Embraer Brasilia aircraft, served a growing route network in Germany and abroad. The company's mission was to fly European routes that could not be operated profitably with Lufthansa's smallest aircraft.

And so a third key growth market emerged: Europe, Lufthansa's most important market in terms of demand, had started to develop its own dynamic. The European market with its concentrated economic power grew closer and closer together over the years; traffic between leading political and business centers continued to increase. Eastern Europe's dramatic opening and its rapprochement with the West also had an impact on air transport. Among other things this led to added demand in the leisure segment.

Despite a host of problems due to congested air space and new competitors in the German market, Lufthansa introduced innovations on its domestic routes. One was the consistent expansion of services at regular intervals. Starting in March 1983, “City Jets” on the Hamburg-Munich route literally flew “to a steady beat.” Since then, this socalled “interval service” has been expanded to feature on a total of twelve routes. Another innovation - this one an historic occasion - was the launch of services to the former German Democratic Republic, starting in 1984 during the Leipzig Fall Fair.

And Lufthansa struck a completely new, original path in 1982 by launching the Lufthansa Airport Express between Dusseldorf and Frankfurt Airport. This made Lufthansa the world's first airline to offer its own “train to the plane.” It was also the beginning of an ever closer cooperation with the German Railway on short-haul and feeder routes, one that makes good economic and ecological sense.

Flights operated by regional airline DLT, a wholly-owned subsidiary, mean that Lufthansa can offer business travelers even more destinations all across Germany and Europe.
Flights operated by regional airline DLT, a wholly-owned subsidiary, mean that Lufthansa can offer business travelers even more destinations all across Germany and Europe.
On October 6, 1988 the cornerstone was laid  for the Beijing Lufthansa Center: representatives of the City of Beijing and Lufthansa CEO Heinz Ruhnau.
On October 6, 1988 the cornerstone was laid for the Beijing Lufthansa Center: representatives of the City of Beijing and Lufthansa CEO Heinz Ruhnau.
The Lufthansa Airport Express linked Dusseldorf, Cologne and Bonn with Frankfurt Airport. Lufthansa is the world's first airline to operate  a train service.
The Lufthansa Airport Express linked Dusseldorf, Cologne and Bonn with Frankfurt Airport. Lufthansa is the world's first airline to operate a train service.

Internal problems

Competition, usually an advantage for customers, can also cause problems - problems with productivity, with efficiency, with organizational structures. What had built up over decades was not necessarily an optimum solution under new market conditions. Lufthansa made a concerted effort to face these internal difficulties, seeking to free itself from bureaucratism and encrustations. It set up profit center structures and introduced - to use that era's catchword - the free market within the company. The airline's immediate goal was to tighten the way it made decisions, to shift decision-making from the top to the bottom and make the process smoother. Tensions and friction were naturally unavoidable during “Lufthansa's most comprehensive reorganization since its second founding in 1955” and along its chosen “path of change and renewal.” They also became a topic of public discussion.

These changes had their deepest impact in sales and marketing. All tasks relating to product planning and development became the responsibility of a single unit. In addition, the airline created a route management that was responsible for the profitability of the whole Lufthansa network. This meant the marketing function was now almost entirely concentrated in Frankfurt.

The sales organization eliminated a hierarchical level, the district management offices, and integrated comprehensive responsibilities into the new regional managements. Eventually, each sales region became a profit center, a move that created greater proximity to customers and improved productivity.

As the final, consequent step in this reorganization, Lufthansa divided its former Sales and Marketing Department into two areas: one responsible for Sales, the other for “Product Development and Marketing.” This new executive department was given three central tasks: to develop product offerings for customers, principally the timetable and related services; to manage the airline's electronic distribution systems; and to position the company correctly in the market, the actual marketing function.

While passenger products were now organized into four product areas, all freight activities were concentrated under one management. Cargo now spoke with a single voice. At the same time, Lufthansa Technik saw the introduction of a new line management system.

Behind all aspects of this reorganization lay the company's ability to react more swiftly. This now also included a highperformance computerbased information system. “Management Support Systems,” a comprehensive IT restructuring project, aimed at creating a framework for spotting changing market conditions immediately. For this purpose, a single system was to gather all information companywide and make it available for decisionmaking. Another system was to compile data gleaned from the settlement of traffic revenues to deliver reliable yield estimates more quickly than before. And finally, the “Revenue Management System” was to project the likely final number of bookings for a given flight based on the current level of bookings received, and thus to detect shifts in demand at an early stage.

The German stations, which had long since grown to the dimensions of medium-sized industrial companies, were now guided by a single management. This step aimed to shift the responsibility for decisionmaking further down the hierarchy at the stations too, thus increasing the motivation and productivity of employees working in small, manageable teams. Growth needed to be accommodated - that was one of the biggest challenges of the 1980s. And this also meant taking some of the pressure off Frankfurt and Dusseldorf, a move that was urgently necessary as both airports had reached the limits of their capacities. To this end, Lufthansa decided to strengthen the role of Cologne/Bonn in its network by taking advantage of that airport's scope for expansion. There the airline created the Air Cargo Center West to complement Frankfurt and Munich as its third base for freight, an important offering for businesses in North Rhine-Westphalia.

The high production costs in the Federal Republic of Germany, a country with high salaries, caused unrest among the flying personnel. Lufthansa chose to spin off German Cargo Services (GCS) and the reactivated Südflug into new companies. It thus shifted certain operations to entities with new, more favorable pay agreements, and increasingly began to operate business activities outside of the current Lufthansa cost structures. Both GCS and Condor, after restructurings that yielded more competitive personnel and capital costs, were soon flying profitably.

Farreaching changes make themselves felt: Entire departments move from Cologne to the Office Building III (1) at Lufthansa's Frankfurt Base. Hamburg (2) remains headquarters for Lufthansa Technik. These measures were at the top of the agenda of the employee meeting in Cologne on October 6, 1986 (3).
Farreaching changes make themselves felt: Entire departments move from Cologne to the Office Building III (1) at Lufthansa's Frankfurt Base. Hamburg (2) remains headquarters for Lufthansa Technik. These measures were at the top of the agenda of the employee meeting in Cologne on October 6, 1986 (3).
Farreaching changes make themselves felt: Entire departments move from Cologne to the Office Building III (1) at Lufthansa's Frankfurt Base. Hamburg (2) remains headquarters for Lufthansa Technik. These measures were at the top of the agenda of the employee meeting in Cologne on October 6, 1986 (3).
Farreaching changes make themselves felt: Entire departments move from Cologne to the Office Building III (1) at Lufthansa's Frankfurt Base. Hamburg (2) remains headquarters for Lufthansa Technik. These measures were at the top of the agenda of the employee meeting in Cologne on October 6, 1986 (3).

International cooperation

During the 1980s, increasing liberalization promoted a movement toward partnerships in a broad range of forms - as cooperations with and without capital participation, as joint ventures, startups and participations. Lufthansa embraced this trend, too. It did not merge with another airline, but took up cooperations “wherever we cannot accomplish the task ourselves or where it helps secure our market position over the long-term,” as Heinz Ruhnau put it. Striving for a strong individual market position and being aware of the ability to generate growth internally do not exclude cooperation - on the contrary. Along these lines, Lufthansa signed a highly promising cooperation agreement with Air France in 1989, one that provided for closer ties in many areas. The year before, the two companies had already made a joint commitment to serving Berlin by founding EuroBerlin France, in which Lufthansa held 49 percent.

The Lufthansa-Air France cooperation opened up new opportunities, such as coordinating and harmonizing fleet planning with the goal of standardizing the types of aircraft in operation. But it also extended to freight handling, the use of ground facilities and the evaluation of planned routes. Both companies were convinced that they would now be able to respond to customer demand more effectively, without relinquishing their competitive positions and corporate cultures.

In Amadeus, the European travel distribution system, Lufthansa also cooperated closely with other airlines. After indepth market analyses, Air France, Iberia, SAS and Lufthansa agreed on June 28, 1987 on the joint implementation of an IT-supported distribution infrastructure. This decision marked the birth date of the Amadeus Group. Numerous other companies joined the founding members. Taken together, these companies produced about 60 percent of all reservations generated in western European countries. The large-scale Amadeus data center was built in 1989 near Munich II, that city's new airport.

Lufthansa also cooperated with American Airlines and Cathay Pacific on the development of a worldwide freight reservation system. A successful player in China for many years, Lufthansa operated two large-scale projects with its local partners, Air China and the city of Beijing. And in the Soviet Union, it developed a close, contractually defined cooperation with Aeroflot that covered such areas as the construction of Moscow Airport and aircraft maintenance.

Technical services sold to socalled third-party customers like Aeroflot offered Lufthansa considerable potential for cost savings. And the customers - who came to Lufthansa from all around the world - could thus avoid operating their own capitalintensive engineering capacities. By that time, about half of Lufthansa's engineering output served third-party customers. In addition, Swissair and Lufthansa agreed on a joint venture with Guiness Peat Aviation, the world's largest aircraft leasing company: Together, the partners built an engineering base in Shannon, Ireland.

For the past two decades, the engineering cooperation within the ATLAS Group had successfully saved its member companies between 10 and 20 percent of their maintenance costs. Without the futureoriented ATLAS Group, the introduction of modern wide-body aircraft at the participating European airlines would have been significantly more difficult - and much more expensive. On February 1, 1989, the ATLAS Group signed a new, expanded agreement - an example of constructive cooperation between competitive carriers.

Overall, the number of participations increased steadily, both in Germany and abroad. They included ground handling companies, travel agencies, reservation systems, aircraft fueling services, consulting, financing services and hotel companies. Businesses representing all areas of aviation's infrastructure were potential candidates for strategic investments. Following the trend toward cooperation so characteristic of the 1980s, Lufthansa Service GmbH (LSG), the Group's growing catering subsidiary, used joint ventures and participations to expand its international activities. A contract with Marriott/Cateair International even gave LSG the stepping stone for a presence in the USA.

One more example of successful cooperation was in the area of pilot training together with Swissair. Lufthansa's Bremen-based flight academy, which moved into a new building in 1987, developed a futureoriented concept during the 1980s: the FUTURA program. Its key feature is the use of fullflight simulators during basic training, when pilots obtain their license for the first time. This approach prepares future pilots early on for their work in cockpits equipped with automated, integrated flight management systems. It also helps avoid training flights, which makes a positive contribution toward environmental protection.

In 1986, the first women joined the ranks of the 170 or so future pilots that Lufthansa trained in Bremen every year. In this way, the airline put the concept of “equal opportunities” for men and women into practice in the cockpit, too.

Close cooperation in the cockpit between copilot and flight engineer.
Close cooperation in the cockpit between copilot and flight engineer.
Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.

Quality in all areas

Evertougher competition and the struggle for the best market position also called for a kind of inward search within the company, for some self-contemplation and self-criticism. Where did Lufthansa actually stand after over 30 years of operations? What had it achieved? And where had it fallen short? Where did its strengths and weaknesses now lie?

Lufthansa has always been a quality airline. This unconditional avowal of quality was the essence of a comprehensive company-wide survey launched in 1987. It resulted in a new definition of Lufthansa's identity, its willingness to provide service and its commitment. Eventually, this “major overhaul” found its visible expression in a new corporate design, which was applied to aircraft, cabins, city offices and counters: lots of silver, white and gray, added to the traditional blue and yellow.

Quality has many aspects, however, as this detailed analysis of a definitive vision for Lufthansa soon showed. Naturally, a modern, technologically advanced fleet is part of product quality. But quality is also expressed by an airline's timetable, route network, reliability and punctuality. Services on the ground for passengers and freight play a role here, as do inflight service, the scope and excellence of distribution systems and - perhaps most importantly - the qualifications of the employees and their willingness to provide service. During the 1980s, Lufthansa made significant investments in all these areas, including intensified training.

Throughout the 1980s the airline introduced substantial service improvements for its customers. These included the continuous improvement of Business Class, which Lufthansa had launched on January 1, 1979 - initially only on the North Atlantic routes. Soon thereafter, the comforts of Business Class were made available on all long-haul routes flown with Boeing B747s and Douglas DC-10s. And in 1989 Lufthansa decided to launch a three-class system on its continental routes as well, a decision made despite the complications due to varying levels of bookings on different routes. It was driven by the desire to im-prove service levels, particularly for business travelers. The flexibility gained by adding movable partitions between cabin areas enabled this new way of offering in-flight service.

Often, service improvements add up to a whole range of innovations - even if this is not obvious at first glance. There were now bigger meals and small amenities in the air, and hotel check-in counters, airport express counters and baggage check-in at train stations on the ground. The list is long, and illustrates how thoroughly Lufthansa strove to meet the needs of its customers.

Another high-visibility improvement during the 1980s was the modernization of the fleet. Lufthansa's short-haul fleet, which had consisted of Boeing B737-100s, was replaced by a more modern model, the Boeing B737-200 advanced, as early as 1981/82. Later, these were followed by an even more efficient aircraft, the Boeing B737-300. Its derivative, the Boeing B737-500, was delivered to Lufthansa from 1990.

Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the  number one priority is safety and the highest technical standards for its aircraft. Other  airlines benefit from this competence, too,  when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.
Expertise in engineering: At Lufthansa, the number one priority is safety and the highest technical standards for its aircraft. Other airlines benefit from this competence, too, when Lufthansa maintains, overhauls, converts or outfits aircraft on their behalf.

1983 was the year of the Airbus A310 for short and medium-haul routes. This aircraft represented the state of the art at the time; it had been optimized in a close cooperation between Airbus and its “launching customers” Lufthansa and Swissair. The two-man cockpit - controversial at first - proved its worth thanks to its sophisticated electronics. Lufthansa offered its “third men” in the cockpit, the flight engineers, the necessary training to obtain a pilot's license.

In October 1989, the Airbus A320-200 joined the fleet, and would fully replace the Boeing B727 by 1992. Lufthansa ordered 31 Airbus A320s. Later the A321, the stretched version of the A320, was also integrated into the Lufthansa fleet. In May 1989, after some delays, the airline took delivery of its first Boeing B747-400, also equipped with a two-man cockpit. This aircraft allowed Lufthansa nonstop operations even to very distant destinations. By the end of 1989, there were five Boeing B747-400s in the fleet.

Lufthansa had consistently pressed for the development of low-capacity long-distance aircraft to replace the Douglas DC-10. Its efforts paid off: In May 1989, the Supervisory Board approved the acquisition of 15 Airbus A340s - an ideal aircraft for Lufthansa.

Training in a flight simulator.
Training in a flight simulator.
Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
Das Lufthansa-Leitbild: Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
Das Lufthansa-Leitbild: Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
Das Lufthansa-Leitbild: Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
Das Lufthansa-Leitbild: Lufthansa's guiding principle: Our customers' wishes have top priority. And our main goal is to maintain and continuously improve the quality of our service.
European aircraft that embody the 1980s:  the Airbus A310 and - making its debut - the Airbus A320.
European aircraft that embody the 1980s: the Airbus A310 and - making its debut - the Airbus A320.

Prepared for the competition

At the end of the 1980s, Lufthansa and its 57,000 employees were well prepared for the last decade of the century. Planning called for DM 13 billion to be invested during the first half of the 1990s to maintain a top position in the international league tables. This was to include giving particular emphasis to time-saving nonstop connections.

Following the decision of the European Union's Council of Ministers on December 7, 1987, which catapulted regulated scheduled air traffic on its trajectory toward a deregulated market, Lufthansa had redoubled its efforts to adapt to the “Europeanization” of air transport and the emergence of new competitors. This also meant preparing for a rigorous selection process. To this end, the airline had organized itself more efficiently. It had defined a new identity, and worked continuously to advance a service-oriented corporate culture. Despite the rougher winds of competition, Lufthansa counted on growth from within.

European aircraft that embody the 1980s:  the Airbus A310 and - making its debut - the Airbus A320.
European aircraft that embody the 1980s: the Airbus A310 and - making its debut - the Airbus A320.
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The 1990s

From airline to Aviation Group

Germany’s reunification and Lufthansa’s return to Berlin: The new decade got off to a most promising start. But then came a major crisis in the early 1990s, a dramatic phase that threatened the airline’s very survival. Lufthansa sought alliances and cooperations, and eventually found its way with other airlines into the “Star Alliance,” which was rapidly to become the industry leader. A “new,” entirely restructured Lufthansa, fully privatized in 1997, now soared toward success. Lufthansa was fully prepared to take off for the new millennium.

Return to Berlin

The decade began promisingly for Lufthansa. The dramatic changes in the countries of Eastern Europe and the peaceful revolution carried out by the citizens of the German Democratic Republic turned a long-held hope into a reality: On October 3, 1990, Germany became a united country again. This also meant Lufthansa was able to realize its vision of flying to Berlin again, a desire formulated persistently during the 1980s by its CEO Heinz Ruhnau. Since the end of the war in 1945, only aircraft from the Western Allies had been allowed to fly through the air corridors to Berlin. The reunification of Germany made these special rights history.

October 28, 1990: At 9.04 a.m., the Airbus A310-300 “Donaueschingen” touched down at Berlin's Tegel Airport as flight LH 6100 from Cologne/Bonn. After 45 years, Lufthansa operated its first scheduled flight to Berlin, thus returning to the city where its had been born almost 65 years earlier and where it had laid the foundations for its success.

It was an historic day and a joyous occasion for everybody: For the world, it was a symbol of normalization and German unity. And for Berliners, it brought direct access to Lufthansa's route network. Throughout the 1990s, the Berlin/Brandenburg region would develop continuously into one of Lufthansa's most important locations, with more than 4,000 employees and over two dozen Group companies.

In 1990, economic development in Europe was driven and shaped by the dissolution of the dividing lines between East and West. German unity in particular resulted in a strong increase in demand, making the western part of the country Europe's new center of growth. Air transport within Germany was stimulated significantly by the country's unification. Lufthansa added Berlin and Dresden to its route network. During the closing months of 1990, the increase in demand on German routes rose by more than 60 percent over the year before. To meet this rapid growth, Lufthansa had to charter additional aircraft.

A joyous occasion for Lufthansa flight attendants too: At long last, the airline flies to Berlin again.
A joyous occasion for Lufthansa flight attendants too: At long last, the airline flies to Berlin again.
Members of Parliament traveled to Berlin on special Lufthansa flights to participate in the festivities marking German unity on October 3, 1990.
Members of Parliament traveled to Berlin on special Lufthansa flights to participate in the festivities marking German unity on October 3, 1990.
Members of Parliament traveled to Berlin on special Lufthansa flights to participate in the festivities marking German unity on October 3, 1990.
Members of Parliament traveled to Berlin on special Lufthansa flights to participate in the festivities marking German unity on October 3, 1990.
October 28, 1990: back in Berlin. Formulated repeatedly since 1984, Heinz Ruhnau's vision of serving the former capital again finally becomes a reality.
October 28, 1990: back in Berlin. Formulated repeatedly since 1984, Heinz Ruhnau's vision of serving the former capital again finally becomes a reality.

A serious crisis

The euphoria generated by the process of German unification was overshadowed by the international crisis in the Persian Gulf. The march of Iraqi troops into Kuwait on August 2, 1990 also aggravated the problems for international aviation: Demand on routes to the Middle East and North America dropped sharply. At the same time, fuel prices skyrocketed, as did the insurance premiums for flights to the troubled region.

1990 was “the most difficult year since the oil crisis” of 1979, as the annual report pointed out. New hardships were caused by an economic downswing in the USA and parts of Western Europe, and by intensifying competition in the wake of liberalization. Yet the mood was to grow even more somber in 1991: There was now talk of the “most difficult year in the history of world aviation.”

Jürgen Weber, who had assumed the responsibilities of Chairman of the Executive Board on September 1, 1991, was obliged to present the airline's shareholders with a loss for the Financial Year 1991 - citing the “industry's catastrophic development” as the cause.

For the first time in 50 years, world aviation recorded a 4-percent decline in demand and a 2-percent drop in performance. The resulting excess capacities led to ever-fiercer competition. As from 1990 onwards the earnings and financial position of the airlines came under rising pressure, while the industry as a whole slipped deeply into the red.

The decline in world economic activity, related or unrelated to the Gulf war, hit Lufthansa during its most extensive investment program ever, which it had launched in light of the approaching European Single Market. This investment was aimed at strengthening the airline's position in Germany and expanding its services to Berlin and the new German states.

This economic crisis, which very nearly threatened the company's survival, demanded incisive measures. 23 aircraft were withdrawn from service, options for the acquisition of new aircraft were not exercised, supply was adapted to declining demand. Costs were cut by 3.5 percent, and 1,000 employees were let go. In addition, the airline implemented an entire package of adaptation measures involving personnel.

Lufthansa's management did everything in its power to free the airline from the crisis weighing so heavily on the economy and the industry. The fleet and facilities were updated, providing a sound basis for the competitive quality battles that lay ahead. Sales and distribution efforts were intensified; Lufthansa took a more aggressive stance on pricing; the partner concept in cooperation with medium-sized travel agencies took hold in the market. And DLT changed its name to Lufthansa CityLine. Jürgen Weber summed up Lufthansa's position at the time: “Building on a strong identity and increased customer orientation, we have begun to sell our products more successfully.”

However, the crisis had not been overcome yet - on the contrary. 1992 was to deepen the crisis mood even further. A two-year period of flat economic growth now stood in contrast to significant capacity increases in the international air transport industry. Competition meant that fares dropped dramatically, and the IATA airlines recorded combined losses for 1992 approaching US$ 5 billion.

At Lufthansa, there was talk of a “period of upheaval”: Germany, traditionally a country with high salary levels, turned out to be an increasingly difficult base from which to do business in an industry with global competition. Additional burdens included Germany's higher costs for air transport infrastructure and the unfavorable development of foreign exchange rates.

A policy of radical cost cutting was implemented, and showed immediate effects. By September 1992, costs were 4-5 percent below the previous year's levels, despite a marked rise in transport performance. Innumerable ideas for improvements had been developed and implemented across the company - yielding cost savings of several million marks.

It would take time, though, to implement the cost reduction program fully. The Lufthansa Group's aftertax loss for 1993 still came in at DM 92 million, yet that was already a 77-percent improvement over the year before.

Consequently, 1993 was officially declared as the “Year of Revitalization.” The company was now able to point to the fact that it had struck a new course: “We have increased sales, maintained revenues at the preceding year's level and cut costs,” ran the official summary. All achievements that flew in the face of adverse conditions such as declining economic performance, increasing unemployment, rising public deficits and falling disposable incomes.

Personnel cuts, capacity adjustments and unrelenting cost management were necessary and appropriate. Equally important were the measures to increase revenues, including the introduction of the bonus program Miles & More, the implementation of network management and the marked changes in pricing policy. After a number of difficult years, the success of the revitalization program generated new confidence for the airline and its employees.

Lufthansa aircraft at Frankfurt Airport's Terminal 1. Its Hall A is used exclusively by Lufthansa.
Lufthansa aircraft at Frankfurt Airport's Terminal 1. Its Hall A is used exclusively by Lufthansa.

Alliance and privatization

The major, even life-threatening crisis was finally overcome in 1993. The company had regained its balance and calm. The new pricing and distribution policies, together with the introduction of the bonus program Miles & More to build customer loyalty, helped the airline to keep its sales revenues at the previous year's levels despite continued price erosion, particularly in passenger fares.

In 1993 Germany experienced the most severe recession in the history of the Federal Republic, and yet Lufthansa carried almost 7 percent more passengers on its domestic routes. In international scheduled passenger services, the airline maintained its number three position, measured in passenger kilometers. And Deutsche Lufthansa AG increased its freight performance by 5.4 percent to 1.1 million tons, thus defending its number one position in international scheduled cargo services.

Jürgen Weber, Chairman of the Executive Board of Deutsche Lufthansa AG since May 1991.
Jürgen Weber, Chairman of the Executive Board of Deutsche Lufthansa AG since May 1991.
October 4, 1993: Stephen Wolf, President of United Airlines, and Jürgen Weber, Chairman of the Executive Board of Deutsche Lufthansa AG, sign the contract of cooperation between the two airlines in Frankfurt.
October 4, 1993: Stephen Wolf, President of United Airlines, and Jürgen Weber, Chairman of the Executive Board of Deutsche Lufthansa AG, sign the contract of cooperation between the two airlines in Frankfurt.

One of the key strategic goals - in addition to structural change and privatization - was the search for a partner in the United States. This delicate matter demanded much time-consuming political coordination before Stephen Wolf, President of United Airlines, and Jürgen Weber, Chairman of Lufthansa's Executive Board, could sign the cooperation agreement between the two companies in October 1993.

Lufthansa had long fought for this cooperation; however, it could not be realized before the two countries had successfully negotiated a new air transport agreement. There was still some wrangling over the interpretation of certain fine points, which would not be cleared up until spring 1994. But one thing would then be sure: Before the end of 1994 Lufthansa would be able to add up to 40 destinations in the USA to its timetable, as code-share flights with United Airlines.

In 1993 Jürgen Weber said: “We are at the beginning of a very close, global partnership with United Airlines. By working together, we are not only linking two key aviation markets but also creating new customer advantages worldwide.” This alliance made a major contribution to improving Germany's competitive position with regard to traffic on North Atlantic routes. By entering into a cooperation first with United Airlines and then with Thai International Airways, Lufthansa became part of the largest global alliance in commercial aviation. Over the years ahead, this cooperation would continue to grow and set new standards in the race to globalize the business.

With an eye on the first steps towards privatization - which would then be realized fully in 1997 - Jürgen Weber referred to a “new chapter” for Lufthansa that began in 1994.

Now the Federal Republic, still the company's majority shareholder until fall 1994, gave up this position in favor of private investors by not exercising its subscription rights in the context of a capital increase. In addition, it sold a part of its shareholding. Following these moves, the Federal Government only held about 36 percent of the share capital of Deutsche Lufthansa AG as of October 1994.

The airline's management welcomed privatization. Experience over the past few years had shown that privatized companies did well in asserting themselves in the industry's liberalized markets. New challenges, such as the liberalization of air transport within the EU starting in 1993, demanded new forms of organization that could successfully adapt to the increasingly rapid changes in market conditions.

Privatization opened up the path toward a capital increase and the company's continued growth. Without access to urgently needed fresh equity, Lufthansa would not have been able to maintain its position as a leading and flourishing player in the world's aviation industry.

After three loss-making years, Lufthansa moved back into the profit zone in Financial Year 1994. As a result of privatization, the Lufthansa share recorded impressive price gains, while high liquidity and rising dividends made it a profitable investment.

Lufthansa Cargo AG maintains its position as the world's number one logistics company.
Lufthansa Cargo AG maintains its position as the world's number one logistics company.
Lufthansa Cargo AG maintains its position as the world's number one logistics company.
Lufthansa Cargo AG maintains its position as the world's number one logistics company.
Lufthansa Cargo AG maintains its position as the world's number one logistics company.
Lufthansa Cargo AG maintains its position as the world's number one logistics company.

A new kind of Lufthansa

Lufthansa in 1995: This was a new kind of Lufthansa, one with a new form and a new face. The structural changes within the globe-spanning Lufthansa Group had been in the works since the beginning of 1994. By the end of 1994, the requisites for implementing these changes were in place. Driven forward with resolve, the restructuring of the Group aimed at creating independent, results-oriented companies exposed to the winds of competition. Successful forerunners of this approach had been Condor and LSG.

The company's new structure looked like this: Starting in 1995, Deutsche Lufthansa AG itself only operated scheduled passenger services, employing on average more than 27,000 people on the ground and in the air. At the beginning of 1995, Lufthansa Technik AG (more than 10,000 employees), Lufthansa Cargo AG (more than 5,000 employees) and Lufthansa Systems GmbH (1,100 employees) became legally separate and independently operating companies, whose close ties to the Lufthansa Group naturally remained in place. These three new companies now joined the existing key Group companies LSG Sky Chefs (37,000 employees), Condor (2,350 employees) and Lufthansa CityLine (1,300 employees). The newly structured corporation was in good shape, as the positions of the individual companies demonstrated.

In its first financial year, the “new” Lufthansa made history by setting another record: It carried 32 million passengers, an increase of 7.9 percent over 1994. Its network of worldwide cooperations was established, following the motto “Going Global.” Together with United Airlines and Air Canada, Lufthansa again dominated on the North Atlantic routes, and by cooperating with Varig, the airline began serving new destinations in South America. SAS had become its key partner on European routes. Together, Lufthansa and South African Airways strengthened the links between Europe and South Africa. And by cooperating with Thai Airways International, Lufthansa guaranteed smooth connections to the Asia/Pacific region.

Condor Flugdienst GmbH, which celebrated its 40th anniversary in a turbulent market in 1996, was again able to underscore its leading position in German tourism by capturing a market share of 25 percent. For the first time, its sales revenues passed the record mark of DM 2 billion. And as it now carried more than 6 million passengers a year, the airline had to expand its fleet rapidly. To secure existing and open up new markets, the company acquired stakes in medium-sized tour operators.

Lufthansa CityLine continued on track for growth, expanded its offerings on European routes and systematically switched its fleet to jet aircraft. Pursuing its goal of an all-jet fleet, the airline already carried more than 3 million passengers on its Canadair Regional Jets and Avro RJ85s alone in 1996.

Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.
Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.
Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.
Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.
Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.
Lufthansa Technik AG proves its global competitiveness, serving customers from all around the world.

Lufthansa Technik, one of the Group's key players right from the start, generated revenues of DM 2.5 billion in 1995, its first year as an independent entity. It established itself as the leading civil vendor of aviation engineering services worldwide - against the backdrop of a tough market with excess capacities and intense price pressure. The company's highly utilized facilities offered the full range of services: from comprehensive maintenance for entire fleets - such as the Lufthansa Group's 314 aircraft - to individual projects. One area of emphasis was Total Technical Support - a comprehensive one-stop service including engineering, spare parts supply, planning and optional onsite support - which Lufthansa Technik provided for 20 customers outside the Group. The company also handled 12 projects for VIP customers.

In 1995, Lufthansa Cargo AG, which evolved from Lufthansa Cargo Airlines GmbH (German Cargo Services GmbH until 1993), increased its transport performance by 9.8 percent to 1.6 million tons of cargo, thus maintaining its position as the world's largest scheduled freight carrier. In addition to space on its own freight aircraft, Lufthansa Cargo also marketed the cargo capacities of the passenger fleets operated by Deutsche Lufthansa AG, Condor Flugdienst GmbH and Lufthansa CityLine GmbH.

LSG Sky Chefs is the world's largest caterer, with production at 187 locations around the world and a global market share of 33 percent.
LSG Sky Chefs is the world's largest caterer, with production at 187 locations around the world and a global market share of 33 percent.
LSG Sky Chefs is the world's largest caterer, with production at 187 locations around the world and a global market share of 33 percent.
LSG Sky Chefs is the world's largest caterer, with production at 187 locations around the world and a global market share of 33 percent.
GlobeGround: the handling professionals in the business area of ground services.
GlobeGround: the handling professionals in the business area of ground services.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.
Lufthansa Systems generates IT processes and tools that are decisive for the success of the entire Group.

LSG Sky Chefs, now a “global player” with 187 catering operations around the world, expanded its position in the international markets. The company had risen to become the largest caterer worldwide - with a world market share of 33 percent - by taking a stake in US catering company Sky Chefs, Inc. in 1993 and subsequently continuing its acquisition strategy. By 1995 LSG Sky Chefs counted more than 250 airlines among its customers and produced 300 million meals per year. It invested in existing facilities, acquired additional catering operations and took stakes in key projects in aviation.

Finally - and thus completing the picture of the “new” Lufthansa - Lufthansa Commercial Holding GmbH assumed responsibility for managing the Group's wideranging portfolio of participations, while the Delvag/Albatros group looked after a broad range of insurance needs.

All told, 1995 was another “successful year” for Lufthansa, one that brought new momentum to the company, an increase in sales and revenues, and a solid net profit on the books.

Yet just how changeable and unpredictable the passenger and freight business can be, how dependent on fluctuating economic trends and exchange rates, quickly became clear in 1996. During the first half of the year, utilization dropped significantly below 1995 levels, a trend that was reversed in the second half. And then fuel prices shot up unexpectedly and rapidly from midyear. At the peak, fuel cost up to 60 percent more than in 1995.

Given the economic downturn, increasing competitive pressures and the full market liberalization set to take effect in 1997, Lufthansa adopted “Program 15.” This five-year cost-cutting program aimed at reducing unit costs by 4 percent per year. For example, all Boeing B737-400s in the fleet were withdrawn from service, and purchasing activities coordinated with those of the airline's cooperation partners.

Lufthansa worked hard at improving its competitiveness and focused on further increasing product and service quality. These efforts also included updating the Lufthansa terminals at Frankfurt Airport.

On course for success

1997, which witnessed the final and full privatization of Lufthansa, was to go into the company annals as an “historic” year. The German government sold its remaining shares in Deutsche Lufthansa AG, thus attaining the goal of its cautious, yet consistent privatization policy. This led to a consensus-based solution for the problems concerning pensions for Lufthansa employees, the competitiondriven “open skies” agreement with the USA and the introduction of registered shares to overcome the hurdles of the Aviation Compliance Documenting Act. On October 13, 1997 the stock exchanges began trading the Lufthansa shares sold by the Federal Republic and the Kreditanstalt für Wiederaufbau, thus formally concluding the privatization process.

Lufthansa had always been a competitive company managed by the criteria of profitability. But becoming a private entity gave it broader scope for decision-making, helped its employees to identify with the company and promoted its standing with customers. Being private is also the precondition for attracting international investors.

Pilots from the five airlines founding the Star Alliance in Frankfurt on May 14, 1997.
Pilots from the five airlines founding the Star Alliance in Frankfurt on May 14, 1997.
October 1999: Employees of the now nine member airlines gather in front of the Lufthansa Airbus A340-200 carrying the partners' logos.
October 1999: Employees of the now nine member airlines gather in front of the Lufthansa Airbus A340-200 carrying the partners' logos.
2001: The Star Alliance now counts 13 member airlines. The Lufthansa Airbus A340-200 “Nürnberg” displays the special “Star Alliance” livery.
2001: The Star Alliance now counts 13 member airlines. The Lufthansa Airbus A340-200 “Nürnberg” displays the special “Star Alliance” livery.

The Financial Year 1997 was the most successful thus far in Lufthansa's history - and that precisely in the year when liberalization removed the last barriers to full competition in Europe. By generating a pretax profit of more than DM 1.6 billion, Lufthansa improved its 1996 result by 140 percent. Rating agencies, financial analysts and investors placed Lufthansa in the top league of international aviation companies.

But that was not all. Following its successful result of 1997, Lufthansa closed the Financial Year 1998 with yet another record profit. While expectations had been pegged high, the airline was able to surpass its ambitious target of pretax profit of DM 2 billion by almost DM 500 million - an achievement that was only possible thanks to the constant and dedicated work of all its employees.

The strategy of the preceding years was bearing fruit: Clear corporate structures had not only proven their value in guiding the activities of the Group, but they also facilitated a precise assessment of the performance and efficiency of individual Group companies. The “responsible use of resources combined with sound and systematic cost management” had made Lufthansa fit for the future, as the company reported.

Alliances in the passenger sector contributed significantly to this excellent result. At the time Jürgen Weber wrote to shareholders: “I see our biggest advantage in the unparalleled alliance we have forged with our partners over the past few years. It is growing ever closer together, offers cost advantages and opens up new revenue potentials. One of our key goals is to further expand and deepen this alliance, which is already the largest worldwide. Today, it is alliance systems that compete for global customers. And we fully intend to maintain the leading role that Lufthansa plays in this competition.”

The importance of alliances as a strategic factor for success continued to increase significantly. In 1998 they contributed about DM 500 million to profits. New partners completed Lufthansa's worldwide route network. With more than 700 destinations, the “Star Alliance” - as it has been called since 1997 - offered more connections than ever before. Now the challenge was to strengthen the competitive edge - and this included giving the Star Alliance its own management structure.

Though in 1998 the civil aviation market was largely characterized by regional currency and economic crises, the Lufthansa Group managed to strengthen its market position. All Group companies demonstrated a high level of innovativeness, a fact reflected in their respective results.

Lufthansa Cargo, for example, positioned itself as a high-performance vendor of logistics services. Together with its international partners, the company further integrated its performance chain. And Lufthansa Cargo was again able to expand its leading position in the air freight market.

Lufthansa Technik AG, which had also been operating in Ireland since 1995, proved its global competitiveness by signing a record number of new contracts and participating successfully in joint ventures in the USA. Its third-market business grew to nearly 50 percent of total performance.

The LSG Group, the world leader in airline catering, was awarded the operational contract for highway rest-stop provider Autobahn Tank & Rast AG, amid intense bidding by competitors. And by increasing its investment in cooperation partner Sky Chefs, the LSG Group strengthened its global presence.

The C&N Touristik AG successfully launched its business activities. Lufthansa and Karstadt AG each hold 50 percent in this company, which joins Condor Flugdienst GmbH, NUR Touristik GmbH and their respective subsidiaries into an integrated tourism group. C&N aims at opening up new potentials in the highly competitive tourism market.

And the business segment IT Services focused on expanding external markets. The three business areas of Lufthansa Systems - application development, data centers and infrastructure service - all contributed to the company's positive development. The travel distribution system START Amadeus GmbH exceeded its targets for the year.

Ground services, which comprise services such as passenger, aircraft and freight handling, were also by now one of the strategic business segments of the Lufthansa Group. Lufthansa has since become the leading global provider in this growing market through GlobeGround GmbH, the successor to Lufthansa Airport und Ground Services GmbH (LAGS).

For Lufthansa, globalization had long been more than just another buzzword: The number of international cooperation partners of Group companies had grown continuously. And for many years, Lufthansa had faced worldwide competition in the purchasing, sales and financial markets. 30.4 percent of the Group's equity is held by shareholders outside of Germany.

The horizontal stabilizer of an Airbus carries the Lufthansa colors to the doorstep of the Frankfurt Stock Exchange.
The horizontal stabilizer of an Airbus carries the Lufthansa colors to the doorstep of the Frankfurt Stock Exchange.
Condor is the airline of C&N Touristik AG.
Condor is the airline of C&N Touristik AG.
As a regional carrier, Lufthansa CityLine is a key component of the Group's passenger business segment. Company headquarters: the new office building at Cologne/Bonn Airport.
As a regional carrier, Lufthansa CityLine is a key component of the Group's passenger business segment. Company headquarters: the new office building at Cologne/Bonn Airport.
As a regional carrier, Lufthansa CityLine is a key component of the Group's passenger business segment. Company headquarters: the new office building at Cologne/Bonn Airport.
As a regional carrier, Lufthansa CityLine is a key component of the Group's passenger business segment. Company headquarters: the new office building at Cologne/Bonn Airport.

From airline to Aviation Group

1999, the last year before the millennium change, closed on a positive note for Lufthansa: For the third time running, the company achieved a top-level performance among Europe's airlines.

Lufthansa's strategy of evolving from an airline into an aviation group, pursued for a number of years now, was confirmed by this result. Jürgen Weber spoke of a “year that put the Lufthansa Aviation Group to the test.” In the course of the 1990s, the Group concept increasingly took on visible form.

Lufthansa's long-term strategy aims at developing the company into the world's leading vendor of services in aviation and aviation-related fields. As an integrated aviation group, Lufthansa is a player in seven strategic business segments, which represent a high-performance network of cooperating companies. In this way, the Group pursues Lufthansa's long-established strategy of decentralization.

With its new Training Center at Frankfurt Airport, Lufthansa Flight Training is optimally prepared for tomorrow's competitive markets.
With its new Training Center at Frankfurt Airport, Lufthansa Flight Training is optimally prepared for tomorrow's competitive markets.
With its new Training Center at Frankfurt Airport, Lufthansa Flight Training is optimally prepared for tomorrow's competitive markets.
With its new Training Center at Frankfurt Airport, Lufthansa Flight Training is optimally prepared for tomorrow's competitive markets.

Each of the seven business segments - Passenger Business, Logistics, MRO (Maintenance, Repair and Overhaul), Catering, Leisure Travel, IT Services and Ground Services - follows a clear international growth strategy. In addition to internal growth, the individual business segments take steps to expand through strategic alliances and participations.

Over the midterm, all business segments are to become global leaders in their markets and achieve profitable long-range growth. While activities that are not covered by the definition of the “aviation group” are not pursued long-term, they may be used to help take advantage of opportunities.

Background of this ambitious strategy? The liberalization of air transport and the globalization of key industries, which have led to increasingly intense competition worldwide. Its strategic goal? To free the Group to an ever-greater extent from aviation's cyclical fluctuations.

1999 was marked by the Aviation Group's growing strength, as the positive impact of the new strategy became more and more discernible. In this vein, Lufthansa and its partner Karstadt Quelle AG strengthened the equity basis of C&N Touristic AG. This enabled C&N to present a takeover offer to the shareholders of British tour operator Thomson Travel Group plc.

While Lufthansa Technik founded Lufthansa Technik USA Holding, the LSG Group raised its share in Onex Food Services to about 48 percent. In the Ground Services business segment, GlobeGround acquired the Hudson Group, a leader in the US market.

Deutsche Post and Lufthansa Cargo agreed on a comprehensive strategic cooperation to manage their worldwide logistics activities. Their planned joint ventures included cooperations with express service provider DHL and the creation of a joint electronic marketplace for logistics products.

Simultaneously, the core business continued to grow as well. In 1999 Lufthansa carried 38.9 million passengers, an increase of 7.8 percent over the preceding year. And Lufthansa CityLine improved its performance to 4.9 million passengers, a plus of 11.3 percent.

By welcoming Air New Zealand, Ansett Australia and All Nippon Airways as new members, the Star Alliance further increased its worldwide lead. Expecting a continued consolidation process in the European aviation market, Lufthansa also strengthened its market position in Europe. Important steps in this direction were the acquisition of a 26-percent stake in Italian regional carrier Air Dolomiti during the second half of the year and a comprehensive cooperation agreement with Spanair.

Other important milestones included the acquisition of a 20-percent share in British Midland and its planned inclusion in the Star Alliance. In addition, successful negotiations with the Austrian Airlines Group and Singapore Airlines culminated in their joining the Star Alliance. And the Alliance's presence in Central America was to improve substantially when Mexicana joined in 2000.

That the Star Alliance is much more than a loose, purpose-oriented association was clearly proven in 1999, when United Airlines and Lufthansa lent decisive support to Air Canada in defense against a proposed hostile takeover. The Alliance emerged from this trial stronger than ever.

Certain drawbacks of air transport and the sometimes powerlessness of the airlines were also in evidence in 1999. In some cases, the performance deficits of Europe's air traffic control systems severely affected on-time performance of scheduled flight operations, causing unacceptable delays.

Lufthansa reacted to these emerging problems with fresh determination. In April 1999, it announced its “Operational Excellence” initiative, which went to work from June 1, 1999. This project aimed to reduce delays for which Lufthansa itself was responsible and to improve product quality materially by increasing backup capacities and applying the results of indepth process analyses. “Operational Excellence” quickly proved a success.

The forecasts at the threshold to the new millennium were positive, and Lufthansa prepared for this expected growth by increasing its capacities. Another item on the agenda was the expansion of existing alliances and cooperations. There were strong indications that air freight would benefit from an upswing in world trade. The fact that fleets were growing worldwide would also lead to increased demand for technical services, brightening the prospects of Lufthansa Technik. Growing numbers of passengers were set to spur demand for catering. And Leisure Travel aimed to secure a leading share in Europe's flourishing tourism market.

The airline's dense route network with global reach, inconceivable without alliances with strong partners, had proven its worth. By applying the concept of “seamless travel,” Lufthansa had created key customer advantages: speed, reliability and transparency.

Reflecting the constant change of fashion: Lufthansa uniforms since 1955.
Reflecting the constant change of fashion: Lufthansa uniforms since 1955.
Reflecting the constant change of fashion: Lufthansa uniforms since 1955.
Frankfurt Airport is the central hub in Lufthansa's route network. Halls A and B, used exclusively by Lufthansa, were fully modernized.
Frankfurt Airport is the central hub in Lufthansa's route network. Halls A and B, used exclusively by Lufthansa, were fully modernized.
Frankfurt Airport is the central hub in Lufthansa's route network. Halls A and B, used exclusively by Lufthansa, were fully modernized.

The dream of flying

And so the 20th century - the century that had witnessed the realization of one of mankind's most audacious dreams, the dream of flying - drew to a close. What not even the most visionary thinker would have dared to predict back in the early 1900s, considering the Wright brothers' first short hops, had become an selfevident part of our daily lives a century later: Today, millions upon millions of passengers travel by air. And millions of tons of cargo are loaded on planes. Our world is interlinked by airline schedules.

The 20th century turned the dream of flying into a  reality: a Boeing B737-500 flying in formation with the Junkers Ju 52 of Deutsche Lufthansa Berlin-Stiftung.
The 20th century turned the dream of flying into a reality: a Boeing B737-500 flying in formation with the Junkers Ju 52 of Deutsche Lufthansa Berlin-Stiftung.

Lufthansa's history has been part of this triumphal development. Its roots stretch back to the era coming on the heels of World War I, to the early 1920s. Its crane logo, the oldest trademark in civil aviation, even dates as far back as 1919. Especially in Europe, South America and Asia, “Deutsche Luft Hansa Aktiengesellschaft” was among those farsighted pioneers paving the way for the intercontinental air transport to come. Often, those earliest operations were arduous and took place under the most adventurous of conditions, as was the case for the first night flights and the first transalpine or transatlantic crossings.

Building on the worldwide renown of the first Lufthansa, which disappeared in 1945, a second Lufthansa was able to evolve in the 1950s. Experienced personnel from the prewar years - pilots, flight operation managers, technicians committed to safety and economic efficiency - formed the foundation for this new Lufthansa. Lufthansa's technical competency meant that it would assume a leading role in developing the Boeing B737 and Boeing B747-400, the Airbus A310 and Airbus A340. Today, supported by its partners in the Star Alliance, Lufthansa is one of the world's leading large airlines.

Global reach with support from strong partners:  tails of aircraft operated by the five airlines that founded  the Star Alliance. der Star Alliance.
Global reach with support from strong partners: tails of aircraft operated by the five airlines that founded the Star Alliance. der Star Alliance.
The crane, civil aviation's oldest trademark still in use today, was designed in 1919.
The crane, civil aviation's oldest trademark still in use today, was designed in 1919.
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The 2000s

Taking off into the new millennium

Flight operations crossed the threshold into the new millennium without any problem; all our IT systems sailed smoothly into the year 2000. But on September 11, 2001, the world was changed forever and the entire aviation industry thrown into deep crisis. The Lufthansa Group was suddenly facing an existential test. This situation was exacerbated by insecurity over the possibility of war in Iraq and the threat from the SARS virus. Lufthansa stood up to these challenges with its unwaveringly high level of product quality and its far-reaching investments.

Taking off into the new millennium

“Millennium,” that magic word: For a brief and shining moment, the whole world was swept up in the whirlwind surrounding the passage into the new millennium. Rarely had mankind been so keenly aware of the Earth's rotation as on that New Year's Eve when our calendars switched from 1999 to 2000. An awareness witnessed on television screens in metropolises from Sydney to New York.

This was globalization in action. And it spoke for the overall high level of technological standards that the muchhyped “millennium bug,” prophesied and feared to cause computer systems to crash worldwide, simply did not occur as countermeasures had been taken well ahead of time. For the 100,000 Lufthansa passengers crossing the millennium threshold on this memorable “night of nights,” the universal message from cockpits and stations was: “All systems are go!”

Indeed, world aviation, that linchpin of globalization, was looking forward to a brilliant future. Analysts agreed that air transport would increasingly assume the role of “key industry” in the years ahead. This was a logical conclusion in a world that had rapidly turned away from the “wall thinking” of the 20th century to embrace the “network thinking” of globalization. Just as the Internet creates a huge globespanning network of communications, the world's airlines and their alliances create a parallel network of mobility.

Lufthansa stood to benefit greatly from this trend toward expanding networks and linkups. The very nature of its business had alone given the company an important role in the development of futureoriented information technology. After all, the airline handles enormous volumes of reservations data, stores and makes instantly accessible vast amounts of information, transmits data to aircraft in flight and communicates globally, all on a daily basis.

As Lufthansa sees it, the aircraft and the Internet have become become a team typical of the 21st century. Today, in the world's industrialized countries, one out of every three inhabitants travels by air. In Germany alone, an aircraft takes off every 5 seconds on average. The scope of human relations and business activities has expanded with increasing speed. This makes Lufthansa an active part of how we experience life in the 21st century.

Thanks to professional countermeasures, the  widely anticipated chaos resulting from worldwide computer system crashes as the calendar advanced from 1999 to 2000 did not come to pass.
Thanks to professional countermeasures, the widely anticipated chaos resulting from worldwide computer system crashes as the calendar advanced from 1999 to 2000 did not come to pass.
In our globalized world, aviation increasingly takes on the role of “key industry.”
In our globalized world, aviation increasingly takes on the role of “key industry.”

Lufthansa 2000

Like telecommunications, international, worldspanning civil aviation is the backbone of open societies. At the start of the new millennium, air transport's contribution to the global economy was significant: 28 million direct and indirect jobs worldwide, a share of US$ 1,400 billion in worldwide gross production, 1.6 billion people using the services of airlines every year and 40 percent (by value) of all exported goods being shipped by air. Aviation is a key logistics pillar of the world's economy.

Within the aviation industry, Lufthansa had positioned itself very favorably. Judging from the airline's overall market presence, industry observers rated it as the bestpositioned carrier at the beginning of the new millennium.

Stocktaking: The Lufthansa Aviation Group, with approximately 350 subsidiary and affiliated companies, has a worldwide presence. All Group companies pursue business activities within or related to air transport and fall into one of seven business segments: Passenger Business, Logistics, MRO (Maintenance, Repair, Overhaul), Catering, Leisure Travel, IT Services and Ground Services. Their activities are supported by service and finance companies such as Delvag, Lufthansa Flight Training GmbH and Lufthansa Commercial Holding, which itself holds interests in 54 companies.

In Germany alone, people from 120 nations work for Lufthansa; this number rises to 150 worldwide. The Lufthansa Group counts 42.5 percent female employees, while women make up as much as 63.8 percent of all employees at Deutsche Lufthansa AG. Of the Group's 70,705 employees, about 43.4 percent work at Deutsche Lufthansa AG, nearly half as flying personnel. Most of the remaining employees work for one of 37 Group companies. Among these companies, the LSG subgroup has the most personnel at 13,094 employees, followed by Lufthansa Technik AG at 10,738 and Globe Ground GmbH at 6,173.

With an average age of 7.4 years, the fleet operated by the Lufthansa Group counts as one of the youngest and most environmentally compatible in world aviation. This reflects the company's philosophy of employing state-of-the-art technology in order to support marketoriented solutions.

This is why the Lufthansa Passenger Airline flies the latest Airbus aircraft and the most advanced version of the Boeing B747. In 2003, the first of ten Airbus A340-600s on order - a further development of the reliable A340 - were integrated into the fleet. Likewise, Lufthansa CityLine operates a fleet of new regional jets, featuring an average age of 4.9 years. Modern Boeing B757s and Boeing B767s make up Condor's fleet, while Lufthansa Cargo had almost completed its ambitious fleet modernization program when it took delivery of its 14th Boeing MD-11F in 2001.

This uncompromising determination to maintain the highest levels of quality is paying off. Today, the majority of Lufthansa companies occupy the top position world-wide in their respective areas of business.

75 years after being founded in Berlin, the Lufthansa Passenger Airline was the world's second-largest international carrier, boarding 125,000 passengers every day. Lufthansa Cargo was the market leader in logistics, Lufthansa Technik the number one in aircraft maintenance, and LSG Sky Chefs the world leader in catering with 365 million meals produced per year. Lufthansa Systems was active as a global IT service provider, Globe Ground offered handling services at 400 airports around the world, while C&N Touristik carried 8.2 million passengers and owned 51 hotel properties. “I think I won't overstate the case,” said Lufthansa CEO Jürgen Weber, “when I say that today Deutsche Lufthansa is a symbol for modern, environmentally aware and successfully operated air transport.”

Roll-in of Lufthansa's first Airbus A340-600. Lufthansa operates one of the youngest and most environmentally friendly fleets in world aviation.
Roll-in of Lufthansa's first Airbus A340-600. Lufthansa operates one of the youngest and most environmentally friendly fleets in world aviation.
Around the world, people from about 150 countries work for Lufthansa.
Around the world, people from about 150 countries work for Lufthansa.
The crane, Lufthansa's corporate logo, is known worldwide for excellence in flying and technology.
The crane, Lufthansa's corporate logo, is known worldwide for excellence in flying and technology.
Lufthansa placed a firm order for the Airbus  A340-600. An advanced version of the A340, this new type of aircraft was integrated into Lufthansa's fleet from 2003.
Lufthansa placed a firm order for the Airbus A340-600. An advanced version of the A340, this new type of aircraft was integrated into Lufthansa's fleet from 2003.

Taking advantage of the Internet

This sums up the situation at the start of the new millennium. Lufthansa took off into the 21st century with highly ambitious goals. The company intended to be the pacesetter, if not the forerunner, in making use of information technology. IT represented the third revolution in aviation, following the switch from propeller to jet aircraft, the first revolution, and the changeover to wide-body aircraft in the early 1970s, the second.

And now: ebusiness, a road to new markets. Like almost no other industry, aviation was being influenced greatly by Internet technology. To adapt to this changing environment and benefit from this futureoriented technology, Lufthansa set up a team that presented a master plan entitled “eViation” in November 2000.

These were the goals envisaged: first, to expand online distribution channels and thus raise the share of revenues from online sales to 25 percent by 2005; second, to achieve the industry's highest levels of customer loyalty by means of exemplary customer data management and individualized services; third, to set new standards in product development by introducing “Internet on Board;” and fourth, to further decrease transaction costs and purchasing prices by using Internet platforms in a comprehensive manner.

The strategy's long-term objectives were threefold: to improve customer service, to lower operating costs and to optimize internal work processes. In November 2000, Jürgen Weber explained the new approach at the “Lufthansa//eCommerce Forum” in this way: “E-business means accepting that the focus of perception shifts from the company's preset targets to our customers. Or in the language of consultants: A company-centered 'push focus' shifts to become a customer-oriented 'pull focus.'”

Lufthansa was set to draw the obvious advantage from the dynamic changes driven by the new information and communications technologies. The company considered itself prepared for its entry into the Internet economy - unlike 70 percent of German companies at that time, which did not yet have an ebusiness strategy.

Lufthansa supports a research project headed by the German Aerospace Center (DLR), which investigates the effects that varying levels of sulfur in jet fuel have on the generation of vapor trails. For this purpose, the DLR's measuring aircraft flies closely behind a Lufthansa Boeing B737 specially assigned to this mission.
Lufthansa supports a research project headed by the German Aerospace Center (DLR), which investigates the effects that varying levels of sulfur in jet fuel have on the generation of vapor trails. For this purpose, the DLR's measuring aircraft flies closely behind a Lufthansa Boeing B737 specially assigned to this mission.
WAP technology allows access to Lufthansa flight information from mobile telephones.
WAP technology allows access to Lufthansa flight information from mobile telephones.

On course for success

The new century got off to a great start for Lufthansa. In 2000, it was Europe's most successful airline for the fourth time in a row. Every single Group company contributed significantly to this success. In the business segment Passenger Services, Lufthansa carried 47 million passengers, 7.4 percent more than the year before. Lufthansa Cargo AG expanded and, having evolved into a global logistics provider, achieved the best result ever in its history. LSG Sky Chefs developed into the world's leading provider of catering services, with a world market share of about 34 percent. Lufthansa Technik AG successfully increased its revenue from customers outside the Group by 27 percent.

The Leisure Travel business segment also continued to expand: By completing its acquisition of the Thomas Cook tourism group in the UK, C&N Touristik AG soared to become the industry's number two in Europe. Lufthansa Systems quadrupled its result, while Globe Ground looked forward to like opportunities in handling services, given the continued growth in air transport.

These were impressive figures for the year 2000, a year characterized by a positive global business outlook darkened by the rough crash of the “New Economy,” which ruined thousands of companies and cost millions of private investors their capital. Yet despite these conditions, Lufthansa had given clear evidence of its competitive strengths.

Lufthansa in Year One of the new millennium: “We have kept our eye for what is feasible and acted in a responsible, businesslike fashion,” said Jürgen Weber, referring to the difficulties of doing business in the airline industry, an industry “affected by the world's political crises and dependent on the development of exchange rates, the price of crude oil and the ups and downs of business cycles.”

Thus, it seemed the risks of the years ahead had been identified - but not all, as later events were to show.

D-Check, Lufthansa's comprehensive cost and  efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.
D-Check, Lufthansa's comprehensive cost and efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.
D-Check, Lufthansa's comprehensive cost and  efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.
D-Check, Lufthansa's comprehensive cost and efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.
D-Check, Lufthansa's comprehensive cost and  efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.
D-Check, Lufthansa's comprehensive cost and efficiency program: Under this concept, borrowed from aircraft overhaul, all Lufthansa Group companies are put on the test bench.

On the test bench

In 2000, cargo had its most successful year ever at Lufthansa. Freight had always been a reliable early indicator of things to come. And in spring 2001, it was air freight that first showed the effects of a downturn originating in the USA. This indicated that the business climate would develop less favorably than forecast only a short time earlier.

At this point, our senses became sharper, and our antennae went up. Ever since the company's existential crisis back in the early 1990s, Lufthansa had developed an independent culture of vigilance and internal initiatives with regard to risks and trends of change.

Thanks to these experiences and against this background of a less favorable world business development, Lufthansa launched a new cost and efficiency program covering all Group companies. Its name: D-Check. Its central goal was the Group's long-term development.

The program's very name set the tone: In aircraft maintenance, a D-check signifies the controlling and overhauling of every last detail. In the life of an airplane, D-checks are the most thorough maintenance events and include simply everything: fuselage, cabin and systems. In the process, engineers, master craftsmen and mechanics scrutinize every single component. Such checks are carried out every five to ten years. So D-Check: The entire Group was under scrutiny, on the test bench. Existing processes and procedures had to be evaluated meticulously, those found to be deficient had to be corrected and new technologies had to be introduced.

In the framework of D-Check, every company within the Group developed its own projects to contribute to the company's three main cornerstones: its customers, employees and shareholders.

The goal of D-Check was to improve the Group's financial results further. Costs were to be cut by V 1 billion by 2004. The motto for this long-term internal effort was “Maintaining Leadership” - staying in the leading position and expanding this role. At first, everything pointed to a positive development in the Financial Year 2001, meaning Lufthansa could assume an operating result of about V 1 billion. But then, the weak economic performance in the USA, and increasingly in Germany and Europe as well, exerted pressure first on the mood and later on the operating figures. An additional burden came in the form of a pay dispute with the pilots' union “Cockpit,” ultimately leading to a court judgment. All of this resulted in a profit warning.

By the middle of the year, the forecast for 2001 was down to V 700-750 million, a realistic enough assessment - until the unimaginable happened, making all the airlines' calculations worthless: September 11.

Frankfurt Airport, the day after the terrorist attacks in the USA: Due to the closure of airspace above North America, numerous Lufthansa flights are canceled on September 12, 2001.
Frankfurt Airport, the day after the terrorist attacks in the USA: Due to the closure of airspace above North America, numerous Lufthansa flights are canceled on September 12, 2001.

The day that changed the world

September 11, 2001 was to be a black day in the history of the world - and in the history of aviation.

Nineteen terrorists, armed with box knives and pepper spray, took control of four US airliners. Two aircraft of United Airlines were affected, Flight 93 from Newark to San Francisco and Flight 175 from Boston to Los Angeles. The other two were American Airlines planes: Flight 11 from Boston to Los Angeles and Flight 77 from Washington to Los Angeles.

At 8.48 a.m. local time, an American Airlines Boeing B767 with 81 passengers and 11 crew members aboard crashed into one of the towers of the World Trade Center in New York. Almost 20 minutes later, a United Airlines Boeing B767 with 56 passengers and nine crew members aboard crashed into the second tower. About an hour after the impacts, both towers collapsed.

Later, an American Airlines Boeing B757 with 58 passengers and six crew members aboard crashed into the Pentagon, the building housing the US Department of Defense, in Washington, D.C. The fourth aircraft, a United Boeing B757 carrying 38 passengers and seven crew members crashed near the town of Shanksville, Pennsylvania.

Terrorism had reached an unimaginable dimension. People around the world were in a state of shock after watching newscasts showing the horrible images. In the completely destroyed World Trade Center alone, 2,752 people lost their lives.

It was about 3 p.m. in Germany when the tragedy was announced and television stations broadcast the first attempts at explaining the atrocious events. In Frankfurt, Lufthansa immediately called a meeting of its Crisis Management Team, which continued around the clock.

On September 11, 2001, 37 aircraft carrying 6,200 passengers were rerouted to Gander as a result of the terrorist attacks. There the aircraft remained temporarily grounded.
On September 11, 2001, 37 aircraft carrying 6,200 passengers were rerouted to Gander as a result of the terrorist attacks. There the aircraft remained temporarily grounded.
Due to the events of September 11, 2001, takeoffs were not possible in New York: For several days, all civil air traffic above the United States was halted.
Due to the events of September 11, 2001, takeoffs were not possible in New York: For several days, all civil air traffic above the United States was halted.

Closed airspace

In response to these acts of terrorism, the United States and Canada closed their respective airspaces. Air traffic above the Atlantic was stopped. At the time of the attacks, there were 24 Lufthansa flights above the North Atlantic, with 4,900 people on board.

Thirteen of these flights returned to Germany, while one aircraft continued its flight to Vancouver as scheduled. But ten flights with 2,100 passengers aboard were obliged to land in Canada, either in Halifax, Gander, Toronto or Montreal. While passengers and crews in Toronto and Montreal could be put up in hotels without major problems, the situation for the three Lufthansa aircraft stranded in Halifax and the four in Gander was significantly more difficult, as there were 60 to 70 aircraft of other airlines in the same predicament.

In the 1950s, Gander had been an essential stopover point for propeller aircraft flying on the North Atlantic routes. Today, it is a small town with a mere 12,000 inhabitants. Suddenly, 6,200 passengers traveling on 37 rerouted aircraft had to be provided with meals and accommodation. Yet the stranded passengers encountered selfless helpfulness everywhere. Lufthansa crews regularly looked after their passengers wherever they found accommodation, took care of catering and cleaned aircraft.

The first clearances for takeoffs were given on September 13, so that passengers in Halifax and Gander could continue their journeys. An Airbus flew from Frankfurt to Halifax and Gander, carrying 40 members of two specialized crisis management units, Lufthansa's CISM (Critical Incident Stress Management) and SAT (Special Assistance Team), technicians, a clergywoman, three physicians and seven crew members - all headed by Stefan Lauer, Lufthansa's board member in charge of Human Resources. For two days, the care teams spoke with passengers and crews. They served as “pressure valves” for anxieties and anger, listened and were simply present. Lufthansa was the only airline to fly a care team to Gander and Halifax. A second support aircraft, a chartered Lear Jet, flew in from New York City. As one passenger observed: “That was exemplary.”

Jürgen Weber thanked all Lufthansa employees for their unwavering efforts and commitment in this extraordinary situation: “All our colleagues have shown a high degree of compassion, composure and professionalism and have thus contributed to mastering this difficult situation.”

Lufthansa was the only airline to fly care teams to Gander and Halifax to look after its passengers stranded there.
Lufthansa was the only airline to fly care teams to Gander and Halifax to look after its passengers stranded there.

“9/11” and its aftermath

The events of September 11, 2001 changed both people and the world. And international aviation had been struck to its very core. Our very perception of risk had been changed - irrevocably. For global air transport, the consequences of the terrorist attacks in New York and Washington precipitated its most profound crisis since World War II.

Dramatic drops in demand had to be coped with between September 11 and the end of 2001. Passenger demand in international air transport fell by 4 percent for the full year, while cargo volume even slumped by 8 percent. The carriers represented by the Association of European Airlines (AEA) reported a 30-percent decline on North Atlantic routes alone, while demand on routes to the Far East fell by 17 percent. Increased security measures and a dramatic rise in the cost of obtaining insurance cover for its fleet led to additional burdens for Lufthansa.

World aviation's umbrella organization, the IATA, estimated that its 274 members accrued losses of US$ 15 billion, more than the entire industry had recorded in profits over the preceding 20 years. Furthermore, the crisis brought the end for some renowned carriers, including Swissair and Sabena. In the USA, many airlines only survived thanks to an aid program from the American government, to the tune of US$ 5 billion. At the end of 2001, about 2,100 passenger aircraft were grounded around the world. Around 400,000 people lost their jobs in the aviation industry.

The fourday closing of American airspace in the wake of the terrorist attacks had already meant a considerable strain for Lufthansa, both operationally and economically. During those days, Lufthansa had to cancel 223 flights. 56,000 passengers were not able to travel as planned. Many others felt so unnerved that they did not report for the flights they had booked. The number of passengers not showing up for their reserved flights was up to 50 percent higher than on normal days.

Lost revenues and additional costs for caring for stranded passengers totaled V 46 million. For the full Financial Year 2001, the burden on the Group's airlines amounted to about V 600 million.

In this dramatic crisis for world aviation, Lufthansa demonstrated the ability to act swiftly, backed by the experience gathered during the Gulf War crisis in the early 1990s. Jürgen Weber: “We have learned to be swift.” What it took the company nine months to accomplish during the crisis ten years before was now accomplished in barely nine weeks.

Fortythree jets were temporarily withdrawn from service. And a new timetable was drawn up in just a few weeks, offering 11 percent less capacity. Freezes on hiring, projects and investments were ordered, cashflow reliefs related to personnel costs were negotiated with the unions, and managers agreed to pay cuts. “As soon as the recovery begins, we'll be all ready to go. Flexible production works.”

The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.
The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.
The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.
The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.
The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.
The terrorist attacks in New York and Washington prompted intensified controls and security measures at airports around the world.

A critical test for the Group

“The most difficult year in aviation since the end of World War II,” was how Lufthansa assessed 2001 retrospectively. A single year of crisis, combined with an economic downturn and widespread restraint on the part of travelers, had wiped out all profits that the industry had generated in the preceding 20 years. Given that Lufthansa posted a loss from ordinary operating activities of V 745 million, paying a dividend was not feasible.

Lufthansa's negative financial results were significantly influenced by LSG Sky Chefs, the Group company most profoundly affected by the events of 9/11. At that time, the company was in the middle of a restructuring and integration process. The momentous drop in the number of flights and passengers, rising costs associated with the more stringent security measures and the decision by many airlines to reduce or abolish in-flight service all had long-term effects on revenues and profits. In the company's main market, the USA, where as many as 4,000 employees had to be let go, revenues fell by 30 percent from September to December compared to the previous year. In Europe and Asia, revenues fell by 15 percent over the same period.

Yet Lufthansa Technik presented an entirely different picture: The company was able to make it through the fateful year relatively unscathed to present the best result in its history. Its decision to concentrate on maintaining the most modern aircraft and engines paid off. It developed hightech projects, such as equipping the world's first intercontinental aircraft with Internet access by means of broadband technology, which turns an aircraft seat into a flying online office. In a similar vein, Lufthansa Technik developed equipment packages for VIP and business jet versions of the Airbus A319 and Boeing B737. Accordingly, the revenues of the engineering group, which strategically expanded its activities in Asia and the USA, actually rose by 25 percent in 2001.

Two corporate groups, two diametrically opposed results - in this time of absolute crisis, the Aviation Group was faced with extraordinary strains, but maintained its overall concept. After all, despite recessionary trends and the effects of terrorism, Deutsche Lufthansa AG had posted an operating result of V 28 million and was thus in a better position than the majority of its competitors.

In December 2001, the Group sent out a much-noticed signal: Acting anticyclically, it ordered 15 Airbus A380 superjumbos for delivery starting in 2007. A decision with a symbolic character: It reflected the strategic guiding principles of being the motor of a mobile society, offering toprate performance, creating value and setting standards.

A Boeing B747-400 on the apron in front of the hangars of Lufthansa Technik in Hamburg.
A Boeing B747-400 on the apron in front of the hangars of Lufthansa Technik in Hamburg.
The first intercontinental aircraft with broadband Internet access on board, a Lufthansa Boeing B747-400.
The first intercontinental aircraft with broadband Internet access on board, a Lufthansa Boeing B747-400.

2002: A year of restraint

The year 2002 was supposed to be a “year of transition,” a “year of reorientation,” at least that was the hope at Lufthansa. Instead, the crisis in world aviation reached deeper and deeper levels.

If one was to describe the year 2002 with a single word, it would have to be “restraint” - in Europe and America alike. Restraint in consumption, traveling and investments. A slack period all around. Only Asia provided a brighter picture.

During the year, the expected economic recovery did not materialize. On the contrary: Economic development failed to gather steam, rising unemployment figures caused insecurity among consumers, terrorist attacks and the risk of a war in Iraq further dampened people's inclination to travel. For the first time, the airlines in the Lufthansa Group recorded declining performance indicators for the second year running.

And yet: The Lufthansa Aviation Group had again proven its mettle. Lufthansa Technik and Lufthansa Systems were able to strengthen their respective market positions significantly and to achieve good results. Lufthansa Cargo suffered from the market slump and the resulting decline in demand for freight services. Despite these constraints, the company was able to defend its position in the world market. The reorganization of LSG Sky Chefs progressed well; the company achieved its targeted quarterly result.

Jürgen Weber was able to present a positive result. “Again the joint efforts of management and employees to adapt to a changed environment have paid off. Swiftly adjusting capacities to customer demand, rigorously controlling costs - and not least - the clear commitment and willingness of Lufthansa employees to accept cuts in pay have made it possible to generate a profit from operating activities of V 718 million for the year 2002. It improves on the result of the previous year by V 690 million, which puts us among the leaders of our industry.”

One of the factors behind this success was the swift, skillful adaptation of capacities to customer demand, a task of Lufthansa's Pricing and Yield Management Department. It determines fares worldwide, distributes capacities among markets and assigns available seats to different fare levels. The department's team is supported by a sophisticated electronic forecasting and management system, which provides the required data and information. The department continuously tracks the development of booking levels, so that it can adapt capacities to actual demand.

The tasks of Pricing and Yield Management also include the continuous adjustment of the optimization system. Information concerning changes in relevant parameters is immediately fed into the forecasting system. Examples include data on natural disasters, geopolitical and economic developments or a competitor's decision to withdraw from a route. For this purpose, the team is in close contact with sales and station managers at destinations worldwide. Careful monitoring of the quality of forecast results also provides important input. The central goal of Pricing and Yield Management is the profitability of Lufthansa's flight program.

The global alliance for air freight: Lufthansa Cargo, SAS Cargo and Singapore Airlines Cargo were the founding members of WOW. Soon thereafter, Japan Airlines Cargo joined the alliance.
The global alliance for air freight: Lufthansa Cargo, SAS Cargo and Singapore Airlines Cargo were the founding members of WOW. Soon thereafter, Japan Airlines Cargo joined the alliance.

Global alliances

In June 2002, Jürgen Weber called “the creation of high-performance alliances the real innovation of the last ten years.” In his address to shareholders, he added with some self-confidence: “We have an enormous head start in this area.” At that time, the partners of the Star Alliance operated 11,000 daily flights to 729 destinations in 124 countries.

Since its foundation on May 14, 1997, the first really global airline alliance had taken the lead among worldwide airline linkups. With regard to decisive criteria for customers, such as the size of the geographical network and market size, the Star Alliance was - and continues to be - the undisputed number one.

While cooperation and coordination covered many areas, the member airlines carefully preserved their respective identities. Experience shows that the foundation for successful joint action is a healthy balance of partnership and competition. This means that democratic recognition rather than dominance and harmonization rather than centralization shape the cooperation between the partners in the Star Alliance.

While there were only five founding members in 1997, the alliance had grown to include 14 renowned names in international aviation by May 2002. As a statement marking its fifth anniversary pointed out: “The Star Alliance's key element for success lies in the degree to which it fulfills its customers' needs concerning network size, swift transfers ('Move under one roof'), service and recognition of status. Therefore, the network's reach and depth of integration are issues that we will continue to consider in the Star Alliance.”

The era of “national carriers” was drawing to a close. During the crisis year of 2002, cooperation across the Star Alliance had gathered new momentum. To reduce costs, airport lounges and passenger handling functions were pooled - without affecting service levels available to customers - and flight offerings were coordinated even further.

A management team comprised of partner airline representatives drives the harmonization of services and systems forward. Alliance members meet several times a year - this promotes the spirit of cooperation and the sense of belonging together.

A global alliance was also formed in the area of air freight: In October 2001, Lufthansa Cargo, SAS Cargo and Singapore Airlines Cargo announced the foundation of WOW and the planned harmonization of their products. Soon thereafter, Japan Airlines Cargo became the fourth member of the cargo alliance. Joint, uniform product-and-service promises guided by the motto “Seamlessness, Safety and Control” were already being applied to three products - Express Freight, Standard Freight and the Large and Heavy Express segment. In addition, the WOW partners agreed on IT support, shared standards and handling processes to guarantee the uniformity and reliability of their services.

By cooperating closely, the partners in the WOW alliance aimed at offering their customers a significantly expanded network. And harmonizing systems ensures that express freight is carried seamlessly across the entire network of all partners.

Two MD-11Fs operated by Lufthansa Cargo:  One aircraft features the livery of the cargo  alliance WOW.
Two MD-11Fs operated by Lufthansa Cargo: One aircraft features the livery of the cargo alliance WOW.
Avenue of the Stars: Jürgen Weber, Wolfgang Mayrhuber and Jaan Albrecht (from left) unveil a street sign on May 13, 2002 at the Lufthansa Base in Frankfurt, on the occasion of the Star Alliance's fifth anniversary.
Avenue of the Stars: Jürgen Weber, Wolfgang Mayrhuber and Jaan Albrecht (from left) unveil a street sign on May 13, 2002 at the Lufthansa Base in Frankfurt, on the occasion of the Star Alliance's fifth anniversary.
A strong partnership: Ever since its foundation in 1997, the Star Alliance has been the leader among global airline alliances.
A strong partnership: Ever since its foundation in 1997, the Star Alliance has been the leader among global airline alliances.
AIRail Service: Before boarding the ICE high-speed train in Stuttgart, passengers check in at the train station - and receive their boarding passes for Lufthansa connecting flights from Frankfurt.
AIRail Service: Before boarding the ICE high-speed train in Stuttgart, passengers check in at the train station - and receive their boarding passes for Lufthansa connecting flights from Frankfurt.

Quality - a valuable good

Lufthansa has a clear concept of what flying is all about: “Flying means creating connections for our mobile society. It means offering integrated comprehensive solutions all along the service chain by taking full advantage of synergy potentials every step of the way.” Lufthansa has put its money on developing a global network and new products that offer passengers convenience and added utility. In a nutshell: It counts on quality.

In fall 2002, Lufthansa launched a comprehensive advertising campaign focussing on the concept of quality. While the Group as a whole stressed performance and quality related topics to strengthen the Lufthansa brand, the Passenger Services segment emphasized the quality of its network, service and products, together with the competitive fares it offered for leisure travelers. The campaign's slogan: “Lufthansa - there is no better way to fly.”

The campaign aimed to increase customer demand and to intensify the Lufthansa brand's emotional appeal. In addition, the campaign strove to increase customer satisfaction and raise perception of the qualities offered by Lufthansa's service.

Many elements have to be combined and orchestrated when a carrier such as Lufthansa claims leadership in the area of quality. There are the core brand values, such as technical and aeronautical competence, reliability, credibility and service.

But quality consists of countless factors. There are the multiple options for making reservations and obtaining information, available online around the clock, seven days a week. Then there are all the useful advances that have made checking in much more convenient. And there is the traditional “Little Red Riding Hood Service,” with its special assistance for children traveling on their own. Or Lufthansa's loyalty program, Miles & More. By 2002, more than 8 million customers were taking advantage of the opportunity to redeem collected flight miles for awards including flight tickets, upgrades, merchandise, travel vouchers and special experiences.

Punctuality, a very valuable good, was targeted by Lufthansa with significant investments, especially in the area of optimizing ground handling processes. Today, Lufthansa is the most punctual carrier among Europe's large airlines.

Raising quality levels continuously - also by means of ongoing control - remains at the top of the agenda. “Despite declining fares, our focus will remain on intensifying our investments in quality,” said Wolfgang Mayrhuber at the 1st Lufthansa Quality Conference in March 2004. “We will not cut back on quality.”

In this spirit, Lufthansa had launched a fleet modernization program in 2003 that would add 20 new aircraft to its fleet, including the Airbus A340-600, at that time the world's most advanced and longest passenger aircraft.

And Lufthansa invested V 300 million in improving its Business Class product on long-haul routes, an innovation unveiled at Frankfurt Airport in October 2003. The cabins of all 80 long-haul aircraft were to be refurbished step by step. This new Business Class redefined the industry standard by offering sophisticated multifunctional seats for sleeping, working and relaxing, along with “Media World,” an innovative entertainment and information program that includes a free Internet access.

“Our new Business Class opens up a new dimension for our customers,” Lufthansa explained. “We offer the greatest comfort, more space, more peace and quiet, wide-ranging options for information and entertainment, and excellent in-flight service. Our new 2-meter bed enables relaxed sleeping in Business Class. For our frequent fliers especially, we have created the optimum conditions for working, relaxing and resting - and the basis for stressfree travel. Our customers' safety, health and convenience were key criteria for the painstaking development and rigorous tests resulting in the many details featured in Lufthansa's new Business Class.”

Yet Lufthansa takes product development a step further: With its Priority Service, the airline has optimized the passenger processes on the ground for its status customers, taking advantage of modern technology - the Internet, mobile phones and selfservice terminals - to simplify reservations and ticket purchases and shorten check-in deadlines.

And we have created a special Top Customer program for the socalled HON Circle and First Class passengers. A dedicated terminal in Frankfurt, exclusive services on the ground offering individual care before departure and a special shuttle service to the aircraft are all designed to make flying with Lufthansa even more pleasant and convenient.

Lufthansa Business Class on long-haul aircraft.
Lufthansa Business Class on long-haul aircraft.
Lufthansa's special care for passengers needing assistance at Frankfurt Airport.
Lufthansa's special care for passengers needing assistance at Frankfurt Airport.
A glimpse of Lufthansa's First Class dining service.
A glimpse of Lufthansa's First Class dining service.
In the scope of its latest fleet modernization  program, Lufthansa introduced the world's most modern passenger aircraft: the Airbus A340-600.
In the scope of its latest fleet modernization program, Lufthansa introduced the world's most modern passenger aircraft: the Airbus A340-600.

Lufthansa's strategy: Balance

By joining the “UN Global Compact” in December 2002, Lufthansa emphasized its continued commitment to fulfilling both its economic targets and its obligations concerning environmental and social issues. In this initiative, the United Nations' Secretary-General specifically calls on corporations worldwide to “favor the development and dissemination of environmentally friendly technologies.”

In 2002, Lufthansa was already able to present impressive results in environmental care. At the beginning of the new millennium, the term “balance” - that is, the balance of economy, ecology and social responsibility - became a leitmotiv in Lufthansa's way of doing business and one of the company's trademarks.

“Business success does not rule out a corporate policy geared toward sustainable development and care for the environment,” says the Corporate Mission Statement. “We are committed to maintaining a balance between them. Protecting the environment is therefore a prime corporate objective, to which we subscribe with total conviction.”

Even at that time, numerous projects across the Group were dedicated to protecting the environment - ranging from environmentally inspired modifications of modern aircraft to support for projects in research and nature conservation.

By modernizing its fleet continuously and operating aircraft with particularly low emissions values, Lufthansa has managed to decouple the growth of transport performance and environmental impact. More than half of the airline's growth over the past years could be generated without additional burdens on the environment. More exactly, the Lufthansa Passenger Airlines were able to increase their transport performance by 91.4 percent from 1991 to 2003, while their absolute fuel consumption rose by only 36.5 percent during the same period.

At the same time, specific fuel consumption continued to drop. To carry one passenger over a distance of 100 kilometers, the jets of the Lufthansa Passenger Airlines needed a mere 4.5 liters of kerosene on average in 2003. This was an improvement of 31.8 percent over 1991. In comparison with this reference year, the goal is to reduce this environmental performance indicator by a total of 40 percent by 2012.

In the area of aircraft noise reduction, too, Lufthansa has been active for many years. Among its commitments is the project “Quiet Traffic,” an interdisciplinary research project to lower trafficrelated noise emissions, partly financed by Lufthansa. Initiated by the German Aerospace Center (DLR), it aims at producing significant progress in noise reduction by intensifying the cooperation between industry, research institutions and transport providers.

Noise sources on the ground also get focused attention. Lufthansa Technik in Hamburg took a decisive step forward in this area in February 2002, when it inaugurated the world's only fully enclosed noise protection hangar for wide-body aircraft. This cut considerably the noise levels audible in the area around the airport. Now even runups at take-off power involving Jumbo Jets take place behind closed doors. In Hamburg, additional noise emissions from engine runups in the open have thus become a thing of the past.

Lufthansa also supports a range of projects carrying out basic research into the Earth's atmosphere, which aims at giving scientists an even better understanding of global climate effects. At cruising altitude, for example, three Airbus A340 long-haul aircraft continuously measure climate-relevant trace gases once per kilometer traveled.

Protecting biodiversity and conserving threatened natural and cultural landscapes are key concerns of Lufthansa's Environmental Sponsoring.

To this end, Lufthansa has supported the international work of German and worldwide environmental organizations for many years. The Aviation Group participates in numerous environmental conservation projects worldwide, such as those aimed at protecting the breeding and resting areas of cranes, the bird in Lufthansa's corporate logo.

Lufthansa supports numerous nature conservation projects aimed at protecting the breeding and resting grounds of cranes.
Lufthansa supports numerous nature conservation projects aimed at protecting the breeding and resting grounds of cranes.
The crane has been Lufthansa's corporate logo ever since the company was founded.
The crane has been Lufthansa's corporate logo ever since the company was founded.
By testing the socalled “chevron nozzle” in the context of the joint project “Quiet Aircraft,” Lufthansa and the German Aerospace Center (DLR) explored innovative ways of cutting back noise emissions from flying.
By testing the socalled “chevron nozzle” in the context of the joint project “Quiet Aircraft,” Lufthansa and the German Aerospace Center (DLR) explored innovative ways of cutting back noise emissions from flying.
Noise-measuring flights with a Boeing MD-11 operated by Lufthansa Cargo.
Noise-measuring flights with a Boeing MD-11 operated by Lufthansa Cargo.

Several blows in quick succession

On March 20, 2003, the first bombs fell on Iraq. American and British military forces invaded that country, following a military buildup the world public had been observing closely for months. The world had a new war on its hands - and a new politically charged trouble spot in the Middle East.

Almost simultaneously, in mid-March 2003, a physician traveling with his wife and mother-in-law from New York to Singapore, was put in quarantine in Frankfurt.

During the flight, the physician had diagnosed symptoms in himself that strongly resembled those of a patient he had treated earlier in Singapore. His illness was suspected to be Severe Acute Respiratory Syndrome, or SARS. The pathogen, a virus at first entirely unknown, was thought to have been carried into Hong Kong from the province of Guangdong in southern China. By July 2003, about 8,500 people had fallen ill and 812 had died in the course of the 21st century's first major epidemic. Fear was rampant.

A disastrous situation overall: a standstill in economic activity accompanied by marked restraint in business travel, a worldwide sense of insecurity as a result of the conflict in Iraq, continuing fear of terrorist threats, and finally, the SARS virus. In an interview, a Lufthansa manager summarized: “The situation was worsening every day. On our computer screens, we could observe almost hourly how bookings were falling off. Never had there been such a dramatic collapse in such a short time.”

The SARS mass psychosis, in particular, hit Lufthansa full force. It affected the Asia-Pacific region, where the airline had been especially successful thus far due to its strong commitment. On flights to Hong Kong, for example, passenger numbers fell by more than two-thirds after the outbreak of SARS.

At the end of May 2003, the world aviation association IATA reported that SARS had caused even more damage across the airline industry than the fallout from 9/11 and the war in Iraq taken together. The IATA estimated that the industry had lost in excess of US$ 10 billion in the first five months of 2003 alone. In June 2003, there were still 68 grounded aircraft across the Lufthansa Group.

As these crises tightened their grips, the Executive Board was forced to introduce additional measures. For the first time, the “crisis clause” was invoked. It permitted shortened work hours for ground staff with corresponding pay cuts from April 15 to August 31, 2003. Short-time work was in effect for cabin crews from April 1 to June 30. In May, the company negotiated crisis contributions from cockpit crews as well.

Jürgen Weber commented in his farewell speech as Lufthansa CEO: “Three crises at the same time are, indeed, a new kind of challenge.”

Nevertheless, Lufthansa stayed on course and proved its stability in turbulent times. Thanks to the company's flexibility and the employees' commitment, by the end of 2003 Lufthansa turned the first quarter's record loss of V 415 million into a modest profit from operating activities of V 36 million.

Fear of SARS: Passengers at Manila Airport wear masks.
Fear of SARS: Passengers at Manila Airport wear masks.
Around the world, the SARS epidemic leads to a marked drop in bookings for air travel.
Around the world, the SARS epidemic leads to a marked drop in bookings for air travel.
Press conference for the presentation of the annual financial statements of Deutsche Lufthansa AG on March 22, 2003 in Munich: Dr. Karl-Ludwig Kley and Wolfgang Mayrhuber.
Press conference for the presentation of the annual financial statements of Deutsche Lufthansa AG on March 22, 2003 in Munich: Dr. Karl-Ludwig Kley and Wolfgang Mayrhuber.

“Lufthansa withstands the storm”

At the Annual General Meeting on June 18, 2003, Jürgen Weber handed the office of the Chairman of the Executive Board over to Wolfgang Mayrhuber.

“For my last Annual General Meeting as CEO, I would certainly have preferred a more positive outlook for the year ahead,” Weber said. “And yet, the worst is behind us, Lufthansa's foundations are holding up in this storm, and the knowledge that a capable team will guide our company's fortunes gives me a secure feeling despite this difficult situation.“

The shareholders' praise and tributes were unanimous. Under Weber's leadership, Lufthansa had evolved from a reeling state-owned company to a standard-setting aviation group, it was said. Weber, whose name stands for privatization, the Star Alliance, responsible conduct concerning the environment, had turned a “reconstruction case into a topflight company.”

Wolfgang Mayrhuber, “my helmsman on duty,” as Weber put it, had - among other tasks - headed the restructuring team that Weber had appointed in 1992. “Lufthansa's steadiness in times of crisis is in large part due to his work,” the parting CEO said.

Mayrhuber, born in 1947, had headed Lufthansa Technik for many years, as had Weber before him. “I am grateful to him for many years of intense, amicable and fruitful cooperation,” said the new CEO about his predecessor.

During his 12 years in office, Jürgen Weber had again and again given vivid descriptions of the pressing problems facing world air transport at innumerable press conferences, symposia and conventions, and had not tired of demanding solutions. From now on, it would be Wolfgang Mayrhuber's task to work patiently on finding workable responses to these diverse challenges.

Jürgen Weber had identified four major problem areas in 2003, the year of transferring office. First, the completion of liberalization and securing its desired effects over the long-term. So far, only the airlines have been liberalized. Yet these carriers have hardly any influence on 70 percent of their costs, while politicians and consumers expect them to offer tightly priced fares. The monopolistic structures of their suppliers, airports, air traffic control and other service providers still weigh too heavily.

Second, the need-oriented development of air transport's infrastructure. Weber: “The big hubs in Frankfurt and Munich in particular play an important role for the well-being of our national economy, from which we all live. For this reason, we need to be able to grow when our economy grows.”

Third, safety and security. While aviation accident statistics are ever more favorable, the threat from terrorism is on the increase. Lufthansa implements many defensive strategies; doing so costs a lot of money. “It would be fatal if two classes of airlines were to develop - those who actively participate in research and development and sink a lot of money into these efforts, and those who are just along for the ride but sell themselves to the public as clever trendsetters.”

Fourth, the call for a single set of rules for world air transport, which regulate the issues of competition, traffic rights, safety and standards on a global basis - in the in-terest of reliable civil aviation. A visionary approach, certainly. But, as the visionary himself asked, was the Star Alliance more than just a vision at the beginning of the 1990s?

Jürgen Weber hands over the controls to Wolfgang Mayrhuber, his successor and the new Chairman of the Executive Board of Deutsche Lufthansa AG.
Jürgen Weber hands over the controls to Wolfgang Mayrhuber, his successor and the new Chairman of the Executive Board of Deutsche Lufthansa AG.
Lufthansa's Annual General Meeting on June 18, 2003, which took place at the “Kölnarena” in Cologne.
Lufthansa's Annual General Meeting on June 18, 2003, which took place at the “Kölnarena” in Cologne.
Jürgen Weber saying goodbye to Lufthansa employees.
Jürgen Weber saying goodbye to Lufthansa employees.

Munich: the southern hub

Mayrhuber's first official duty before a large public was the festive inauguration of Terminal 2 at Munich Airport on June 29, 2003. He said: “We have a new top address in world air transport: Munich. What has been created here is the most modern and most comfortable terminal at Europe's most advanced big airport.” The 2,300 guests-of-honor celebrating the opening were impressed by the light-flooded, generous architecture, the pleasant atmosphere and the comprehensive selection of restaurants, shops and children's play areas.

In 1998, Lufthansa had made the future oriented decision to establish a hub in southern Germany, in Munich. Since 1960, the beginning of the jet era, Frankfurt had fulfilled the function of Germany's international air transport hub, the central junction in Lufthansa's route network. But Frankfurt was reaching the limits of its capacities, a perennial problem for Lufthansa. “By following a concept of parallel hubs, we take advantage of Germany's federal structures and do not rely on a single location - as opposed to Paris and London, where a centralized setup is necessary for historical reasons,” Jürgen Weber had said.

In Munich, Lufthansa chose an innovative path: It participated in the financing of the V 1.2-billion project with a 40-percent share. This was an entirely new approach - apart from a small exception at JFK Airport in New York. The project's partners - the airport operating company and Lufthansa - were to provide their special know-how right from the start. For this reason, the joint project team counted up to 100 staff during the planning and construction phases. Lufthansa was primarily responsible for product design and process development. Flughafen München GmbH provided input on the infrastructure.

Ultimately, this strategic partnership worked better and faster than certain detractors had wanted to believe. The fruitful cooperation now continues in the shape of a joint operating company.

The Aviation Group's “Hub Munich” Representative pointed out the “product design from a customer perspective, something that had not existed up to that point. He explained: “For the first time, we have realized a product differentiation for the market segments First, Business and Economy that runs through from A to Z. This covers everything from check-in, ticketing and security checks down to the Transit Center and even the Lost and Found. In addition, we have achieved a minimum connecting time of only 30 minutes here in MUC, something no other hub airport in Europe can claim. This is possible, above all, thanks to the baggage sorting system and the design of the building's infrastructure. With regard to security, there is also something completely new: Every piece of baggage that passes through the airport's baggage system is automatically scanned at three levels of security. Turning all these innovative solutions into reality was only possible because we worked so closely with the airport to create this new terminal on a greenfield site.”

Up to 25 million passengers can arrive at or depart from Terminal 2 every year. Traffic flows pass through three levels: Departing passengers reach their aircraft on one of two levels - those passing through passport control are separated from those that do not. At each level, connecting passengers also have a total of 40 transfer counters at their disposal. The terminal has its own apron and parking stands for 75 aircraft. A total of 24 jetways are available for use here. An operations center - the Hub Control Center, a concept already tried and tested in Frankfurt - monitors all traffic at Terminal 2 and assigns aircraft to parking positions.

The Lufthansa Terminal in Munich, where a  minimum connecting time of only 30 minutes has been realized - a performance unmatched by any other hub airport in Europe.
The Lufthansa Terminal in Munich, where a minimum connecting time of only 30 minutes has been realized - a performance unmatched by any other hub airport in Europe.
The terminal has its own apron and parking stands for 75 aircraft.
The terminal has its own apron and parking stands for 75 aircraft.
Lufthansa counters in Munich, Europe's most modern hub airport.
Lufthansa counters in Munich, Europe's most modern hub airport.
Up to 25 million passengers a year can use Terminal 2.
Up to 25 million passengers a year can use Terminal 2.

Lufthansa Regional: optimized cooperation

At the beginning of the 21st century, Lufthansa comprised three main product segments: intercontinental, continental and regional traffic.

In October 2003, regional services within the Lufthansa Group entered a new era: Under the umbrella of “Lufthansa Regional,” the partners Air Dolomiti, Augsburg Airways, Contact Air, Eurowings and Lufthansa CityLine reorganized their way of cooperating with Lufthansa. As a result, passengers traveling on regional routes are offered a comprehensive range of high-quality direct and connecting flights. The new umbrella brand is also set to become visible on the aircraft of those partners with headquarters in Germany. Systematically, “Lufthansa Regional” will appear on the fuselages in blue script on a white background. And “operated by...” will be added for each partner, in the spirit of open communications.

“Regional connections are an important part of our worldwide offering,” said Wolfgang Mayrhuber at the concept's presentation in Frankfurt. “For us and for our customers in the regions - and thus for the regions themselves - direct flights and good feeder services to the Lufthansa hubs in Frankfurt and Munich are highly significant economically. Today, Lufthansa's regional partners carry enough transfer passengers to fill as many as 19 Jumbo Jets every day. By taking advantage of transfer connections with Lufthansa and our partners in the Star Alliance, passengers from all across Germany can travel seamlessly to more than 700 destinations in 128 countries,” he added.

Lufthansa's regional segment has grown continuously since 1995. The latest restructuring aims at simplifying the cooperation between Lufthansa and the regional partners. In addition, Lufthansa Regional increases the cooperation's depth. The new system creates a powerful unit with high levels of synergy, which primarily benefits our customers.

Passengers can take advantage of a dense range of feeder flights to and from the Munich and Frankfurt hubs, decentralized direct flights to and from key business regions such as Dusseldorf and Hamburg, and network links between destinations across Germany and European destinations. Particularly, the ability to connect regions Europe-wide is one of Lufthansa Regional's special strengths.

The hallmarks of the new alliance are an optimum route network and the highest standards in safety and quality. When traveling on regional partner flights, passengers enjoy high-quality in-flight products, along with convenient services such as reservations on the Internet or at the Lufthansa Call Center, electronic tickets and mileage credits in the frequent flyer program Miles & More.

By cooperating more closely, the partner airlines - with their combined fleet of more than 130 aircraft - increase their operational efficiency: In addition to exchanging know-how, all partners benefit from joint planning for back-up aircraft, a measure that guarantees high levels of reliability in flight operations. Closer cooperation increases productivity, simplifies complex processes and helps avoid unnecessary costs. The partners strengthen their competitive position and secure jobs within the regions.

“The era of jets on regional flights, as initiated by Lufthansa, has also become a success story and will be further developed consistently. Thus, Lufthansa has retained market leadership in Europe in this segment as well,” said Mayrhuber.

Lufthansa Regional partner Air Dolomiti.
Lufthansa Regional partner Air Dolomiti.
Under the umbrella of the new “Lufthansa Regional” brand, Air Dolomiti, Augsburg Airways, Contact Air, Eurowings and Lufthansa CityLine streamlined their cooperation.
Under the umbrella of the new “Lufthansa Regional” brand, Air Dolomiti, Augsburg Airways, Contact Air, Eurowings and Lufthansa CityLine streamlined their cooperation.

Turbulences in the leisure travel segment

Condor: For millions of leisure travelers, this name steeped in tradition had stood, plainly and simply, for safe air transport, appropriate service and pleasant vacations from the 1950s onward. At the end of 1997, Lufthansa and retailer Karstadt integrated their travel subsidiaries Condor and Neckermann und Reisen (NUR) into a new company named C&N Touristik. In early 2001, C&N acquired British travel pioneer Thomas Cook - and changed its name.

From now on, the Thomas Cook brand would be used in all markets and at all levels of the touristic value-added chain for the group's own travel agencies, hotels and airlines. The new blue-and-yellow corporate design for aircraft livery left just enough space for “powered by Condor” on the fuselages.

But the stars were not to be favorable for the highly acclaimed merger of 2002, a “significant milestone” according to the Annual Report. The leisure business suffered from “weak economic performance and consumer restraint, especially in Germany,” as Lufthansa reported in 2002, boding little good for the future.

By 2003 new trends had emerged: “Customers have become more price-sensitive, make their bookings at shorter notice and increasingly create their own travel packages.” In Germany, the Neckermann brand was “rounded off in the lower price segment,” a move intended to “pave the way for new ways of pricing” - up to that point the term “low-fare airline” had been strenuously avoided.

Yet despite all its efforts, Thomas Cook was in financial distress, and generating losses for Lufthansa. Drastic cuts were unavoidable: Falling demand forced cutbacks in capacities. In January 2004, the company announced the sale of 12 Boeing B757-200 aircraft to Russian investors.

“Thomas Cook AG has thus taken the necessary steps in the face of the overcapacities on the German leisure air travel market.”

But that was not enough, and at the end of May 2004, the executive board announced a change of course: “The new Condor is back,” the media reported. And Thomas Cook Airlines again became Condor, with its name painted in large letters on the aircraft's fuselages. The goal was to take advantage of the airline's existing positive image for a new orientation in Thomas Cook's flying business. “We are evolving from a holiday airline into a leisure airline.” Condor was to become Germany's first - and so far only - airline to offer cutrate fares on long-haul routes. The socalled “seat-only” business, that is the sale of air tickets without hotel arrangements, was to increase its share from 20 to 40 percent.

The cuts needed to return to profitability were tough: increased productivity, price reductions from suppliers, cuts in personnel costs, job reductions, increased working times. The improvement in this area could be charted in positive media reports: “The reorientation of leisure airline Condor is showing signs of success. From May to September 2004, 725,000 passengers have booked a cutprice flight with the Thomas Cook subsidiary (30 percent more than during the same period the previous year).”

Thomas Cook suffered from the weak economic performance in Germany.
Thomas Cook suffered from the weak economic performance in Germany.
The Thomas Cook city office in Paris.
The Thomas Cook city office in Paris.
Thomas Cook Airlines again becomes Condor.
Thomas Cook Airlines again becomes Condor.

“We have cut costs and cleaned house”

Even the worst of crises eventually come to an end. The IATA estimated that airlines lost more than US$ 30 billion as a result of the events of 9/11. In 2003, yet another year of crisis due to sluggish economic performance, the war in Iraq and SARS, Lufthansa showed a net loss for the year of V 984 million and a paltry operating profit of V 36 million.

“We have cut costs and cleaned house, driven forward innovations for our customers and made investments for the future. Lufthansa has overcome the crisis,” emphasized Wolfgang Mayrhuber when he presented the annual financial statements for 2003. At the same time, the company also managed to reduce its debt by onehalf.

At the beginning of 2004, the CEO announced the official close of the Group's most important project in recent years. “D-Check has made an enormous contribution to the Group's development,” he said. And this applied to more than just cost cutting, as the Group-wide project also generated decisive impulses for innovation in all areas of activity.

Evaluating the more than 600 D-Check projects, dividing further into over 1,300 individual measures, revealed that 70 percent were cost-cutting projects - while 30 percent actually boosted revenue. At the Annual General Meeting 2003, Lufthansa was already able to present the achievement of D-Check's ambitious goal of

V 1 billion in additional cash flow, an important success for the airline.

In the face of the airline industry's structural crisis, however, the need to cut costs remained and continued to require cost reductions in all areas of the Group. By 2006 the company's costs were to be lowered by another V 1.2 billion, as Mayrhuber outlined. To this end, an ambitious package of measures was to be implemented, consisting of three elements: Germany's “Air Transport Initiative,” concerted action involving employer and employees, and “Future Continental.”

Costsaving potentials in the doubledigit millions for the ground handling processes at Frankfurt Airport alone - that was one of the first measurable successes of the “Air Transport Initiative.” Under the auspices of the German minister for Transport, Building and Housing, Lufthansa AG, Fraport AG, Flughafen München GmbH and DFS German Air Navigation Services joined forces in summer 2003. On the one hand, this initiative aims at stabilizing the economic foundations of air transport in Germany and Europe and lowering the cost of doing business here. On the other, it paves the way today for a leading position as the European and worldwide markets open up further tomorrow.

Lufthansa also applies consistent cost management to purchasing jet fuel. In 2003 and 2004, the world markets reacted very nervously, at times even hectically, producing new record prices. These developments pose risks for air fares as well. Airlines, including Lufthansa, have secured their positions against the caprices of the oil market by using instruments known from commodities futures transactions. These days they, too, use calls, puts, collars and swaps, to name but a few. With an annual kerosene consumption of 5.1 million tons for Lufthansa's Passenger Business alone and 6.1 million tons for the entire group, there is no other option. Lufthansa's activities in this area are seen as exemplary. Following personnel costs, fuel is the company's second biggest cost factor. In 2003, the Group spent V 1.4 billion on fuel, a decrease of 0.4 percent over the previous year. Without the use of price-hedging instruments, the Group would have had to spend V 121 million more to buy that same fuel.

In 2004, problems arose from the continued need to reduce personnel costs. In the spring of that year, Mayrhuber had called on the employees for more flexibility and productivity to keep Lufthansa competitive. He underlined that there was no alternative to the cuts envisaged - more work for the same pay. But tough rounds of negotiations continued throughout the year. By fall, there had been nearly 30 official bargaining rounds between Lufthansa and three unions concerned.

Just before year end 2004, in the context of the concerted social action project, a negotiation marathon lasting almost four days finally led to agreement on a wage settlement with the pilots' union, Vereinigung Cockpit. Lufthansa's lead negotiator, Stefan Lauer, called this settlement “an agreement on the way in which we will shape our future.” Wage negotiations between Lufthansa and Verdi, the union for the 37,000 employees on the ground in Germany, had been concluded earlier, on December 8.

“Passenger Business is the core of our activities”

At last, 2004 brought some relief for the reeling industry. Economic activity was pointing upward again, especially in the USA. The world had got used to the state of crisis in Iraq and SARS appeared to be under control. Only terrorism - as witnessed in Bali, Istanbul, Moscow and Madrid that year - continued to weigh on people's minds as incalculable and frightening.

At the beginning of the new century, air transport structures had changed. Now three distinct markets had emerged: no-frills airlines, charters and network carriers.

Lufthansa is present in all three market segments: from cutrate tickets at Germanwings and Executive Jet services between Germany and New York and Chicago to Lufthansa's First and Business Class. All our offers share the same safety philosophy and the same understanding of quality. This expanded range of products - from no-frills to the highest level of quality - is the company's response to changing customer needs.

The focus of the Group's strategy in 2004 was on profitable growth and the consistent development of the Lufthansa Passenger Business as a full-range player. “The Passenger Business is the core of our activities; it is the pivotal point and the linchpin of the Aviation Group,” said Wolfgang Mayrhuber. “Growth in our Passenger Business also means growth for the Group as a whole.”

The business model of the network carrier had proved a success - and Lufthansa made more investments. On May 24, 2004, following approval by the Supervisory Board, the Executive Board gave its assent for a capital increase of 20 percent. Wolfgang Mayrhuber: “Today, we are already very favorably positioned in the intercontinental markets. In the years ahead, this attractive market segment will experience additional growth impulses, as we will expand our fleet and introduce the Airbus A380. Our industry is poised for a transformation. Lufthansa is taking an active role in guiding and shaping this transformation, and thus sets standards for air transport in all of Europe.” And Lufthansa counts increasingly on quality, making investments in innovative products and new aircraft, such as the A340-600 or the A330-300. It also invests in a new Business Class for long-haul routes, improves existing lounges and adds new ones, and equips all Lufthansa Lounges and exclusive departure lounges with wireless LAN.

Another complex program, called “Future Continental,” aims at increasing the airline's competitiveness on routes in continental Europe. At the start of the summer timetable 2004, Lufthansa was the only airline in Europe to keep all middle seats vacant in Business Class on flights within Germany and Europe. Up to 50 percent more space, improved menus and in-flight services, and more storage room in Business Class are designed to make the stay on board even more pleasant. Added advantages are mobile check-in options, short distances on the ground and flexible fares in Business and Economy Class.

In the same spirit, Lufthansa invested V 30 million in the further development of its premium product, First Class. This move was necessary especially due to intensifying competition in Business Class, the middle of the product range. The result is a new, separate terminal guided by the motto “Top service for top customers,” where First Class passengers have enjoyed special care since December 2004.

The Club Area in Lufthansa's new First Class Terminal.
The Club Area in Lufthansa's new First Class Terminal.
Schedule information now becomes accessible  on the go - with the “Handheld” or “Pocket PC” versions available on Lufthansa InfoFlyway, the  airline's Internet portal.
Schedule information now becomes accessible on the go - with the “Handheld” or “Pocket PC” versions available on Lufthansa InfoFlyway, the airline's Internet portal.
More space in Lufthansa's new Business Class  on national and continental routes: The seat in the middle remains vacant.
More space in Lufthansa's new Business Class on national and continental routes: The seat in the middle remains vacant.

Growth in the long-haul business

Lufthansa carried 50 million passengers in 2004 - safely and at high levels of punctuality. And despite drastic increases in the price of kerosene, the Group expects an operating profit in tripledigit million euro figures for the year.

“We have taken advantage of the market opportunities available to us, placed additional capacities in the market and improved the quality of our products,” said Lufthansa CEO Wolfgang Mayrhuber. “High levels of adaptability, pronounced abilities to innovate and solid financial foundations all count among our Group's distinct strengths. Growth in our Passenger Business will also spur growth for the entire Group,” he said.

In the profitable long-haul business, Lufthansa intends to strengthen its position as one of the leading global network carriers in a systematic manner. With its decision to order a further seven Airbus A340-600 long-haul aircraft, Lufthansa continues its policy of opening up new destinations by deploying state-of-the-art aircraft in customeroriented, ecologically acceptable and economic ways. The A340-600 is noted for its high fuel efficiency and low emissions values. These aircraft will be delivered in 2006 and 2007.

Mayrhuber continued: “Every day, our quality products convince more and more customers. Together with our partners, we prepare ourselves for growth in specific areas. Our two hubs in Frankfurt and Munich continue to offer growth potential for long-haul routes. Lufthansa intends to strengthen its strategic position and seize opportunities. Our yardstick is and will remain profitable and market-oriented growth.”

The latest order for A340-600s is in accord with capacity planning tied to the introduction of the Airbus A380, starting at the end of 2007. As these aircraft are delivered, others in the fleet will be taken out of service. At the same time, Lufthansa ensures that it will have the available capacities needed for the demand levels forecast for the years ahead.

Since 2003, Lufthansa has been preparing with a total of 40 project teams for the new flagship of its fleet, the Airbus A380.

These teams work on technical specifications associated with flight operations, cabin furnishings, catering by means of a new type of lifttruck, in-flight service and entertainment options. Currently, planning for timesaving boarding procedures is being coordinated with about 20 airports around the world, primarily in Asia, North America and South Africa.

This also includes building new jetways. With the Airbus A380, air transport enters a new dimension; a new chapter in the history of civil aviation begins. Lufthansa is well prepared.

All the products Lufthansa offers - from Economy  to Business and First Class - share the same  philosophy on safety and an uncompromising understanding of quality.
All the products Lufthansa offers - from Economy to Business and First Class - share the same philosophy on safety and an uncompromising understanding of quality.
New at Lufthansa from 2007: the Airbus A380, the world's most advanced wide-body aircraft.
New at Lufthansa from 2007: the Airbus A380, the world's most advanced wide-body aircraft.

Lufthansa’s 50th anniversary

A natural disaster overshadowed the eve of Lufthansa’s 50th anniversary year when a devastating tsunami wasted huge coastal regions in Southeast Asia on 26 December 2004. The tragic catastrophe showed how Lufthansa personnel can unite to take responsible action. In January 2005, 5,237 Lufthansa employees spontaneously responded to an appeal by CEO Wolfgang Mayrhuber and devoted 13,841 work hours to aid efforts in regions devastated by the flood waves. The initiative resulted in some 300,000 Euros worth of first aid. The Lufthansa Group contributed transports of urgently needed goods and helpers to the affected areas in an airlift costing more than two million Euros. Considerable aid was also extended by Help Alliance, a recognized charitable association founded by 13 Lufthansa employees in 1999. The association is staffed by unpaid Lufthansa Group colleagues who volunteer to participate in global aid projects on behalf of people who lack the basic necessities of life. Wolfgang Mayrhuber praised the aid commitment of his employees, saying: “I am proud to lead a company in which humanity and helpfulness have such a high significance.”

The Jubilee

The biggest jubilee present to mark Lufthansa’s 50th anniversary came from the airline itself when one of its fleet’s modern medium-range jets took off in Lufthansa’s traditional colours. The Airbus A321 in the special livery applied by Lufthansa Technik in Hamburg followed the historic route of the airline’s first commercial flight 50 years to the day after Deutsche Lufthansa AG first took to the air. Special Flight No. LH1955 took off from Hamburg on 1 April 2005 and headed for Düsseldorf, Frankfurt and Munich, accompanied by festivities at every stage. The cabin crew marked the occasion by wearing uniforms in the retro look of the 1950s.

All eyes are on Airbus A321-100 'D-AIRX' with its special paint job. It was painted in Lufthansa's traditional livery for the 50th anniversary of Lufthansa's resumption of flight operations.
All eyes are on Airbus A321-100 "D-AIRX" with its special paint job. It was painted in Lufthansa's traditional livery for the 50th anniversary of Lufthansa's resumption of flight operations.

The Integration of Swiss

On 22 March 2005, the Lufthansa Supervisory Board and the Administrative Board of Swiss International Air Lines AG wrote aviation history when they agreed to a jointly developed business plan for Lufthansa to take over and integrate the Swiss airline. The integration agreement provided for a step-by-step takeover of Swiss as well as plans to present a joint, globe-circling route network as early as the 2005/2006 winter flight plan. Key elements of the cooperation foresaw strengthening the Swiss hub at Zürich’s Kloten airport, retaining the Swiss brand name, preserving Swiss as an operative company based in Switzerland and joining the forces of both companies to create synergies and further reduce costs. In March 2005, Christoph Franz, CEO and President of the Swiss Group Management, expected savings on the yield and cost side to reach an annual 160 million Euros from 2007 onwards. The last hurdle to the integration was overcome by the approval of the European Commission and the U.S. antitrust authorities on 4 July 2005.

With the Swiss shares temporarily pooled in the newly founded Swiss company Air Trust, Lufthansa acquired an initial 11 percent stake in Air Trust. After increasing its shareholding to 49 percent, Lufthansa finally attained 100 percent ownership of Swiss on 1 July 2007. At the time of the takeover agreement, Swiss had 7,900 employees and operated a fleet of 80 aircraft, which flew a total of 9.2 million passengers to 70 destinations.

SWISS and Lufthansa aircraft at Munich Airport.
SWISS and Lufthansa aircraft at Munich Airport.

Check-in from home

Giving passengers an even faster, more convenient flying experience was the idea behind the introduction of boarding cards equipped with barcodes for do-it-yourself printing. Checking in and boarding with barcodes were novelties when they were first introduced on a test basis on the Berlin - Frankfurt route between August and October 2005. What soon became a familiar routine was a sensation in 2005. Passers flying from Berlin-Tegel to Frankfurt with an electronic ticket after checking in online printed out their boarding document themselves on an A4 sheet. Passengers with no hold luggage to declare no longer needed to visit the check-in counter and have a boarding card printed at the airport. A boarding passenger placed the barcode of his self-printed boarding card on the scanner at the gate and the IT system automatically registered him as having boarded.

In the Senator Lounge in Düsseldorf that same year, Lufthansa tested the barcode check-ins via an MMS on the passenger‘s cell phone. This was a true novelty because few cell phones of that generation could receive MMS messages.

Non-stop check-in – with a boarding pass on your mobile phone.
Non-stop check-in – with a boarding pass on your mobile phone.

Profits and investments

A positive echo from the previous year ushered the Lufthansa Group into its 2006 business year – a period that would go down in corporate history as Lufthansa’s most successful year to date. The number of passengers soared to a record level, sales improved and costs stayed within budget limits, enabling CEO Wolfgang Mayrhuber to present operative profits of Euro 845 million to shareholders at the 2006 annual general meeting: an increase of 46.4 percent from the previous year! The consolidated net income even soared by an impressive 77.3 percent to Euro 803 million – an absolute record. 53.4 million passengers demonstrated their trust in Lufthansa, which also gained top marks in customer satisfaction.

The good news was not restricted to Lufthansa Passage. Lufthansa Technik, Lufthansa Cargo, Lufthansa Systems, LSG Sky Chefs – the subsidiaries all chorused positive results. The integration of SWISS into the group also proceeded more smoothly and rapidly in 2006 than the Lufthansa Executive Board had expected. The “good news” was publicly well received and made Lufthansa an extremely attractive employer – a clear vote of confidence in Lufthansa’s future perspectives.

The world football championship in Germany from 9 June to 9 July was the dominating summer theme, both publicly and at Lufthansa. The airline even gave football a face, or rather a nose: namely, the football nose that adorned many Lufthansa jets and gained worldwide attention. A total of 50 Lufthansa aircraft with the painted black-and-white nose décor broadcast the world championships message from Germany to the whole world.

On the occasion of the World Cup in Germany, aircraft from all the Lufthansa fleets advertise the host country with a classic black-and-white football pattern.
On the occasion of the World Cup in Germany, aircraft from all the Lufthansa fleets advertise the host country with a classic black-and-white football pattern.

The new Jumbo generation

Riding the waves of success, the Supervisory Board approved an order of 20 Boeing 747-8 and seven Airbus A340-600 long-range jets on 6 December 2006. Based on list prices, the combined investment volume for the two aircraft types amounted to some 6,900 million US dollars. The order made Lufthansa the launching customer for the latest version of the “Jumbo”, which is intended to close the capacity gap between the Airbus A340-600 with approx. 300 seats and the Airbus A380 with approx. 550 seats from 2012 onwards.

The Boeing 747-8 order cleared the way for continuing the past decades of close cooperation between Lufthansa and Boeing, dating back to Lufthansa’s introduction of the Boeing 707-430 in 1960. Long before the “design freeze“ of the Boeing 747-8, Lufthansa staffers were organized into working groups to join Boeing in looking for the most cost-effective, technologically advantageous layout of the latest ”Jumbo“ version. Lufthansa expects the 747-8, equipped with a new, extremely fuel-saving generation of General Electric jet engines, to achieve an average consumption of only 3.5 litres of kerosene per passenger per 100 kilometres.

Comfort on short- and medium-range flights

The installation of new seats in 142 short- and medium-range Lufthansa jets during 2006 was less spectacular but nevertheless all the more noticeable for passengers. Over a period of nine months, 210 Lufthansa Technik employees invested a total of 75,000 work hours in this mammoth project. For time and cost reasons, the refits were performed not only during unplanned downtimes at the Frankfurt Technik base but also during regular maintenance events for the Airbus and Boeing jets. Besides the replacement of seat rows, various cabin conversion jobs such as the relocation of wardrobe and toilet modules were performed. The positive impression made by the new seating complemented the new design of cabin-facing kitchen fronts. The new, lighter seats helped Lufthansa to reduce its fleet’s average consumption to 4.4 litres of kerosene per 100 kilometres per passenger in 2006. That allowed the airline to inch closer to its goal of a “3-litre aircraft“.

Expansion in China

As far back as the 1920s, the pioneers of the “old” Luft Hansa recognized the commercial potential of an air service between Germany and China. A pioneering flight from Berlin to Peking took off on 24 July 1926 and was followed by the establishment of a German-Chinese airline named Eurasia in 1930.

A new chapter of German-Chinese aviation history was opened on 22 May 2006. On that day, in the presence of German Chancellor Angela Merkel, the CEOs of Lufthansa and Air China, Wolfgang Mayrhuber and Li Jiaxiang, extended by five years the Codeshare agreement reached by their airlines in the year 2000. Air China CEO Li Jiaxiang stressed the high value he attaches to his airline’s cooperation with Lufthansa, stating: “Lufthansa is the most important partner of Air China.” It was therefore a logical consequence that Lufthansa powerfully backed Air China in its wish to join the global Star Alliance airline group. The entry of Air China and that of Shanghai Airlines only a few days earlier expanded the role of the Star Alliance as the most important airline grouping in the Chinese aviation market. Wolfgang Mayrhuber expressed the conviction that the advantages Air China can offer its customers as a Star Alliance member will also benefit Lufthansa. Lufthansa and Air China jointly offered 61 weekly flights between Germany and China during their 2006 summer flight schedule. The German airline operated 38 of these flights, making Lufthansa by far the biggest operator of connections to China.

On May 22nd, 2006, Wolfgang Mayrhuber and Li Jiaxiang sign an agreement in Beijing to extend the codeshare agreement between Lufthansa and Air China.
On May 22nd, 2006, Wolfgang Mayrhuber and Li Jiaxiang sign an agreement in Beijing to extend the codeshare agreement between Lufthansa and Air China.

Lufthansa’s new home

„Lufthansa has a new home address“, CEO Wolfgang Mayrhuber stated on 18 July 2006 during the inauguration of the Lufthansa Aviation Centre (LAC) at Frankfurt Airport. Mayrhuber added that Lufthansa’s new home base, designed by renowned architect Christoph Ingenhoven, stands for “transparency, innovation, openness and communication“. In the first stage of construction, some 1,800 Lufthansa employees work together under one roof – more than anywhere else. Architect Ingenhoven paid particular attention to providing a transparent design that encourages openness and curiosity while offering free areas for communication and creativity. Ecological construction is another major feature. A heat-active thermal system reduces energy consumption by two thirds in comparison with a conventionally constructed building. The centre consequently gained an EU certification as a ”green building“ in 2009. Special highlights are offered by nine gardens with plants and trees from different continents, which not only provide relaxation and recreation but also function as serve as buffers against heat, coldness and noise. The architect explains that white sand beaches, Australian outback scenery, Japanese Zen gardens and pools that resemble Alpine lakes in northern Italy suggest the internationality of the Lufthansa Group.

The Lufthansa Aviation Center in Frankfurt opens officially in July 2006. It offers space for 1,800 employees on six floors.
The Lufthansa Aviation Center in Frankfurt opens officially in July 2006. It offers space for 1,800 employees on six floors.

Strong results

If 2006 had been a record year for the Lufthansa group, it was trumped by the success of 2007, with Executive Board Chairman Wolfgang Mayrhuber announcing the best operating profit in the company’s history: 1.4 billion Euros. The group result also doubled to almost 1.7 billion Euros, not least benefiting the Lufthansa shareholders, with a record dividend of 1.25 Euros.

The large percentage of premium customers particularly contributed to the positive traffic revenue in 2007. Rounding off the high end of the product portfolio, the demand for the Lufthansa Private Jet Service, the only one of its kind in the world, exceeded expectations. But Lufthansa didn’t just stop at optimising its premium services; it also offered top quality in every other segment. The low-fare “BetterFly” service, for example, had become a huge success within Europe.

Simultaneously with the group expansion at the Lufthansa hubs in Frankfurt and Munich, and the Swiss hub in Zurich, non-hub traffic also achieved pleasing results. Düsseldorf led the way in the number of non-hub destinations offered, with 55 for Lufthansa and 63 for code-share partners. As the only German port not operating as a hub, Lufthansa offered three long-haul destinations ex-Düsseldorf (Chicago, New York and Toronto) in summer 2007. The winter schedule saw Toronto replaced with Miami.

Swiss joins the Lufthansa Group

Having had the best year in its history in 2007, Swiss was completely integrated into the Lufthansa group on 1 July, and the resulting synergy effects alone exceeded expectations by half. With an operating result of 127 million Euros, Swiss contributed significantly to the group earnings, bringing with it a fleet of 81 aircraft, a strong market, and a strong brand.

There was also good news for no-frills subsidiary Germanwings, which similarly expanded and recorded 11% more passengers than the previous year – a total of approximately eight million.

Preparations for the A380

Although Lufthansa’s launch of the mega Airbus A380 was not planned until summer 2009, preparations for this major event were in full swing right across the group even in 2007. Among the highlights were four Lufthansa route proving flights, using the manufacturer’s A380 test aircraft, from Frankfurt to New York, Washington D.C., Chicago, Hong Kong and Munich. These flights were of key importance to ensure the smooth running of all activities on the ground and onboard until regular Lufthansa A380 services commence – a successful practical test intended to pay off for Lufthansa two years down the track.

Having an aircraft in optimum technical condition is a basic requirement for a smooth flight, and in the Lufthansa group, this is the responsibility of Lufthansa Technik AG. Construction of the Lufthansa Technik A380 maintenance hangar at the southern end of Frankfurt airport, the future base of Lufthansa’s A380 fleet, progressed rapidly in 2007. Another A380 maintenance complex was built simultaneously for Ameco Beijing, a joint venture between Air China and Lufthansa Technik, in the Chinese capital. The Frankfurt hangar needs to be able to fit four A380s or six Boeing 747s at a time – which will make it Europe’s largest aircraft maintenance hangar. The new A380 hangar for Ameco Beijing, whose topping-out ceremony was held in September 2007, became the largest maintenance hangar in Asia. It can house two A380s and two Boeing 777s at once.

N3 Engine Overhaul Services was opened with an official ceremony, attended by Lufthansa CEO Wolfgang Mayrhuber, Lufthansa Technik Chairman August Wilhelm Henningsen and Rolls-Royce CEO Sir John Rose, in the Thuringian town of Arnstadt. The joint venture between Rolls-Royce and Lufthansa Technik maintains the British Trent 900 engine, the A380 engine version chosen by Lufthansa.

The first section of the new A380 maintenance hangar is inaugurated. With a floor area of some 25,000 square meters, the hangar is large enough for maintenance work to be performed on two Airbus A380s or three Boeing 747s at the same time.
The first section of the new A380 maintenance hangar is inaugurated. With a floor area of some 25,000 square meters, the hangar is large enough for maintenance work to be performed on two Airbus A380s or three Boeing 747s at the same time.
Regular passenger service testing of the A380 begins in March 2007. The super-jumbo jet is tested on the Frankfurt - New York, Chicago, Hong Kong, Washington and Munich routes.
Regular passenger service testing of the A380 begins in March 2007. The super-jumbo jet is tested on the Frankfurt - New York, Chicago, Hong Kong, Washington and Munich routes.

Eco-efficiency

The start of 2007 was dominated by a public discussion on the harmful impact of air traffic on climate change. In order to show a wide audience how Lufthansa has, for many years, been involved in eco-efficiency, reducing pollutants and noise, and conducting scientific climate research, the group launched an expansive advertising campaign. As of September 2007, Lufthansa and Swiss passengers were also given the chance to compensate for their ecological fingerprint through a voluntary climate protection donation to the Swiss non-profit organisation, “myclimate”. A link on www.lufthansa.com directed passengers to the new myclimate website, whose emissions calculator provided a route-based account of the voluntary climate contribution.

80 new aircraft – 45 for the regional fleet, 32 for the A320 family, and nine A330-300 long-haul planes for Swiss – were ordered to further reduce kerosene consumption and emissions. The fleet upgrade was designed to protect the planned growth, and permanently decrease emissions. “Three-litre fleet” was the catchphrase..

The Lockheed L-1649A “Super Star” makes a return

In December 2007, the Deutsche Lufthansa Berlin-Stiftung (DLBS) Foundation purchased three Lockheed L-1649A “Super Stars” by auction. This aircraft type was not only Lufthansa’s flagship from 1958 to 1960, but also a milestone in aircraft construction – enabling the North Atlantic to be crossed in both directions, non-stop, with full payload, for the first time. The previously required re-fuelling stops in at Ireland’s Shannon or Canada’s Goose Bay had become a thing of the past.

One of the three planes purchased was selected by Lufthansa Technik to be restored to airworthy condition by the Lufthansa engineering subsidiary as the world’s final Lockheed L-1649A. The machine chosen (which would be repaired at Auburn-Lewiston Airport in the US state of Maine starting in 2007), was the former Trans World Airlines (TWA) plane, with ID N7316C. It provided the most technically solid platform for the elaborate restoration process. By the time Lufthansa Technik AG hands the “Super Star” over to the DLBS, the L-1649A will hold the highest-level airworthiness certificate and feature the latest standards in technology and safety. A highly motivated and competent team of active and former Lufthansa Technik employees laid the foundations for this in 2007.

The Deutsche Lufthansa Berlin foundation purchases three historic Lockheed L1649A 'Super Star' aircraft, which will be restored to flying condition by Lufthansa Technik.
The Deutsche Lufthansa Berlin foundation purchases three historic Lockheed L1649A "Super Star" aircraft, which will be restored to flying condition by Lufthansa Technik.

An alliance with new partners

As Lufthansa embarked on its 2008 financial year, the economic situation could not have been more challenging. The global banking and financial crisis, which started as a regional US housing crisis in the summer of 2007, was now threatening to unhinge the world economy. Things worsened further in September 2008 with the collapse of major US bank, Lehman Brothers, and a domino effect soon also saw other banks around the globe caught up in a financial maelstrom. The German banking industry was no different. A recession loomed for the leading industrialised nations, and was expected to pose big challenges for bodies like the Lufthansa management. At the airline’s annual general meeting in 2008, Executive Board Chairman Wolfgang Mayrhuber expected the following year to be one of the most economically difficult for the entire industry. And his gloomy forecast proved to be right for more than just 2009.

Despite these adverse circumstances, Lufthansa still managed to record its second best financial result in 2008. At 1.35 billion Euros, the operating profit was just slightly under the absolute record from the previous year. Passenger numbers also reached record levels. With a figure of 70.5 million, more people than ever before travelled with the Lufthansa group companies.

Holdings in the USA and Europe

2008 also set the course for several holdings and takeovers in the USA and European markets, with a view to further expanding the group network.

The 19% holding in JetBlue Airways in the USA marked the start in January. The low-cost airline based at New York’s JFK Airport operated 525 daily flights to 53 destinations in the USA and Caribbean. Almost 20 million passengers travelled on its 104 Airbus A320s and 30 Embraer 190 jets in 2007. Leather seats, each with live TVs, spacious legroom, free drinks and snacks made JetBlue very popular amongst customers, and a successful American premium carrier in the low-cost segment.

In Europe, Lufthansa management was signing contracts to prepare the gradual acquisition of Belgium’s Brussels Airlines and the integration of Austrian Airlines into the Lufthansa group. Approved by the Lufthansa supervisory board on 24 September, the takeover of Brussels Airlines sought to open up further markets for the group, particularly on the African continent. The Belgian airline had traditionally had a strong presence here, and flew to a total of 14 African destinations in 2007. It also offered connections to 50 European destinations via its hub at Brussels Airport.

In early December, Lufthansa and Austrian state holding ÖlAG agreed to fully integrate Austrian Airlines into the Lufthansa group. Subject to approvals, both Austrian Airlines and Brussels Airlines were to be adopted into the Lufthansa alliance, while still operating under their own brand names. A similar arrangement had previously been made with Swiss, which also became a cornerstone of the Lufthansa group in 2008, and contributed significantly to the positive operating result.

In addition to the international acquisitions and co-operations, Lufthansa also expanded its holdings in its home market of Germany. For example, Eurowings, the parent company of low-cost carrier Germanwings, became a 100% Lufthansa subsidiary following takeover of the entire AK Industriebeteiligungen equity stake.

Lufthansa entered into further partnerships in 2008 through the Star Alliance, with EgyptAir and Turkish Airlines joining the world’s leading airline alliance that year. The memberships of Continental Airlines, TAM, Air India and Brussels Airlines were also approved, but not finalised, in 2008.

On December 5th, 2008, the supervisory board of the Austrian industrial holding company ÖIAG approves the sale to Lufthansa of the 41.56% share of Austrian Airlines owned by the Austrian state.
On December 5th, 2008, the supervisory board of the Austrian industrial holding company ÖIAG approves the sale to Lufthansa of the 41.56% share of Austrian Airlines owned by the Austrian state.
Two familiar brands – aircraft of Lufthansa and Brussels Airlines.
Two familiar brands – aircraft of Lufthansa and Brussels Airlines.
At a press conference on December 14th, 2007, Lufthansa CEO Wolfgang Mayrhuber, and Jet Blue CEO Dave Barger announce Lufthansa's acquisition of a 19% stake in JetBlue Airways.
At a press conference on December 14th, 2007, Lufthansa CEO Wolfgang Mayrhuber, and Jet Blue CEO Dave Barger announce Lufthansa's acquisition of a 19% stake in JetBlue Airways.

Lufthansa Technik well positioned

In 2008, Lufthansa Technik AG (LHT) impressively proved that the high quality standards were not just limited to Passage. With 500 new contracts and 299 million Euros in profit (up 2% from the previous year), the engineering subsidiary recorded a very good year for itself and the group. Lufthansa Technik CEO August Wilhelm Henningsen and Lufthansa CEO Wolfgang Mayrhuber were rightly proud to receive the “2008 Best European Airline MRO Operations Award”, which recognised Lufthansa Technik’s high quality standards. Lean projects and more effective production processes increased the international competitiveness of Lufthansa Technik, which, in 2008, launched new subsidiaries in Melbourne, Basel and Sofia. A new, state-of-the-art engine maintenance centre at the Lufthansa Hamburg base and the completed Airbus A380 hangar in Frankfurt was another boost for Germany, as the company’s headquarters. The A380 hangar also approached completion for the subsidiary Ameco in the Chinese capital, Beijing.

Ready for recessive times

In 2008, the “Upgrade to Industry Leadership” initiative launched the previous year saw Lufthansa staff work on some 120 projects to sustainably preserve and increase profitability, while at the same time also focusing on flexible collective agreements, a forward-thinking fleet policy, and a market-driven capacity and revenue management system. With 4,000 new staff employed in the first half of 2008, the crisis looming in the second half meant a hiring freeze was necessary. It was in the third quarter of 2008 that the financial crisis started affecting group results, prompting the Lufthansa board to revise its 2008 forecasts down during the autumn of that year. On 29 October, group chairman Mayrhuber announced to the press that the previous year’s operating result, which they had planned to repeat, would not be reached. At the end of the financial year, the Lufthansa management consequently curbed the growth spurt of the previous few months, so as to be prepared for the turbulent times to come.

The consequences of the financial crisis

International air traffic was hit with the full force of the negative effects of the worst global recession since the end of the Second World War in 2009. According to information from the international airline trade association, IATA, member airlines recorded an average fall in demand of four per cent in passenger volumes and 13 per cent in the freight sector.

After the record results of the previous years, Lufthansa had to post a painful collapse in the consolidated result to minus 112 million euros. Nevertheless, in comparison with some competitors, the Group also remained financially and strategically independent and capable of acting, including during the recession. In order to keep Lufthansa Passage on course, even in turbulent times, the Group applied the earnings safeguarding programme “Climb 2011”, which was intended sustainably to reduce the costs basis by a billion euros by the end of 2011. This meant not only cutting 400 jobs in administration, but also projects to reduce costs in purchasing, a changed fleet structure, more flexible capacity management and raising productivity.

Farwell to the Airbus A300

Many Lufthanseaten wistfully followed the farewell to a much-loved aircraft type: the Airbus A300-600. At 9:07 on 1 July 2009 the last circuit of an A300-600 in line operations at Lufthansa ended. Numerous Lufthanseaten took the opportunity to say goodbye to “their” plane at a final ceremony in Hall 5 of Lufthansa Technik in Frankfurt. Since the introduction of the first A300-600 at Lufthansa in March 1987, the fleet flew a distance equivalent to going round the earth 8,560 times. With the decommissioning of the last A300-600, with the registration number D-AIAM, the era of the first Airbus generation at Lufthansa also ended. It had begun in 1976 with the commissioning of an A300B2. Continually further developed, the Airbus A300 was among the pioneers of today’s high-tech cockpit. Thus the decommissioning of the A300-600 was also the finale of a very special piece of Lufthansa history.

Perhaps an exciting look into the future made the farewell easier for some Lufthanseaten. Because on 6 October the first exemplar of the new Lufthansa flagship, an A380-800 with the registration number D-AIMA, first took to the air in Toulouse in France. A few days after its first flight, “Mike Alpha” was transferred to the Airbus plant in Hamburg-Finkenwerder, where it received its interior fittings in the Lufthansa design and its external livery.

Expanding the Airline Group

Saving and simultaneously investing in the future. The investments, which were started in the previous year and finally completed in 2009, in Austrian Airlines, Brussels Airlines and British Midland, were made under this motto. A start was made with the Belgian investment, when the European Commission gave its approval to the planned merger of Lufthansa and Brussels Airlines on 22 June and thus paved the way for the acquisition of initially 45 per cent of the shares in the Brussels Airlines parent company, SN Airholding SA/NV. The EU Commission opened up the prospect of Lufthansa then also taking over the remaining 55 per cent of the shares, and thus Brussels Airlines in full, in three years in 2011. From as early as 15 July Lufthansa and Brussels Airlines offered common code sharing flights on long-haul routes. A start was made with one African destination each; one from Brussels Airlines (Entebbe) from Brussels and one from Lufthansa from Frankfurt (Libreville). In order to simplify transfers between both airlines at the Lufthansa hub Munich, Brussels Airlines also moved into Terminal 2 of the Southern German airport, exclusively used by Lufthansa and its Star Alliance partners, in July. The transfer of the Belgian airline’s “Privilege” bonus programme into the Lufthansa frequent flier programme Miles&More also had its focus on the customer. This was carried out with the retention of collected miles and recognition of the customer status of “Privilege” participants.

In Germanwings Miles & More received a further partner in December 2009. The low-cost airline had already been sold by Eurowings Luftverkehrs AG to Deutsche Lufthansa AG, which had since managed its subsidiary under the umbrella of Lufthansa Commercial Holding.

After a so-called “detailed anti-trust review” of the merger of Lufthansa and Austrian Airlines by the EU Commission reached a positive decision, Lufthansa, Austrian Airlines and Österreichische Industrieholding AG were able to announce the successful takeover of AUA by Lufthansa on 3 September. The traditional Austrian airline thus became part of the Lufthansa Group.

The consolidation in the European air traffic market driven forward by Lufthansa came to a provisional end in 2009 with the complete takeover of British Midland (bmi). The purchase was completed after the British investment entity of Deutsche Lufthansa AG, “LHBD Holding Limited”, took over the 20 per cent of bmi shares previously held by the Scandinavian airline, SAS. In parallel to the full acquisition of bmi, Wolfgang Prock-Schauer was appointed as the new Deputy CEO of British Midland.

2 February saw the start of the Lufthansa spin-off Lufthansa Italia, which was intended to serve the Italian air traffic market even more intensively. The maiden flight went from Milan-Malpensa Airport to the Spanish port city of Barcelona. Six Airbus A319s were initially used from Milan to eight new non-stop connections within Europe. Just two months later, the fleet was supplemented by two additional A319s. These made it possible for Lufthansa Italia to serve internal Italian routes from Milan to Rome, Naples and Bari.

SWISS, which also contributed a positive result of 93 million euros to the consolidated result in 2009, once again positioned itself as the primus in the Airline Group. On 10 March the Lufthansa Supervisory Board approved an order of 30 short-haul jets of the latest generation to renew the SWISS fleet. In 2016, it is intended to add aircraft of the Bombardier C-Series type, equipped with extremely quiet and economical power plants, to the SWISS fleet and replace the regional fleet of the Avro RJ100 type.

On July 1st ,2009, Lufthansa acquires from Sir Michael Bishop a controlling interest of 50% plus one share of British Midland Plc. (BMI). Together with Lufthansa's existing holdings, Lufthansa now controls 80% of BMI's shares.
On July 1st ,2009, Lufthansa acquires from Sir Michael Bishop a controlling interest of 50% plus one share of British Midland Plc. (BMI). Together with Lufthansa's existing holdings, Lufthansa now controls 80% of BMI's shares.
On January 1st, 2009, Eurowings Luftverkehrs AG sells its stake in Germanwings to Deutsche Lufthansa AG.
On January 1st, 2009, Eurowings Luftverkehrs AG sells its stake in Germanwings to Deutsche Lufthansa AG.
AeroLogic, an air freight line operated jointly by Lufthansa Cargo and DHL, commences operations in June 2009.
AeroLogic, an air freight line operated jointly by Lufthansa Cargo and DHL, commences operations in June 2009.

Airfreight market in crisis

The airfreight sector was particularly hard hit by the plunge in growth in 2009. Hardly any other part of the air traffic sector feels when the world economy is stuttering as quickly and intensively as the cargo carriers – and that trade flows between nations and continents are slowing down.

The world economic crisis also did not pass Lufthansa Cargo AG by without dramatic effects. Lufthansa Cargo’s revenues collapsed by almost a third in 2009 and the operating loss climbed to 171 million euros. The freight management reacted to this by taking part of the freighter fleet out of service and with short time working for cargo employees. In November 2009, three Lufthansa Cargo Boeing MD-11 freighters were already standing mothballed in the Californian desert, waiting for better times.

In addition to all the bad economic news, however, there was also a reason to celebrate at Lufthansa Cargo. On 29 June, AeroLogic, a joint venture between DHL Express and Lufthansa Cargo, started with its first flight to Asia. Twin engine brand new Boeing 777 freighters were used. AeroLogic planned to station up to eight of these extremely quiet and economical wide-body jets at its hub at Leipzig-Halle Airport.

Commitment to social media

Lufthansa has increasingly focussed on a presence in social media. Whether in the online network for business contacts, XING, or in the short message services Twitter. Lufthansa tapped new, contemporary communications paths to announce new products and to make contact with its customers. Thus it was intended to use the German language XING network primarily to present products that could be of interest to “online-minded” business travellers. Such as, for example, the introduction of the mobile boarding card in long-haul traffic. Initially offered on the route between Frankfurt and Vancouver in Canada from 2 April, the service was quickly extended to other long-haul routes.

Ecological responsibility

The 2009 financial year was once again characterised by a sustainable commitment by Lufthansa to climate and environmental protection. It was honoured by the European Commission for this on 2 February. The crane’s new home, the Lufthansa Aviation Centre (LAC) built deliberately to be energy efficient at Frankfurt Airport, could officially call itself a “Green Building” from then on.

To make it easier for passengers to compensate individually for the carbon dioxide emissions caused by burning kerosene aviation fuel, Lufthansa intensified its cooperation with the Swiss foundation myclimate. It was possible for passengers to compensate for their CO fingerprint with bonus miles from the frequent flier programme, Miles&More, from 25 September. The myclimate foundation received the corresponding amount of money from Miles&More and invested this in climate protection projects.

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The 2010s

The Lufthansa Group: Mobility and ecological efficiency

The Lufthansa Group is a global aviation group with a total of around 540 subsidiaries and equity investments, which in the financial year 2014 were organised into five operating segments: Passenger Airline Group, Logistics, MRO, Catering and, up to the end of 2014, IT Services. All the segments occupy a leading position in their respective markets.

The way out of the financial crisis

At the beginning of 2010, Lufthansa was still fighting the effects of the financial and economic crisis. But thanks the noticeable market revival in the second half of the year, the profit for the year recovered and climbed to 876 million euros. The consolidated result increased from a minus in the previous year to plus 1.1 billion euros. Just how solidly the company was positioned on the balance sheet was shown not least by the equity ratio, which improved by almost five percentage points in 2010 to 28.4 per cent.

Very little in the first months of the year had indicated 2010 would end so positively for Lufthansa. The long-term effects of the worldwide financial crisis, snow chaos in Germany and numerous European Lufthansa destinations, a strike by Lufthansa pilots and the eruption of the Icelandic volcano Eyjafjallajökull, whose ash clouds paralysed European airspace for days, were some of the challenges facing Lufthansa in the first half of 2010.

The Group’s problem child in the previous year, the freight subsidiary, Lufthansa Cargo, really took off in 2010. Its management succeeded in generating an operating profit of 310 million euros, not least thanks to measures initiated in the previous year. This commercial turnaround was all the more impressive when it is considered that in the previous year, Lufthansa Cargo had still posted an operating loss of 171 million euros. And the balance sheets of the other Group companies were also highly gratifying. Lufthansa Technik disclosed an operating result of 268 million euros – just slightly below the previous year’s value. Lufthansa Systems was able to contribute to the Group operating profit with ten million euros, as did the catering division LSG Sky Chefs with 76 million euros.

Swiss was able to triple its operating profit to 298 million euros, while in contrast, the other members of the Passage Airline Group, Austrian Airlines, British Midland and Germanwings, taken together had to post an operating loss of 244 million euros..

Airbus A380 starts line service

“The” highlight of 2010 was the eagerly awaited handover of the first A380-800 to Lufthansa. The preparations for the big day were made at full speed in all parts of the Group. As early as January, the future A380 pilots began simulator training for the new wide-bodied aircraft in the Frankfurt Training Centre of Lufthansa Flight Training. At the same time, the cabin crews were prepared for emergency exercises when deployed on line service in their own Lufthansa simulator.

Finally, the big day arrived on 19 May 2010. Lufthansa CEO Wolfgang Mayrhuber took over the first Lufthansa A380 with the registration D-AIMA from Airbus President and CEO Tom Enders as part of a ceremonial delivery ceremony. The new mega-Airbus also set new benchmarks in passenger comfort. Lufthansa and Airbus developed numerous innovations in the cabin, which celebrated their world premiere on board the A380. For example, cabin ventilation, the lighting concept, the soundproofing and in-flight entertainment.

As the first wide-bodied jet to do so, the A380 achieved specific fuel consumption of three litres per passenger and 100 kilometres, thus advancing into new dimensions in flight ecological efficiency. The “three litre aircraft” was born, whose Rolls-Royce Trent 900 power plants also shone with very low noise emissions.

On the same evening of the handover, the new Lufthansa flagship was christened. “I name you ‘Frankfurt am Main’ and wish you, your crew and your passengers always happy landings!” With these words, and cautiously emptying the contents of the obligatory bottle of Champagne over the aircraft bow, Frankfurt’s Mayor Petra Roth completed the christening of the first Airbus A380-800 with the name of its home base, “Frankfurt am Main”. By 2015 the A380 fleet had grown to 14 aircraft..

The Airbus A380: The new flagship of the Lufthansa fleet sets new standards for travel comfort, technology, and environmental efficiency.
The Airbus A380: The new flagship of the Lufthansa fleet sets new standards for travel comfort, technology, and environmental efficiency.

World premiere for new Lufthansa First Class

With the acceptance of the “Mike Alpha”, the new Lufthansa First Class on board the A380 celebrated its world premiere. Its clear styling and upmarket design set new benchmarks in exclusivity and comfort. One of the main wishes expressed by the frequent fliers surveyed was the need for the greatest possible quiet in the First Class cabin. Lufthansa met this wish with sound-insulated dividing curtains to the other areas of the cabin, special external aircraft soundproofing and a carpet with footfall insulation. In combination, they ensured Lufthansa First Class became the quietest in the world. The majority of customers also wanted to do without separate cabins enclosing every seat, as was offered by competitors. Instead, the new Lufthansa First Class was distinguished by a particularly large amount of free space for the passenger in an exclusive ambience. Generous storage possibilities at the seats and personal, lockable wardrobes made it possible to do without constricting storage lockers on the cabin ceiling.

Probably the most important criterion for a restful flight is a perfectly formed seat. Here, too, Lufthansa set new benchmarks and developed a new seat for First Class, which combined ergonomics and comfort and advanced to the “best bed in its class”. With a length of 2.07 metres and a width of 80 centimetres, it makes deep and relaxing sleep possible. A flexible screen was also integrated in the seat to allow each passenger to shape their privacy individually. But that’s not all. For the first time in a commercial aircraft, integrated humidifiers and a lighting concept coordinated on circadian rhythms made an additional contribution to the wellbeing of Lufthansa First Class guests.

The new First Class on board the Lufthansa A380: The quietest First Class in the world, with numerous innovations.
The new First Class on board the Lufthansa A380: The quietest First Class in the world, with numerous innovations.
With a length of 2.07 meters and a width of 80 centimetres, the bed in the new First Class offers plenty of space and comfort.
With a length of 2.07 meters and a width of 80 centimetres, the bed in the new First Class offers plenty of space and comfort.
Luxurious and spacious: The First Class bathrooms with private booth
Luxurious and spacious: The First Class bathrooms with private booth

The fleet grows further

When the Lufthansa Supervisory Board paved the way for an additional large aircraft order on 22 September, although there was no new aircraft type for the Lufthansa Group among them, the order for 48 commercial aircraft was a testament to an optimistic look to the future. The order consisted of eight Airbus A330-300 long-haul jets and 40 smaller aircraft for the continental traffic of Lufthansa Passage, Swiss and Germanwings.

Not only the new jets, but also the existing Lufthansa Passage fleet and Austrian Airlines aircraft were equipped with the first examples of the new seat generation for short- and medium-haul routes in the second half of 2010. While AUA intended to convert a total of 32 of its aircraft from the Airbus A320 and Boeing 737 families to the new interior design by September 2011, it was planned to equip the Lufthansa short-haul fleet with the new on-board product by December 2011. In addition to the seat, this included a more modern cabin layout and design, as well as a new meals concept.

The 420 Economy Class seats on the roomy main deck of the A380 offer more space than ever before.
The 420 Economy Class seats on the roomy main deck of the A380 offer more space than ever before.

Destination future

New concepts for developing successful financial growth and thus securing the sustainable success of the company were one of the central challenges Lufthansa management saw itself facing in 2011.

Fierce competition, on the one hand from European low-cost carriers and on the other, from state-protected airlines based in the Persian Gulf, threatened to erode the Lufthansa earnings margin in a dramatic manner. And this regardless of the record revenues in 2011 of almost 29 billion euros.
Lufthansa ran the risk of not being able to afford the necessary investments in a modern and ecologically efficient fleet and the planned build-up of service concepts from its own resources any more. With the clear aim of taking the top spot among European airlines in future as well, and further building on this position, Lufthansa management, under the leadership of the new Chief Executive Officer, Christoph Franz, thus presented a range of measures to secure and improve the result in 2011.

This also including withdrawing from loss-making business fields, such as Lufthansa Italia and the British airline, British Midland Ltd. (bmi). Lufthansa Italia started in spring 2009 as a subsidiary for the Italian air traffic market. On the flights to Italian and European destinations it was intended that Italian flight attendants and small delicacies from their homeland would ensure an “Italian tone” on board. Lufthansa ended its commitment with its own brand in the Italian air traffic market at the end of the 2011 summer schedule and the Lufthansa Italia Airbus A319 fleet was deployed elsewhere in the Group.

Lufthansa had taken over all the shares in the British airline, British Plc. (bmi) in 2009. In December 2011, Lufthansa signed a sales agreement, the contents of which were the takeover of bmi by IAG, the parent company of British Airways and the Spanish airline, Iberia, for a price of 172.5 million pounds sterling. After a detailed review, the European competition authorities finally approved the sale in March 2012.

The Lufthansa Group also decided to reduce its investment portfolio in the freight sector in 2011 and paved the way for the sale of Jade Cargo, based in Hong Kong.

Dr. Christoph Franz becomes the new CEO of Deutsche Lufthansa AG on January 1st, 2011.
Dr. Christoph Franz becomes the new CEO of Deutsche Lufthansa AG on January 1st, 2011.
Filling up the A321 with biofuel: The six-month biofuel trials begin on July 15th, 2011.
Filling up the A321 with biofuel: The six-month biofuel trials begin on July 15th, 2011.

SCORE paves the way

In addition to withdrawing from business fields that generated long-term losses, in 2011, Lufthansa started a Group-wide programme to improve earnings – SCORE. With this programme, Lufthansa promised to improve the consolidated result by at least 1.5 billion euros within three years. All business fields and airlines in the Group were called on to make their individual contributions to SCORE. Additional cross-divisional projects also released unused synergy potential.

Although the primary target of SCORE was reducing costs, it was much more than a pure savings programme. Instead, Lufthansa management understood SCORE to be part of a change process, which was intended to lead the Lufthansa Group safely into the future. At the 2012 Lufthansa Annual General Meeting, Christoph Franz made it clear: “It is not enough merely relying on further quantitative growth, but rather we have to grow profitably.” To do this, administrative costs had to fall by 25 per cent and comprehensive service functions had to be combined. In addition, the SCORE programme planned the socially acceptable reduction of 3,500 positions in the Group. At 900 million euros, Lufthansa Passage, as the largest business field, also contributed the lion’s share of this extensive and ambitious catalogue of measures.

Lufthansa remains a quality carrier

All measures were aimed at making Lufthansa more flexible and more agile on the market. Saving at the costs of customers or even cutting the level of service was not on the agenda. Lufthansa boss Christoph Franz emphasised this claim with the striking statement, “Lufthansa remains a quality carrier.”
In order to lead the chronically loss-making Lufthansa short and medium-haul traffic into the black again, in 2011, the cooperation between Lufthansa Passage and Germanwings was further intensified. Lufthansa Direct Services and Germanwings were merged in business and organisational respects, flight plans were coordinated and the deployment of a homogenous Airbus A320 fleet was planned. Because there was a need for action not only at Lufthansa, but also at Germanwings, after the operating result in 2011 posted a loss of 52 million euros.

In the middle of the crisis, and therefore at the worst conceivable time, the government air travel levy came into effect on 1 January 2011 for all departures from Germany. Passengers on domestic flights and short-haul routes had to pay 8 euros per flight from then on, while continental routes burdened individual travel budgets with 25 euros and long-haul flights with 45 euros. An artificial brake on demand, which favoured unaffected departure airports beyond the German border and further worsened the already disadvantageous conditions facing the German aviation sector as a whole.

But Lufthansa did not get disheartened and continued on its consolidation course. From 20 January 2011 it was possible to combine flights from Lufthansa and Germanwings in one booking. One year later, Lufthansa announced that it was also moving closer together with Germanwings spatially, initially in Stuttgart, and wanted to offer a harmonised range of routes. From 27 June 2012 Lufthansa and Germanwings offered through fares between all the connections of both airlines for the first time. A precursor of what was intended to follow on 1 January 2013. From this date, Germanwings was operationally and commercially responsible for all decentralised traffic in Germany that was not managed via the Lufthansa hubs Frankfurt am Main and Munich. Thus an important milestone in converting Lufthansa’s core European business was reached. A transformation process that reached its provisional peak on 1 July 2013. On this date, the “new” Germanwings started its premier flight as the largest German low-cost airline. From then on, passengers could choose between the three tariffs and service levels “Basic”, “Smart” and “Best” in a standard Economy Class within the scope of an innovative product and branding concept. The new Germanwings was intended successively to take over the decentralised European traffic of Lufthansa Passage, outside the hubs Frankfurt and Munich, by the end of 2014.

SCORE activities in the Passage division were not limited to Germanwings, however. For example, work on improving the earnings of the Austrian subsidiary was just as intensive. Thus Austrian Airlines (AUA) completed a transfer of operations to the cheaper producing subsidiary, Tyrolean Airways, in July 2012, after discussions with the unions on restructuring AUA flight operations remained without any amicable solution. This painful step, which was not noticeable externally to passengers, reduced AUA production costs by 20 to 25 per cent at a stroke. This measure and an increase of equity by up to 140 million euros, were the central components of a 220 million euro package intended to lead AUA into profit again. This then also succeeded in the 2012 financial year with an increase in operating profit of 65 million euros.

Lufthansa’s 45 per cent investment in the Belgian Brussels Airlines was confronted with a difficult market environment at the start of the decade. The European capital was the target of numerous low-cost carriers that made things very difficult for the Lufthansa investment, as a full service carrier.

Although always flying in the black, the SCORE measures taken at the Swiss subsidiary SWISS in 2013 led to an increase in earnings of more than ten per cent – to 226 million euros then. A new, independent operational basis and a new product range offered by SWISS at the Geneva location had helped contribute to this.

In order to achieve further synergy effects between the Passage Airlines of the Lufthansa Group, Lufthansa, SWISS and Austrian Airlines harmonised their tariff concepts in European transfer traffic in March 2013.

Development of cooperation with Star Alliance partners

The development of cooperation at the beginning of the decade was not limited to Lufthansa’s own subsidiaries. In parallel, Lufthansa intensified its cooperation with selected partners from Star Alliance. Accordingly, on 1 April 2012, the “J+” joint venture between Lufthansa and All Nippon Airways (ANA) started. After a release under anti-trust law, the partners were now able to appear on the market with a joint range on the routes offered between Europe and Japan. The way to this was paved with network planning in partnership, coordinated flight plans, common pricing and common sales activities. Passengers of both airlines also profited from a dovetailing of the frequent flier programmes of ANA and Lufthansa, as well as from optimised transfer conditions at the respective J+ partner hubs. The new strategic partnership in air traffic between Germany and Japan supplemented the very successful A++ joint venture between Lufthansa, Air Canada and United Airlines on the North Atlantic.

The commissioning of the newly built gate A-Plus in October 2012 ensured an even smoother transfer process in Frankfurt, the largest Lufthansa hub. The 800 metre long western extension of Lufthansa Terminal 1 had an annual capacity of six million passengers and was exclusively available to Lufthansa and its Star Alliance partners. Good news, but clouded by a judicially ordered night flying ban for Frankfurt Airport. At the beginning of the 2011/12 winter flight plan, no aircraft could take off or land any more between 11 in the evening and 5 in the morning from the largest Lufthansa hub.

Boeing 747-8: the latest generation of the “Queen of the Skies”

When Lufthansa started scheduled operations with the Boeing 747-8 between Frankfurt and Washington D.C. on 1 June 2012, this was much more than a normal maiden flight. Hardly any other model of the Lufthansa fleet had been permanently developed further over the decades in such close cooperation between the aircraft manufacturer and Lufthansa as the legendary “Jumbo Jet”.

Lufthansa was the first customer of the very first version, the 747-100, outside the USA, and the global launching customer of the 747-200F freight version. The successful 747-400 emerged in its familiar form not only with the direct participation of Lufthanseaten from the most varied divisions, but also at the urging of the Lufthansa Engineering Department. A service also recognised by Joe Sutter on the occasion of the 747-8 premiere. He is seen as “the father of the Jumbo Jet” and brought the 747 programme at Boeing to life in the 60s.

So it was just a logical next step in the history of the Boeing 747 that Lufthansa was also present at the birth of “Dash 8” and, as the first customer of the passenger version 747-8, decisively influenced in countless details the layout of the longest commercial aircraft in the world to date, measuring 76.3 metres.

Externally, the 747-8 has unmistakably remained a “Jumbo” with its unique silhouette. But a look inside reveals the familiar design is hiding a completely redeveloped aircraft. The new Queen of the Skies comes across as very quiet. Its four General Electric GEnx-2B power plants cause a noise footprint reduced by about one third in comparison with the predecessor version, the 747-400. Thus it meets all effective and planned noise restrictions for commercial aircraft. The new Jumbo is also ecologically efficient in fuel consumption. As a “three litre aircraft”, the 747-8 consumes just 3.5 litres of kerosene per passenger and hundred kilometres flown. The new Lufthansa flagship also shines in its output of CO2 emissions, which could be reduced sustainably by 15 per cent per passenger in comparison with the earlier model of the 747 model range.

That the latest Jumbo generation was able to present itself as such a “green” aircraft was not, however, thanks to the state-of-the-art power plant technology alone. The fully redeveloped wings also made a decisive contribution. Significant aerodynamic advantages and thus lower fuel consumption, for example, were created by a new wing profile trimmed for efficiency, and redeveloped wing tips, known as “raked wingtips”. In contrast to the predecessor’s “winglets”, these are affixed horizontally and have been aerodynamically optimised once again. Controlling the ailerons and steering flaps on the wing using precise and easier-to-maintain “fly-by-wire” technology was also new. The latest aluminium alloys with improved corrosion behaviour and weight advantages also saved maintenance costs. Progress did not stop at the cockpit door. Thus the latest generation of the “glass cockpit” moved in there, which enabled the presentation of additional information to improve flight safety. Nevertheless, attention was paid to ensuring that the “Dash 8” flight deck cockpit has a great deal in common with that of the 747-400. Thus existing simulators could also be used to train 747-8 crews.

With 19 firm orders, Lufthansa was not only a launching customer, but also the largest customer for the passenger version of the 747-8. And thus 1 June 2012 was also a very special day in Lufthansa history, as Chief Executive Officer, Christoph Franz, emphasised: “The Boeing 747-8 is an extraordinary aircraft. With the acceptance of the 747-8 into our fleet, Lufthansa has a new product that underlines not only our commitment to innovations, technology and efficiency, but also offers our customers a completely new flight experience. Lufthansa looks forward to extending the route network of the new 747-8 to other US destinations and to India this year.”

At the time of its delivery, the Lufthansa 747-8 offered 362 guests space in comfort. Of these, there were eight passengers in First Class, 92 in Business Class and 262 in Economy Class. In contrast to the Boeing 747-400, where First Class was accommodated on the upper deck, Lufthansa placed the premium class in the bow of the main deck of the latest “Jumbo Jet” generation. Thanks to special external insulation, sound-reducing cabin curtains and footfall insulation, the exclusive First Class cabin was transformed into the quietest place in the aircraft.

The Boeing 747-8 has inherited the good looks of its forbears, but is otherwise a completely new aircraft.
The Boeing 747-8 has inherited the good looks of its forbears, but is otherwise a completely new aircraft.
The distinctive GEnx GE-2B engines of the Boeing 747-8 use less fuel and emit 30% less noise.
The distinctive GEnx GE-2B engines of the Boeing 747-8 use less fuel and emit 30% less noise.

The new Lufthansa Business Class

As early as May 2012, Lufthansa celebrated a really special premiere in Munich: the new Business Class, which was presented to the public at the International Tourism Fair (ITB) in March that year, entered scheduled service for the first time from the Bavarian capital’s airport. A new Airbus A330-300 with the registration number D-AIKP was the first Lufthansa Airbus already equipped with the latest Lufthansa cabin as standard.

From now on, up to 48 passengers could experience a comfortable travel experience at the highest level. In addition to an exclusive cabin design, the new seat, developed together with Lufthansa frequent fliers, primarily offered even more comfort above the clouds. The clou: it could be turned into a comfortable bed with a horizontal length of 1.98 metres at the touch of a button. An audio and video entertainment system with significantly enlarged, individually rotatable and sliding 15 inch monitors at each seat also ensured the time flew by for passengers. 50 films and 78 TV programmes, as well as up to 222 CDs, audio books, games and service information, were available to Business Class passengers “on demand”. There was also news and sport reports updated twice a day.

The new Business Class seats offer outstanding comfort in both reclined and upright positions. At the push of a button, they convert to comfortable beds with a horizontal reclining surface of 1.98 metres in length.
The new Business Class seats offer outstanding comfort in both reclined and upright positions. At the push of a button, they convert to comfortable beds with a horizontal reclining surface of 1.98 metres in length.

Fleet-wide conversion

A milestone was reached in equipping the existing fleet with the new Lufthansa Business Class on 1 April 2014 with the handover of the first of ten Lufthansa Airbus A380-800s to be modified. Lufthansa Technik, which was commissioned with the conversion, invested a total of 30,000 engineer hours in preparing the working package in close coordination with Airbus in Hamburg and Toulouse.

The first aircraft equipped in this manner, with the registration number D-AIMB, received a total of 92 new Business Class seats on the upper deck, which were arranged in a 2-2-2 configuration. Together with eight spaces in First Class and 420 Economy Class seats, the A380 had 520 seats in total in the new configuration. From the second aircraft, Lufthansa Technik expected downtime of 28 days and 13,000 working hours to be invested per A380. In parallel to the new seats, the A380s received the first “FlyNet”, Wifi broadband internet access developed by Lufthansa Technik.

By 2015 the entire long-haul fleet was equipped with the new Business Class seats. The conversion volumes included 7,000 new seats, of which 920 alone were installed on board the A380 fleet.

Sights firmly set on the environment

The Lufthansa Group claims to act sustainably and responsibly in all corporate divisions and to meet the globally rising need for mobility with suitable products. In particular, the continual investments in an even quieter and more efficient fleet are making an important contribution to shaping environmental mobility, both today and in the future. Between 2015 and 2025 the group will be receiving 272 aircraft (as at 31 December 2014). This is the largest fleet modernisation programme in the history of the Lufthansa Group.

In order to achieve further successes in the environmental balance and to raise efficiency in flight operations, the company is consistently pursuing the four pillar strategy, which in addition to technical progress, also includes infrastructure, operational and economic measures. Furthermore, the Lufthansa Group supports the demanding target of the aviation sector of improving fuel efficiency by 1.5 per cent per year by 2020, and then making all transport growth CO2-neutral. By 2050 it is intended to reduce net CO2 emissions by 50 per cent, taking 2005 as the base figure.

The efforts always to operate a modern and efficient fleet have been a common theme throughout the history of the company. In past decades, numerous employees were continually involved in developing selected aeroplane types – for example the Boeing 747-400 or the Boeing 747-8 - and thus had and have great influence on the ecological efficiency of the fleet.

Entry into the 2-litre class

After it was possible to put the first “3 litre aircraft” into service in the Airbus A380-800 and the Boeing 747-8 in 2010 and 2012, Lufthansa paved the way for the next generation in the “2-litre class” with a large order of aircraft in 2013.

On 18 September 2013 the Supervisory Board of Deutsche Lufthansa AG gave the green light for the largest individual private investment in the history of German industry to date. The package includes a total of 59 wide-body jets. Of these 34 are Boeing 777-9Xs and 25 are Airbus A350-900s. The first A350-900 will be commissioned as early as the end of 2016. Thanks to consumption of both types of only 2.9 litres of kerosene per passenger and 100 kilometre of flight route, Lufthansa expects a reduction of fuel consumption of a considerable 25 per cent compared with the types in service at the time of the order. CO2 values falling by the same degree and a noise footprint at least 30 per cent smaller will bring further relief for those living near airports.

Fuel efficiency in flight operations is a central factor in the success of the Lufthansa Group and an important pillar of active environmental management. For this reason, in 2013 the company set up its own department with aim of sounding out and implementing further fuel saving potential. Since July 2014, this issue has been combined in the new division “Operations Efficiency & Strategy”. The experts have developed more than 1,300 ideas and projects for more fuel efficiency to date, of which many have already been implemented.

Focus on active sound protection

Lufthansa did not stop at ordering new, ecologically outstanding aircraft types in the past few years, however. Solutions have been and are permanently sought to reduce the flight noise of the existing fleet.

Accordingly, in spring 2014, a modification programme started to equip the existing aircraft of the A320 family with so-called vortex generators. As the first airline in the world to do so, Lufthansa equipped an aircraft with these components that remove annoying sounds caused by aerodynamic effects and reduce the overall sound level of the aircraft by up to five decibels. These sounds were previously created by circular pressure equalisation vents for the fuel tanks on the underside of the wings, which were crossed by airflows during flight. The vortex generators will create a vortex over these circular pressure equalisation vents, which will effectively prevent the noise. In addition to the 157-strong existing fleet, all new A320ceo aircraft will be delivered by Airbus with these vortex generators from February 2014. The Lufthansa Group had proved their effectiveness in cooperation with the Deutsche Zentrum für Luft- und Raumfahrt in overflight measurements. “This modification is part of our investment in active noise protection and will make our short and medium-haul fleet even quieter in the future,” said Kay Kratky, the then Member of the Lufthansa German Airlines Board, Operation & Hub Frankfurt, and since August 2015 CEO of Austrian Airlines, which belongs to the Lufthansa Group, at the handover of the first new Airbus A320 equipped with vortex generators.

The commitment to active sound protection is highly varied and, in addition to the measures detailed above, also includes a commitment to noise research and to developing noise-reducing take-off and landing procedures.

For example, the Lufthansa Group also has great expectations of the newly developed A320neo family (new engine option). The Group has ordered a total of 116 aircraft of the A320neo family and is using as engines both the LEAP-1A power plants from the manufacturer CFM-International and PW1100G power plants from Pratt & Whitney. Both are highly efficient and set benchmarks in noise reduction. They halve the usual noise footprint produced by an aircraft when taking off or landing. The “Neo” version of the bestsellers Airbus A320 / 321 will become the workhorse of European traffic in the Lufthansa Group in future.

A small part, but a big effect: The vortex generator on the underside of the wing of an Airbus A320 significantly reduces the overall noise emissions of the aircraft during its landing approach.
A small part, but a big effect: The vortex generator on the underside of the wing of an Airbus A320 significantly reduces the overall noise emissions of the aircraft during its landing approach.

Biofuel for sustainable air traffic

The Lufthansa Group is among the pioneers in researching sustainable biofuels for aviation. Thus it was only consistent that it tested biofuel from 15 July to 27 December 2011 as the first airline in the world to use these fuels in daily flight operations. In this three month period, an Airbus A321 commuting between Frankfurt and Hamburg filled up half of one power plant with bio-synthetic kerosene. After evaluating all the data collected, Lufthansa came to a thoroughly positive conclusion about the field trial. The next step followed on 12 January 2012, with the first flight with a Lufthansa Boeing 747-400 partly fuelled with bio-synthetic fuel on the route from Frankfurt to Washington D.C.

But Lufthansa did not leave it at practical tests and continually took part in additional projects. On 15 September 2014, with Flight LH190 from Frankfurt to Berlin/Tegel, the company completed the first line flight Europe with a 10 per cent admixture of the new bio-kerosene components Farnesan. The flight was preceded by a bench test at Lufthansa Technik in Hamburg in autumn 2013 within the scope of the EU project “Blending Study”. This showed that the admixture achieved an improvement in emissions properties.

Another example of the numerous investments made by the Group in a “green” future. All of these have the common aim of raising fuel efficiency in flight operations even further and sustainably improving the CO2 balance of air traffic, including using alternative fuels.

Lufthansa is the first airline in Europe to use the new biofuel component Farnesan on regularly scheduled flights.
Lufthansa is the first airline in Europe to use the new biofuel component Farnesan on regularly scheduled flights.

Also acting responsibly on the ground

The aim of the Lufthansa Group is continually raising energy and resources efficiency, not only in the air but also on the ground. For example, the Group has been a partner of the E-PORT AN initiative at Frankfurt Airport since 2013. The aim is replacing combustion engines with electric mobility – as far as it makes sense and is possible - during aircraft handling. For this purpose, E-PORT AN analyses all ground traffic, for example aircraft taxiing and towing procedures and freight carriage. Fraport AG, the State of Hesse and the Model Region Electric Mobility Rhine-Main are also participating in the initiative, which was honoured as an “Electromobility Beacon” by the German government in 2013.

The Lufthansa Group’s projects include the hybrid tractor TaxiBot, the eTractor, eTaxi and eLift. Lufthansa has used three TaxiBots in regular flight operations at Frankfurt Airport since the end of 2014.

You will find extensive information about the projects detailed and other issues concerning climate and environmental responsibility in the annually published sustainability report “Balance” from the Lufthansa Group.

Environmentally friendly, efficiency, and powerful: The TaxiBot, or 'taxiing robot', in operation on the apron in Frankfurt.
Environmentally friendly, efficiency, and powerful: The TaxiBot, or "taxiing robot", in operation on the apron in Frankfurt.
TaxiBot is a tow bar-less aircraft tug with an 800-horsepower diesel-electric drive, used to pull aircraft with their engines off from the gate to the runway.
TaxiBot is a tow bar-less aircraft tug with an 800-horsepower diesel-electric drive, used to pull aircraft with their engines off from the gate to the runway.
The TaxiBot is controlled by the pilot.
The TaxiBot is controlled by the pilot.

Premium Economy class – More relaxed travel with a new long-haul high-quality product

Lufthansa’s new Premium Economy class is a winner. Initially introduced at the world’s largest international tourism trade fair, Berlin’s Internationale Tourismus Börse (ITB) in 2014, the new class of travel gained plaudits from industry experts and passengers right from the start.

Together with the new First and Business classes that were installed throughout the fleet in 2015, the introduction of the Premium Economy class was a central component of the “5-STAR” quality and service offensive. Even more intriguingly, Lufthansa customers were directly involved in the development of the new Premium Economy. Seat design, for example, has been based on extensive passenger surveys and workshops with sales and distribution partners. Bookable as of May 2014 and first available on board Boeing 747-8 long-haul flights in November 2014, the new Lufthansa Premium Economy class closed the gap between Lufthansa’s Economy and its revamped Business Class. The new long-haul high-quality product is also pitched at passengers forced to book Economy class for a business trip due to their company’s travel regulations, or who already take advantage of similar offers from competitors.

35 years after the introduction of Business Class, Lufthansa offers its guests a new travel class: Premium Economy Class provides significantly more space, comfort, and many other amenities.
35 years after the introduction of Business Class, Lufthansa offers its guests a new travel class: Premium Economy Class provides significantly more space, comfort, and many other amenities.

Superb comfort with many extras

The Premium Economy seat has been completely designed and produced in Germany with outstanding “Made in Germany” quality. Compared with the Economy seat, not only is it up to three centimetres wider – passengers can also revel in up to 50 percent more space. The seat reclines far back and the 97-centimetre seat pitch to the passenger in front also ensures a far more relaxed flight experience. Welcome relaxation or a sleep position is assured by an adjustable headrest in combination with height-adjustable footrests. Each passenger has an electrical outlet to recharge electronic devices; a bottle holder and plenty of storage space for personal items are also available. Inflight entertainment offers a wide variety of movies, TV shows and computer games that passengers can retrieve on their flat touch screens which reach a size of up to twelve inches.

The seat certainly won the design experts on the jury of the prestigious ‘Red Dot Award’. Together with the new Lufthansa Business class seats, Premium Economy received the coveted 2014 Red Dot Award in the “Transport Accessories” category.

All well and good, but the new seat is only part of the new travel class. Two pieces of checked baggage, each with a maximum 23 kg weight allowance, use of Lufthansa business lounges at the departure airport for an additional fee of 25 euros and menus heralding meals on porcelain dishes are further highlights. Passengers are greeted with a welcome drink as soon as they get on board. An individual water bottle and high-quality amenity kit round off the positive impression set by Premium Economy class.

Passengers can operate the comprehensive onboard entertainment program from their own touchscreen display in the back of the seat in front.
Passengers can operate the comprehensive onboard entertainment program from their own touchscreen display in the back of the seat in front.

Quick outfitting of the fleet

Depending on the aircraft type, the number of seats offered in Premium Economy class varies between 21 on the Airbus A330-300 and 52 on the A380-800. A Boeing 747-8 baptised “Schleswig-Holstein” was the first to showcase the new class on a scenic flight over its name-checked German state on 2 October 2014. After a gap of 36 years, this marks the first time that Lufthansa is once again flying above the clouds with a new class of on-board travel.

Lufthansa Technik was already able to announce completion of its refurbishment of the Boeing 747-8 fleet with the new Premium Economy class in November 2014. 32 of the new travel class seats were installed on each jumbo jet. Refitting of the entire long-haul fleet was completed by the end of 2015.

The new Premium Economy seat is as much as three centimetres wider, depending on the aircraft, and each seat has its own, wider armrest to ensure a greater private sphere for the passenger.
The new Premium Economy seat is as much as three centimetres wider, depending on the aircraft, and each seat has its own, wider armrest to ensure a greater private sphere for the passenger.

Anniversary year with new Lufthansa Premium Quality

It was a promise Carsten Spohr made with the presentation of the strategic working programme 7to1 – Our way Forward, in July 2014. “2015 will be the year of the new Lufthansa Premium Quality,” announced the Lufthansa Group boss.

That Lufthansa’s management, particularly in these difficult times, made a clear commitment to the premium segment, was to be understood not only as a promise to customers, but also a signal to all employees. Lufthansa will remain a premium airline and also offer travel comfort at a “five star level” after its 60th anniversary.

Improving quality and efficiency and promoting innovation were the three supporting pillars of “7to1”, whose seven action areas are intended to lead the Lufthansa Group to a top position in worldwide air traffic.

“Five star” classes

Within the scope of the “5 Star” quality offensive that had been started, Lufthansa declared 2015 to be the year of the new Lufthansa Premium Quality. The central element of this strategy was completing the ongoing large re-equipment project of the long-haul fleet with a new First Class, the new Business Class and the new Premium Economy Class introduced in 2014. With a customer satisfaction rate of 98 per cent, the new First Class set benchmarks in particular. It was possible to complete the re-equipment of the entire long-haul fleet with this successful product by July 2015. Demand for the new Premium Economy also exceeded expectations. Although the process to install the new class was only completed fleet-wide at the end of 2015, the sales generated by December 2014 were already 16 per cent above plan.

In 2015 Lufthansa was also able to accept six brand new long-haul jets whose cabins had already been equipped with the new products on delivery. Two ecologically efficient Airbus A380-800s and four just as efficient 747-8I “Jumbo Jets” thus gave a lift to the modernisation of the fleet on inter-continental routes.

New low-cost European platform

The Lufthansa Supervisory Board gave its green light to the eagerly awaited Wings concept on 3 December 2014.

The central element of this innovative strategy is establishing a new, Europe-wide point-to-point platform on the basis of the Eurowings subsidiary. The “new” Eurowings, conceived as a quality airline in the budget segment, will start with a dynamic new look in November 2015.

The plan also foresees providing Eurowings with twenty three brand new Airbus A320 jets, step by step between February 2015 and March 2017. This will be in exchange for the Canadair CRJ 900 regional jets used until then. The A320 is the identical aircraft type to that used by Germanwings in January 2015 to serve all European routes on Lufthansa’s behalf, with the exception of the hubs Frankfurt/Main and Munich.

In addition to its hub at Cologne/Bonn Airport, it is planned to establish a new Eurowings base in Vienna in 2015.

The new Eurowings is intended to attract new customers by offering quality at affordable prices.
The new Eurowings is intended to attract new customers by offering quality at affordable prices.
Eurowings expands its offerings on long-haul routes. From Winter 2015, attractive long-haul destinations are available to Eurowings customers.
Eurowings expands its offerings on long-haul routes. From Winter 2015, attractive long-haul destinations are available to Eurowings customers.

Eurowings on the long-haul

As a supplement to its European route network, Eurowings is also starting to fly to inter-continental destinations from its hub in Cologne/Bonn from November 2015. Initially, three leased Airbus A330-200 wide-body jets will be deployed. The Airbus A330, which has 310 seats, will initially fly to tourist destinations, such as Tampa, Varadero, Dubai and Phuket. It is planned to increase the long-haul fleet by a further four aircraft to up to seven A330-200s at a later point in time. As with the flights to European destinations, passengers on Eurowings long-haul routes will also be able to choose between the booking classes “Basic”, “Smart” and “Best”.

As the third pillar, alongside quality and innovative new concepts for growth, Lufthansa Chairman and Chief Executive Officer Carsten Spohr presented the action area Efficient Organisation on 3 December 2014. For this purpose, the Lufthansa Group reoriented the sales and marketing of the Lufthansa Group airlines Lufthansa, Austrian Airlines, Brussels Airlines, Swiss and Germanwings on 1 March 2015. While previously, the area management of each Group airline was responsible for the sales of all five carriers in the market, since then there has been a central “Head of Group Field Sales” for the entire Lufthansa Group. It was also planned to harmonise the ranges and sales technologies of the airlines even further.

The investments made in quality, innovation and efficiency within the scope of “7to1” are intended to contribute to the capital employed achieving not only sufficiently high results, but also to increasing the value of the company. A simplified calculation of key performance indicators, which anchored a value-based control system even more firmly in the company, was thus a further target presented by Lufthansa within the scope of the new strategy. The key performance indictors “Earnings After Cost of Capital” (EACC) and “Return on Capital” (ROCE) have served as the basis for decision-making processes since 2015. They replaced the previous key performance indicator “Cash Value Added” (CVA). This step was intended not least to ensure sustainable commercial decisions are taken.

Lufthansa and Germanwings have successfully completed the handover of local routes: a total of 115 routes were transferred from Lufthansa to Germanwings.
Lufthansa and Germanwings have successfully completed the handover of local routes: a total of 115 routes were transferred from Lufthansa to Germanwings.