Balance 2015 ENG

Lufthansa is installing between 21 (Airbus A330-300) and 52 (Airbus A380-800) new seats per aircraft. Aboard the Boeing 747-8 the Company is dedicating 32 seats to Premium Economy. It is expected that about 1.5 million passengers will travel in this new travel class per year. Focus on service optimizations Many topics are being addressed in the framework of the improvements the Com- pany is introducing for its passengers. This includes an optimized premium check-in and enhancements of the transfer services at the Frankfurt and Munich hubs. Moreover, there are higher-quality amenity kits (pou- ches with comfort items) in First and Busi- ness Class as well as increased quality and greater diversity of food and beverages at the Business Class Lounges. In the context of service optimization it is above all the projects in the “Service and Hospitality” segment that play a significant role as they aim at intensifying the personal customer contact on the ground and in the cabin. A key project on the way to becoming a five-star airline is therefore the “Signature Service” in Business Class. Here, the ser- vice sequence is to resemble an excellent restaurant experience with the focus on the guest’s wishes. This more personalized in-flight service is characterized above all by accentuating the flight attendants’ role as hosts and thus their service responsibility for “their” passengers. Regular customer surveys To measure its customers’ satisfaction, the Lufthansa Group regularly conducts online surveys that cover the entire passenger experience and service chain. Specific scales show the performances with which customers are especially satisfied and which ones might need improvements. Lufthansa German Airlines is actively committed to becoming the first five-star airline in the western hemisphere. At Lufthansa Passenger Airline, for example, such customer ratings are fed into the Customer Profile Index (CPI), which represents a weighted average evaluation of various services from a passenger per- spective. In 2014, this value was 7,322 points. Due to a change in survey method- ology, a direct comparison with the previ- ous year’s CPI score is not possible. As a parallel measure, Net Promoter Scores (NPS®) have been determined regularly since 2014. Customers are asked whether they would recommend their current travel experience with Lufthansa to friends or acquaintances. To calculate an NPS, the percentage of passengers who are less than enthusiastic about their experience (Detractors) is subtracted from the percent- age of those who would strongly recom- mend it to others (Promoters). In 2014, Swiss cooperated with scientists at St. Gallen University to determine how satisfied passengers are with “green” products, such as CO2 compensation, as an additional offer and what potential such products might have. The survey showed that 14 percent of all passengers are particularly interested in such products. At the same time, there is a general wil- lingness to pay a higher price for green products. According to the survey there is a continuously growing segment of cus- tomers who place an emphasis on envi- ronmental protection and sustainability. A further central aspect concerning cus- tomer satisfaction is how the Lufthansa Group handles its customer feedback management and dialogue with passen- gers. One of the Group’s principles is that employees respond to each customer reaction worldwide as quickly as possible. Under the umbrella of the Passenger Dialogue Services program the aviation company realigned its feedback manage- ment in 2013. It is now based on the four pillars of reachability, speed, problem solving and learning from feedback (see page 73, Balance 2014). The goal is to be “best in class” in handling customer reac- tions. Moreover, customer comments are an important basis for the Company for further improving customer satisfaction. Lufthansa German Airlines alone receives about 200,000 valuable customer observa- tions via diverse communications channels. 1 Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld Sustainability Report Balance // Issue 2015 // Lufthansa Group // 63

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