General presentation of Lufthansa :
The Lufthansa Group is a German group which is today one of the best known airlines in the world. While its core business is, of course, air transport, it also generates part of its turnover from other activities such as maintenance and rental services, in-flight catering and IT services.
Lufthansa has no less than 622 aircraft in 8 companies with different names and generates most of its turnover in Europe.
Know the competition of the Lufthansa share :
The airline Lufthansa is one of the market leaders in Europe and worldwide. With no less than 200 international destinations and a presence in 80 countries, the group employs 27,000 people worldwide and is currently the leading provider of IT services for the airline industry. But while it benefits from a strong image associated with German engineering, the group still faces fierce competition, which we invite you to discover here in more detail. Here is a list of the main competitors of the German Lufthansa and their country of origin:
- British Airways: In the United Kingdom
- Air France: In France
- American Airlines: In the United States
- Thai Airway: In Thailand
- Cathay Pacific: In Hong Kong
Strategic alliances set up by the Lufthansa Group :
Lufthansa is a partner of the car rental company Hertz. Members of the Lufthansa loyalty programme can earn points for every rental with Hertz.
- Star Alliance: Since 2009, Air Canada and Lufthansa, partners in the Star Alliance, have been sharing their airline codes, allowing the Canadian airline to offer flights to passengers based in the provinces to travel to Canada.
- Oman Air: In 2017, Oman Air announced the signing of an interline agreement with Lufthansa covering more than 50 destinations in Europe and North America. In return, Lufthansa will put its codes on Oman Air flights from Germany.
- United Airlines: The same year, in April 2017, the German airline group Lufthansa and its American competitor United Airlines announced Wednesday the creation of a joint venture in the transport of goods between the United States and Europe.
Introduction and listing of the Lufthansa share :
The Lufthansa share is currently listed on the Deutsche Boerse AG market and includes the DAX 30 stock market index calculation.
- In 2008, Lufthansa acquired a 45% stake in Brussels Airlines. In the same year, the group created Lufthansa Italia, which will finally be discontinued in 2011.
- In 2009, the group acquired Austrian Airlines.
- In 2010, the first Airbus A380 is received and will operate on the Frankfurt-Tokyo route. In the same year, a second Airbus A380 is received. Also in 2010, Lufthansa is found guilty of unlawful agreements with competing airlines, but in the end is not fined.
- In 2015, the company's first air accident will be the crash of the A320 of Germanwings, a Low-Cost subsidiary of the group in the Alpes de Haute Provence in France, which will result in the death of 150 people. The same year, the group announced the disappearance of this low-cost subsidiary in the near future and the creation of the Cologne-based low-cost company Eurowings.
- Finally, in 2016, Lufthansa announces the purchase of the remaining 55% of the shares of SN Air Holding, the parent company of Brussels Airlines.
The advantages and strengths of the Lufthansa share as a stock market asset:
First of all, the Lufthansa Group's position in its sector is of course one of its main strengths, as it is one of the world's leaders in this sector, which gives it a strong brand image and increased negotiating power. Lufthansa stands out in particular because it is one of the leading providers of IT services in the fields of aviation, maintenance and in-flight catering services.
The Lufthansa group is one of the founding members of the Star Alliance and is even one of its most important members. This contributes to the attractiveness of this stock for investors and can therefore help to increase its share price. The company's very positive brand image is also due to the fact that it is often associated with German engineering as a guarantee of quality and performance.
Of course, we can also talk here about the workforce of the Lufthansa Group with more than 100,000 employees worldwide. This enables it to operate in more than 80 different countries and to serve no fewer than 200 different destinations. The Lufthansa Group is also active worldwide in freight forwarding and logistics. It is particularly active in this area and thus generates additional revenues to those from passenger transport.
Finally, the group's marketing strategy is another of its strengths. Indeed, Lufthansa's brand awareness is very strong worldwide thanks to recurrent sponsoring operations and the marketing efforts made, but also thanks to an offer focused on exclusive services for its customers such as lounges, loyalty programmes and other premium services for business and first class travellers.
Disadvantages and weaknesses of the Lufthansa share as a stock market asset :
First of all, although Lufthansa's reputation is rather strong throughout the world, its brand image may have been damaged in the past due to some serious incidents on aircraft in its fleet and a few accidents.
On the other hand, the fact that the business sector in which Lufthansa operates is a particularly competitive one. However, this strong competition limits the group's opportunities for growth in market share.