Lufthansa

Lufthansa (Deutsche Lufthansa AG) is the largest German airline company, headquartered in Cologne. Their main base is at Frankfurt International Airport in Frankfurt am Main which is also Lufthansa's primary traffic hub. The company has developed a second hub at Munich's Franz Josef Strauß International Airport. In the future after the merging with the SWISS, the Zurich Airport will be also a main traffic hub.

Lufthansa is a founding member of Star Alliance, one of the world's major airline alliances. The Lufthansa Group operates more than 300 aircraft and employs about 97000 people world-wide.

History

The company was founded in 1926 and headquartered in Berlin, following a merger between "Deutsche Aero Lloyd" (DAL) and "Junkers Luftverkehr" on January 6 of that year. The company's original full name was Deutsche Luft Hansa Aktiengesellschaft. The name Lufthansa derives from Luft (the German word for "air") and Hansa (the Hanseatic trade organization that ruled large parts of Northern Europe during the medieval times).

In the 1950s East Germany attempted to establish its own airline using the Lufthansa name, but this resulted in a dispute with West Germany, where the airline had been already re-established after the Second World War. East Germany instead called its national airline Interflug, which ceased operations in 1991. Lufthansa was banned from flying into West Berlin until the demise of the communist regime.

Lufthansa was the launch customer of the Boeing 737 aircraft, and the only buyers of new 737-100s. By doing so, Lufthansa became the first foreign launch customer for a Boeing commercial plane. On 17 May 2004, Lufthansa became the launch customer for Boeing's Connexion in-flight online connectivity service.

In June 2003 Lufthansa opened new Terminal 2 at Munich's Franz Josef Strauß Airport (MUC) to relieve its main hub, Frankfurt (FRA), which is plagued with capacity constraints. It is one of the first terminals in Europe partially owned by an airline.

On 22 March 2005 SWISS merged with Lufthansa Airlines. The deal consists of Lufthansa offering public shareholders the average price over the weeks prior to the announcement. The majority shareholders (the Swiss government and large Swiss companies) will be offered payment if Lufthansa's share price outperforms an airline index during the years following the merger.

Other Businesses

In addition to its mainline operation, Lufthansa has many subsidiaries. The most important are:

  • Lufthansa Cargo
  • Lufthansa Technik, one of the world's largest aircraft maintenance providers
  • Lufthansa Systems, one of the world's leading aviation IT-providers
  • Lufthansa Regional, a regional carrier that is an alliance of several small airlines, including Lufthansa CityLine
  • Lufthansa CityLine, a regional carrier
  • Thomas Cook, a travel services provider
  • Air Dolomiti, an airline based in Trieste, Italy
  • Delvag, an insurance company specializing in air transport
  • LSG Sky Chefs, the world's largest airline caterer, which accounts for one third of the world's airline meals
  • Lufthansa Flight Training, a major provider of flight crew training services to various airlines
  • Condor, a travel services provider

Destinations

See full article: Lufthansa destinations

Fleet

The Lufthansa fleet consists of the following aircraft (as per July 2005):

  • 18 Avro RJ85
  • 20 CRJ-700
  • 42 CRJ-100/200
  • 12 Airbus A319-100
  • 34 Airbus A320-200
  • 26 Airbus A321-100
  • 6 Airbus A321-200
  • 2 Airbus A330-200
  • 8 Airbus A330-300 (further 2 on order)
  • 13 Airbus A300-600
  • 30 Airbus A340-300
  • 10 Airbus A340-600 (further 7 on order)
  • 18 MD-11F (Lufthansa Cargo only)
  • 33 Boeing 737-300
  • 28 Boeing 737-500
  • 30 Boeing 747-400


Lufthansa has ordered 15 Airbus A380 aircraft. The first will be delivered before the end of 2007 and they are likely to be used on services to Asia and the USA (ref: Airliner World, March 2005).

Through its Lufthansa Berlin Stiftung, it operates three classic German aircraft as well:

  • 1 Junkers 52
  • 1 Messerschmitt Me 108
  • 1 Dornier 27

See Also

  • Interflug

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Through its Lufthansa Berlin Stiftung, it operates three classic German aircraft as well:. BT has now discontinued this scheme, and is moving to upgrade all remaining exchanges in the UK to ADSL during 2005, (including Northern Ireland, which has the highest number of exchanges upgraded to broadband in the UK). The first will be delivered before the end of 2007 and they are likely to be used on services to Asia and the USA (ref: Airliner World, March 2005). Copying a similar scheme to that used by BT in the UK, they have introduced a trigger scheme for DSL enabling their smaller exchanges based on numbers of users committing to sign-up for service.
Lufthansa has ordered 15 Airbus A380 aircraft. They have stated that their strategy is to strongly grow broadband user numbers and re-enter the mobile market. The Lufthansa fleet consists of the following aircraft (as per July 2005):. eircom predict 100,000 DSL connection by year end 2004 and promise to announce ambitious further growth targets in 2005.

See full article: Lufthansa destinations. After a slow start broadband subscriber numbers started to pick up in 2004 when eircom cut the price for the basic DSL service and launched an intensive television advertising campaign. The most important are:. Eircom's line rental costs have increased over the years, now standing at €24.18 per month - the highest such charge in the EU. In addition to its mainline operation, Lufthansa has many subsidiaries. Some consider this act to be asset stripping by the large investors with interests in eircom. The majority shareholders (the Swiss government and large Swiss companies) will be offered payment if Lufthansa's share price outperforms an airline index during the years following the merger. After the privatisation of eircom, the highly profitable mobile phone division, Eircell, was sold to Vodafone.

The deal consists of Lufthansa offering public shareholders the average price over the weeks prior to the announcement. eircom's corporate structure has also been subject to criticism in recent years, with accusations of poor management and overstaffing levelled at it. On 22 March 2005 SWISS merged with Lufthansa Airlines. This technology, which is not available in all areas is an alternative, albeit expensive option, in some areas where broadband is not available and ISDN is. It is one of the first terminals in Europe partially owned by an airline. Before eircom announced ADSL it started a telemarketing campaign aimed at customers who spent large amounts of time on dial-up connections to persuade them to subscribe to ISDN - an old inferior technology. In June 2003 Lufthansa opened new Terminal 2 at Munich's Franz Josef Strauß Airport (MUC) to relieve its main hub, Frankfurt (FRA), which is plagued with capacity constraints. Penalities on any extra time spent online mean that a mere 12 hours extra per month (charged at 4c per minute) will result in a bill of around €50 (these charges are on top of the €24.18 line rental), though this product is targeted at lower end users.

On 17 May 2004, Lufthansa became the launch customer for Boeing's Connexion in-flight online connectivity service. In June 2005 a new product was offered, offering time-limited broadband of 20 hours per month for €24.99 (introductory offer, €19.99). By doing so, Lufthansa became the first foreign launch customer for a Boeing commercial plane. Some of eircom's DSL packages and offers have been widely criticised. Lufthansa was the launch customer of the Boeing 737 aircraft, and the only buyers of new 737-100s. Only 60% of the population are located in the urban areas where broadband is available [4], and of these, only 75% qualify due to faulty lines (Eircom has no obligation to provide lines good enough for anything other than some level of voice communication). Lufthansa was banned from flying into West Berlin until the demise of the communist regime. It has been suggested that this is more to ensure that politicians, local community groups and the public at large feel that Ireland is being connected, rather than advertise available services (A large part of the population cannot take up the broadband deals).

East Germany instead called its national airline Interflug, which ceased operations in 1991. As of 2004, eircom's PR division runs near-daily advertisements for broadband connections on national media. In the 1950s East Germany attempted to establish its own airline using the Lufthansa name, but this resulted in a dispute with West Germany, where the airline had been already re-established after the Second World War. Ireland continues to lag behind in terms of broadband availability, with the fifth lowest broadband penetration in the EU25 at 3% of population [3] (OECD, Dec 2004), and the lowest in Western Europe. The name Lufthansa derives from Luft (the German word for "air") and Hansa (the Hanseatic trade organization that ruled large parts of Northern Europe during the medieval times). Although it is not yet possible for other operators such as BT Ireland to buy the lines from eircom and charge their own line rental should they wish. The company's original full name was Deutsche Luft Hansa Aktiengesellschaft. However, under a wholesale line rental scheme, it is now possible for customers, to have a single bill from an alternative provider, for example, BT Ireland, including the cost of Eircom line rental, rather than continuing to receive a separate one from eircom for this cost.

The company was founded in 1926 and headquartered in Berlin, following a merger between "Deutsche Aero Lloyd" (DAL) and "Junkers Luftverkehr" on January 6 of that year. Introduced in Ireland in 2001, CPS allows subscribers to use an alternative provider for all their calls, without the need to dial indirect access codes or numbers, although they still receive a bill from eircom for line rental. . While eircom retains a virtual monopoly, at around 80%, on fixed line telephony in the State (the only exception being those operated by cable company NTL - Chorus previously offered wireless telephony but failed to renew their licence) it is required to allow carrier pre-selection (CPS). The Lufthansa Group operates more than 300 aircraft and employs about 97000 people world-wide. [2]. Lufthansa is a founding member of Star Alliance, one of the world's major airline alliances. Eircom announced the successful purchase on 25 July 2005 at a cost of €420m.

In the future after the merging with the SWISS, the Zurich Airport will be also a main traffic hub. On 21 July it was announced that Smart Telecom had also withdrawn, leaving eircom as the sole bidder. The company has developed a second hub at Munich's Franz Josef Strauß International Airport. On 14 July 2005, RTÉ News reported on their business website that Denis O'Brien had withdrawn from bidding, and that it was understood that eircom was the top bidder at €410m. Their main base is at Frankfurt International Airport in Frankfurt am Main which is also Lufthansa's primary traffic hub. On 9 July 2005 it was reported by The Irish Times that there had been three bidders for Meteor: eircom, Smart Telecom, and a consortium led by Denis O'Brien. Lufthansa (Deutsche Lufthansa AG) is the largest German airline company, headquartered in Cologne. It was considered that this afforded eircom an opportunity to re-enter the mobile communications market.

Interflug. In early 2005, several Irish newspapers reported that Meteor Mobile Communications, the third mobile phone operator, was up for sale by its owners, Western Wireless. 1 Dornier 27. The company floated at €1.55 a share, but dipped on initial trading before recovering to trade above its float price. 1 Messerschmitt Me 108. On 19 March 2004 the company returned to the stock market (although the company being listed, eircom Group plc, was in fact a new holding company, and was registered in England and Wales rather than the Republic of Ireland). 1 Junkers 52. However eircom did not remain a private company.

30 Boeing 747-400. eircom plc was delisted from the stock exchange, become eircom Limited, a private limited company by shares and a subsidary of Valentia. 28 Boeing 737-500. Eventually in June 2001 the company agreed a recommended offer of €1.27 per eircom share. 33 Boeing 737-300. After the demerger of Eircell, eircom itself was believed to be undervalued and became the subject of a bidding war between two consortia - the E-Island consortium headed by Denis O'Brien, and the Valentia Consortium headed by Sir Anthony O'Reilly, the chairman of Independent News and Media. 18 MD-11F (Lufthansa Cargo only). This left the eircom shareholder with not only shares in eircom, but Vodafone also.

10 Airbus A340-600 (further 7 on order). The company was transfered to a separate entity, Eircell 2000 plc which was then sold to Vodafone via a share swop. 30 Airbus A340-300. In 2001, eircom disposed of its mobile arm Eircell to Vodafone. 13 Airbus A300-600. This may have been a factor in Mary O'Rourke, the then Minister for Public Enterprise losing her seat in the general election. 8 Airbus A330-300 (further 2 on order). Many of the 500,000 small investors were angered by the significant financial loss they incurred, blaming the government for not sufficiently warning them of the risks inherent in stock market investment.

2 Airbus A330-200. The eircom flotation is considered to have been an example of a stock market bubble - after the initial hype of the flotation died down, the stock price fell rapidly. 6 Airbus A321-200. eircom plc was then floated on the Irish Stock Exchange, London Stock Exchange, and New York Stock Exchange s on July 8, 1999 and small/first-time investors were encouraged by the Irish Government to buy shares. 26 Airbus A321-100. Due to EU laws requiring the opening up of the Irish telecommunications market, eircom was privatised, a process which began in 1995, and by July 1999 the government had disposed of virtually all of its shareholding [1]. 34 Airbus A320-200. For details of the company during its time as a state-sponsored body, see the Telecom Éireann article.

12 Airbus A319-100. This article deals mainly with the post-privatisation eircom. 42 CRJ-100/200. The company was formed in 1984 as Bord Telecom Éireann, under Posts and Telecommunications Act 1983. 20 CRJ-700. See the criticism section below for more details. 18 Avro RJ85. eircom has been subject to much criticism in the performance of its activities.

Condor, a travel services provider. Many broadband products offered by other operators are resales of the eircom product. Lufthansa Flight Training, a major provider of flight crew training services to various airlines. As an operator with significant market power, eircom is required to provide a number of wholesale products to other operators and to switch calls onto other phone networks. LSG Sky Chefs, the world's largest airline caterer, which accounts for one third of the world's airline meals. eircom Phonewatch provides burglar alarm and home monitoring services. Delvag, an insurance company specializing in air transport. Their ISP division, eircom net, provides dial-up services, as well as broadband (see broadband roll-out, below) services.

Air Dolomiti, an airline based in Trieste, Italy. A full range of telecommunications services is provided on the network. Thomas Cook, a travel services provider. Most homes and businesses in the state are connected by his network. Lufthansa CityLine, a regional carrier. eircom operate the largest fixed-line telecommunications network in the Republic of Ireland, under licence from the Commission for Communications Regulation. Lufthansa Regional, a regional carrier that is an alliance of several small airlines, including Lufthansa CityLine. .

Lufthansa Systems, one of the world's leading aviation IT-providers. eircom now has a 44% share of the Irish telecoms market. Lufthansa Technik, one of the world's largest aircraft maintenance providers. It is now run by Vodafone. Lufthansa Cargo. An analogue TACS and a digital GSM 900 network operation in Ireland, started as Eircell, was once owned by eircom. eircom currently operates the fixed-line telephone network, act as an internet service provider (ISP) eircom.net, and operate a property alarm installation and montioring unit called eircom Phonewatch.

As Bord Telecom Éireann plc, the company was (until 1999) a state monopoly; as a private company it continues to dominate many telecommunications areas, its main competitor being BT Ireland (formerly Esat BT), although this is accessed via eircom's network. eircom Group plc is the largest telecommunications operator in the Republic of Ireland.
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