Mittwoch, 3. Dezember 2014

Lufthansa

Germanys largest airline asked for a new talk with the union Officals and therefore called the strike.
Lufthansa strikes as usual again. Tueday,2nd December and 4th December 2014 because they want to phase out ist early retirement scheme, which nearly all pilots oppose off. It will be the second time this week, while again 150,000 passengers tickets have been cancelled. From short till medium-haul flights as well as Lufthansas long-haul and carco flights. Lufthaansa strikes have been reoccuring a lot since April 2014, including this one it will be all together nine times in eigth months. By resulting a lost of $160 million of the airlines operating profit.
The reasoning for this strike is so far with the current situation oft he retirement at the age of 55 with receiving 60% of their usually income until the real retire age of 65.
Lufthansa is trying to keep up with this situation by giving their pilots a raise of 5%, which will later also raise their early retirement money. As they have hoped.
The union said "despite all efforts for compromise proposals" by Lufthansa pilots during several rounds of negotiations since October, it had been unable to come to a satisfactory agreement with the company's management.
After all the strikes that have been occuring, Lufthansa has cut down its operating profit guidance for 2015 because oft he concerns of their huge competiiton as well as because of the gobal economic slowdown.
Germany Airline Company Lufthansa - Model Siegesflieger
for the Worldcup 2014 winners of Germany
The guidance for this year has been 2 billion Euros, which wasnt reached this year despite of all the number of strikes that have been occuring this year from the pilots. The operating profit was 1 billion Euros. The Airline group expects the operating profit of 2015 to be a significant like 2014, with an profit of 1 billion Euros at least.
The carrier reportedthe operating profits from the last nine months which was up to849 million Euros, while the net profits increased 235 million Euros from last year (from 247 million to 482 million Euros). 
So far has the airline Lufthansa been hit by 8 only pilot strikes by union Vereinigung Cockpit in a dispute to attempt to change the retirement as well as the pension arrangements.
Lufthansas market shares fell by 6% this morning.


This case study scopes a little bit around the Business Management Syllabus. First of all in this weeks new chapter 4, which is marketing has been represented by the market share of Lufthansa, which has been decreasing. As well as from chapter 1 the increased profit and operating profit of the company.

Labels:
Strategy: From Lufthansa to give a raise to the pilots that they stop to strike, which will stop the decreasing of the profit as well as the decreasing market share
Globalization: Is when the pilots strike so often and affect the planned flight, which are short, medium or long all around the world by the german airline.