#191 The German crane spreads its wings
Lufthansa Airlines, one of Europe’s largest and most respected carriers, has built a global reputation for its premium services and vast network of international routes. In 2024, Lufthansa Group kicked off the year with significant developments in the aviation sector. The European Commission approved the group’s acquisition of a 41% stake in ITA Airways, Italy’s national airline. Painful as it may be for Italians, this strategic move signals important shifts in alliances and the potential for expanded travel options, as Lufthansa deepens its presence in the European market and strengthens its network. The acquisition marks a new phase of collaboration and growth, offering exciting prospects for both passengers and the aviation industry.
Over the years, Lufthansa has continued to expand its global reach through several key acquisitions aimed at strengthening its market position and improving operational efficiency. Notable acquisitions include Swiss International Air Lines (2005), Austrian Airlines (2009), Brussels Airlines (2016), and parts of Air Berlin (2017). Each of these acquisitions has played a crucial role in bolstering Lufthansa’s presence in both premium and budget markets while expanding its global network. The acquisition of Swiss International Air Lines allowed Lufthansa to tap into the premium Swiss market and expand its transatlantic routes, targeting high-end customers. This move helped Lufthansa enhance its global footprint while maintaining its premium standards across different markets. Similarly, the acquisition of Austrian Airlines reinforced Lufthansa’s presence in Central and Eastern Europe, adding important routes to Eastern Europe and Asia. The purchase of Brussels Airlines in 2016 provided Lufthansa with access to a well-established network in Africa. At the same time, Brussels Airlines’ lower cost structure allowed Lufthansa to optimize operational efficiency and compete more effectively against budget airlines. Finally, Lufthansa’s acquisition of parts of Air Berlin after its bankruptcy enabled it to gain valuable airport slots and aircraft, strengthening its position in Germany. The “Kranich” (German for “crane”) consistently proves how expansion through acquisition is a great alternative to grow and expand.
Case written by Agassy Manoukian, American University of Armenia, with slight adaptations by Gerhard Apfelthaler.
March 19, 2025 @ 11:16 am
Lufthansa’s expansion strategy through acquisitions, like the recent stake in ITA Airways, seems more focused on growing its network than improving service quality. As someone who flies very often, I’m frustrated by the regular delays with Air Dolomiti and the inconsistent service across the group’s brands. SWISS maintains a high standard, but airBaltic and Eurowings often feel like budget carriers, despite Lufthansa charging premium prices for these flights.
It’s disappointing to book a Lufthansa flight with LH-Flight number and end up in a Eurowings or airBaltic plane with far lower service standards. While expanding the network may save costs, it’s diluting the Lufthansa brand and damaging customer trust. I believe Lufthansa is so focused on expansion that it’s ignoring the importance of consistent service quality across all its airlines.
Instead of continuing to acquire new airlines, Lufthansa should focus on ensuring that every airline in its group delivers a consistent, premium experience. Until that happens, this expansion strategy might push loyal customers away. Growing the network is fine, but it should never come at the expense of service, which should always be the core of a premium airline.
March 29, 2025 @ 11:49 am
When I think back to my early years Lufthansa was the first airline I knew about. I remember flights where they served a whole meal in economy class on a short flight within Europe. I think it is great that Lufthansa has acquisitioned several airlines and therefore increased their amounts of destinations. Although, at least in my opinion the service on board decreased. I travel a lot on business trips. Three weeks ago, I was flying from Rio de Janeiro to Frankfurt and couldn’t even order a second bottle of water. Since Lufthansa is offering just a few flights to Latin America I often had to change to the sky group (Air France, KLM etc.). And I can tell that the service on board there was far better in all categories (quality and quantity of food and drinks, friendliness, service). In my opinion, Lufthansa is in the process of slipping into a low-cost airline service, but charging higher ticket costs than other airlines. In my opinion it would be essential to improve their service and thus customer satisfaction in order to try to get back to their golden days to guarantee the further expansion of the golden “Kranich”.