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Consolidation in Germany's LCC market


Lufthansa is continuing its move to consolidate its position in the German and European market, as its comparatively strong balance sheet enables it take advantage of market opportunities. While Lufthansa is the dominant player in Germany, the German market has grown to comprise of three large and competing airline/travel groups, Lufthansa, Air Berlin Group and TUI Travel, which have all used mergers and acquisitions to grow and rationalise competitive influences. By and large, it is a strategy that appears to be working. [2602 words]

Unlock the following content in this report:


  • Air Berlin and TUIfly cooperation agreement on track
  • Consolidation used by Air Berlin and TUIfly to increase marketshare; building a strong competitor for Lufthansa
  • Cooperation agreement likely to push TUI to profitability in 2010
  • Ownership changes continue within Air Berlin Group 
  • Air Berlin executing operating plan well amid downturn
  • Outlook

Graphs and data:

  • Lufthansa Group (possible consolidation opportunities in bold)
  • The Air Berlin group  
  • TUI Group 
  • German domestic capacity breakdown by carrier (seats per week as % of total)
  • German international capacity breakdown by carrier (seats per week as % of total)
  • Air Berlin reports worsened yet expected operating loss in 1Q09
  • Air Berlin revenue per ASK growth (% change year-on-year): May-2008 to May-2009
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