DOCSLIB.ORG

Annual Report 2016 Lufthansa Group

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report 2016 Lufthansa Group Annual Report 2016 Lufthansa Group The Lufthansa Group is the world’s leading aviation group. Its portfolio of companies consists of network airlines, point-to-point airlines and aviation service companies. Its combination of business segments makes the Lufthansa Group a globally unique aviation group. T001 Key figures Lufthansa Group 2016 2015 Change in % Revenue and result Total revenue €m 31,660 32,056 – 1.2 of which traffic revenue 1) €m 24,661 25,506 – 3.3 EBIT €m 2,275 1,676 35.7 Adjusted EBIT €m 1,752 1,817 – 3.6 EBITDA €m 4,065 3,395 19.7 Net profit / loss €m 1,776 1,698 4.6 Key balance sheet and cash flow statement figures Total assets €m 34,697 32,462 6.9 Equity ratio % 20.6 18.0 2.6 pts Net indebtedness €m 2,701 3,347 – 19.3 Cash flow from operating activities €m 3,246 3,393 – 4.3 Capital expenditure (gross) €m 2,236 2,569 – 13.0 Key profitability and value creation figures EBIT margin % 7.2 5.2 2.0 pts Adjusted EBIT margin % 5.5 5.7 – 0.2 pts EBITDA margin % 12.8 10.6 2.2 pts EACC €m 817 323 152.9 ROCE % 9.0 7.7 + 1.3 pts Lufthansa share Share price at year-end € 12.27 14.57 – 15.8 Earnings per share € 3.81 3.67 3.8 Proposed dividend per share € 0.50 0.50 0.0 Traffic figures 2) Passengers thousands 109,670 107,679 1.8 Available seat-kilometres millions 286,555 273,975 4.6 Revenue seat-kilometres millions 226,633 220,396 2.8 Passenger load factor % 79.1 80.4 – 1.4 pts Available cargo tonne-kilometres millions 15,117 14,971 1.0 Revenue cargo tonne-kilometres millions 10,071 9,930 1.4 Cargo load factor % 66.6 66.3 0.3 pts Total available tonne-kilometres millions 43,607 40,421 7.9 Total revenue tonne-kilometres millions 32,300 29,928 7.9 Overall load factor % 74.1 74.0 0.1 pts Flights number 1,021,919 1,003,660 1.8 Employees Average number of employees number 123,287 119,559 3.1 Employees as of 31.12. number 124,306 120,652 3.0 1) Previous year’s figures have been adjusted due to the new reporting method. 2) Previous year’s figures have been adjusted. Date of publication: 16 March 2017. Business segments 2016 figures Passenger Airline Group T002 Passager Airline Group 2016 Change 31.7 in % Passenger transport is the largest business segment Revenue in the Lufthansa Group. The Passenger Airline Group Revenue €m 23,891 – 2.5 of which traffic revenue €m 22,256 – 2.4 in EUR bn includes the airlines Lufthansa Passenger Airlines, EBIT €m 2,095 43.0 SWISS, Austrian Airlines and Eurowings. Equity Adjusted EBIT €m 1,527 1.5 interests in Brussels Airlines and SunExpress are EBITDA* €m 3,616 30.7 strategic additions to the portfolio. Brussels Airlines Adjusted EBIT margin % 6.4 0.3 pts EACC €m 1,004 142.5 was fully acquired at the beginning of the 2017 ROCE % 13.3 3.8 pts 1,752 financial year. Segment capital expenditure €m 1,866 – 15.2 Employees as of 31.12. number 54,308 – 1.7 Adjusted EBIT in EUR m Logistics T003 Logistics 2016 Change in % Lufthansa Cargo is the logistics specialist within the Lufthansa Group and Europe’s leading cargo Revenue €m 2,084 – 11.5 3,246 airline. As well as marketing the freight capacities of which traffic revenue €m 1,986 – 12.7 EBIT €m – 64 Operating cash flow of Lufthansa Passenger Airlines’, Eurowings’ and Adjusted EBIT €m – 50 Austrian Airlines’ passenger aircraft, the company EBITDA* €m 44 – 71.6 in EUR m operates its fleet of cargo aircraft, comprising Adjusted EBIT margin % – 2.4 – 5.5 pts 14 Boeing MD11Fs and five B777Fs. EACC €m – 105 – 45.8 ROCE % – 4.3 – 4.5 pts Segment capital expenditure €m 29 – 75.0 Employees as of 31.12. number 4,568 – 0.8 2,236 Capital expenditure MRO T004 MRO 2016 Change in EUR m in % Lufthansa Technik is the world’s leading independ- ent provider of maintenance, repair and overhaul Revenue €m 5,144 0.9 services (MRO) for civilian commercial aircraft. The of which external revenue €m 3,517 8.0 EBIT €m 410 – 8.5 portfolio consists of a variety of different products Adjusted EBIT €m 411 – 9.5 and product combinations, from the repair of indivi- EBITDA* €m 517 – 6.2 817 dual components to consultancy services and the Adjusted EBIT margin % 8.0 – 0.9 pts EACC fully integrated supply of entire fleets. EACC €m 142 – 10.1 ROCE % 8.5 – 2.1 pts in EUR m Segment capital expenditure €m 216 40.3 Employees as of 31.12. number 20,839 0.9 Catering T005 Catering 2016 Change in % The LSG group is the world’s leading provider of integrated products and services related to in-flight Revenue €m 3,194 5.7 service. These include catering, in-flight sales and of which external revenue €m 2,550 6.9 EBIT €m 60 – 29.4 entertainment, in-flight service equipment and the Adjusted EBIT €m 104 5.1 associated logistics as well as consultancy services EBITDA* €m 166 0.0 and the operation of lounges. In addition, the Adjusted EBIT margin % 3.3 0.0 pts company has managed to enter adjacent markets, EACC €m – 15 – 87.5 ROCE % 3.5 – 1.5 pts such as services for rail operators and supplying Segment capital expenditure €m 73 – 50.7 the retail sector. Employees as of 31.12. number 35,530 3.6 * Without Group-internal profit and loss transfer / investment income. C01 Business segments’ share of Group revenue in % Logistics 6.5 Other 0.8 Catering 8.1 Key figures MRO 11.1 Passenger Airline Lufthansa Group Group 73.5 overview Contents 1 To our shareholders 1 Letter from the Executive Board 4 Report of the Supervisory Board 7 Lufthansa share 10 Combined management report 11 Principles of the Group 11 Business activities and Group structure 11 Legal and regulatory factors 12 Goals and strategies 14 Fleet and route network 18 Management system and supervision 19 Employees 21 Corporate responsibility 22 Research and development 23 Economic report 23 Macroeconomic situation 24 Sector developments 26 Course of business 28 Earnings, assets and financial position 37 Target achievement and overall statement by the Executive Board on the economic position 40 Business segments 40 Business segment Passenger Airline Group 48 Business segment Logistics 51 Business segment MRO 54 Business segment Catering 56 Other 57 Opportunities and risk report 70 Forecast 75 Corporate Governance 89 Notes to the individual financial statements for Deutsche Lufthansa AG (HGB) 93 Consolidated financial statements 188 Further information 188 Ten-year overview 192 Glossary 194 Chart and table overview 196 Credits / Contact Financial calendar 2017 / 2018 and Disclaimer To our shareholders Letter from the Executive Board Ladies and gentlemen, Despite numerous challenges, the Lufthansa Group achieved a good result in 2016. In an environment marked by great uncertainty, we met our financial targets and made great progress in implementing our strategic agenda. Our company is in a better position at the close of the financial year than it was at the beginning: our equity ratio increased by 2.6 percentage points, we improved free cash flow by 36.5 per cent and reduced the Lufthansa Group’s total costs excluding fuel costs by 3.2 per cent; in the course of our fleet renewal, our flight operations successfully integrated a new, state-of-the-art aircraft into the Group fleet almost every week and we have stabilised the yield development by means of targeted capacity and steering measures. We have continued to improve the travel experience for our customers by enhancing and increasingly personalising the products and services. And not least, the wet-lease agreement with Air Berlin and the complete takeover of Brussels Airlines have contributed significantly to consolidating Eurowings’ market position as the biggest point-to-point airline in our home markets. With the successful signing of the commercial joint venture agreements with Air China and Singapore Airlines, we are also sustainably strengthening our market position on routes between Europe and Asia. Around 70 per cent of our long-haul revenues is now secured for the long term through leading commercial partnerships. The Lufthansa Group’s service companies showed a stable development in 2016. They also operate in a market environment that is characterised by change and consolidation. All of the operating segments are implementing targeted efficiency programmes and profitable growth initiatives. Lufthansa Technik agreed on competitive conditions with the ver.di trade union, which has made it possible to safeguard jobs in engine overhaul at the Hamburg site. The LSG group is redesigning its business model, changing its portfolio and transforming its European business comprehensively. Lufthansa Cargo is addressing the massive over- capacities in the market by restructuring the company. At the passenger airlines, Lufthansa Passenger Airlines performed particularly well – both in terms of earnings and by signing a long-term collective agreement with the UFO flight attendants’ union, which also comprises the transition to a modernised pension system for its cabin crew. SWISS successfully overcame the particular challenges of the Swiss market and began to renew its fleet and cabin layouts. Austrian Airlines also continued the modernisation of its fleet and improved its competitiveness. Eurowings achieved rapid growth and successfully started its long-haul operations.
Load more

Recommended publications
  • PRESS RELEASE East Meadow, November 7, 2019
    PRESS RELEASE East Meadow, November 7, 2019 Further informations on Lufthansa Group achieves an Adjusted EBIT of EUR 1.3 billion third-quarter results: → https://investor- in the third quarter relations.lufthansagroup. com/en/publications/fina ncial-reports.html − Third-quarter result only slightly below prior-year level, despite economic slowdown and higher fuel costs − Substantially greater unit cost reduction than in the first-half year − Slower growth at Group airlines and their competitors helps counter pricing pressures in Europe − North Atlantic business still buoyant, with third-quarter performance exceeding prior-year − Full-year guidance confirmed In a challenging operating environment, Lufthansa Group achieved an Adjusted EBIT of EUR 1.3 billion for the third quarter of 2019, only slightly below the EUR 1.4 billion of the prior-year period. Against the backdrop of higher fuel costs, which were EUR 171 million above their 2018 level in the third quarter alone, the Group delivered a sound business performance for the period. “Our airlines were able to translate their premium quality and market strength into solid third-quarter earnings,” confirms Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “At Eurowings the turnaround measures are showing first results; and at Austrian Airlines, Brussels Airlines and Lufthansa Cargo we will be taking tangible corrective action to improve earnings. As Europe’s leading airline group, we are on a sound and stable strategic course.” The third-quarter earnings were supported by continued strong business on North Atlantic routes. Unit costs were also substantially reduced in the third quarter, particularly at the Network Airlines.
    [Show full text]
  • IATA CLEARING HOUSE PAGE 1 of 21 2021-09-08 14:22 EST Member List Report
    IATA CLEARING HOUSE PAGE 1 OF 21 2021-09-08 14:22 EST Member List Report AGREEMENT : Standard PERIOD: P01 September 2021 MEMBER CODE MEMBER NAME ZONE STATUS CATEGORY XB-B72 "INTERAVIA" LIMITED LIABILITY COMPANY B Live Associate Member FV-195 "ROSSIYA AIRLINES" JSC D Live IATA Airline 2I-681 21 AIR LLC C Live ACH XD-A39 617436 BC LTD DBA FREIGHTLINK EXPRESS C Live ACH 4O-837 ABC AEROLINEAS S.A. DE C.V. B Suspended Non-IATA Airline M3-549 ABSA - AEROLINHAS BRASILEIRAS S.A. C Live ACH XB-B11 ACCELYA AMERICA B Live Associate Member XB-B81 ACCELYA FRANCE S.A.S D Live Associate Member XB-B05 ACCELYA MIDDLE EAST FZE B Live Associate Member XB-B40 ACCELYA SOLUTIONS AMERICAS INC B Live Associate Member XB-B52 ACCELYA SOLUTIONS INDIA LTD. D Live Associate Member XB-B28 ACCELYA SOLUTIONS UK LIMITED A Live Associate Member XB-B70 ACCELYA UK LIMITED A Live Associate Member XB-B86 ACCELYA WORLD, S.L.U D Live Associate Member 9B-450 ACCESRAIL AND PARTNER RAILWAYS D Live Associate Member XB-280 ACCOUNTING CENTRE OF CHINA AVIATION B Live Associate Member XB-M30 ACNA D Live Associate Member XB-B31 ADB SAFEGATE AIRPORT SYSTEMS UK LTD. A Live Associate Member JP-165 ADRIA AIRWAYS D.O.O. D Suspended Non-IATA Airline A3-390 AEGEAN AIRLINES S.A. D Live IATA Airline KH-687 AEKO KULA LLC C Live ACH EI-053 AER LINGUS LIMITED B Live IATA Airline XB-B74 AERCAP HOLDINGS NV B Live Associate Member 7T-144 AERO EXPRESS DEL ECUADOR - TRANS AM B Live Non-IATA Airline XB-B13 AERO INDUSTRIAL SALES COMPANY B Live Associate Member P5-845 AERO REPUBLICA S.A.
    [Show full text]
  • Lufthansa Micro Focus® Quality Center on Saas Delivers a Fresh Impetus for Application Testing at Lufthansa
    Customer Success Story Application Delivery Management Lufthansa Micro Focus® Quality Center on SaaS delivers a fresh impetus for application testing at Lufthansa. Overview system. Each step of the process must work in Lufthansa ranks among the top ten airlines in the perfect harmony. First, the passenger’s iden- world in terms of size and is the second largest tity is verified; this data is then compared to European airline. From its Frankfurt and Munich that on the reservation system. This is followed At a Glance hubs, Lufthansa flies to 202 destinations in 78 by the seat reservation process, calculating air countries. Besides its passenger business, the miles in the Miles & More system, and mak- ■ Industry aviation group comprises divisions for cargo, ing adjustments in the catering system for any Aerospace & Defense aircraft maintenance, IT and catering. special requests. If a suitcase is checked in, it is weighed, assigned to the passenger, and then ■ Location Cologne, Germany Challenge sent on its way to the airplane via the airport’s conveyor system. Finally, the passenger re- Today, an airline passenger can check in for ■ Challenge their flight with just a couple of taps on a ceives their boarding card with all the relevant flight information. To provide departments with tools for software mobile phone, by pressing a few buttons at testing and test management without accruing the automatic check-in machine, or having a high internal costs for IT. short conversation with the staff at the check- Lufthansa’s check-in system has more than in desk. The airlines’ goal is for this to be a 160 interfaces to other IT systems; both to in- ■ Products and Services simple, pain-free experience for passengers; ternal systems and to the systems of external Secured Quality Center licenses in a such simplicity depends on a highly complex partners such as airports.
    [Show full text]
  • Risk & Reward in Aircraft Backed Finance
    Modeling Aircraft Loan & Lease Portfolios 3rd revision Discussion Notes October 2017 Modeling Aircraft Loans & Leases Discussion notes December 2013 2 PK AirFinance is a sub-business of GE Capital Aviation Services (GECAS). The company provides and arranges debt to airlines and investors secured by commercial aircraft. Cover picture by Serge Michels, Luxembourg. 3 Preface These discussion notes are a further update to notes that I prepared in 2010 and revised in 2013. The issues discussed here are ones that we have pondered over the last 25 years, trying to model aircraft loans and leases quantitatively. In 1993, Jan Melgaard (then at PK) and I worked with Bo Persson in Sweden to develop an analytic model of aircraft loans that we called SAFE. This model evolved into a Monte Carlo simulation tool, Lending EDGE, that was taken into operation at PK in 2012 and validated under ISRS 4400 by Deloitte in 2013. I have now made some corrections and amendments to the previous version, based on helpful feed-back from industry practitioners and academics. I have added a section on Prepayment Risk in loans and expanded on Jurisdiction Risk. My work at PK AirFinance has taught me a lot about risks and rewards in aircraft finance, not least from the deep experience and insight of many valued customers and my co-workers here at PK and at GECAS, our parent company, but the views and opinions expressed herein are my own, and do not necessarily represent those of the General Electric Company or its subsidiaries. In preparing these notes, I have been helped by several people with whom I have had many inspiring discussions.
    [Show full text]
  • Key Data on Sustainability Within the Lufthansa Group Issue 2012 Www
    Issue 2012 Balance Key data on sustainability within the Lufthansa Group www.lufthansa.com/responsibility You will fi nd further information on sustainability within the Lufthansa Group at: www.lufthansa.com/responsibility Order your copy of our Annual Report 2011 at: www.lufthansa.com/investor-relations The new Boeing 747-8 Intercontinental The new Boeing 747-8 Intercontinental is the advanced version of one of the world’s most successful commercial aircraft. In close cooperation with Lufthansa, Boeing has developed an aircraft that is optimized not only in terms of com- fort but also in all dimensions of climate and environmental responsibility. The fully redesigned wings, extensive use of weight-reducing materials and innova- tive engine technology ensure that this aircraft’s eco-effi ciency has again been improved signifi cantly in comparison with its predecessor: greater fuel effi - ciency, lower emissions and signifi cant noise reductions (also see page 27). The “Queen of the Skies,” as many Jumbo enthusiasts call the “Dash Eight,” offers an exceptional travel experience in all classes of service, especially in the exclusive First Class and the entirely new Business Class. In this way, environmental effi ciency and the highest levels of travel comfort are brought into harmony. Lufthansa has ordered 20 aircraft of this type. Editorial information Published by Deutsche Lufthansa AG Lufthansa Group Communications, FRA CI Senior Vice President: Klaus Walther Concept, text and editors Media Relations Lufthansa Group, FRA CI/G Director: Christoph Meier Bernhard Jung Claudia Walther in cooperation with various departments and Petra Menke Redaktionsbüro Design and production organic Marken-Kommunikation GmbH Copy deadline 18 May 2012 Photo credits Jens Görlich/MO CGI (cover, page 5, 7, 35, 85) SWISS (page 12) Brussels Airlines (page 13) Reto Hoffmann (page 24) AeroLogic (page 29) Fraport AG/Stefan Rebscher (page 43) Werner Hennies (page 44) Ulf Büschleb (page 68 top) Dr.
    [Show full text]
  • Onboard Retail LSG Sky Chefs – Catering And
    LETTER FROM THE EXECUTIVE BOARD AN INDUSTRY-LEADING NETWORK THE LSG GROUP - POSITIONING04 A GLANCE AT THE OPERATIONS 30 MARKET ENVIRONMENT06 CULINARY EXCELLENCE 32 PRODUCT PORTFOLIO08 ENVIRONMENTAL MANAGEMENT 34 STRATEGIC TRANSFORMATION10 PROVEN EXCELLENCE 38 COURSE OF BUSINESS18 OUTLOOK 40 FINANCIAL PERFORMANCE20 CONSOLIDATED INCOME STATEMENT 42 WORLDWIDE PRESENCE24 44KEY FIGURES 25 45 We look forward LETTER FROM THE EXECUTIVE BOARD to exploring with Dear reader, Once again, we gratefully look back at another year of growth Significant steps have been taken in the transformation of the for our industry. Despite looming turbulence over the world‘s LSG Group. Today, we are able to offer a complete portfolio of you. economy, developments in our key areas of activities – air and products and services for a variety of industries. In the backend, rail travel, as well as convenience retail – were positive around we are changing our operational landscape to become even more the globe. This has certainly laid a solid foundation for the flexible through a market-oriented mix of production modules continued good performance achieved by our company. and tailored logistics. And, most importantly, the processes throughout our value chain are progressively growing in The relative stability of our environment has allowed us to focus consistency, leading to higher efficiency. on the improvement of our processes in terms of standardization, sharing of best practices and learning from each other. Thus, Moving forward, we will concentrate on taking advantage of in addition to a satisfying financial result, we have also attained the multiple opportunities offered by digitalization in creating a remarkable operational standard underlined by quality and new products and applications, facilitating our workflows and sustainability.
    [Show full text]
  • Annual Report 2015
    Consistently safeguarding the future Annual Report 2015 Lufthansa Group The Lufthansa Group is the world’s leading aviation group. Its portfolio of companies consists of hub airlines, point-to-point airlines and aviation service companies. Its combination of business segments makes the Lufthansa Group a globally unique aviation group whose integrated value chain not only offers financial synergies but also puts it in a superior position over its competitors in terms of know-how. Key figures Lufthansa Group 2015 2014 Change in % Revenue and result Total revenue €m 32,056 30,011 6.8 of which traffic revenue €m 25,322 24,388 3.8 EBIT1) €m 1,676 1,000 67.6 Adjusted EBIT €m 1,817 1,171 55.2 EBITDA1) €m 3,395 2,530 34.2 Net profit / loss €m 1,698 55 2,987.3 Key balance sheet and cash flow statement figures Total assets €m 32,462 30,474 6.5 Equity ratio % 18.0 13.2 4.8 pts Net indebtedness €m 3,347 3,418 – 2.1 Cash flow from operating activities €m 3,393 1,977 71.6 Capital expenditure (gross) €m 2,569 2,777 – 7.5 Key profitability and value creation figures EBIT margin % 5.2 3.3 1.9 pts Adjusted EBIT margin % 5.7 3.9 1.8 pts EBITDA margin 1) % 10.6 8.4 2.2 pts EACC €m 323 – 223 ROCE % 7.7 4.6 3.1 pts Lufthansa share Share price at year-end € 14.57 13.83 5.3 Earnings per share € 3.67 0.12 2,958.3 Proposed dividend per share € 0.50 – Traffic figures 2) Passengers thousands 107,679 105,991 1.6 Freight and mail thousand tonnes 1,864 1,924 – 3.1 Passenger load factor % 80.4 80.1 0.3 pts Cargo load factor % 66.3 69.9 – 3.6 pts Flights number 1,003,660 1,001,961 0.2 Employees Average number of employees number 119,559 118,973 0.5 Employees as of 31.12.
    [Show full text]
  • Recommended Best Practices for Commercial Operators
    OPERATIONS IN AIRSPACE CLASS E IN GERMANY BELOW FL100 RECOMMENDED BEST PRACTICES FOR COMMERCIAL OPERATORS The following best practices have been developed by flight safety officers and experts to enhance the safety of operations in airspace Class E below FL100 to prevent collisions between controlled and uncontrolled aircraft in a mixed traffic environment. Recommendations for training departments and pilots • IMPROVE AIRSPACE AWARENESS Train pilots to be aware of shortfalls in the existing airspace structure – annual training and NOT only by bulletin using two components: o Generic briefing on airspace Class E in Germany o Dedicated airport briefing documents o Include risk and threats in unprotected airspace in individual departure and arrival briefing • OPERATING RECOMMENDATIONS o FLY DEFENSIVELY! o Maintain Minimum Clean Airspeed or as slow as reasonable o Request to use protected airspace – minimise time in airspace Class E and refuse shortcuts if necessary. Most standard departures and approaches/transitions will facilitate this. o Descend according to airspace structure on arrival. Steep/expedited climb through airspace Class E on departure. o Consider airspace structure for engine out procedures o Consider delaying take-off if conflict with other aircraft is anticipated • USE OF AUTOMATION IN AIRSPACE CLASS ECHO o Minimise visual approaches – they require additional attention and increase flight time in unprotected airspace o Maximise lookout capacity through use of automation (FMS/task sharing) • SEE AND AVOID o Maximise lookout
    [Show full text]
  • Capital Markets Day 2019
    Capital Markets Day 2019 24th June 2019 Frankfurt Agenda Capital Markets Day 2019 11.00 am – 11.05 am 12.30 am – 01.30 pm 02.35 pm – 03.00 pm Welcome by Dennis Weber, Lunch Presentation Ulrik Svensson, Head of Investor Relations Chief Financial Officer 01.30 pm – 02.10 pm 11.05 am – 11.55 am Presentation Thorsten Dirks, 03.00 pm – 04.00 pm Presentation Carsten Spohr, Chief Executive Officer Eurowings Q&A Chairman of the Executive Board & Chief Executive Officer 02.10 pm – 02.35 pm 04.00 pm – 06.30 pm Presentation Dr. Detlef Kayser, First-hand Product Experience, 11.55 am – 12.30 am Chief Officer Airline Resources Simulator Experience / Cabin Training / Presentation Harry Hohmeister, & Operations Standards Product Stands / Networking Chief Commercial Officer Network Airlines 06.30 pm End of event Capital Markets Day 2019 Group Strategy Carsten Spohr, Chairman of the Executive Board and CEO 24th June 2019 Frankfurt #1 for all stakeholders – committed to drive sustainably higher returns . ROCE doubled since 2014; further improvement through the cycle . Free Cash Flow to exceed EUR 1bn medium-term Shareholders . Dividend payout increased to 20% to 40% of net income #1 #THEREISNOBETTER Customers Employees #THEREISNOBETTER WAYTOFLY PLACETOWORK CMD 2019 Group Strategy Page 2 Lufthansa Group has become a structurally more profitable company 7to1 program Key achievements Adj. EBIT margin & Adj. ROCE started 2014 Customer centricity and quality focus Lufthansa: Europe’s first 5 Star Airline New concepts 14.2% for growth Eurowings: #3 P2P carrier in Europe ~ x2 Effective and lean organization Removal of an entire management level 7.9% Innovation and Digitalization of key operational and 7.1% digitalization customer processes Culture and Performance culture: 3.9% leadership Bonus 100% linked to financials Value based steering Doubling of Adj.
    [Show full text]
  • 2019 Embraer Aircraft Finance Outlook
    2019 EMBRAER AIRCRAFT FINANCE OUTLOOK 1 FORWARD LOOKING STATEMENT This presentation includes forward- looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our market. The words “believes”, “may”, “will”, “estimates”, “continues”, “anticipates”, “intends”, “expects” and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward- looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward- looking statements. New York INTRODUCTION The aircraft financing market constitutes one of the are likely to benefit from one of the lowest funding most important pillars of the aviation industry. costs levels in history. There is now a broader range Commercial airplanes are large capital investments that of qualified options available to airlines and lessors. may surpass double digit percentages of aviation total The robust global aircraft financing environment, is operating costs. The aircraft financing market is crucial also seen in the up to 150 seat aircraft category, which for airlines, lessors and OEMs to efficiently manage forecasts financing demand of approximately US$ 7.2 such invesments and maximize their profitability.
    [Show full text]
  • Aspects of Insurance in Aviation Finance Rod D
    Journal of Air Law and Commerce Volume 62 | Issue 2 Article 4 1996 Aspects of Insurance in Aviation Finance Rod D. Margo Follow this and additional works at: https://scholar.smu.edu/jalc Recommended Citation Rod D. Margo, Aspects of Insurance in Aviation Finance, 62 J. Air L. & Com. 423 (1996) https://scholar.smu.edu/jalc/vol62/iss2/4 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of Air Law and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. ASPECTS OF INSURANCE IN AVIATION FINANCE ROD D. MARGO* TABLE OF CONTENTS I. INTRODUCTION .................................. 424 II. THE NATURE OF INSURANCE ................... 428 A. INSURABLE INTEREST ............................ 430 B. THE DUTY OF DISCLOSURE ...................... 430 1. Good Faith .................................. 430 2. Nondisclosure and Misrepresentation.......... 431 III. THE INTERNATIONAL AVIATION INSURANCE M A RKET ........................................... 433 IV. THE ROLE OF THE INSURANCE BROKER ...... 435 V. CERTIFICATES OF INSURANCE AND LETTERS OF UNDERTAKING ............................... 437 VI. TYPES OF COVERAGE ............................ 439 A. HULL INSURANCE ............................... 439 B. LIABILITY INSURANCE ............................ 442 1. PassengerLiability Insurance ................. 443 2. Third Party Liability Insurance ............... 444 C. WAR AND ALLIED PERILS INSURANCE ............ 445 VII. PROTECTING THE INTERESTS OF FINAN CIERS ....................................... 449 A. PROTECTING THE INTERESTS OF FINANCIERS UNDER A HULL POLICY ......................... 449 1. Additional Insured Endorsement .............. 450 2. Loss Payable Clause.......................... 450 * Member of the California and District of Columbia bars; Partner, Condon & Forsyth, Los Angeles; Lecturer in law, UCLA School of Law, Los Angeles. I have received helpful advice and comments from individuals too numerous to men- tion.
    [Show full text]
  • Carsten Spohr's Speech
    Annual General Meeting of Deutsche Lufthansa AG Speech by the Chairman and CEO Carsten Spohr 5 May 2020 (virtual) Lufthansa Aviation Center, Frankfurt Final speech 5 May 2020 To be checked against delivery at the Annual General Meeting 1 I. Welcome Address / AGM in Times of Corona / Key Figures 2019 Dear Shareholders, I too bid you a very warm welcome to the very first virtual Annual General Meeting of Deutsche Lufthansa AG. We will be reporting to you from our Group headquarters at the Lufthansa Aviation Center in Frankfurt. I would of course much rather have welcomed you all personally to the Jahrhunderthalle in Frankfurt and answered your questions in person; however, the Corona Crisis still has a firm grip on us all and no one can say for sure for how much longer. The clip that we opened the meeting with still shows the “old” Lufthansa world – and the world before Corona. Now, only a few months later, we find ourselves in the midst of the most severe global economic slump since 1930. Once again, air transport is disproportionately affected. We decided to open our Annual General Meeting with the clip anyway, because it reflects the fascination of our industry and company, and shows where we want to return one day. It is the goal for which we are fighting tirelessly during these challenging times: the future of Lufthansa. Global air transport is currently experiencing its worst crisis ever. Almost all countries have imposed entry bans and restrictions, and as a result, our company, your company my dear shareholders, also finds itself in a state of emergency, through no fault of its own.
    [Show full text]