Case Study: Germania - a Successful Underdog in the European Market Introducing Germania Fluggesellschaft mbH – 18th October 2017
INTRODUCTION: GERMANIA GROUP
Germania Holding
Germania S.A.T. Germania Bulgarian Germania Technik Fluggesellsch Fluggesell- Eagle EODD Finanz AG Brandenburg aft mbH schaft mbH GmbH
Germania Mangentum Aviati GmbH Flugdienste AG GmbH
Germania Germania Flug AG Reisen GmbH
Germania Grundbesitz GmbH
Leasing Passenger Financial Services transportation services GERMANIA: 30 YEARS OF HISTORY INTRODUCTION: GERMANIA FLEET Current fleet:
Germania Fluggesellschaft Germania Flug AG Bulgarian Eagle INTRODUCTION: GERMANIA ORDER
Airbus order (25 aircrafts, plus 15 options)
Delivery Stream
2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 INTRODUCTION: GERMANIA AIRLINES
Business Areas
LEISURE • Full charter, split charter and single seat sales SCHEDULED SERVICES • Visiting friends & relatives SPECIAL CHARTER • Shuttle for Airbus employees between TLS and XFW • ACMI & ad-hoc charter INTRODUCTION: GERMANIA AIRLINES
Network Destinations INTRODUCTION: GERMANIA AIRLINES
Product • High quality & top service • Reliable & on time Booking & Sales • German crews & maintenance B2C • via website: flygermania.com • via service center • via travel agents or tour operators • via general sales agents in target regions
B2B • via agency login under flygermania.com • via GDS: Amadeus, Sabre, Worldspan, Travelport, Galileo CHALLENGES OF THE EUROPEAN MARKET THE CHALLENGES OF THE EUROPEAN MARKET
Brexit / EU regulations /national air traffic taxes / general barriers
Market saturation (more than 237 airline groups operating in Europe)
Legacy Carriers
Leisure Carriers
Established LCCs
New Generation Airlines
In-house Hybrids THE CHALLENGES OF THE EUROPEAN MARKET
Three major insolvencies within the last 6 months: Alitalia, Air Berlin and Monarch
No. of aircrafts: 120 No. of employees: 13,000 Passengers: 22.6 Mio.
No. of aircrafts: 139 No. of employees: 8,500 Passengers: 29 Mio.
No. of aircrafts: 36 No. of employees: 2,000 Passengers: 5.5 Mio. Others may follow… WHY DO WE BELIEVE THAT GERMANIA SUCCEEDS IN THE EUROPEAN MARKET GERMANIA’S PHILOSOPHY
Not seeking to compete against legacy carriers • Stay in the market we know • Partnering with similarly situated airlines and tour operators • Core product without shenanigans
Not seeking to compete against LCCs, the new generation of airlines and in-house hybrids • Maintain service level & quality product • Ability to partner and cooperate with regional tourism boards GERMANIA’S UNIQUE SELLING POINTS
Niche markets • Focus on routings between de-centralized airports and hubs • Adapting to changing European demographics • Ability to take advantage of ad-hoc opportunities and special charters
Flexibility & Agility • Flat hierarchies, lean structure, concentrated leadership • Flexible maintenance concept due to own MRO
Long-term perspective / sustainability • Strategic planning without need to satisfy short-term shareholder interest • Increasing value and organic growth GERMANIA’S COMMITMENT
Fighting for free and fair competition • Filing preliminary injunction against the German Lufthansa takeover government of Air Berlin • Submission of antitrust complaint with the EU commission Battling for transparent institutional and governmental regulation
• Lobbying through industry associations (IATA/BDF)
Advocating for reasonable airport charges and taxes • Opposing unjustified increasing airport charges (example: Hamburg airport) à Defending our market space CONCLUSION
NOT BIGGER – BETTER NOT FASTER – SMARTER NOT CHEAPER – VALUE THANK YOU FOR YOUR ATTENTION
QUESTIONS?