2. Different kind of partnership
LR - Lufthansa Regional The new concept of Lufthansa „Lufthansa Regional LR“ is focussing on integrating all activities of all regional carriers within the LH group
Different kind of partnerships built the former cooperative concept
Franchise
Joint Venture
Different
kind of partnership
Autonomous Subsidiary
Code Share
ACMI Charter

3. LR - Lufthansa Regional The regional segment encountered „severe turbulences“ Lufthansa has further developed its strategy
Yield
Costs
Profitability
Growth

4. LR - Lufthansa Regional The aim is to realize longterm far-reaching synergetic effects
Optimisation of...
Synergies, Reduction of complexity, Economies of scale, Best Practice, Flexibility...
Quality Improvements as...
Harmonised high quality in product and operation, Punctuality and Reliability, Harmonisation of operational standards...
Cooperation Basis as...
all Partners with ACMI-charter agreements, Fairness, open book policy and comparability amongst all Lufthansa partners
Clear Responsibilities...
Lufthansa takes the commercial responsibility, LH Regional is focussing on high quality and enhanced flexibility of its production

5. LR - Lufthansa Regional Main strategic Lufthansa Regional Partners are cooperating in this business
Air Dolomiti, EN (Verona, Italy)
5 CRJ 100/200, 10 ATR 42, 6 ATR 72
Augsburg Airways, IQ (Augsburg, Germany)
5 Dash 8-300, 5 Dash 8-400
Contact Air, KI (Stuttgart, Germany)
6 ATR 42, 3 Fokker 50
Eurowings, EW (Dortmund, Germany)
12 CRJ 200, 3 ATR 42, 16 ATR 72, 8 BAE 146
Lufthansa CityLine, CL (Cologne, Germany)
43 CRJ 100/200, 20 CRJ 200, 18 Avro RJ85
LR-Fleet = 160 aircrafts
March 2004

6. LR - Lufthansa Regional Common interests are pursued by different projects (examples)
Catering:
Creating of one single onboard product for all partners
Ground Handling:
Adjustment of passenger handling, standard procedures and audits
Increasing the efficiency of flight schedule planning:
Optimisation of destinations, creation of common rules in planning (incl .joint operations and maintenance spare aircrafts) and identification of cost factors
Facing the competition of No-Frills in the regional market:
Identification of cost driving factors and establishment of competitiveness
One common IT-Standard
Synchronisation and Alignment of different IT-Standards and tools/products
One joined Operational Center
Joining all Operational and Dispatch acitivities and initiating one common IT- Platform(NetLine)

7. Shared IT-platform OPS-control: „NetLine“
LR - Lufthansa Regional A new cooperative concept for operations control is implemented
One unit (LR OCC) is responsible for the entire daily operation of the LR fleet
LR OCC is located in CGN at CL with a remote operation position in TRS to meet the special requirements of an Italian operation
CL, KI, IQ are dispatched by CL (with Lido OC), EW and EN have their own dispatch systems
Shared IT-platform OPS-control: „NetLine“
LR - OCC
Shared IT-platform
Dispatch: „Lido OC“
Sita
Jeppesen

8. LR - Lufthansa Regional Benefits and Requirements of a consolidated OCC have to be evaluated very closely
Benefits:
fast and flexible operations control
the new market-driven products (new product domestic (NPI)) require an overall operational fleet control and decision process
Cost optimisation (AC as a reaction on No Frill-competition)
optimised rotation planning
optimised irregularity handling (shared operational reserves)
optimised use of human and IT-ressources
Requirements:
IT-driven fleet assignment and future technologies (i.e. DST)
Adjustment of aircraft sizes according to changed demand
Decision support tool to enhance a complex operational environment
single point of responsibility for the operation in the OCC
Shared and moreover integrated IT-platforms
Harmonising the needs and demands of 5 different airlines
Combining Scheduling, Crew Planning, Ops-, Maintenance- and Dispatch-Control

9. LR - Lufthansa Regional The verification of an Decision Support Tool (DST) to optimise decisions and costs
Starting point:
complex structures while controlling the operations over LR-fleet
cross operational actions necessary but difficult to handle and pursue
effects of irregularities not dircetly visible and forecast is difficult
Tool to make the problems visible and workable
First Steps:
defining targets of optimisation
defining main problems and the requested display
integrating Operations Controller to participate in this development
Final Target:
identification of problems in the operation in a timely manner in advance
finding optimised and cost efficient solutions according to the defined targets
displaying different alternatives of actions
The final decision is made by the operations controller