Case Study: Germania - a Successful Underdog in the European Market - - PowerPoint PPT Presentation

Case Study: Germania - a Successful Underdog in the European Market

Introducing Germania Fluggesellschaft mbH – 18th October 2017

Germania Holding

S.A.T. Fluggesellsch aft mbH Bulgarian Eagle EODD Germania Finanz AG Germania Technik Brandenburg GmbH Aviati GmbH Germania Fluggesell- schaft mbH Mangentum AG Germania Flug AG Germania Flugdienste GmbH Germania Reisen GmbH Germania Grundbesitz GmbH Leasing Passenger transportation Financial services Services

INTRODUCTION: GERMANIA GROUP

GERMANIA: 30 YEARS OF HISTORY

INTRODUCTION: GERMANIA FLEET

Current fleet:

Germania Fluggesellschaft Bulgarian Eagle Germania Flug AG

INTRODUCTION: GERMANIA ORDER

Airbus order (25 aircrafts, plus 15 options)

1 2 2 2 2 1 1 1 1 1 1 1 2 2 2 2 1

Delivery Stream

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
• German crews & maintenance

Booking & Sales 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

CHALLENG NGES OF OF TH THE EU EUROPEAN MA 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…

WH WHY DO DO WE WE BE BELIEVE TH THAT T GERMANI NIA SU SUCCEEDS DS IN N TH THE EU EUROPEAN MA 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

Lufthansa takeover

• f Air Berlin
• Filing preliminary injunction against the German

government

• Submission of antitrust complaint with the EU

commission

• Lobbying through industry associations

(IATA/BDF)

• Opposing unjustified increasing airport charges

(example: Hamburg airport)

Battling for transparent institutional and governmental regulation Advocating for reasonable airport charges and taxes

à Defending our market space

NO NOT BI BIGGER – BE BETTE TER NO NOT FA FASTER – SM SMARTER NO NOT CH CHEAPER – VA VALUE

CONCLUSION

THANK YOU FOR YOUR ATTENTION

QUESTIONS NS?