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 – 18 th October 2017

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

G ERMANIA : 30 Y EARS OF H ISTORY

I NTRODUCTION : G ERMANIA F LEET Current fleet: Germania Fluggesellschaft Germania Flug AG Bulgarian Eagle

I NTRODUCTION : G ERMANIA O RDER 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

I NTRODUCTION : G ERMANIA A IRLINES 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

I NTRODUCTION : G ERMANIA A IRLINES Network Destinations

I NTRODUCTION : G ERMANIA A IRLINES 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

CHALLENG NGES OF OF TH THE EU EUROPEAN MA MARKET

T HE C HALLENGES OF THE E UROPEAN M ARKET 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

T HE C HALLENGES OF THE E UROPEAN M ARKET 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

G ERMANIA ’ S P HILOSOPHY 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

G ERMANIA ’ S U NIQUE S ELLING P OINTS 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

G ERMANIA ’ S C OMMITMENT 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

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

THANK YOU FOR YOUR ATTENTION QUESTIONS NS?