July 5, 2004

The Flight Scheduling system of Shanghai Airlines was successfully switched over to the NetLine/Sched system from Lufthansa Systems on June 30, 2004. With this cutover, the Chinese airline can now create flight schedules more quickly and efficiently and can react to changes immediately.

After the relevant contract was signed at the end of May, all the prerequisites were fulfilled for integrating NetLine/Sched (schedule management/flight planning) into the existing IT landscape of Shanghai Airlines. The interfaces necessary for a successful installation were taken into account during a preliminary study to evaluate the system landscape.

Now that employee training sessions and final tests have been carried out, NetLine/Sched has gone into routine operation for the entire Shanghai Airlines fleet. Lufthansa Systems will also be responsible for system maintenance over the next six years. Beyond the implementation of the system, Shanghai Airlines and Lufthansa Systems have also agreed on an intensive transfer of expertise in the area of flight scheduling.

NetLine/Sched is part of the integrated NetLine product line from Lufthansa Systems, which supports the entire process of planning and controlling airline resources. As a single module in this complete solution, NetLine/Sched is an ideal tool for improving the operational and economic quality of a flight plan. With a focus on efficiency, the system analyzes various scenarios for Shanghai Airlines and acts as an important decision-making aid.

""We chose NetLine because we were impressed by the efficiency, security and userfriendliness of the solution. The extensive international experience of Lufthansa Systems was a key factor in our decision. We could well imagine using solutions from Lufthansa Systems in other business fields in the future," said Fu Juan Li, Project Manager at Shanghai Airlines.

With this new system, the dynamically-expanding Shanghai Airlines is investing in the future. Updated distribution and marketing plans mean that airlines must be highly flexible, and they must continually change their schedules and adapt them to current conditions. The demands placed on schedule management systems are correspondingly high.

The integrated NetLine product line from Lufthansa Systems is now being used successfully by around 40 airlines, leading to increased productivity, greater profitability, and lower operating costs. Thanks to the modular design of the product line, components can also be used individually and expanded at any time.

Note to editors:

Lufthansa Systems is one of the leading IT service providers for the airline and aviation industries worldwide. As systems integrator, the wholly-owned subsidiary of the Lufthansa Group covers the entire range of IT services, including consulting, development, implementation and operation. Lufthansa Systems provides its IT infrastructure and operations services to a variety of industries. Headquartered in Kelsterbach near Frankfurt/Main, Germany, the company has branches in Germany and 13 countries and employs about 4,400 people worldwide. In business year 2003, Lufthansa Systems recorded sales of EUR 610.7 million.