"Lufthansa on the way to a paperless cockpit"

Press conference, September 30, 2004, 1:00 PM
Statement by Dr. Peter Franke, CEO of Lufthansa Systems

- Check against delivery -

Ladies and Gentlemen,

I am pleased that we have the opportunity today to introduce our new electronic navigation charts, the Lido Route Manual.

We are well aware of the fact that our work is generally very complicated, and that it must seem quite dry to outsiders. This is why I would like to start my presentation with a figurative comparison:

As you may know, nearly all new car models come with a navigation system which helps drivers find their way quickly, without having to pore over an atlas from Shell or ADAC. With its eRoute Manual, Lufthansa Systems wants to introduce a comparably convenient solution in the cockpit. Of course, in a cockpit, we have an entirely different level of complexity to deal with - and this is where the great challenge lies. Let me be clear about this: we are not quite there yet, but we have taken the most important step on the way.

One crucial difference is that navigation in a car applies to just a two-dimensional system. A car can drive backwards or forwards, to the left or to the right. Unlike a street map, a navigational chart in a cockpit must provide the pilot information about a three-dimensional space. Our charts contain all the aeronautical instructions that the pilot needs in order to carry out a flight, and these instructions are extremely precise, because flight safety is at stake.

Up until now, these charts have been drawn independently of a database using CAD tools (Computer Aided Design). This involves a lot of manual work, and updating the charts takes a great deal of time, despite the ability to pre-process data with CAD. With the Lido Route Manual, Lufthansa Systems is now striking a new path in the area of chart creation. For the first time ever, we can generate charts from an aeronautical database created and continually updated by Lufthansa Systems: the Lido Navigation Database. Through the use of GIS technology (Geographic Information Systems) and an integrated database, Lufthansa Systems has become the first provider whose charts can directly visualize data, so to speak. Thanks to the high degree of automation, we can significantly reduce the amount of manual effort - and thus the production times - involved in the creation and amendment of the charts and the downstream quality assurance compared to the production of charts with CAD tools.

Since the start of September, Lufthansa has been flying with our new charts, which provide a clear overview of all critical information. The Lido Route Manual is being developed by Lufthansa Systems specifically for commercial airlines. With this custom-made solution, Lufthansa Systems can address the special needs of customers. This provides our customers with a great quality advantage.

Our goal is to help airlines optimize processes and save costs using our specific and innovative IT solutions. With the Lido Route Manual, we are clearing the way for a paperless cockpit.

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The Lido Route Manual represents one of three crucial pillars in our business segment Airline Flight Support. Based on the core competency of route planning with Lido OC, which provides all the concrete information and instructions a pilot needs regarding planned routes, fuel amounts, etc., complementary product fields have been added: the Flight Management System, which contains all the data required by the autopilot, and the Route Manual. Lufthansa Systems is thus positioning itself as an aeronautical provider for data services with corresponding IT solutions which support tasks specific to flight operations: flight planning, flight preparation (briefing) and the execution of flights for commercial aviation.

The basis of this integrated product portfolio is the Lido Navigation Database. It contains all worldwide aeronautical information and is continually maintained and expanded. Because this database is so complete and up to date, the products that work with it are of a high quality.

The charts for individual airports pose the real problem. For each airport, there are up to 60 different charts which could be needed depending on the situation and the approach procedure. This year, we are switching a total of 650 airports over to the new standard for Lufthansa. We will then have covered all of the airports relevant to Lufthansa; this includes the airports throughout the route network, as well as the corresponding alternate airports. By the end of 2005, we will have added another 1,500 airports to our Route Manual database, so that every other airline worldwide can also switch to our innovative charts.

These new charts are the first step in the direction of a paperless cockpit. By using GIS technology and an integrated database, we have become the first chart producer whose charts are generated electronically.

On the technical side, the Route Manual is, at heart, a chart creation tool with a high degree of automation and an integrated database. Thanks to this automation, the manual effort needed to create and update charts can be considerably reduced. The new charts can be printed out or displayed electronically - there is essentially no difference between the paper chart and the chart that will be displayed electronically in the cockpit. The topographical data which assists in orientation will also be displayed on the digital charts.

If you look at it this way, introducing an electronic display in the cockpit is mainly just a question of having the appropriate hardware in the cockpit and receiving authorization from worldwide aviation authorities. Lufthansa Systems is already working together with airplane and equipment manufacturers to meet the high standard of quality demanded for the hardware and IT infrastructure and to speed up lengthy approval procedures.

The electronic Route Manual gives pilots the ability to dynamically generate en-route and airport charts from a database. The solution developed by Lufthansa Systems for electronically displaying these charts offers numerous possibilities for interaction and the integration of other Flight Support functions. This includes the ability to superimpose weather data on the true-to-scale charts, to display the route already flown, and to show additional information from the database or current news for the pilot. Pilots can work with the charts, rotating them and choosing the depth of information they desire by using the simple zoom function. They can also display or hide data according to the situation. The link to the database will make it possible for a pilot to make notes directly on the electronic chart in the future. These notes will then be checked on the ground and stored permanently in the database where suitable.

The Route Manual/eRoute Manual produced by Lufthansa Systems therefore represents a true advance over the solutions previously found on the market. Furthermore, it provides added-value to our customers, particularly as regards quality and currency. And tangible cost savings potential is available to airlines here, as the logistical effort and printing costs for the charts can be reduced.

In April of this year, Airbus Industries signed a Memorandum of Understanding with us. The plan is for electronically generated charts to be provided on all Airbus aircraft in the future. By the end of this year, our Lido electronic Route Manual will already be integrated directly in the Onboard Information Systems (OIS) of the new A380. It will probably be possible to carry out the test flights in 2005 using the electronic charts. The first integrated installations will be possible at the start of 2005.

We are proud to be the first service provider in the world to offer an integrated solution for Flight Support Services. With the electronic Route Manual, we are also demonstrating the innovative power behind our solutions.