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Newsletter August, 2005  

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Lufthansa Systems operates electronic ticketing hub
From January 2008, paper tickets in the airline industry will be part of history. IATA has set this deadline for the mandatory implementation of universal e-ticketing. Even more, it is a pivotal point of IATA's "Simplifying the Business" initiative, in which Lufthansa Systems is a preferred partner. This prospect challenges IT providers to develop suitable e-ticketing solutions for airlines worldwide and of all sizes.

Thanks to its extensive experience in this field, Lufthansa Systems already has a head start in implementing e-ticketing solutions and providing consulting services to airlines for process support. As the next step to advancing its e-ticketing technology, Lufthansa Systems is currently deploying a stand-alone e-ticketing solution that will be fully operational by the end of 2005. The independent product consists of an e-ticketing messaging hub and server. The server (database) stores and manages all electronic tickets, while the messaging hub handles data exchange (messaging) between airlines' IT systems. Airlines connected to the hub can use the database and messaging service of Lufthansa Systems' e-ticketing solution and can allow other airlines access to their tickets within the framework of their bilateral agreements.

By providing e-ticketing communication via a hub that is available to multiple airline partners, the solution offers significant advantages over individual links between airlines. Its implementation is faster and more cost efficient than developing single channel connections. Small airlines can easily afford it, since it provides worldwide access at minimal costs.

Implementing e-ticketing is much more than a technical issue. It requires a new way of thinking among an airline's customers, management and staff. Reliable, solid consulting therefore plays a crucial role in the process of achieving one hundred percent e-ticketing. Making its experience and know-how available, Lufthansa Systems is working with its customers to reach the goal set out by IATA's "Simplifying the Business" initiative.

Using regional market analysis for sophisticated marketing and sales decisions
Which destinations do passengers book at which times? What is the preferred class of seat? And what general trends can be detected in the market? It is critical for airlines to be able to answer these questions so that they can plan their capacity carefully and succeed against the competition. To do this, they must have access to detailed market data which can be evaluated quickly and precisely.

With its Advance Regional IT solution, Lufthansa Systems is offering market analyses based on regionally tailored MIDT (Market Information Data Tapes) data. This data is specifically selected according to the relevant markets, based on origin & destination. The raw MIDT data includes all bookings made through Global Distribution Systems (GDS), thereby providing reliable market information. Previously, GDS providers sold this type of information only as a complete package containing all data, which was of interest to network airlines alone. Lufthansa Systems has recently established an agreement allowing airlines to acquire regionally tailored MIDT data. Particularly small and medium-sized airlines with a focus on the analysis of regional market development are now able to evaluate this data in a targeted way and thereby optimize their business decisions.

This raw data must be carefully selected and analyzed to create a solid basis on which airlines can make sales and marketing decisions. Advance Regional from Lufthansa Systems can carry out this analysis in accordance with the requirements and specifications of the customer. This way, airlines gain a clear insight into their own data and that of their competitors. This allows them to determine the exact distribution of bookings for individual origin & destination flights and segments. The analysis of feeder and de-feeder situations is particularly important to small and medium-sized airlines. Booking situations can also be evaluated precisely according to seat class, flight number, or day of the week.

Etihad Airways, the national airline of the United Arab Emirates, is the first Lufthansa Systems customer to use Advance Regional. Up to one hundred users throughout the whole company will benefit from the analysis and reports offered by Advance Regional. This two-year-old airline currently flies from Abu Dhabi to Europe, the Middle East and Asia, and it plans to expand continually in the coming years.

 
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