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Mar 16, 2010

Cost-cutting safeguards earnings – Focus on integrated platform solutions    

Cost-cutting safeguards earnings – Focus on integrated platform solutions    

Despite a decline in revenues, Lufthansa Systems has completed the 2009 fiscal year with a profit. Due to weaker demand, revenues decreased by a total of 7.9 percent compared to the previous year to reach EUR 605 million. Of this, EUR 361 million (-4.5%) was generated with companies in the Lufthansa Group. Revenues with customers outside the Group fell to EUR 244 million (-12.5%). This disproportionate decline can be attributed in part to the fact that customers who were reported as external companies last year have since been consolidated in the Lufthansa Group. The operating result decreased to EUR 16 million (previous year: EUR 40 million) on account of the lower revenues.    

"Lufthansa Systems reacted early to the deteriorating business outlook by initiating a cost-reduction program which lowered the number of external employees and cut overtime and vacation. The fact that we achieved a profit despite a significant decline in revenues shows that we are well positioned with our structures and products", said Wolfgang F. W. Gohde, CEO & Chairman of the Executive Board of Lufthansa Systems AG. "The changes we initiated during the past few years have made our company leaner, more flexible and more customer-focused. We were therefore able to respond quickly to market developments, adjust our capacities and reduce our costs."   

Although customers are especially hesitant to invest, Lufthansa Systems was able to sign a number of contracts with new and existing customers in 2009. For example, SWISS decided to outsource the operation of over 100 business-critical IT applications to Lufthansa Systems.

By signing agreements for Lido/Flight with Etihad, flydubai, Tunisair and Nouvelair, Lufthansa Systems was able to expand its leading market position for flight planning solutions. Optimized route planning with Lido/Flight enables airlines to reduce fuel consumption by up to five percent.  

Lufthansa Systems strengthened its position in the important Chinese market with the successful introduction of the NetLine/Plan and NetLine/Sched planning solutions for China Southern Airlines, the country's largest airline. With around 60 customers, the NetLine Suite is one of the world’s leading planning systems for airlines. The codeshare and schedule management tool known as SchedConnect, which is currently the most technologically advanced system of its type, also attracted new customers in 2009, including bmi, Brussels Airlines and LOT Polish Airlines. Ethiopian Airways opted for the cost-efficient solution to network its worldwide sites with the managed WAN solution SkyConnect.    

The Latin American airline TACA became the first in the world to use the ProfitLine/Yield Dynamic Price Engine (DPE). With this innovative solution, airlines can optimize their revenue management and pricing processes in order to improve their competitive position. For Austrian Airlines, Lufthansa Systems implemented its new Internet upgrade function in its GroundSolutions/Web check-in solution. This enables passengers to purchase a business-class upgrade already when checking in online, which generates additional revenues for Austrian Airlines.    

Lufthansa Systems also strengthened its cooperation with customers outside of the airline industry, such as Vattenfall, Hermes Logistik Gruppe and the Hamburg Port Authority. To increase the focus on its core market of aviation, Lufthansa Systems will not enter into any new agreements for IT outsourcing outside of the aviation and logistics industries. The range of SAP services and IT consulting for customers in other industries will not be affected by this decision.    

The total airline spending on IT services is expected to grow only slightly in the next years due to their strained economic situation. However, the market for IT outsourcing will grow because airlines will increasingly replace their own systems with external solutions. Lufthansa Systems is therefore focusing on the development of innovative products for the airline market. Integrated platform solutions which cover all of an airline’s business processes are particularly important for consolidating Lufthansa Systems’ role as the leading IT service provider in the aviation industry. Its products help customers achieve considerable efficiency gains, and they quickly pay for themselves. Furthermore, innovative operator models enable airlines to take advantage of modern IT solutions without having to invest in their own IT infrastructure.    

The company expects revenues to decline again in 2010 on account of economic influences and the ongoing streamlining of the portfolio in the Infrastructure Services division. The measures initiated in 2009 for reducing material costs and aligning internal personnel capacity with the production volumes will probably cause the operating result in 2010 to be higher than that of the past fiscal year.    

"Lufthansa Systems continues to be set for growth in the long term. Driven by the demand for IT systems which directly lower costs or increase revenues, airlines will externally source a growing number of IT services in the future. We have developed the right products for this over the past years, and we will take full advantage of the market opportunities that are now opening up", said Gohde. "At the same time, we will continue to invest heavily in the development of new technologies and innovative added-value products and so secure our leading position in the airline IT industry."

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Mar 11, 2010

Lufthansa Systems AG today announced that its Supervisory Board has appointed Stefan Hansen as CEO and Chairman of the Executive Board for a period of three years.    

Lufthansa Systems AG today announced that its Supervisory Board has appointed Stefan Hansen as CEO and Chairman of the Executive Board for a period of three years.    

Lufthansa Systems AG today announced that its Supervisory Board has appointed Stefan Hansen as CEO and Chairman of the Executive Board for a period of three years. Stefan Hansen will join the Executive Board of Lufthansa Systems AG effective July 1, 2010. He will succeed Wolfgang F. W. Gohde, who is leaving at his own request when his contract ends on March 31, 2010.    

Stefan Hansen (45) studied electrical engineering at Flensburg University of Applied Sciences. He began his career in 1990 as a project engineer for process automation at Siemens AG in Hamburg before working two years as the manager of Technical Systems & Operations at the Unilever subsidiary Lever GmbH. In 1994, Stefan Hansen moved to Körber AG, where he initially took over the Central Applications department at the Körber subsidiary Hauni Maschinenbau AG. From 1998, he was head of the Organization and Information Technology department at Körber PaperLink.    

Stefan Hansen has been familiar with Lufthansa Systems since 1999. He was head of the Desktop and Network Services department before taking over as managing director of the subsidiary Lufthansa Systems Infratec GmbH in 2001 and then of Lufthansa Systems Network GmbH in 2004. In this capacity, he was responsible for the Infrastructure Services division at Lufthansa Systems.   

In September 2006, Stefan Hansen was appointed managing director of EDS Operations Services GmbH and later also became managing director of EDS Business Solutions GmbH. There he was responsible for Service Delivery in the North and Central EMEA (Europe, Middle East, Africa) regions. Since the start of 2010, he has been the Director Enterprise Technology at Vodafone Deutschland.    

As a member of the Executive Board Dr. Gunter Küchler will continue to be responsible for sales and marketing at Lufthansa Systems.    


Note to editors:    
Lufthansa Systems is one of the leading IT service providers for the airline and aviation industries worldwide. As a systems integrator, the wholly-owned subsidiary of the Lufthansa Group covers the entire range of IT services, including consulting, development and implementation of industry solutions and operation. Lufthansa Systems provides its infrastructure and consulting services to a variety of industries. Headquartered in Kelsterbach near Frankfurt/Main, Germany, the company has offices in Germany and 14 other countries and employs about 3,000 people worldwide. In business year 2008, Lufthansa Systems recorded revenues of EUR 657 million.

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Mar 05, 2010

AdvancedCargo Platform presented at the IATA World Cargo Symposium 2010    

AdvancedCargo Platform presented at the IATA World Cargo Symposium 2010    

Lufthansa Systems is presenting its innovative AdvancedCargo Platform at the IATA World Cargo Symposium from March 8 - 11, 2010 in Vancouver, Canada. The integrated IT solution optimizes all cargo processes of an airline. By reducing costs and enhancing the speed and quality of decision-making, the AdvancedCargo Platform gives airlines a competitive edge in the market. Lufthansa Systems is an IATA Preferred Partner in the Simplifying the Business initiative and has 15 years of experience in implementing air cargo IT solutions.    

The AdvancedCargo Platform is one more step in Lufthansa Systems’ strategy to provide airlines with integrated platform solutions for optimizing their core processes. The innovative platform solution covers the cargo selling and booking processes, handling as well as revenue accounting. Lufthansa Systems will complete the development of the AdvancedCargo Platform in April 2010 and key modules are already in use at customers.    

"The innovative platform links all cargo processes and the modules are connected seamlessly with each other. The AdvancedCargo Platform gives airlines a competitive edge by providing them with all necessary information relevant to air cargo business processes. This way it speeds-up the decision making process and at the same time enhances the quality of the decisions made. In addition, a high degree of automation reduces costs and ensures high data quality and accessibility", explains Bernd Appel, Senior Vice President Industry Solutions at Lufthansa Systems.    

The AdvancedSelling module of the platform consistently controls the booking process across all distribution channels and optimizes the complex process of capacity management. Handling processes are streamlined by the AdvancedHandling module which fully supports Cargo 2000 and IATA e-freight. It covers cargo ground handling and transport processes including warehouse management and customs. The AdvancedCargo Platform also offers a revenue accounting system for air cargo business (AdvancedAccounting) which provides reliable flight operations data and considerably simplifies and accelerates accounting and billing processes.    

To facilitate the information flow within the IT platform solution, Lufthansa Systems has developed AdvancedBasis. This central component of the AdvancedCargo Platform collects all relevant data and makes them available to the other modules of the integrated platform solution. Additionally, the platform provides a customer database solution and a tool to calculate prices and charges.    

The AdvancedCargo Platform uses state-of-the-art technology and is based on a service-oriented architecture. Therefore the solution can be adjusted to the requirements of an airline and implemented easily within the existing IT landscape. Each module can be used as part of the AdvancedCargo Platform or as a stand-alone solution.    


Note to editors:    
Lufthansa Systems is one of the leading IT service providers for the airline and aviation industries worldwide. As a systems integrator, the wholly-owned subsidiary of the Lufthansa Group covers the entire range of IT services, including consulting, development and implementation of industry solutions and operation. Lufthansa Systems provides its infrastructure and consulting services to a variety of industries. Headquartered in Kelsterbach near Frankfurt/Main, Germany, the company has offices in Germany and 14 other countries and employs about 3,000 people worldwide. In business year 2008, Lufthansa Systems recorded revenues of EUR 657 million.

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Feb 24, 2010

The Tunisian private airline Nouvelair will optimize its flight planning with Lido/Flight from Lufthansa Systems.

The Tunisian private airline Nouvelair will optimize its flight planning with Lido/Flight from Lufthansa Systems.

A ten-year contract to this effect was signed recently between the two companies. Nouvelair and its subsidiary, Koral Blue Egypt has thus joined a growing circle of Lido/Flight users worldwide. Lido/Flight calculates optimal flight routes based on a number of different factors and can reduce overflight charges, fuel and time related costs.    

Lido/Flight covers all aspects of flight planning and the follow-up processes associated with it. Drawing on its own database, the solution automatically calculates the ideal route between two airports and creates reliable and easy-to-understand briefing documents for each flight. During the migration phase, Nouvelair will receive complete briefing documents via Lido Flight Planning Services (Lido/FPLS) from Lufthansa Systems, which will ease the transition to Lido/Flight. Since Nouvelair plans to offer scheduled services in addition to charter flights in a near future, the airline has placed high demands on its new flight planning system.    

Nouvelair is already using the Lido/RouteManual navigation charts and Lido/FMS data from Lufthansa Systems. Based in Monastir, Tunisia, the charter carrier serves more than 120 destinations in 33 countries in Europe. With its fleet of 15 aircraft, Nouvelair carried more than 1.9 million passengers in 2009.

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