Opportunities are defined as possible future developments or events which may lead to a positive deviation from plans, forecasts or targets, and which therefore represent an effective earnings improvement or which generate potential competitive advantages. For the highly dynamic global airline industry, such opportunities can arise both externally – from new customer wishes, market structures or the regulatory environment, for instance – and internally – from new products, innovations, quality improvements and competitive differentiation. For the purpose of identifying and managing opportunities in a more structured way, particularly in connection with changes in the industry and digitalisation trends, the “Innovation Hub” was set up as a Group-wide unit in 2014. Its aim is to keep developing the Lufthansa Group’s highly innovative culture and capacity for innovation, and to make targeted use of opportunities.
Steps in the opportunity management process
The identification of opportunities by staff and management in the Lufthansa Group takes place as part of everyday processes and market observations. It is supported by a regular strategy and planning process, which is managed by the strategy and controlling departments. Scenario analyses and accurate return calculations are used to precisely examine opportunities and the associated risks. Opportunities that, in an overall assessment, are considered advantageous for the development of the Lufthansa Group, and so for the interests of shareholders, are pursued and implemented by means of defined steps. They are managed by the established planning and forecasting processes as well as by projects.
Further information regarding the opportunity report can be found here.