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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1177 |
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2004 saw net profits of 404 million euros on revenues 16,965 million euros (Lufthansa Annual Report, 2004). The company achieved this turnaround by putting into action a plan to cut costs by 1.2 billion euros. This plan focused largely on freezing capital expenditures, reducing the work force, and renegotiating contracts...
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Additionally, the catering services division was restructured to cut losses (Moody’s Investors Services, 2005). The result has been an increase in the Standard and Poor credit rating of the company from “negative†to “stable†(Standard and Poor, 2006).
b. Strengths/Distinctive Competence: Lufthansa has a premium brand with a widely recognized reputation for quality service, equipment, and facilities...
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