Airline strategy in the 2001/2002 crisis—the Lufthansa example

Abstract

This article presents a European view of the global airline crisis in 2001/2002. The underlying cyclical nature of the airline business and flexibilization as a strategy to manage the cycles are described. Crisis management at Lufthansa German Airlines following the terrorist attacks of September 11, 2001 is discussed in depth. In Europe, the slump in air traffic demand was soon matched by an industry-wide capacity reduction. Reduced overcapacity helped to stabilize yields and corporate results. However, managing the current crisis does not only aim at restoring the pre-crisis state, but rather at forming a more healthy business environment.