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Create a 10 pages page paper that discusses present position and future prospects of lufthansa, air france-klm and iag airlines against the european crisis.
Create a 10 pages page paper that discusses present position and future prospects of lufthansa, air france-klm and iag airlines against the european crisis. The three leading flag carriers in Europe, Lufthansa, Air France-KLM and IAG have been demonstrating high operating costs and failure of their short and medium haul flights. The project analyzes the present position and future prospects of these airlines against the European crisis which shook the industry to a considerable extent. Based on the past trends of performance, future performances are estimated for these three airlines and their comparative positions in the industry too. A comparative analysis of the airlines against emerging airlines in other parts of the world is also provided in the project (Bloomberg, 2012). Since the last decade the three major airlines in Europe, namely Lufthansa Group, IAG and Air France – KLM have all been demonstrating much better performance as compared to their American counterparts. They are showing much stronger growth while US Airlines have floundered and majorly filed for bankruptcy. However, the only major problem they are facing is on account of their own government strategies. One of these is on a macro level, which is the much-criticized scheme of carbon trading by the European Union. The UK government has levied some of the hardest taxes on the aviation industry. The airfare passenger duty in the UK is approaching £100 on certain tickets. However, it fundamentally does not consider adding capacity in London where it is most required. This issue would not have been very prominent if there was no competition. The low-cost carriers have grown stronger over the years. Although they are confronted with the same government issues, they have lower operating costs as compared to the legacy airlines and can make higher profits at lower fares (Alemanno, 2011, p.35). .
