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Invest in Ukraine: Lufthansa Group (Germany)

Stefan Kreuzpaintner, Vice President Sales, Lufthansa Group Europe, Middle East and Africa: "Ukraine is one of the most important markets for the use of new Lufthansa group technologies"

Investor's file

Company name Lufthansa Group:  https://www.lufthansagroup.com
Lufthansa group Representative office in Ukraine: 
https://www.lufthansa.com/ua/ru/
Field of activity: 
air transportation
 Year of foundation: 1926
Headquarters: Frankfurt on the Main, Germany
 Global representation: 550 units and affiliated companies around the world

Lufthansa Group global performance indicators (2017):

- Assets: EUR 37.13 billion
- Turnover: EUR 35.6 billion
 - EBIT: EUR 2.97 billion
 - The number of employees in the world - 128 856

Lufthansa & Global M & A:

- 2008 - 50% BMI
 - 2008 - 41.6% Austrian Airlines

Lufthansa in Ukraine:

Lufthansa Group has been operating on the Ukrainian market for more than 27 years. The company employs over 200 of Ukrainian specialists. More than 155 staff members are employed in the Service center of the company in Lviv.

On September 19, 2018, Lufthansa Group held an official press conference in Kiev. During the event, top managers of the company told about the impressive results of the year and their immediate plans in the Ukrainian market.

In the near future, the company intends to expand the Austrian service center in Lviv offering Lufthansa Group services for B2B and B2C segments of forty-five countries. This fall the area of the office space will increase from 900 to 1400 square meters.

"This is a very good investment. Thus, we can increase the number of jobs. We will employ 60 more people. Thus, we will increase the total number of employees of the service center to almost two hundred people. We invest not only in our aircraft, but also in our staff, which is very important for us," - said Stefan Kreuzpaintner, Vice President Sales of Lufthansa Group in Europe, the middle East and Africa.

The service center was moved from Vienna to Lviv in 2015. Ukraine and Lviv weren't chosen by chance - the high educational level of the population played a decisive role. In Lviv, it is easy to find qualified staff speaking foreign languages, said Stefan Kreuzpaintner. Due to this, it was possible to organize customer service in seventeen languages!

"This is a lot in comparison with other service centers of the group," he said.

Another important area of investment of Lufthansa Group in Ukraine is the development of the NDC (New Distribution capacity) program.

"This is one part of our distribution strategy. We want our partners to be able to provide our customers with better services, so that they can easily book tickets. In 2015, we decided to implement the direct connect system. In 2017 we started to implement this system in Ukraine, by the end of 2017 we had many Ukrainian partners who used this interface. Ukraine is one of the most important markets for the use of new Lufthansa group technologies" said Stefan Kreuzpaintner.

Lufthansa group continues to invest in innovation, digitalization and modernization, he said. By 2020, the total investment in digital technologies will amount to 500 million Euros. One example of innovation with the use of digital technology is Josie Pepper - a robot with artificial intelligence, which answers the questions of passengers in the second Terminal of Munich airport.

Meet the new employee of the airport. Robot Josie Pepper!

Passengers have access to the Internet on all of the company's Airbus A320 family aircrafts due to FlyNet technology. Company's aircrafts also offer IFE (In-flight entertainment). The modernization of Lufthansa Group aircrafts continues, as exemplified by Airbus A350, C-Series, Airbus A320neo, Boeing B777. Another example of innovation is the new economy seats in the A320 family aircrafts of Austrian airlines, Lufthansa, SWISS.

Last year, the company signed a cooperation agreement with the Swiss startup Winding Tree, a decentralized B2B market built on the Ethereum blockchain. As a part of this collaboration, Lufthansa will invest in a token from the Winding Tree called LIF, which will be used to Fund the development of the Winding Tree platform. The token can be used for calculations and data transfer, which will allow the owners of LIF tokens to book flights, cruises and hotel rooms directly on the blockchain.

The volume of the company's investments, including in the renewal and modernization of the fleet, as well as in new technologies, is constantly growing. In total, in 2017, the company's investments amounted to about 3 billion Euros, which is a third more than in 2016.

This year was successful for the company's activities in Ukraine. From the beginning of the year to August, the company transported more than half a million (551 000) passengers who flew to and from Ukraine. In comparison with the same period last year, the company managed to increase passenger capacity by 13.8%, which fully justified the needs of the market and passenger traffic which was increased by 14.0%. Compared to the previous year, the traffic of passengers from Ukraine increased by 19.0%, and the number of passengers who flew to Ukraine on Lufthansa airlines increased by 9.2%.

Lufthansa group understands the importance and potential of the Ukrainian market, which is manifested in the significant growth of Lufthansa airlines in Ukraine.

"2018 has already become one of the most successful years for our company in Ukraine, and we are pleased to continue to expand our offers for the Ukrainian market. Recently, we have increased the number of weekly Kiev-Frankfurt flights to twenty. With the launch of SWISS Kiev-Zurich flights and the scheduled start of Brussels Airlines flights, which will provide air service to the capitals of Ukraine and Belgium, our customers will have easy access to our huge global network," says Stefan Kreuzpaintner.

Outgoing traffic of Lufthansa Group from Ukraine increased by more than 19.0%. Traffic growth is due to an increase in demand for flights to Europe by 26.0% and the Asia-Pacific region by 31.3%, compared to the previous year. The most popular among the passengers of the city are Barcelona, Nice, New-York and Shanghai. The most popular countries to travel from Ukraine are the United States, Spain and France. Incoming passenger traffic to Ukraine also showed an increase of 9.2% in 2018, mainly due to travelers from Europe and North America.

The expansion of Lufthansa Group in Ukraine will continue - from October 17 this year Brussels Airlines launches a new weekly service from Kiev to the capital of Belgium - Brussels. Brussels Airlines will become the second company from Lufthansa group, which entered the Ukrainian market this year and the fourth company of Lufthansa group in Ukraine and will start flights from Ukraine. Earlier in March 2018, SWISS airlines launched a new service between Kiev and Zurich, offering 4 weekly flights, which also became an evidence of the success of Lufthansa Group in Ukraine. Together with new offers Lufthansa Group provides its passengers with 91 weekly flights from Ukraine to European air hubs: Munich, Frankfurt, Zurich, Vienna and soon Brussels. Now Lufthansa Group is represented in Ukraine by such companies: Austrian Airlines, Lufthansa and SWISS.

Lufthansa Group is one of the largest airlines in the world and is engaged in both passenger and cargo transportation. Every year, more than 50 million people use the services of the German airline, and the total number of flights of the Lufthansa group is measured in hundreds of thousands. Lufthansa Group has been operating on the Ukrainian market for more than 27 years. The company employs over 200 of Ukrainian specialists. More than 155 staff members are employed in the Service center of the company in Lviv. The group's total fleet exceeds 600 aircrafts and it is planned to purchase another 205 new aircrafts by 2025.

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