Founded, originally, 1926
Lufthansa traces its history to 1926 when Deutsche Luft Hansa A.G. (from 1933 styled as Deutsche Lufthansa) was formed in Berlin, an airline that was Germany's flag carrier until 1945 when all services were suspended following the defeat of Germany. In an effort to create a new national airline, a company called Aktiengesellschaft für Luftverkehrsbedarf (Luftag), was founded in Cologne on 6 January 1953, with many of its staff having worked for the pre-war Lufthansa. West Germany had not yet been granted sovereignty over its airspace, so it was unknown when the new airline could become operational. Nevertheless, in 1953 Luftag placed orders for four Convair CV-340s and four Lockheed L-1049 Super Constellations and set up a maintenance base at Hamburg Airport. On 6 August 1954, Luftag acquired the name and logo from the liquidated Deutsche Lufthansa for DM 30,000 (equivalent to € 68000 today), thus continuing the tradition of a German flag carrier of that name.
Deutsche Lufthansa AG (FWB: LHA) (German pronunciation: [ˈdɔʏt͡ʃə ˈlʊfthanza]), commonly known as Lufthansa (sometimes also as Lufthansa German Airlines), is the flag carrier of Germany[note 3] and also the largest airline in Europe, both in terms of overall passengers carried and fleet size when combined with its subsidiaries. It operates services to 18 domestic destinations and 197 international destinations in 78 countries across Africa, the Americas, Asia, and Europe,[ using a fleet of more than 280 aircraft.
Besides the actual airline named Lufthansa, Deutsche Lufthansa AG is also the parent company for several other airlines and further aviation-related branches, including Swiss International Air Lines, Austrian Airlines, Germanwings and Lufthansa Technik. With over 620 aircraft, it has one of the largest passenger airline fleets in the world when combined with its subsidiaries. In 2012, the entire Lufthansa Group carried over 103 million passengers.
Lufthansa's registered office and corporate headquarters are in Cologne. The main operations base, called Lufthansa Aviation Center (LAC), is located at Lufthansa's primary traffic hub at Frankfurt Airport. The majority of Lufthansa's pilots, ground staff, and flight attendants are based there. Lufthansa's secondary hub is Munich Airport with a third, considerably smaller one maintained at Düsseldorf Airport which transfers to Germanwings, so Lufthansa only operates just around 10 destinations (excluding seasonal) which all have been transferred to Germanwings.
Lufthansa is one of the five founding members of the Star Alliance, the world's largest airline alliance, formed in 1997.
Having been a state-owned enterprise until 1994,[8] the majority of Lufthansa's shares are nowadays held by private investors (88.52%), as well as MGL Gesellschaft für Luftverkehrswerte (10.05%), Deutsche Postbank (1.03%), and Deutsche Bank (0.4%). Since 1970, Lufthansa has involved its employees in profit sharing, giving them the opportunity to choose between cash and preference shares. When Lufthansa was privatised, employees received more than 3% of its shares.
The name of the company is derived from Luft (the German word for "air"), and Hansa (a Latin term meaning "guild" most commonly used historically in reference to the Hanseatic League).
Lufthansa's first aircraft, a Convair 340 (type pictured), was delivered in August 1954
Lufthansa traces its history to 1926 when Deutsche Luft Hansa A.G. (from 1933 styled as Deutsche Lufthansa) was formed in Berlin, an airline that was Germany's flag carrier until 1945 when all services were suspended following the defeat of Germany. In an effort to create a new national airline, a company called Aktiengesellschaft für Luftverkehrsbedarf (Luftag), was founded in Cologne on 6 January 1953, with many of its staff having worked for the pre-war Lufthansa. West Germany had not yet been granted sovereignty over its airspace, so it was unknown when the new airline could become operational. Nevertheless, in 1953 Luftag placed orders for four Convair CV-340s and four Lockheed L-1049 Super Constellations and set up a maintenance base at Hamburg Airport. On 6 August 1954, Luftag acquired the name and logo from the liquidated Deutsche Lufthansa for DM 30,000 (equivalent to € 68000 today), thus continuing the tradition of a German flag carrier of that name.
On 1 April 1955 Lufthansa got approval to start scheduled domestic flights, linking Hamburg, Düsseldorf, Frankfurt, Cologne, and Munich. International flights started on 15 May 1955, to London, Paris, and Madrid, followed by Super Constellation flights to New York City from 1 June of that year, and across the South Atlantic from August 1956. In August 1958 fifteen Lufthansa 1049Gs and 1649s left Germany each week to Canada and the United States, three 1049Gs a week flew to South America, three flew to Tehran and one to Baghdad.
Due to the special status of that city, Lufthansa was not allowed to fly to either part of Berlin until 1989. Originally thought to be only a temporary matter (and with intentions to move the airline's headquarters and main base there once the political situation would change), the Division of Germany turned out to be long-lasting, which gradually led to Frankfurt Airport evolving into the major hub for Lufthansa.
East Germany tried to establish its own airline in 1955 using the Lufthansa name, but this resulted in a legal dispute with West Germany, where Lufthansa was operating. East Germany instead established Interflug as its national airline in 1963, which coincided with the East German Lufthansa being shut down.
1960s: Jetliner introduction
In 1960 Lufthansa joined the jet age with the Boeing 707. The image shows a 707 at Hamburg Airport in 1984, shortly before the type was retired.
A Lufthansa Boeing 727–100 approaching London Heathrow Airport in 1978.
In 1958 Lufthansa ordered four Boeing 707s and started jet flights from Frankfurt to New York City in March 1960. Boeing 720Bs were later bought to back up the 707 fleet. In February 1961 Far East routes were extended beyond Bangkok, Thailand, to Hong Kong and Tokyo. Lagos, Nigeria and Johannesburg, South Africa were added in 1962.
Lufthansa introduced the Boeing 727 in 1964 and that May began the Polar route from Frankfurt to Tokyo via Anchorage. In February 1965 the company ordered twenty-one Boeing 737s that went into service in 1968. Lufthansa was the first customer for the Boeing 737 and was one of four buyers of the 737-100s (the others were NASA, Malaysia-Singapore Airlines, and Avianca – while the NASA airframe was the first built, it was the last delivered and originally intended for delivery to Lufthansa). Lufthansa was the first foreign launch customer for a Boeing airliner.
1970s–1980s: The wide-body era
The wide-body era for Lufthansa started with a Boeing 747 flight on April 26, 1970. It was followed by the introduction of the DC-10-30 on November 12, 1973, and the first Airbus A300 in 1976. In 1979 Lufthansa and Swissair were launch customers for the Airbus A310 with an order for twenty-five aircraft.
The company's fleet modernisation programme for the 1990s began on June 29, 1985 with an order for fifteen Airbus A320s and seven Airbus A300-600s. Ten Boeing 737-300s were ordered a few days later. All were delivered between 1987 and 1992. Lufthansa also bought Airbus A321, Airbus A340, and the Boeing 747-400.
In 1987 Lufthansa, together with Air France, Iberia, and Scandinavian Airlines, founded Amadeus, an IT company (also known as a GDS) that would enable travel agencies to sell the founders and other airlines' products from a single system.
1990s–2000s: Further expansion
The Boeing 737 is the best-selling jet airliner in the history of aviation. Lufthansa was the launch customer of the original 737-100 version. The image shows an aircraft of that type at Hannover Airport in 1968.
Lufthansa operated the high-capacity Airbus A300-600 on domestic and European routes until 2009. The image shows an aircraft of that type on final approach at Frankfurt Airport in 2003.
On October 28, 1990, 25 days after reunification, Berlin became a Lufthansa destination again. On May 18, 1997, Lufthansa, Air Canada, Scandinavian Airlines, Thai Airways International, and United Airlines formed the Star Alliance, the world's first multilateral airline alliance.
In 2000, Air One became a Lufthansa partner airline and nearly all Air One flights were code-shared with Lufthansa until Alitalia purchased Air One. Lufthansa has a good track record for posting profits, even in 2001, after 9/11, the airline suffered a significant loss in profits but still managed to stay 'in the black'. While many other airlines announced layoffs (typically 20% of their workforce), Lufthansa retained its current workforce.
On December 6, 2001, Lufthansa announced an order for 15 Airbus A380 superjumbos with 10 more options, which was confirmed on December 20. The A380 fleet will be used for long-haul flights from Frankfurt exclusively.
In June 2003, Lufthansa opened Terminal 2 at Munich's Franz Josef Strauß Airport to relieve its main hub, Frankfurt, which was suffering from capacity constraints. It is one of the first terminals in Europe partially owned by an airline.
In autumn 2003, the implementation of a new sales strategy initiated by then-incumbent Executive Vice President Thierry Antinori to make the company fit for the digital era led to the abolition of commission payments for travel agencies and led to a revolution in the German travel business with many travel agencies disappearing from the market on the one hand, and the rise of new digital distribution platforms on the other hand.
On May 17, 2004, Lufthansa became the launch customer for the Connexion by Boeing in-flight online connectivity service.
On March 22, 2005, Swiss International Air Lines was purchased by Lufthansa's holding company. The acquisition included the provision that the majority shareholders (the Swiss government and large Swiss companies) be offered payment if Lufthansa's share price outperforms an airline index during the years following the merger. The two companies will continue to be run separately.
On December 6, 2006, Lufthansa placed an order for 20 Boeing 747-8s, becoming the launch customer of the passenger model. The airline is also the second European airline to operate the Airbus A380 (after Air France). The first A380 was delivered on May 19, 2010, while the first 747-8 entered service in 2012.[24]
On September 15, 2008, Lufthansa Group announced its purchase of a stake in Brussels Airlines. In June 2009 the EU Commission granted regulatory approval for this strategic partnership between Brussels Airlines and Lufthansa. The decision paved the way for Lufthansa to acquire an initial 45% stake in SN Airholding SA/NV, the parent company of Brussels Airlines. Lufthansa has an option to purchase the remaining 55% of Brussels Airlines until 2017.
In September 2009, Lufthansa purchased Austrian Airlines with the approval of the European Commission.
On June 11, 2010, the Airbus A380 service was operated between Frankfurt and Tokyo
2010s: Belt-tightening
After a loss of 381 million euros in the first quarter of 2010 and another 13 million loss in the year 2011 due to the economic recession and the cost of restructuring, Deutsche Lufthansa AG cut 3,500 administrative positions or around 20 percent of the clerical total of 16,800. In 2012 Lufthansa announced a restructuring program called SCORE to improve its operating profit. As a part of the restructuring plan the company started to transfer all short-haul flights outside its hubs in Frankfurt, Munich and Düsseldorf to the company’s re-branded low-cost carrier Germanwings.
In September 2013 Lufthansa Group announced its biggest order, for 59 wide-body aircraft valued more than 14 billion euros at list prices. Earlier in the same year Lufthansa placed an order for 100 next-generation narrow-body aircraft.
The group has had a long-standing dispute with the Vereinigung Cockpit union which has demanded a scheme in which pilots can retire at the age of 55 and 60% of their pay be retained, which Lufthansa insists is no longer affordable. Lufthansa pilots were joined by pilots from the group's budget carrier Germanwings to stage a nationwide strike in support of their demands in April 2014 which lasted 3 days. The pilots staged another 6 hours strike at the end of the Summer holidays in September 2014, which caused the cancellation of 200 Lufthansa flights and 100 Germanwings flights.
In November 2014, Lufthansa signed an outsourcing deal worth $1.25 billion with IBM that will see the US company take over the airline’s IT infrastructure services division and staff.