OVERALL PHASES OF ECONOMIC INTEGRATION

The development in the air transport sector can overall be described through the three packages from the EU, with the aim of liberalizing and integrating the sector and reaching a common market. The common contents of all packages are the license to operate, access to market and rules relating to price setting and competition.

Previously, the air sector industry was characterized by several larger national airlines set up as “full service network carriers. ” A full service network carrier is an airline that focuses on providing a wide range of pre-flight and onboard services, including different service classes, and connecting flights. Also these types of airlines often have obligations and responsibilities as to ground-handling, cleaning, catering, handling of baggage etc. Since most of these airlines operate a hub-and-spoke model, this group of airlines are usually also referred to as hub-and-spoke airlines. A hub-and-spoke model operates with the business model of not offering direct flights. Travelers moving between airports characterize the
The German company, Lufthansa AG, is operating under the mission of providing passenger and cargo air transportation services worldwide. The Company offers flight and connection programs in cooperation with Star Alliance airline partners from North America, Scandinavia, and Asia. The Star Alliance is.. Lufthansa also provides travel agency, catering, and aircraft maintenance services and thereby navigates under a hub-and-spoke business model.

Right-sizing for the Air Transport Sector – effects from the changing circumstances

Right-sizing for Lufthansa – effects from the changing