Lufthansa Systems Stays Course For Further Growth


– Strong rise in revenues with external customers – Pioneering work in cloud computing

Kelsterbach, Germany | March 18, 2013– Lufthansa Systems today announced that it ended the past business year with a further increase in its revenues and earnings. The company generated revenues of EUR 609 million (+1.7%) with an operating result of EUR 21 million (+10.5%) in 2012. Revenues with external customers rose by 11.3% to EUR 256 million. Although the market for IT services in the airline industry was particularly affected by price pressures and difficult growth prospects, Lufthansa Systems succeeded in closing contracts with a volume of EUR 649 million in 2012, thus laying the foundations for further profitable growth.

“The revenue increase with a growing number of external customers and our high volume of incoming orders show that we have significantly improved our competitive position through restructuring and the changes initiated in the context of the Lufthansa Group’s SCORE program,” said Stefan Hansen, CEO of Lufthansa Systems AG. “We want to achieve above- average growth in the German market and the international airline business in the coming years.” Thanks to its customer focus, rapid decision-making and great agility, Lufthansa Systems is able to react quickly to its customers’ needs. “We’re proud of our high degree of technological expertise, but the decisive factor for our customers is that this enables us to promptly develop customized solutions with high added value for them.”

Through numerous contracts with new and existing customers, Lufthansa Systems was able to further expand its leading role in the airline IT sector over the past year. Lufthansa Passage, Lufthansa Cargo and Star Alliance renewed their contracts for the management of their worldwide data networks based on SkyConnect. Malaysia Airlines was another customer opting for this product. The Air France-KLM Group and Ryanair were acquired as important new customers for the Lido/Flight flight planning solution. Singapore Airlines extended its contract for another eight years. Numerous airlines opted for myIDTravel, the integrated solution for managing staff travel which is already being used by more than 160 airlines worldwide.

Hansen sees particularly high potential outside the airline industry. Here, Lufthansa Systems concluded consultancy contracts with Volkswagen in 2013 and is taking over the operation of all business-critical credit card processes for the travel management specialists AirPlus. The Hamburg Port Authority commissioned additional services from the company as part of its project to update the port railway IT network to ensure the continued operation of the railway in the face of a growing volume of goods and limited capacity. “Innovation, years of project experience and our comprehensive understanding of complex business processes make us a very desirable partner,” Hansen said. “We’re aiming for disproportionately high growth in the German market in the coming years.”

“Our continued high volume of incoming orders is the result of our consistent focus on the market and on customers on all levels,” Hansen explained. “Our goal is to make our customers more competitive. This is why we continually invest in the development of new products and services using the latest technologies.”

A company defined by innovation

The Guest Service Portal is of one the innovative solutions successfully launched by Lufthansa Systems last year. The first integrated entertainment and business intelligence platform for the hospitality industry has sparked a great deal of interest internationally. The Guest Service Portal makes travel more comfortable, facilitates communication between guests and service staff during the entire trip and improves service processes. Shortly after the market launch, well-known customers from the cruise ship industry like Hurtigruten opted for the solution.

The BoardConnect wireless in-flight entertainment solution has set a new technological trend by enabling passengers to access a wide range of information and entertainment options using their own tablets, laptops or smartphones. BoardConnect received two coveted international innovation awards in 2012. The solution is already being tested by the launch customer, Condor, as well as by Virgin Australia. Lufthansa carried out tests on an Airbus A320, and further discussions are currently underway with this airline and other potential customers.

Within the Lufthansa Group, too, Lufthansa Systems is an important innovation driver. In the context of the Lido@LH project, all Group airlines are migrating their flight planning to Lido/Flight. Together with harmonized dispatch processes and the establishment of a central dispatch center, this will lead to significant cost reductions in the Group. To better meet the specific requirements of the Group, Lufthansa Systems established the new Lufthansa Infrastructure profit center at the start of 2013.

Leading position in cloud computing

Lufthansa Systems places special emphasis on quickly identifying and taking advantage of new technologies and IT trends, especially cloud computing. “In this technically challenging field, we’re a pioneer when it comes to making the technology available to our customers,” Hansen said. “We intend to expand our position through continual investment and innovation.”

Thanks to its global network of modern data centers, Lufthansa Systems is in an outstanding position to fulfil the individual security and compliance requirements of a wide range of customers. The company has a great advantage in that its data centers are designed to meet the high security standards of the aviation industry. Lufthansa Systems has already achieved a virtualization rate of 85 percent in its data centers.

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