1. WHAT WERE THE REASONS FOR THE FAILURE OF BA’S AND KLM’S LOW COST STARTUPS GO AND BUZZ?  You might like to think about the areas of culture, financial structure, and operations in answering this question. 20%

2 IN 2002, WHO WERE THE DOMINANT LOW COST CARRIERS IN EUROPE? WHAT MARKET SHARE DID THEY HAVE? (please be sure to distinguish market share by passengers from market share by turnover in your answer) WHAT WAS THE SIZE OF THE LOW COST CARRIER MARKET? HOW HAVE THESE MARKET SHARES DEVELOPED OVER TIME TO 2002? 20%.

3 PLEASE COMPARE AND CONTRAST THESE DOMINANT LOW COST CARRIERS AGAINST EACH OTHER (you might like to think about issues like culture, management, finances, profitability, operations, experience). BASED ON THIS COMPARATIVE ANALYSIS, PLEASE IDENTIFY THE COMPETITOR THAT IS THE BEST PREPARED FOR FUTURE COMPETITIVE SUCCESS : please make sure you provide solid evidence for your forecast 20%

4 BASED ON THE ABOVE ANALYSIS, WHAT WOULD YOU ADVISE LUFTHANSA TO DO, TO 40% ADDRESS THE THREAT OF LOW COST CARRIERS? Please make sure that you give your proposed actions a full discussion, bringing in as evidence to justify your recommendations data from the case and your above analysis, plus other data you have obtained from your research. Please rank suggestions, and provide a full discussion for each one’s place in the ranking. Please provide your assessment of how successful you expect this recommendation to be (or not), and why. Please also provide a time frame for your recommendations, and the major steps in achieving them, preferably in a GANTT chart)