Lufthansa Service Lines

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Product/Services Lines:

Passenger Business:

As an international airline Lufthansa's core activity is passenger services. The Passenger Business segment also includes Lufthansa CityLine.

Lufthansa CityLine, the second scheduled carrier in the Lufthansa Group, is a wholly-owned subsidiary of Deutsche Lufthansa AG. Employing 2,336 people (as of 31.12.2002), it operates a third of Lufthansa flights in the Group's European network. In 2002, CityLine carried more then 6.2 million passengers.

20032002%

Revenuein million10,20810,461-2.4

Profitin million157516-69.6

Capital expenditurein million6786327.3

Employees(31.12.)34,55934,638-0.2

Passengersin millions45.443.93.4

Available seat-kilometresin billion124.0119.93.5

Revenue seat-kilometresin billion90.788.62.4

Passenger load factor%73.173.9-0.8P

Logistics:

Lufthansa Cargo is the world's Number One provider of international scheduled airfreight services. Its position is bolstered by strategic alliances.

Lufthansa Cargo markets and handles the transportation of cargo and mail in the Lufthansa Group. It augments its own air services with trucking services or flights operated jointly with partner carriers. In the international scheduled airfreight business, Lufthansa Cargo is the frontrunner among the IATA carriers.

Lufthansa Cargo AG 20032002%

Revenuein million2,1612,350-8.0

Profitin million34168-79.8

Capital expenditurein million319-

Employees(31.12.)5,0755,205-2.5

Cargo and mail1,000 t.1,5801,625-2.7

Available tonne-

kilometresin millions10,81410,7480.6

Revenue tonne-

kilometresin millions7,0897,158-1.0

Load factor %65.666.6-1.0P

Catering:

With a 34 per cent market share of the airline catering business, LSG Sky Chefs is the world's largest airline caterer.

LSG Sky Chefs is the world's largest provider of inflight services, ranging from catering and procurement to equipment management and total inflight service management. LSG Sky Chefs supplies some 260 airlines from more than 200 catering facilities in 45 countries. In addition, LSG Lufthansa Service Holding AG is active in the airport, event, theatre and transport catering sector and is gradually expanding the convenient meal solutions segment in the United States. The structural integration of LSG and Sky Chefs was completed in 2002. The group achieved the turnaround and again posted a positive segment result.

20032002%

Revenuein million2,6673,076-13.3

Profitin million-8268-

Capital expenditurein million14810442.3

Employees(31.12.)31,73433,845-6.2

Leisure Travel:

The Thomas Cook AG is one of the largest travel groups worldwide, with some 32 established tour operator brands, such as Neckermann Reisen.

Thomas Cook AG began operations at the beginning of 1998, though still under the old name of the company, C&N Touristik AG. The international leisure group works across the travel value chain - airlines, hotels, tour operators, travel and incoming agencies - thus providing its customers with the right product in all market segments across the globe.

The Group encompasses 32 tour operators (among others Thomas Cook Reisen, Neckermann Reisen, JMC, Havas Voyages Vacances, Pegase), about 3,600 travel agencies, a portfolio of 76,000 controlled hotel beds, a fleet of 87 aircraft and a workforce numbering some 28,000.

The company is represented in the sales markets of Germany, Great Britain, Ireland, France, Belgium, Luxembourg, the Netherlands, Austria, Hungary, Poland, Slovakia, Slovenia, Egypt, India and Canada.

2001/20022000/2001%

Revenuein million7,2428,059-10.1

Net profitin million-251-120-

Total assetsin million4,2364,743-10.7

Employeesø25,16427,975-10.0

Passengers1,00012,48513,334

Maintenance Repair Overhaul:

Lufthansa Technik maintains, repairs and overhauls the fleets of more than 370 airlines. And it customizes VIP and executive jets.

Lufthansa Technik is the world's leading supplier of MRO services for commercial airliners. It services and overhauls aircraft and aero-engines, electric equipment and components. Aside from the airlines in the Lufthansa Group, its customer base encompasses a further 370 carriers. Lufthansa Technik also provides Total Technical Support for entire fleets and customizes VIP cabins to user requirements. With its global network of more than 20 subsidiaries and affiliates in Europe, Asia and the United States, the Lufthansa Technik Group can meet the full range of customer requirements in the field of technical support services for civil aircraft.

IT Services:

As of January 2001, Lufthansa has bundled its important IT activities under the roof of Lufthansa Systems Group GmbH. The company focuses on business fields in which it has a competitive edge.

In-depth knowledge of all airline and aviation processes and the comprehensive range of solutions for the complex requirements of its customers have made Lufthansa Systems one of the leading IT providers in the airline and aviation industry worldwide.

Outside the airline and aviation industry, this specific expertise and many years of experience, is an ideal basis for the transfer of IT services. This ability enables Lufthansa Systems to present itself as a competent partner for a variety of industries.

Other services:

Delvag Luftfahrtversicherungs-AG

Delvag Luftfahrtversicherungs-AG, together with its Albatros Versicherungsdienste GmbH and Delvag Rückversicherungs-AG subsidiaries, forms the insurance group at Lufthansa.

Delvag, with more than 75 years' experience in aviation insurance, offers its know-how to airlines, aviation companies, aviation associations and private air travellers. In transport insurance, it provides a broad product and service portfolio geared to the needs of shippers and forwarders. The Albatros insurance broker handles corporate insurance for companies in the Lufthansa Group as well as more than 1,000 other firms. It also serves staff at the Lufthansa Group as well as 50,000 other customers with private insurance services (personal insurance, capital investment, financing, real estate).

Lufthansa Flight Training GmbH

Lufthansa Flight Training runs courses, worldwide, for cockpit and cabin crews. Apart from its commercial pilots training school, it organizes simulator and computer-aided training as well as emergency, team and safety training courses. In addition to its training activities for the Lufthansa Group, the subsidiary lays on courses for the staff of more than 40 other airline around the world. One of the world's biggest training companies, it employs a staff of 400.

Lufthansa Commercial Holding GmbH

Lufthansa Commercial Holding oversees stakes held by Lufthansa in service companies that augment, expand and safeguard its core business activities. Its activities encompass sales, travel, training, fuelling, infrastructure (real estate, building management services and logistics) and consulting/financing (aircraft leasing).