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Balance Key data on environmental care and sustainability at Lufthansa Issue 2003/2004 Facts and Figures At a glance The Group fleet Our Group companies Lufthansa and research The Aviation Group

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Page 1: Issue 2003/2004 Balance

BalanceKey data on environmental care and sustainability at Lufthansa

Issue 2003/2004

Facts and Figures■ At a glance■ The Group fleet■ Our Group companies■ Lufthansa and research

The Aviation Group

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Page 2: Issue 2003/2004 Balance

Balance Facts and Figures 2003/2004 3

About this report

This publication informs you about the latest indicators,facts and data concerning environmental care and sustainability at Lufthansa. It documents the steps ourcompany’s most important businesses took in 2003 toprotect the environment and conserve natural resources.You also find a separate chapter covering social issues at Lufthansa and our Group-wide civic commitment.

Lufthansa in profile

Editorial by the Head of Group Environmental Concepts

At a glance

Key facts in brief

FeatureNoise research – decibel by decibel

Our flight operations

The Group fleetPassenger transportFreight transport

Our Group companies

Lufthansa Passenger Airline

Lufthansa CityLine

Thomas Cook AirlinesCondorThomas Cook Airlines UKThomas Cook Airlines Belgium

Air Dolomiti

Lufthansa Cargo

Lufthansa Flight Training

Lufthansa Technik

Condor/Cargo Technik

LSG Sky Chefs

Our social responsibility and commitment

Lufthansa and research

Environmental ABCs

Group contact directory

4

5

6

7

8

121921

23

26

29293030

31

32

35

36

38

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42

47

51

54

Contents

http://sustainability.lufthansa.com @

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Balance Facts and Figures 2003/20044

The Lufthansa Aviation Group is one of the world’s leading air transport corpora-tions. It comprises more than 400 independent group and affiliated companies,active in business segments including passenger airlines, logistics, aircraft main-tenance, catering, tourism and IT services. A further business segment coversthe areas of aviation and financial services.

Lufthansa’s headquarters is in Cologne. Its operational center for passenger andcargo services is located in Frankfurt. The other key locations in Germany areMunich, Berlin and Hamburg.

Measured by traffic performance, Lufthansa ranks third worldwide in passengertransport. And the company has been the number one in international cargo traf-fic for many years. Last year, the Group’s 434 aircraft (including those of ThomasCook AG) flew on routes to 450 destinations, carrying 56.2 million passengersand 1.58 million tons of air freight. The seat load factor for the Group’s fleetreached 82.07 percent (+1 percentage point), while our total payload factor roseto 77.1 percent (+1.2 percentage points).

Lufthansa considers a modern, young fleet indispensable. Modern aircraft aremore economical and more environmentally compatible to operate than oldermodels, as they burn less fuel and emit fewer pollutants. Accordingly, the airlinelaunched a fleet modernization program in 2003. By the end of 2005, ten newAirbus A340-600s and ten new Airbus A330-300s will replace older aircraft.Lufthansa is planning to operate the new Airbus A380 from 2007. LufthansaCargo is also set to modernize its fleet by 2005 and to replace its Boeing 747-200s with MD-11 freighters. With an average age of 8.4 years, the Lufthansa fleetis roughly two years younger than the combined fleet operated by IATA carriers.

To offer its customers a dense network of seamless connections, Lufthansa hasbuilt up a number of worldwide partnerships. Launched in 1997, the Star Allianceis the most important of these link-ups. Last year, three more important carriersjoined the Star Alliance: Asiana, SpanAir and LOT. US Airways is set to follow insummer 2004 and South African Airways intends to join at the earliest possibledate. WOW, the first global alliance in the area of cargo, is having a positiveeffect. At the regional level, as well, Lufthansa is counting on a network ofalliances in the form of “Lufthansa Regional,” which joins different carriers undera common roof. Alliances such as these help improve aircraft utilization. There-fore, they not only make good economic sense but also help to reduce environ-mental pollution.

In the interest of securing sustainable development, the Lufthansa Group seesitself as committed in equal measure to the demands of shareholder value, envi-ronmental care and social responsibility. Our joining the UN Global Compact is avisible sign of this commitment. Along its path toward future economic success,Lufthansa will continue to take environmental issues into account, apply itsGuidelines for Environmental Protection in a consistent manner and fulfill itssocial responsibilities as a “global player.”

Lufthansa in profile

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Balance Facts and Figures 2003/2004 5

Dear Readers,

This year’s issue of our magazine Balance gives us occa-sion to look back, as we celebrate its 10th anniversary.Since 1994 Lufthansa has continuously reported about itsactivities in the area of environmental care. We were oneof the first airlines worldwide to account for the environ-mental impact of its operations.

Naturally, the 2004 issue of Balance has a completely different appearance than the one of 1994. A classic envi-ronmental report, primarily concerned with subjects suchas aircraft noise, emissions and resource consumption,has meanwhile evolved into a sustainability magazine,whose coverage has been complemented and expandedbeyond the concerns of immediate effects on the environ-ment. Nowadays, how a company practices socialresponsibility is no longer evaluated exclusively in termsof its adherence to legal limits. Instead, it is measured interms of a company’s ability to strike a balance betweenthe environment, economic efficiency and social concerns.

Today, just like ten years ago, Deutsche Lufthansa and itssubsidiaries hold a top position in terms of environmentalcare and sustainability. The most visible result of this long-term commitment is a significant decoupling of growthand environmental burden. In 2003, we achieved a newmilestone in energy efficiency by reducing specific fuelconsumption to 4.3 liters per 100 passenger kilometers.By introducing new and more efficient types of aircraft –such as the A330-300, the A340-600 and later on theA380 as well – we are on track across the Group toachieve values with the figure “3” in front of the point. Ten years ago, such values would have appeared illusory.

Editorial

This achievement is primarily due to the fact thatLufthansa’s management pays a great deal of attention at all times to the subjects of environmental care and sustainability – and backs up this attention with far-sighted investment decisions. Today’s fleet planning turns into tomorrow’s environmental protection.

But whether environmental care becomes anchored as a principle in a company’s routine business activitiesdepends on many small decisions made each and everyday. It depends on things that are not visible to the outsideand yet by themselves or in their sum have a significantimpact. Here the employees across the Lufthansa AviationGroup, who have made environmental care and sustain-ability their calling, play a key role. With their expertise,they have become important advisors of management.Moreover, thanks to their commitment, they are both anexample for others and the drive behind sustainableprogress.

I hope that this year we have again succeeded in puttingtogether an informative report and that we have presentedfacts and figures in a way that is transparent, understand-able and interesting for you. I look forward to your com-ments and suggestions.

Dr. Karlheinz HaagHead, Group Environmental Concepts

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Balance Facts and Figures 2003/20046

Size of active fleet (on December 31, 2003)

Transport performanceNumber of flights

Passengers carried

Freight carried, tons

Seat kilometers offered

Freight ton kilometers offered

Ton kilometers offered

Passenger kilometers transported

Freight ton kilometers transported (including performance for third parties)

Ton kilometers transported

Resource consumptionFuel consumption

Fuel consumption, specific, passenger transport

Fuel consumption, specific, cargo transport

EmissionsCarbon dioxide emissions

Carbon dioxide emissions, specific, passenger transport 4

Nitric oxide emissions

Nitric oxide emissions, specific, passenger transport 4

Carbon monoxide emissions

Carbon monoxide emissions, specific, passenger transport 4

UHC emissions

UHC emission, specific, passenger transport 4

Key Group Data Deutsche Lufthansa AG12003 2002 Change

Revenue

Traffic revenue

Loss/profit from operating activities

Net loss/profit for the period

Operating result

Capital expenditure 2

Operating cash flow

Total assets

Shareholders’ equity

Staff costs

Employees (annual average)

million c

million c

million c

million c

million c

million c

million c

million c

million c

million c

16,971

12,032

1,592

717

718

880

2,312

19,137

4,125

4,660

94,135

– 6.0 %

– 3.1 %

– 95.0 %

+ 31.3 %

– 31.6 %

– 12.6 %

– 35.7 %

– 1.0 %

+ 0.7 %

tons

million SKO

million FTKO

million TKO

million PKT

million FTKT

million TKT

tons

liters/100 PKT

grams/ TKT

tons

kg/100 PKT

tons

grams/100 PKT

tons

grams/100 PKT

tons

grams/100 PKT

434

565,237

56,197,980

1,576,000

162,510

10,958

26,578

133,371

7,349

20,491

5,955,566

4.31

185

18,783,853

10.88

89,639

50.9

14,413

8.8

2,338

1.1

368

509,799

50,944,851

1,630,000

143,303

10,804

24,924

116,174

7,325

18,907

5,540,983

4.51

184

17,476,262

11.39

83,265

53.3

13,997

9.7

2,331

1.3

+ 66

+ 10.9 %

+ 10.3 %

– 3.3 %

+ 13.4 %

+ 1.4 %

+ 6.6 %

+ 14.8 %

+ 0.3 %

+ 8.4 %

+ 7.5 %

– 4.4 %

+ 0.5 %

+ 7.5 %

– 4.5 %

+ 7.7 %

– 4.5 %

+ 3.0 %

– 9.3 %

+ 0.3 %

– 15.4 %

Group Environmental Data Deutsche Lufthansa AG 32003 2002 Change

3 Due to a change in the scope of consolidation, the previous year’s data is not fully comparable. The data for 2003 comprise the following companies: Lufthansa Passenger Airline, Lufthansa CityLine, Condor, Thomas Cook UK, Thomas Cook Belgium, Air Dolomiti and Lufthansa Cargo AG.

4 Specific emissions data for cargo transport can be found in the section “Freight transport.”

1 Source: Lufthansa Annual Report 2003.2 Capital expenditure without equity. You will find further information on this subject in the Lufthansa Annual Report 2003.

At a glance

Order your personal copy of our Annual Report 2003 at www.lufthansa.com@

15,957

11,662

– 147

– 984

36

1,155

1,581

16,732

2,653

4,612

94,798

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Balance Facts and Figures 2003/2004 7

Key facts in brief■ At the end of 2003, the fleet of the Lufthansa Aviation Group counted 434 aircraft,

which were 8.4 years old on average. The Group fleet comprises the aircraftoperated by Lufthansa Passenger Airline, Lufthansa CityLine, Air Dolomiti, ThomasCook and Lufthansa Cargo.

■ In 2003, the passenger fleets of Deutsche Lufthansa AG consumed 4.3 liters ofkerosene on average to carry one passenger over a distance of 100 kilometers.Since 1991, specific fuel consumption has thus fallen by almost one-third. A totalreduction of 38 percent is planned by 2012.

■ The trend of decoupling growth in passenger traffic from the environmentalimpact of air transport was continued successfully in 2003. Since 1991, passen-ger-related transport performance of Lufthansa Passenger Airline has increasedby 128 percent, while fuel consumption and related CO2 emissions have risen byonly 56 percent. Consequently, more than half of this growth has been achievedwithout additional burden on the environment.

■ The introduction of the Airbus A340-600 as successor to the Boeing 747-200 isset to lower the fleet’s environmental impact even further. The A340-600’s noisefootprint is three-quarters smaller and its fuel consumption one-quarter less. Inthe same way, the Lufthansa fleet’s new A330-200s and A330-300s also excelwith their outstanding environmental performance.

■ The Group fleet’s most fuel-efficient aircraft are the A330-200s and Boeing 757-300soperated by Thomas Cook UK, both with 2.7 liters per 100 passenger kilometers.

■ Lufthansa makes considerable investments in modern, environmentally compati-ble and quiet aircraft – with audible success. All Lufthansa aircraft meet the moststringent noise standards currently in force worldwide. Even today, 88 percent ofall its aircraft meet the tightened standards for new aircraft set to come into forcein 2006. The noise footprints modern jets produce on the ground are significantlysmaller than those produced by preceding models. Accordingly, residential areassurrounding airports are exposed to considerably less noise at irritating levels.

■ Lufthansa Cargo AG has decided to replace all its Boeing 747-200 freighters withmodern Boeing MD-11s by 2005. These aircraft fly more cleanly, more quietlyand more fuel-efficiently.

■ Lufthansa CityLine received multiple awards for its commitment to environmentalcare. Amsterdam’s Schiphol Airport awarded the regional airline first prize in thecategory “Noise reduction.” In the competition for the “Environmental ReportingAward” of the Chamber of Public Accountants, CityLine’s Environmental Reportalso received the first prize.

■ Thanks to the AIRail product, Lufthansa passengers have had the option sinceMay 2003 of traveling at “altitude zero” between Frankfurt and Cologne as well.As a result, two of the six flights between these cities could be eliminated. Check-in on this route, including checked-in baggage for connecting flights from Frank-furt, is taken care of directly at the central train station. The AIRail service is alsoavailable on the route between Stuttgart and Frankfurt.

■ In June 2003, Europe’s most modern terminal was opened at Munich Airport. The new building is a joint project of Lufthansa and airport operators FlughafenMünchen GmbH. It is equipped with state-of-the-art technology, including a solarenergy system installed on the terminal’s roof.

■ In 2003, Lufthansa increased its contribution to the European Union’s climateresearch program MOZAIC. Now three of the Group’s Airbus A340s also fly foratmospheric research.

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Balance Facts and Figures 2003/20048

Noise research – decibel by decibelUnder the guidance of the German Aerospace Center (DLR), the air transport industry, airport operators and scientists have assessed the issue of aircraft noise more thoroughly than ever before. After more than five years of research, results are now available.

Affluence needs the mobility of people and goods. But any type of traffic is associated with noise and thusbecomes the subject of debate in society. According to a survey of Germany’s Federal Environment Agency, 50 percent of the population is affected by traffic noise. One condition for more mobility is to be successful inbringing noise down to an acceptable level.

The project “Quiet Air Transport” comprised all the facetsof the noise issue. It investigated technologies to makeengines quieter as well as approaches to reduce aero-dynamic noise. Experts grappled with noise-reducing flying procedures and transport concepts. They worked on optimizing procedures to calculate noise and searchedfor ways to improve the description of sound propagationin their models, which would make noise prognoses moreaccurate. And they tackled the important task of finding asolid knowledge base for the assessment and evaluationof the effects of night-time aircraft noise.

The DLR estimates the long-term potential for noise reduc-tion to be 10 to 12 decibels. This would correspond tohalving the volume perceived by the human ear. It wouldalso make an A320 as quiet as one of today’s smallregional jets and a jumbo no noisier than a Boeing 737 is today. However, the technologies to achieve this goal

are not likely to be available before the end of the comingdecade. In the more immediate future, 2 to 3 decibelsshould be realistic, and about 5 to 6 decibels over thenext five to ten years. The latter coincides with phasing in the next generation of passenger jets. The size of theirnoise footprint is likely to be 40 percent smaller than thatof comparable jets currently in service.

Engine noiseThree years ago, Lufthansa and the DLR successfully tested a chevron nozzle on an Airbus A319 engine andproved in measurements that this nozzle reduces thenoise generated by the exhaust jet by a full decibel. A chevron nozzle fitted to the rear edge of the enginecowling would likely result in a 3-decibel improvement. In the meantime, Rolls-Royce and Boeing have conduc-ted similar trials with success.

To make engines quieter by a full order of magnitude, thesecondary air jet ratio needs to be increased and thus theportion of air that does not pass through the engine, butthat the fan guides around it. The higher the secondary airjet ratio, the lower the speed of the hot exhaust jet and theless noise. Today, a ratio of 1:6 is common and the newRolls-Royce engines for the A340-600 and A380 have aratio of 1:8. But scientists estimate that long-term a ratio of

Left: Lufthansa A319, with technical modifications to reduce noise, during the noise measuring campaign at Cochstedt Airport in 2001:Lufthansa employees prepare the aircraft for flyover measurements.Right: The chevron nozzle, developed by Lufthansa in cooperation with the DLR, was the most complex measure to reduce noise.

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1:12 will be necessary. Such an engine would have a sig-nificantly larger diameter than current ones and thus haveimplications for an aircraft’s structural characteristics – andfor operating costs, as manufacturers fear.

However, it is not enough just to tackle a single source ofnoise on an aircraft as a whole or on an engine in particu-lar because the others then become all the more distinct.As the front fan is an engine’s most important internalsource of noise, it was also a starting point for the DLR-project “Quiet Air Traffic.” The research has resulted in aprocedure for the design of a low-noise fan and relatedsuggestions for construction.

One approach that has been pursued by scientists for a long time is the use of counter noise. Here, the soundwaves emitted by a source of noise are overlaid by corre-sponding counter waves, so that the peaks and troughsoverlap and thus cancel each other out. But what soundssimple enough in theory becomes a virtually impossibletask in the context of a complex sound field like that of an engine’s air inlet. The sound field would have to bemeasured several times per second by numerous micro-phones. The resulting data would then have to be used tocalculate the signals for a correspondingly large number of loudspeakers in real time. The DLR team found a way,though, to simplify this task considerably. Even so, itremains far from being ready for deployment. Anotherresult of the researchers’ work is a procedure to generatecounter noise within the engine by modifying the air flowaround the fan blades using targeted air jets.

Aerodynamic noiseDuring a flight’s approach phase, aerodynamic noise fromthe airflow around the aircraft is as loud as that from theengines. It is generated by turbulences around the under-carriage, the landing flaps at the wings’ trailing edges aswell as the interaction between landing gear and flaps.Beyond this, there are a number of other, smaller causes.Within the scope of the “Quiet Air Traffic” project, the scien-tists wanted to achieve a noise reduction of 3 decibels inthe areas of landing gear and flaps.

An important part of the research consisted in determiningand analyzing the different causes of noise generation indetail. This work was based in part on measurements con-ducted in the German-Dutch Wind Tunnel with a landinggear and an A320 wing. The second consisted of twocomplex measuring campaigns, conducted by Lufthansawith support from the DLR, to precision-measure an AirbusA319 and a Boeing MD-11 flying over an acoustic camera.

Here, individual sources of noise could be identified, suchas the fuel tanks’ overpressure relief outlets under the Air-

bus A319’s wings. The air flow passes over these open-ings as if over the neck of a bottle, producing two loud,unpleasant tones. Small, so-called vortex generators set in front of each opening solved this problem. Duringthe initial approach phase, the aircraft’s overall noise isreduced by 6 decibels. Other DLR research projectsshowed that the noise generated at the trailing edge ofsurfaces exposed to air flow, such as wings or front spoil-ers, can be reduced significantly by brushes or porousedges. It is important to note that these results can betransferred to the Airbus A320 and A321 as the wings ofall aircraft in the A320 family are comparable.

With its many struts, wheels, wires, ducts and openings,the landing gear represents an entire collection of individ-ual noise sources. Measurements in the wind tunnelshowed that a full housing – which is not practicable –would reduce landing gear noise by 20 decibels. Usingmore realistic and refittable aerodynamic housings forindividual components, scientists could still demonstrate a noise reduction potential of up to 3 decibels.

Using different microphone systems, DLR scientists examined anoriginal A320 wing set up in the German-Dutch Wind Tunnel.

(Photo: DLR)

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Forecasting methodsIn planning airports and assessing approach and depar-ture routes, it is crucial to be able to forecast expectednoise burdens with the highest-possible accuracy. However, the propagation of sound depends on a varietyof influences, which can significantly affect the noise levelperceived at a given point and make forecasting a highlyinvolved task. Topography and land use play a role here,as do wind direction and temperature profiles. In theatmosphere, sound is deflected, scattered, refracted orreflected at boundary layers in the air.

Current models of sound expansion do not consider manyof these factors or only treat them in a generalized manner.Precise calculations fail because of the sheer volume ofdata that result from the requirements of numerical analy-sis. To calculate the sound propagation in an area around an airport – set in a cube with a height of 1 kilometer, alength of 10 kilometers and a width of 5 kilometers – onewould need a model with 1,200 billion loops (1.2 x 1015).And even using an advanced super computer the calcula-tion time would amount to 11 million years.

Nevertheless, as a result of the project “Quiet Air Traffic,” scientists presented simplified methods that improve the accuracy of forecasting using today’s more modestmeans. They also developed a new simulation model for the sound propagation from aircraft. This model can be used for the optimization of approach and departureprocedures and helps to improve current calculation models for forecasting aircraft noise.

Approach and departure proceduresAnother approach to noise reduction is to optimize thedeparture and approach phases, and that with regard tonot only where aircraft fly but also how they fly. Climbingat steep angles quickly results in high flyover altitudes andthus less noise. But it also requires more engine thrust,which produces more noise. There is a similar problemwith the approach. Here, the slower an aircraft flies, thequieter it is. But to fly slowly, the landing flaps must beextended and they are one of two key causes of aero-dynamic noise.

The research showed that both the departure procedureused by Lufthansa and the “low drag/low power”approach known as “Frankfurt Procedure” – in whosedevelopment Lufthansa played a significant role – aresuperior to other procedures currently used when itcomes to environmental criteria. In general, scientists point to further potentials for improvement, which couldmake approaches, for example, quieter by up to 3 deci-bels. There are limitations here, though, with regard to the work load in the cockpit and to safety. Descents at anglessteeper than the current 3 degrees would be desirablefrom a perspective of noise reduction, but cannot be flown due to the high-level aerodynamic qualities oftoday’s aircraft.

Effects of aircraft noiseOne of the project’s highlights is the largest study world-wide on the effects of nightly aircraft noise on people’ssleep and health. This research is an important contribu-tion to making this debate – which can become highlyemotional – more factual. The common assumption hereis that nightly noise leads to wake-up reactions, reducesthe share of deep-sleep phases and causes the body torelease stress hormones. Presumably, the consequencesare tiredness and reduced performance the next day andlong-term health problems, such as heart attacks andother cardiovascular illnesses.

For the DLR’s study, 128 test persons were exposed to aircraft noise for 13 nights in the sleep laboratory. In a field study in the area surrounding Cologne/Bonn Airport,one of Germany’s regions most affected by nightly aircraftnoise, 64 test subjects were monitored for nine nights intheir homes.

Sleeping for science: Complex medical measurement technology is used to monitor test persons in the sleep laboratory. Aircraftnoise events are recorded by supplementary microphones.

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On average, they were exposed to 41 flights passing over-head per night. All test participants were healthy peoplebetween 18 and 65 years of age who consider themselvesdisturbed by noise. In addition to sleep duration and quali-ty of sleep, both measured with established sleep researchmethods, the level of stress hormones and the test partici-pants’ performance levels were measured next morning.

A total of 2,240 test person nights from laboratory andfield measurings – three times as much as the combineddata in all existing studies on nightly aircraft noise takentogether – and more than 45,000 aircraft noise eventswere used to create a database. This database allows theresearchers to make statistically proven statements aboutthe effects of aircraft noise and derive dose-effect relation-ships. There were significant differences between the mea-surements made in the laboratory and in the test partici-pants’ familiar home environment.

While the DLR’s scientists observed an unequivocal rela-tionship between noise level and the share of test partici-pants who felt annoyed by aircraft noise, no statisticallysignificant correlation between noise and the performancelevels observed the following morning could be proven.There was also no change with regard to the stress hormones adrenaline and noradrenaline. Release of thehormone cortisol was increased, but only in the sleep laboratory and not in the tests in the participants’ homes.

Sleep duration and sleep structure also showed significantchanges in the laboratory only, another indication of thepositive influence habitual surroundings have. In the lab,the deep-sleep phase decreased by 4 minutes for anaverage sleep duration of 7.5 hours.

An important result of the study is that human beings havean average of 24 wake-up reactions in the course of anight, even without external influences. These wake-upreactions of up to one minute each are clearly identifiablewith measuring techniques, but sleepers are not aware ofthem. This finding allowed the researchers to establish anunequivocal correlation between the maximum noise levelof a noise event and the probability of being woken up by it. Here again, the familiar surroundings at home had a positive influence. In fact, the scientists consider theseresults to be so clear that they allow rather accurate pre-dictions as to which percentage of the population livingclose to an airport will wake up once, twice or even moretimes per night due to aircraft noise. Therefore, they sug-gest making this the criterion for assessing the effect ofnoise. The difference would be considerable: Two or threetakeoffs at an airport that otherwise has no traffic barelyinfluence the equivalent continuous noise level (Leq), themeasuring unit currently used. But if these takeoffs areloud enough, this might mean that many people would

be disturbed in their sleep. In contrast, many takeoffs of correspondingly quiet aircraft might be without effectunder certain circumstances, as people living near an airport would not even perceive them in their sleep.

Political framework of conditionsOver the past decades, air traffic has occupied a pioneer-ing role in the area of noise reduction. The noise level ofaircraft has declined by 25 decibels since the mid-1960s,a reduction of the perceived volume by about 75 percent.As DLR, Lufthansa and the other research partners wereable to demonstrate in their joint scientific work, the poten-tials have not been exhausted yet. Even without unforesee-able quantum leaps in technology, air transport is on theright course concerning this issue. How quickly availabletechnologies can be introduced in active fleets dependsfundamentally on whether the airlines can operate in aframework of conditions that allows them to earn themoney needed to finance the required investments.

Noise protection measures are realized more often in Germany than elsewhere, as the DLR found in a study of transport policy options in this area. They pinpointeddeficits above all in the effective development of measuresand in the analysis of whether these measures have aneffect in the first place. As a worthwhile field for more in-depth scientific work, they single out the land use aroundairports.

At Dusseldorf Airport, for example, the area where anequivalent continuous noise level (Leq) of 67 decibels prevails shrank by almost 80 percent from 33 to 7 squarekilometers from 1978 to 1999, even though the number of takeoffs and landings doubled. But as noise levels fell,residential construction edged closer and closer to the airport. As a result, a considerable share of the progress in noise reduction has been destroyed by urban planningdecisions made by the municipalities surrounding the airport.

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Balance Facts and Figures 2003/200412

The Lufthansa Group’s fleet comprises the aircraft ofLufthansa Passenger Airline plus those of all companies inwhich Deutsche Lufthansa AG holds a majority participa-tion: Lufthansa Cargo, Lufthansa CityLine, Condor, ThomasCook UK, Thomas Cook Belgium and Air Dolomiti. Thetotal is 434 aircraft, which is 66 more than during the pre-vious year. This increase is primarily due to the acquisitionof Air Dolomiti as well as the inclusion of both ThomasCook UK and Thomas Cook Belgium.

At an average age of 8.4 years, the Lufthansa Group fleetis roughly two years younger than the world fleet. It alsoflies with significantly less noise, greater fuel-efficiency andlower emissions than the world fleet. Actually, the sameapplies to the aircraft operated by companies in whichLufthansa only holds a minority share and which aretherefore not included in this report.

The absolute values for consumption and emissions inthis Environmental Report are only partially comparablewith last year’s figures, as they include consumption andemissions data for three new companies (Air Dolomiti,Thomas Cook UK and Thomas Cook Belgium). Together,these newly included aircraft represent a consumption of 412,000 tons of kerosene, or 6.9 percent of total fuelconsumption.

Specific energy consumption remains constantIn 2003, the Lufthansa fleet consumed a total of 5.96 mil-lion tons of kerosene, of which 77 percent goes to passen-ger transport and 23 percent to freight transport. Whiletotal fuel consumption increased by 7.5 percent, transportperformance rose by 8.4 percent to 20.5 billion TKT.

Lufthansa flight operations resulted in emissions of 18.8million tons of CO2, 89,600 tons of NOx, 14,400 tons ofCO and 2,300 tons of UHCs. Another 881 tons have to beadded to our hydrocarbon emissions, due to fuel dumps.There were 32 such cases in 2003, which is about one in 17,600 flights. In 15 cases, an unscheduled landing had to be made due to a medical emergency aboard; in 16 cases, technical reasons were the cause.

The Group fleet

The Group’s fleet expanded significantly by 66 aircraft as acquisitionswere made and majority participations included. Despite this expansion,one thing remains true: More than half of the growth since 1991 could be generated in an environmentally neutral manner. Our specific energyconsumption has remained virtually constant.

250

225

200

175

150

0

Development of specific fuel consumption of the Group fleetin grams/ton kilometer

98 00 01 02 039594 96 97 99

Passenger kilometers

Passenger ton kilometers

Freight ton kilometers

Ton kilometers

133,371,150,849 PKT (+ 14.8 %)

13,141,684,385 PTKT (+ 13.5 %)

7,349,073,301 FTKT (+ 0.3 %)

20,490,757,686 TKT (+ 8.4 %)

Transport performance

Kerosene, freight

Kerosene, passengers

Total

1,356,744 t (+ 0.8 %)

4,598,822 t (+ 9.6 %)

5,955,566 t (+ 7.5 %)

Fuel consumption in flight operations

Lufthansa Passenger Airline

Lufthansa CityLine

Condor

Thomas Cook UK

Thomas Cook Belgium

Air Dolomiti

Lufthansa Cargo

Average

Average IATA fleet, 31.12.2003

10.0 years

6.0 years

7.4 years

5.9 years

5.9 years

4.4 years

9.7 years

8.4 years

10.8 years

Average age of the Lufthansa Group fleet on 31.12. 2003

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Decoupling of transport performance and environmental impact

Changes compared to 1991 in percent,Values for the Lufthansa Group fleet, Absolute values

Transport performance (TKT) Fuel consumption/ CO2 emissions

NOx emissions

CO emissions

UHC emissions

1991 1992 1993 1994 1995 1996 1997 1998 1999 200220012000 2003

180

160

140

120

100

80

60

40

20

0

–20

–40

100

80

60

40

20

0

Emissions from flight operationsShares of passenger and freight transport, in percent

CO2 CO NOx UHC

passengers freight

18.8 million t 14,413 t 89,639 t 2,338 tGrowth and environmental impact decoupledApart from high levels of aircraft utilization, it is investmentsin new environmentally friendly technologies that haveallowed Lufthansa to decouple environmental pollutionfrom transport performance in a lasting manner. Since1991, transport performance has increased by 192 percent,while fuel consumption and the related CO2 emissionshave risen by only 90 percent. Our CO emissions haveremained virtually constant for the last eight years.

Lufthansa’s commitment in the area of noise reduction isequally exemplary. In September 2001, the ICAO’s environ-mental committee (CAEP) passed more stringent noise limits, which are to go into effect in 2006. Essentially, thesenew standards require that all newly-certified aircraftachieve a cumulative noise reduction of 10 decibels belowcurrent thresholds for three decisive noise values: take-off,sideline and landing. Today, 88 percent of all aircraft oper-ated within the Lufthansa Group already fulfill this criterion.Here, the leader among our long-haul aircraft is the AirbusA340-600, which is cumulatively 24.3 decibels quieter thanthe noise levels permitted by the new regulations. However,the front-runners for the entire Lufthansa Group are the

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0

–2.0

–4.0

–6.0

–8.0

–10.0

–12.0

–14.0

Limits Chapter 3

Margins below the ICAO noise limits Lufthansa Cargo fleet 2003, in EPNdB

B 747-200F

B 747-200SF

MD-11

Limits Chapter 4

(from January 2006)

0

–2.0

–4.0

–6.0

–8.0

–10.0

–12.0

–14.0

–16.0

–18.0

–20.0

–22.0

–24.0

–26.0

–28.0

–30.0

–32.0

Limits Chapter 3

Margins below the ICAO noise limitsLufthansa passenger fleets 2003, in EPNdB

B 747-400

B 747-200*

A340-300

A340-600

A340-200

A330-300

A330-200

Short and medium-haul Long-haul

B 737-300

B 737-500

A300-600

A310-300

A321-100

A321-200

A320-200

A319 B 767-300

B 757-200

B 757-300

CRJ700

AvroRJ85

CRJ100

ATR42

ATR72

CRJ200

imits ChapterL rhapt 44

m January 2006)(fro ary 2

*phased out in 2003

ATR 42-500s operated by Air Dolomiti, which are 31.4decibels below these thresholds.

Bottlenecks in infrastructure burden the environmentAs demand for air travel began picking up again, theproblem of delays on approach worsened again last year.Lufthansa aircraft spent 9,415 hours (+11.3 percent) inholding patterns and burned about 33,200 tons ofkerosene (+12.8 percent) in the process. Arithmetically,this is enough fuel to carry 170,000 passengers fromFrankfurt to New York on an A340-300.

This quantity does not contain the additional fuel con-sumption due to flying faster in an attempt to make up fordelays. This is estimated to be another 30,000 tons. Tomake up for a 30-minute delay on a 10-hour flight, about6 percent more fuel is needed than at optimum cruisingspeed. Fuel consumption is also increasing due to longerblock times (the time between off-blocks at the departuregate and on-blocks at the arrival gate). In fact, a timebuffer based on this increase in block times is built intothe timetable to compensate for delays. Model calculationsshow that one additional minute of block time per flightresults in additional fuel burn of around 6,000 tons ofkerosene per year.

The focal point for these delays has been and remainsFrankfurt, with a share of over 40 percent. The resulting

burden on the environment could be avoided by expand-ing the infrastructure on the ground in line with demandand by implementing the urgently necessary reforms inEuropean air traffic control. These measures wouldincrease the energy efficiency of air transport by creatingadditional capacities in air space and avoiding “detour”routings. The world civil aviation organization ICAO esti-mates that the modernization of air traffic control couldhelp reduce fuel consumption by 5 percent by 2015. TheIntergovernmental Panel on Climate Change (IPCC) evenestimates this reduction potential to be as much as 8 to 18 percent.

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Reduce 1991 specific fuel consumption by 33 percent by 2008, and by 38 percent by 2012. Achieve related reduction in specific emissions.

Work toward the introduction of uniform standards to calculate specific fuel consumption at the AEA level by 2005.

Reduce noise emissions in the vicinity of airports.

Examine opportunities to reduce noise in the vicinity of airports.

Create intelligent mobility concepts in cooperation with railway operators in order to shift short-haul traffic to the rails.

From 1991 to 2003, the Group’s passenger fleets already managed toreduce their specific fuel consumptionby 30.5 percent.

Acquisition and operation of 10 A340-600s (from Oct. 2003), 10 A330-300s(from 2004), 5 MD-11s (from 2005), 15 A380-800s (from 2007). As of Dec. 31, 2003: four A340-600swere in operation.

This measure saves about 17,000 tonsof fuel per year.

On routes where this optimization is applied, fuel savings of about 1 percent and related reductions in emissions are achieved.

To be launched in April 2004. A fuelsavings of about 50,000 tons a year is expected from this measure.

Has been introduced at several airports.

Concept has been developed. Harmo-nization within the AEA has not yet been accomplished.

Within the scope of the DLR’s interdisci-plinary project “Quiet Traffic,” additionalprocedures for approach and departureare being investigated.

New measure.

New measure.

In March 2001, AIRail connectionsbetween Frankfurt Airport and StuttgartCentral Station were launched (6x daily).In May 2003, the route Frankfurt Airport–Cologne Central Station was added(15x daily). Thus, two of six flightsbetween FRA and CGN could be withdrawn. The route Frankfurt Airport–Dusseldorf Central Station is to follow.This goal remains valid.

Key Group-wide environmental goals Environmental measures Degree of attainment Status

"

"

"

"

"

"

!

"

"

!

!

"# !Goal reached Not reached Goal remains valid New goal$

Acquisition and operation of modern environ-mentally compatible types of aircraft.

Introduction of optimized method for calculatingthe quantity of contingency fuel in order to minimize fuel consumption and emission of pollutants by determining fuel requirementsmore accurately.

Optimization of flight routings in the Asian region and resulting reduction of fuelconsumption and emissions by 2005.

To reduce delays on arrival at Frankfurt Airport,the peaks in traffic volumes are flattened slightly.

Increased use of ground-based energy supplyand preclimatized air (PCA), instead of usingthe aircraft’s auxiliary power unit (APU), wherever possible.

Harmonization discussions within the AEA’sEnvironmental Working Group.

Support for the use of the continuous descentapproach (CDA) to reduce aircraft noise duringnight-time hours.

Initiation and guidance of an interdisciplinaryresearch project in coordination with industry,universities and large research institutions,aimed at developing and validating conceptsand refitting measures to reduce noise at thesource. Project duration until end of 2007.

Main project partner in the interdisciplinaryresearch project “Quiet Approach and Departure” to develop improved noise reduction techniques during a flight’s approachand departure phases.

Introduction of AIRail connection on certainshort-haul routes.

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Reduce the use of paper made from fresh fibers.

Improve the Group-wide energy management.

Improve the internal and external environmental communications.

Expand and improve the Group-wide environmental database.

Reduce the energy consumption of newly-built office buildings to one-third of that of “conventional” buildings.

Conversion of Lufthansa’s internal and externalmedia as well as the paper used in printersand photocopiers for internal use from fresh-fiber paper to recycling paper.

Creation of a Group-wide energy forum as apart of Facility Management.

Annual reporting of environmental and socialissues in Lufthansa’s Annual Report, organiza-tion of regular internal road shows on environ-mental and social issues within the Group.Expansion of our Internet presence.

Integration of further environmental data; devel-opment of a module to automatically importperformance and consumption data.

Construction of the new office building as a“low energy building” by using a system ofthermoactive construction components, highlyinsulating elements for the facade, a heat recycling system and other measures.

Conversion of additional internalmedia has been accomplished. On the downside: Reconversion of the Lufthansa in-flight magazine tofresh-fiber paper.

The first infrastructure conference“Energy” has taken place.

Environmental and social issues have been included in the LufthansaAnnual Report; further expansion hasbeen planned. Internet presence iscontinuously updated and improved.

Environmental database was introduced in 2003.

New measure.

Additional Group-wide environmental goals Environmental measures Degree of attainment Status

"

"

!

"

!

"# !Goal reached Not reached Goal remains valid New goal$

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29 Boeing 737-500 103 seats, 1,900 km range

1 Airbus A340-200 212 seats, 9,600 km range

35 Boeing 737-300 123/133 seats, 1,600 km range

20 Airbus A319 126 seats, 2,700 km range

31 Airbus A320-200 150 seats, 2,900 km range

26 Airbus A321 182 seats, 3,900 km range

6 Airbus A310-300 222 seats, 6,400 km range1,200 km range (short-haul version)

15 Airbus A300-600 280 seats, 2,100 km range

30 Airbus A340-300 247 seats, 9,600 km range

0 Boeing 747-200 389 seats, 9,800 km rangetaken out of operation 2003

30 Boeing 747-400 390 seats, 11,000 km range

The Lufthansa Passenger Airline fleet on 31.12.2003

Ranges shown at maximum payloads.

5 Airbus A330-200 230 seats, 8,550 km range

4 Airbus A340-600 345 seats, 11,100 km range

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The Lufthansa CityLine fleet on 31.12.2003

18 Avro RJ85 93 seats, 2,400 km range

43 Canadair Jet 100/200 50 seats, 1,850 km range

20 Canadair Jet 700 70 seats, 2,500 km range

The Thomas Cook fleet on 31.12.2003

22 Airbus A320 174 seats, 4,630 km range

11 Boeing 767-300 269 seats, 10,550 km range

2 Airbus A330-200 230 seats, 11,000 km range

15 Boeing 757-300 252 seats, 5,400 km range

28 Boeing 757-200 220 seats, 6,800 km range

The Lufthansa Cargo fleet on 31.12.2003

14 MD-11 455 m3, 7,700 km range

5 Boeing 747-200 F (with “nosedoor”)3 Boeing 747-200 SF 609 m3, 6,500 km range

The Air Dolomiti fleet on 31.12.2003

10 ATR42-500 46 seats, 1,100 km range

5 Canadair Jet 200 48 seats, 1,600 km range

6 ATR72-500 64 seats, 1,300 km range

Ranges shown at maximum payloads.

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Last year, despite the SARS crisis, worldwide air transportrecorded the first signs of moderate growth. Lufthansa wasin a position to benefit from this at above-proportional levels. Transport performance in passenger transport roseby 14.8 percent to 133 billion passenger kilometers. Ascapacities had been adjusted with prudence, the seat loadfactor increased by one percentage point to reach the all-time record level of 82.7 percent. On long-haul routes,utilization even reached 85 percent.

The 412 passenger aircraft operated by the Group com-pleted 549,000 flights, traveled a total distance of 775 mil-lion kilometers and carried 56 million passengers.

Specific fuel consumption falls to 4.3 litersThe proportionate kerosene consumption for passengertransport increased by 9.6 percent to 4.6 million tons. Incontrast, fuel consumption per 100 passenger kilometersfell by 4.4 percent to only 4.3 liters. This figure was posi-tively influenced by two Thomas Cook subsidiary com-panies newly included in the Group fleet. In this way,Lufthansa made an important step toward reaching its keyenvironmental goal – to reduce specific fuel consumptionby 38 percent from 1991 to 2012.

The new Airbus types A330-200 and A340-600, whichwere deployed for the first time in 2003, play a major rolein this quest. The A330-200s operated by Thomas CookUK are the Lufthansa Group’s most fuel-efficient aircraftwith a consumption of only 2.7 liters per 100 passengerkilometers. In 2004, the A330-300, of which Lufthansa hasordered ten, will be joining the passenger fleet. Thanks tostate-of-the-art Rolls-Royce engines – the quietest current-ly available on the market – this type of aircraft not onlyoffers lower fuel consumption but also produces feweremissions and less noise.

The A340-600: big, fuel-efficient and quietAt Lufthansa, the A340-600 is the chosen successor of theBoeing 747-200. It consumes about one-quarter less fuelthan its predecessor and on its first scheduled flights set anew standard in fuel-efficiency by consuming 3.3 liters per100 passenger kilometers.

Thanks to the most advanced engine technology availableand its aerodynamically upgraded wings, the new jet alsolessens the burden in the area of aircraft noise. While the85-dB(A) noise footprint of the Boeing 747-200 covered

Passenger transport

The fuel consumption of the passenger fleet declined further to 4.3 liters per 100 passenger kilometers. The main reasons for this were increased aircraft utilization and the new consolidation scope used for the Lufthansapassenger fleet.

Passengers

Capacity offered

Transport performance

Seat load factor

56,197,980 (+ 10.3 %)

160 billion SKO (+ 11.7 %)

133 billion PKT (+ 14.8 %)

82.7 percent (+ 1.0 p.p.)

Transport performance (changes compared to 2002)

Passenger AirlineCondorThomas Cook UKLufthansa CityLineThomas Cook BelgiumAir Dolomiti

Total

3,385,655 t (– 0.4 %)541,489 t (– 2.0 %)309,318 t260,514 t (+ 7.3 %)

58,239 t43,607 t

4,598,819 t

Fuel consumption in passenger transport

Emissionsin passenger transportabsolute

Emissionsin passenger transportspecific

CO2 14,504,681 tons (+ 9.6 %)10,678,357 t (Passenger Airline)

1,707,857 t (Condor)975,589 t (TC UK)821,656 t (LH CityLine)183,686 t (TC Belgium)137,536 t (Air Dolomiti)

CO 11,707 tons (+ 3.5 %)8,969 t (Passenger Airline)1,176 t (Condor)

614 t (TC UK)795 t (LH CityLine)

99 t (TC Belgium)55 t (Air Dolomiti)

NOx 67,861 tons (+ 9.6 %)52,197 t (Passenger Airline)

8,114 t (Condor)4,516 t (TC UK)1,865 t (LH CityLine)1,053 t (TC Belgium)

116 t (Air Dolomiti)

UHC 1,499 tons (– 1.5 %)1,237 t (Passenger Airline)

108 t (Condor)81 t (TC UK)56 t (LH CityLine)11 t (TC Belgium)

5 t (Air Dolomiti)

CO2 10,875 g/100 PKT (– 4.5 %)CO 8.8 g/100 PKT (– 9.3 %)NOx 50.9 g/100 PKT (– 4.5 %)UHC 1.1 g/100 PKT (– 15.4 %)

Emissions (changes compared to 2002)

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Specific fuel consumption by type of aircraft in passenger transport2003, in liters/100 passenger kilometers

Short and medium-haul Long-haul

Average fuel consumption 4.3 l /100 PKT

DLH: Lufthansa Passenger AirlineTCC: CondorTCUK: Thomas Cook Airlines UKTCB: Thomas Cook Airlines Belgium

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0

60

55

50

45

15

10

5

0

in passenger transportin grams/100 passenger kilometers

NOx emissionsxCO emissions

UHC emissions

98 99 00 01 029594 96 97 03

an area measuring 14.5 km2, the footprint of the A340-600,at only 3.5 km2, covers barely one-quarter of this area. Andit is thus limited to the area within an airport’s perimeterfence. For comparison, 85 dB(A) corresponds to the noisemade by a truck passing by in city traffic at a distance of 5 meters.

In addition to operating fuel-efficient aircraft, Lufthansa pur-sues a broad range of measures to seize all opportunitiesto conserve fuel. Accordingly, the airline has begun toincrease its precision in calculating the quantity of reservefuel an aircraft must carry to reach an alternate airport ifnecessary, by using detailed performance data for eachtype of aircraft. It is expected that 17,000 tons of kerosenecan be saved when the project is fully implemented. Andbecause each “detour” flown also costs energy, Lufthansais working on optimizing the flight routings to Asia. On theroutes adapted thus far, fuel consumption and emissionshave decreased by 1 percent.

Starting in April 2004, the most comprehensive improve-ment in a long time is to be implemented in Frankfurt. To reduce delays there, Lufthansa will slightly “flatten” thepeaks in arrivals and departures in Frankfurt, which meansthat the flights at peak times will be spread over a longertime frame. While this measure leads to somewhat longertransfer times, it is expected to not only improve the punctuality of these flights but also save 50,000 tons ofkerosene.

98 99 00 01 029594 96 97

Development of specific fuel consumption in passenger transport in liters/100 passenger kilometers

5.5

5.0

4.5

0

03

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Nearly 30 percent of the Lufthansa Group’s total transportperformance is produced by carrying freight and mail.Freight is carried aboard the freighters operated byLufthansa Cargo AG and as so-called “belly freight” in the cargo holds of the passenger fleets.

Air freight is an established variable in the logistics ofcompanies that produce and market their offerings on aglobal scale. Shipments by air take semi-finished productssuch as computer chips from one factory to the next andfinished products such as electronic entertainment devicesor textiles to consumers. For urgently needed spare partsand sensitive medications, the aircraft is also the preferredmeans of transport.

To split the fuel consumption of passenger aircraftbetween freight and passengers, Lufthansa uses a weight-ing factor, which assigns the weight of galleys, cateringand cabin crews to passengers. This factor is 1.4 for short-hauls, 1.55 for medium-hauls and 1.7 for long-hauls.Based on this factor, a proportional share for freight carriage on passenger aircraft has been calculated at493,000 tons, 3.6 percent less than the year before andabout one-tenth of the total consumption of the passengerfleets.

Freight transport

The faltering economy had a negative influence on the environmentalperformance in freight transport as well. Nevertheless, at 185 grams per ton kilometer, its specific fuel consumption remained close to thatof the previous year.

Capacity offered

Transport performance

Freight carried

10,958 million FTKO (+ 1.4 %)

7,349 million FTKT (+ 0.3 %)

1,576,000 tons (– 3.3 %)

Transport performance (changes compared to 2002)

Lufthansa Cargo

Passenger Airline

Condor

Thomas Cook UK

Lufthansa CityLine

Total

863,309.00 t (+ 3.5 %)

482,826.28 t (– 4.0 %)

9,037.84 t (+ 14.4 %)

870.00 t

701.33 t (– 13.1 %)

1,356,744.45 t

Fuel consumption for freight carriage

Emissions in freight transportabsolute

Emissions in freight transportspecific

CO2 4,279,172 tons (+ 0.8 %)2,722,876 t (LH Cargo)1,522,835 t (Passenger Airline)

28,505 t (Condor)2,743 t (TC UK)2,212 t (LH CityLine)

CO 2,706 tons (+ 0.7 %)1,689 t (LH Cargo)

997 t (Passenger Airline)17 t (Condor)

1 t (TC UK)2 t (LH CityLine)

NOx 21,778 tons (+ 2.1 %)13,733 t (LH Cargo)

7,891 t (Passenger Airline)135 t (Condor)

13 t (TC UK)4 t (LH CityLine)

UHC 839 tons (+3.7 %)681 t (LH Cargo)155 t (Passenger Airline)

2 t (Condor)1 t (TC UK)1 t (LH CityLine)

CO2 582 g/FTKT (+ 0.3 %)CO 0.4 g/FTKT (± 0.0 %)NOx 3.0 g/FTKT (+ 3.4 %)UHC 0.1 g/FTKT (± 0.0 %)

Emissions (changes compared to 2002)

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Faltering economy impairs environmental performanceThe total fuel consumption for freight transport, includingthe fuel used by the freight aircraft of Lufthansa Cargo AG,reached 1.36 million tons last year. This is an increase of 0.8 percent over the previous year. The specific fuelconsumption increased by 0.5 percent to 185 grams perfreight ton kilometer. The reason for this rise is the onlyslight increase in transport performance by 0.3 percent to 7.35 billion ton kilometers, contrasted by an expansionof capacity offered of 1.4 percent to 11.0 billion ton kilo-meters. Therefore, the goal of reducing specific fuel con-sumption by 3 percent from 2000 to 2003 could not bereached.

On balance, the environmental burden in this areaincreased slightly to 4.28 million tons of CO2 (+ 0.8 per-cent), 21,800 tons of NOx (+ 2.1 percent), 2,700 tons of CO (+0.7 percent) and 839 tons of unburned hydro-carbons (+ 3.7 percent).

Specific fuel consumption in freight transport by type of aircraft2003, in grams/freight ton kilometer

Short and medium-haul Long-haul

Average fuel consumption 185 g/ FTKT

DLH: Lufthansa Passenger AirlineTCC: CondorTCUK: Thomas Cook Airlines UK

Development of specific fuel consumption for freight transportin grams/freight ton kilometer

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Employees1

annual average

Revenue

Transport performance

Fleeton 31.12. 2003(active fleet)

Fuel consumption 2

absolute

Fuel consumptionpassengers, specific

Emissions from flight operations 2

absolute

Energy consumption

29,219 (+ 1 %)

10,208 million c (– 2.4 %)

93.34 billion PKT (+1.6 %)

15 Airbus A300-600 (+ 1)6 Airbus A310-300

20 Airbus A319 (+ 3)31 Airbus A320-200 (– 2)26 Airbus A321

5 Airbus A330-200 (+ 5)1 Airbus A340-200 (– 5)

30 Airbus A340-300 (+ 2)4 Airbus A340-600 (+ 4)

35 Boeing 737-300 29 Boeing 737-500 (– 1)

0 Boeing 747-200 (– 2)30 Boeing 747-400

3,868,481 tons (– 0.9 %)

4.5 liters /100 PKT (– 2.2 %)

CO2 12,201,192 tons (– 0.9 %)CO 9,966 tons (– 4.1 %)NOx 60,088 tons (+ 0.1 %)UHC 1,392 tons (– 8.6 %)

Location FrankfurtElectricity: 41,386 MWh (+ 5.1 %)Remote heating: 28,405 MWh (+10.1 %)Freshwater 3 : 108,371 m3 (+ 21.9 %)

Headquarters CologneElectricity: 8,916 MWh (– 2.2 %)Remote heating: 5,722 MWh (– 1.4 %)

At a glance (change compared to 2002)Even during the difficult year 2003, Lufthansa was able to increase its passenger transport performance by 1.6 percent – despite the war in Iraq and the SARS crisis.By applying farsighted capacity management, Lufthansamanaged to increase its seat load factor – even underthese difficult conditions – by 0.5 percentage points to anew all-time high of 81.6 percent.*

Despite this growth, total fuel consumption declined by 0.9 percent to 3.87 million tons. The fleet’s specific fuelconsumption reached a new best value at 4.5 liters per 100 passenger kilometers. Overall, the Lufthansa PassengerAirline has reduced its specific fuel consumption in pas-senger transport by 31.8 percent since 1991 and has thusgenerated about half of its growth in an environmentallyneutral way.

Lufthansa on course for the “3-liter aircraft”In addition to ongoing efforts to boost aircraft utilization,maintaining the fleet’s high technological standards is akey factor in this quest. Environmental aspects such as fuel consumption, emissions of pollutants and noise playan important role in the selection of new types of aircraft.The last two Boeing 747-200s left the Passenger Airline’sfleet in 2003. The successor model, the Airbus A340-600,consumes a full liter less per 100 passenger kilometers,which makes it the first 3.3-liter aircraft in the PassengerAirline’s fleet. Lufthansa has ordered ten aircraft of this type,four of which had already entered revenue service by thebeginning of 2004.

Further contributions to reducing energy consumption andemissions will come from the five Airbus A330-200s andthe ten A330-300s set to join the Lufthansa fleet from 2004.In this way, the airline has laid the groundwork for a contin-ued decline in consumption and emissions.

* Note: In the Environmental Report, all passengers carried are counted; in the Annual Report, only revenue passengers are counted.

Lufthansa Passenger Airline

Within the Lufthansa Group, the Lufthansa Passenger Airline operatesscheduled services with aircraft of over 100 seats. It is one of the world’sleading airlines. For many years, its fleet has counted among the mostmodern and thus most environmentally friendly worldwide.

1 Unlike in Lufthansa’s Annual Report 2003, this figure reflects the annual average number of employees at the Lufthansa Passenger Airline (without Lufthansa CityLine and Air Dolomiti).

2 Unlike in the last Environmental Report, this figure reflects both passenger and freight transport.

3 Consumption increased due to the extremely warm and dry summer, especially during the third quarter (cooling of buildings, sprinkling for landscaped areas).

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Decoupling of transport performance and environmental impact

Change compared with 1991 in percent,values for passenger transport of Lufthansa Passenger Airline, absolute values

Transport performance (PKT) Fuel consumption/ CO2 emissions

NOx emissions

CO emissions

UHC emissions

1991 1992 1993 1994 1995 1996 1997 1998 1999 200220012000 2003

120

100

80

60

40

20

0

–20

–40

–60

60

55

50

20

15

10

5

0

in grams/100 passenger kilometers

NOx emissionsxCO emissions

UHC emissions

98 99 00 01 029594 96 97 03

98 99 00 01 029594 96 97

Specific fuel consumption of Lufthansa Passenger Airlinein liters/100 passenger kilometers

6.0

5.5

5.0

4.5

0

03

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Reduce specific fuel consumption by 35 percent from 1991 to 2008 and by 40 percent by 2012. Simultaneously, reduce specific emissions of pollutants.

Reduce noise emissions in the vicinity of airports.

Operation of fuel-efficient types of aircraft. Optimization of routings with support from the Future Air Navigation System (FANS). Useof new air traffic control systems. Associatedreduction of fuel consumption and emissions.

Optimization of flight planning with regard toalternative airports, aircraft weight and routing(horizontal and vertical) to reduce fuel con-sumption and emissions by the end of 2004.

To reduce delays on arrival at Frankfurt Airport,peaks in traffic volume are slightly flattened.

Support for the use of the Continuous DescentApproach (CDA) to reduce noise emissionsduring night-time hours.

From 1991 to 2003, the Passenger fleet already achieveda 31.8-percent reduction.

About 15,000 tons of fuel shouldbe saved per year.

See also: p. 15, “Key Group-wideenvironmental goals.”

See also: p. 15, “Key Group-wideenvironmental goals.”

Modern fleet keeps noise emissions lowLufthansa pays special attention to reducing noise emis-sions at and around airports. Here, a positive contributioncomes from the fact that virtually all the aircraft in theLufthansa fleet already fulfill the noise regulations that willcome into effect in 2006 for newly developed types of aircraft. The Lufthansa jets that do not yet meet these standards are just a few tenths of a decibel above thethreshold, an inaudible difference with no practical effect.Nevertheless, Lufthansa is planning to adapt these aircraftto the new standard by making technical modifications and adjusting take-off and landing weights.

As our cockpit crews take the issue of noise reduction very seriously and our aircraft are equipped with systemsaiding precision flight guidance, incidences of surpassingthe reference noise levels set by airports occur much lessoften at Lufthansa than at other airlines. In Frankfurt, out of a total of 254,095 Lufthansa takeoffs, there were only4,397 noise level infractions. In Munich, only 2,205 out of 93,067 flights exceeded the reference level; this corre-sponds to a 28-percent share of total infractions, whileLufthansa has a 52-percent share of total takeoffs.

Key environmental goals Environmental measures Degree of attainment Status

"

"

Intermodal links between modes of transport In 2003, Lufthansa again advanced the links between themodes of transport. In May 2003, the AIRail cooperationwith Fraport AG and Deutsche Bahn AG was expanded byadding rail service between Frankfurt and Cologne underLufthansa flight numbers to the airline’s route network. For each international flight from Frankfurt, there is now anideally-timed high-speed ICE feeder train from Cologne.AIRail service from Stuttgart has been on offer since 2001.Baggage can be checked in for a passenger’s entire itiner-ary. From May to December 2003, a total of 64,000 passen-gers took advantage of the AIRail service between Frankfurtand Cologne. This is almost half the number of passengersthat Lufthansa carries on this route. As a result, the capacityof two daily flights could be shifted to rail service.

Solar-generated electricity reduces emissionsThe new solar power plant on the roof of the new LufthansaTerminal in Munich also helps to lessen the burden on theenvironment. During its first year of operation, the plant generated 517,000 kWh of electricity – entirely emmissions-free. This was 15 percent more than forecast and corre-sponds to the yearly consumption of 180 households. Overits expected life span, the plant is set to spare the environ-ment about 14,000 tons of carbon dioxide emissions.

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Employeesannual average

Revenue

Transport performance

Fleeton 31.12. 2003 (active fleet)

Fuel consumption1

absolute

Fuel consumptionpassengers, specific

Emissions from flight operations 1

absolute

Production performance

1 Unlike last year’s report, these figures reflect both passenger and freight transport.

2,474 (+ 8.3 %)

1.12 billion c (– 4 %)

3.8 billion PKT (+ 23.5 %)

18 Avro RJ8543 CRJ 100/20020 CRJ 700 (+9)

261,215 tons (+ 7.2 %)

8.6 liters /100 PKT (– 13.1 %)

CO2 823,868 tons (+ 7.2 %)CO 796 tons (+ 10.9 %)NOx 1,870 tons (+ 10.3 %)UHC 56 tons (– 5.4 %)

405 A-checks (– 3.6 %)55 C-checks (+ 14.6 %)

At a glance (changes compared to 2002)

Lufthansa CityLine

Within the Lufthansa Group, Lufthansa CityLine specializes in operating aircraft with fewer than 100 seats. Every day, it offers up to 500 flights to 60 destinations in more than 20 countries. In this way, CityLine makes animportant contribution to regional links across Europe. At the same time, it provides feeder services to Lufthansa’s hubs and helps open up newroutes.

REG. NO. D-142-00057REG. NO. D-155-00158REG. NO. D-131-00022

Another important business segment for Lufthansa CityLineis its charter operations. Here, for example, the airlinemakes its aircraft available to tour operators. In 2003, 6.8 million passengers flew on CityLine’s modern jets.

Its fleet consists of 43 Canadair Jet CRJ 100s and 200s, 20 CRJ 700s and 18 Avro RJ85s. These aircraft are main-tained at the airline’s own maintenance workshops in Munich,Hamburg and Cologne/Bonn, where its headquarters arealso located. The CityLine fleet has an average age of only6 years.

In 2003, Lufthansa CityLine experienced an unusually highlevel of growth. Its transport performance increased by 23.5 percent to 3.8 billion passenger kilometers. This wascontrasted by an additional fuel consumption of only 7.2 percent. As a result, fuel consumption and emissionsper passenger kilometer reached new record lows.

Specific consumption falls by 13.1 percent in 2003There are three reasons for this development. First, aircraftutilization could be increased by 9.5 percentage points to67.8 percent. Second, the presence of nine additional CRJ700s made itself felt in a positive way. This 70-seater jetconsumes 7.7 liters per 100 passenger kilometers and isthus 10 percent more fuel-efficient than the smaller CRJ100/200s. Third, the number of seats on the Avro RJ85swas increased from 80 to 93. In tandem with increased utilization, this measure helped to reduce this aircraft’s specific fuel consumption by 19.6 percent to 9.5 liters per100 passenger kilometers within the span of one year.

In the area of environmental care, the regional airline hasheld a leading position for many years, even when com-pared internationally. It operates an environmental manage-ment system that covers all company areas. In 1999,Lufthansa CityLine became the first airline worldwide to bevalidated according to the European eco-audit regulationsEMAS and certified in accordance with ISO 14001. Revali-dation and recertification according to both of these stan-dards were accomplished in April 2003.

A key element of the company’s internal environmentalstrategy is its environmental education program for employ-

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98 99 00 01 029594 96 97

Specific fuel consumption of the Lufthansa CityLine fleetin liters/100 passenger kilometers

11.0

10.0

9.0

8.0

0

03

Specific emissions of the Lufthansa CityLine fleetin grams/100 passenger kilometers

NOx emissionsxCO emissions

UHC emissions

98 99 00 01 0295 96 97 03

65

60

55

50

20

15

10

5

0

ees on the ground, in the cabin and in the cockpit. Outsideof the company, Lufthansa CityLine takes advantage of itsrole as a customer to promote environmentally compatibleconduct. Accordingly, all crew hotels, airports and groundhandling providers are now asked to provide informationon their environmental activities.

And Lufthansa CityLine sets high standards for itself as well:Within the scope of audits carried out by CityLine’s QualityAssurance management, its two Environmental Commis-sioners developed a catalog of questions, whose special-ized content was subsequently integrated into the so-calledEASA quality audits.

Prizes for commitment to the environmentIn February 2004, Lufthansa CityLine received the first prizein the category “Noise Reduction” from Amsterdam’sSchiphol Airport for its exemplary efforts to reduce aircraftnoise. Its Canadair Jets are among the quietest commercialaircraft currently in use. Beyond an airport’s boundaries,they are usually no louder during takeoff than a car passingby in traffic. At many points of the airports’ noise measuringnetwork, they are no longer even recordable, as the aircraftnoise is absorbed by ordinary ambient noise.

To decrease aircraft noise in the vicinity of airports, CityLinealso uses noise-optimized takeoff procedures, for whichoptimum engine thrust is individually calculated for eachflight on laptop computers in the cockpit. At airports them-selves, Lufthansa CityLine reduces noise emissions bysecuring the power supply and air conditioning of its air-craft by means of low-noise ground power units instead ofthe onboard auxiliary power units.

On March 23, 2004 Lufthansa CityLine received an awardfor its transparent and comprehensive environmentalreporting from Germany’s Minister for the Environment Jürgen Trittin: In the context of the German EnvironmentalReporting Awards 2003/2004 of the Chamber of PublicAccountants, the airline took first prize in the category “BestEnvironmental Reporting.”

Other CityLine activities in 2003At the beginning of the year, a comprehensive assessmentand renovation of the draining system of Hangar II inCologne took place. In this process, an innovative repairmethod was used. This special procedure, a two-compo-nent flooding process, is one of the most modern, efficientand economical sanitation methods available today. Torepair damage, pipes are flooded with two components in succession. Like no other technique, this method can be adapted to any location in a unusually flexible manner.And in those areas of a building with forked pipes and tightelbows, it is the most effective solution for undergroundpipe systems.

Beyond this, Lufthansa CityLine supports a project for theconservation of the black poplar, an endangered species of tree indigenous to the “Wahner Heide,” a heathland lyingsoutheast of Cologne. At its headquarters, CityLine cooper-ates in this project with the City of Cologne as well as withlocal and state environmental protection and forestryauthorities. About 1,000 black poplar saplings have beenplanted in the Wahner Heide area, where Cologne/BonnAirport is also located.

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Reduce emissions and noise emissions.

Reduce weight of onboard loading.

Make consistent use of paper-free means of communications.

Replace white paper by recycling paper.

Influence suppliers.

Improve waste management in technical areas.

Use organic produce at CityLine’s canteen at Cologne/Bonn Airport.

Establish consumption benchmarks within the infrastructure. Develop performance indicators.

Development of concept for the use of groundpower units (GPUs) instead of auxiliary powerunits (APUs) with a view to environmental andeconomic aspects, in cooperation with theareas Flight Operations, Ground Operationsand Maintenance (concept by 12/2003, imple-mentation by 12/2004).

Reduction of Lufthansa CityLine-influencedonboard loading by 5 percent by December2004, compared to 2002.

Creation of an appropriate IT infrastructure asan alternative to paper archiving, adherencehereto and control of processes (by 8/2005).

Feasibility study on the use of recycling paperfor internal purposes (by 10/2003).

Development of a system to assess suppliersin the areas of Flight Operations, GroundOperations and Catering (by 12/2003).

Reorganization of processes and infra-structure. Definition of clear responsibilities (by 4/2004).

Offer of at least one meal prepared fromorganic ingredients.

Concept study (10/2004).

The concept has been developed. Implementation is underway.

This goal was attained in 2002 by reduc-ing the weight of onboard loading by 5.3 percent. As even greater reductionpotential had been identified, the goalwas adopted once more. Currently, ajoint galley concept is being developedin the scope of Lufthansa Regional.

A number of measures were introducedin this area. The IT Department providesdisk drives to store data instead ofarchiving them on paper. Data morerarely used are stored on CDs. Opticalarchiving was introduced in the area ofaccounting. Other company areas will be able to use this method in the future.

The study has not been completed yet.Currently, recycling paper is being testedon a larger scale.

Ground Operations has expanded itshotel checklists for obtaining informationon environmental care. Ground handlingproviders are also asked specifically fordata on environmental protection mea-sures. In addition, letters requesting infor-mation on current and planned environ-mental care measures were sent to allairports served by Lufthansa CityLine.

This topic is to be worked on in the context of a master’s thesis or term project.

It is planned to offer the first meals prepared from organic ingredients inApril 2004.

Basic data were cataloged and evaluatedin the context of a master’s thesis. Cur-rently, these results are being analyzedwith a view to speedy implementation.

Key environmental goals Environmental measures Degree of attainment Status

!

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Employeesannual average

Transport performance

Fleeton 31.12. 2003(active fleet)

Fuel consumption1

absolute

Fuel consumptionpassengers, specific

Emissions from flight operations 1

absolute

1 Unlike last year’s report, these figures reflect both passenger and freight transport.

3,000 (– 6.3 %)

20.0 billion PKT (– 5.8 %)

13 Boeing 757-20013 Boeing 757-30011 Boeing 767-300 (+ 2)12 Airbus A320

550,527 tons (– 1.7 %)

3.4 liters /100 PKT (+ 4.0 %)

CO2 1,736,362 tons (– 1.7 %)CO 1,193 tons (– 6.6 %)NOx 8,250 tons (– 2.3 %)UHC 110 tons (– 4.7 %)

At a glance (changes compared to 2002)

Condor*

Condor Flugdienst and its subsidiary Condor Berlin are partof the airline portfolio of Thomas Cook AG and thus belongto the third-largest tourism group worldwide. Thomas CookAG is owned in equal parts by Deutsche Lufthansa AG and KarstadtQuelle AG. In 2003, the company operated 49 aircraft bearing the name “Condor.” They connected 18German airports with more than 50 destinations in Europe,Asia, Africa and America.

The SARS crisis, the war in Iraq, the faltering economy and the unusually hot summer temperatures all contributedto a decline in transport performance of 5.8 percent to 20.0 billion passenger kilometers. The number of passen-gers carried even fell by 18.5 percent to 6.5 million. Astutecapacity management meant that aircraft utilization reached84.1 percent and thus nearly matched the previous year’slevel, despite these difficult conditions.

Absolute fuel consumption falls by 1.7 percentFuel consumption and CO2 emissions again fell by 1.7 per-cent, while specific fuel consumption increased by 4.0 per-cent to 3.4 liters per 100 passenger kilometers. There washardly any difference from one type of aircraft to the next.

The long-term positive trend in the area of emissions continued. Emissions of CO (– 6.6 percent) and unburnedhydrocarbons (– 4.7 percent) reached new all-time lows,and the burden of nitric oxides on the atmosphere droppedto the lowest level since 1997.

At an average age of 7.4 years, the Condor fleet continuesto be younger than average for the Lufthansa Group andonly half as old as the average age of the world aircraft fleet.

Thomas Cook Airlines

With more than 80 group-owned aircraft divided among five airlines inGermany, Great Britain, Belgium and Turkey, Thomas Cook AG operatesone of the most important fleets in the leisure travel market. For the firsttime in this Environmental Report, the tourism group has compiled thedifferent environmental data of its fully-owned airline subsidiaries andreports on its entire fleet.

Reduce specific fuel consumption to below 3.0 liters/100 PKT by 2005.

Optimize structural weights of aircraft and increase utilization.

In 2003, the specific fuel consumptionreached 3.4 liters /100 PKT.

Key environmental goal Environmental measures Degree of attainment Status

"

98 99 00 01 029594 96 97

Specific fuel consumption of the Condor fleetin liters/100 passenger kilometers

4.0

3.75

3.5

3.25

0

03

* Until May 2004: Thomas Cook “powered by Condor.”

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Great Britain is Europe’s second-largest travel market, after Germany. The carrier Thomas Cook Airlines UK wascreated in 1999 in the merger of the two successful charterairlines Flying Colours and Caledonian. It initially operatedunder the name JMC and was renamed Thomas Cook Airlines UK in March 2003, when the brand’s market pres-ence was standardized. The company flies from GreatBritain to 34 destinations in 18 countries. In 2003, it carried4.9 million passengers.

With a specific fuel consumption of only 2.9 liters per 100 passenger kilometers, Thomas Cook UK is the mostfuel-efficient company in the Lufthansa Group. This is dueto state-of-the-art aircraft, a comparatively higher seatingdensity and a high utilization rate of 90.1 percent. The mostfuel-efficient aircraft were the long-haul Airbus A330-200and the Boeing 757-300, both with 2.7 liters/100 PKT.

As Thomas Cook Airlines UK started collecting environ-mental data in 2003, there are no comparative figures forthe preceding years.

Employeesannual average

Transport performance

Fleeton 31.12. 2003(active fleet)

Fuel consumptionabsolute

Fuel consumptionpassengers, specific

Emissions from flight operationspassenger share

1,700

13.3 billion PKT

15 Boeing 757-2002 Boeing 757-3005 Airbus A3202 Airbus A330-200

310,188 tons

2.9 liters /100 PKT

CO2 978,333 tons CO 615 tons NOx 4,529 tonsUHC 82 tons

Thomas Cook Airlines UKAt a glance

Thomas Cook Airlines Belgium started operations in March2002. The company flies with five modern Airbus A320sfrom Belgium and the Netherlands to holiday destinationsaround the Mediterranean. In only its second year of exis-tence, Thomas Cook Airlines Belgium was voted the coun-try’s favorite airline. It carried 1.1 million passengers to theirplaces in the sun and in the process consumed 58,239tons of kerosene. At an average rate of utilization reaching83.2 percent, specific fuel consumption was 3.2 liters per100 passenger kilometers.

Given its modern, environmentally friendly and fuel-efficientfleet, Thomas Cook Airlines Belgium also delivered out-standing performance in the area of emissions, which aresignificantly below the Group’s averages. Flight operationscaused 183,700 tons of CO2, 1,053 tons of nitric oxides,98.9 tons of CO and 10.9 tons of unburned hydrocarbons.

Thomas Cook Airlines Belgium also started collecting environmental data in 2003.

Thomas Cook Airlines Belgium

Employeesannual average

Transport performance

Fleeton 31.12. 2003(active fleet)

Fuel consumptionabsolute

Fuel consumptionpassengers, specific

Emissions from flight operationsabsolute

220

2.3 billion PKT

5 Airbus A320

58,239 tons

3.2 liters /100 PKT

CO2 183,686 tons CO 98.9 tons NOx 1,053 tons UHC 10.9 tons

At a glance

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Adapt to Lufthansa’s specific environmental standards.

Collect and integrate detailed environmentaldata into the Group’s Environmental Databaseby 2005.

New measure.

Key environmental goal Environmental measures Degree of attainment Status

!

Air Dolomiti operates 16 turboprop aircraft made by Euro-pean manufacturer ATR and five Canadair CRJ 200 jets. Theairline connects the Frankfurt and Munich hubs with a num-ber of destinations, chiefly in Italy. In Munich it is the third-largest carrier, measured by its 320 weekly departures. Intotal, Air Dolomiti’s route network comprises 24 destinations.Its base airport is Verona.

In 2003, the company consumed 43,607 tons of keroseneand carried 1.07 million passengers. Thanks to its modernfleet with a large share of turboprop aircraft, which are idealfor short-haul operations, Air Dolomiti achieved an averagespecific fuel consumption of only 7.8 liters per 100 passengerkilometers.

With an average age of only 4.4 years, the Air Dolomiti fleetis the youngest in the Lufthansa Group.

Employeesannual average

Transport performance

Fleeton 31.12.2003(active fleet)

Fuel consumptionabsolute

Fuel consumptionpassengers, specific

Emissions from flight operationsabsolute

566

697.3 million PKT

10 ATR 42-5006 ATR 72-5005 CRJ 200

43,607 tons

7.8 liters /100 PKT

CO2 137,536 tons CO 55 tons NOx 116 tons UHC 5 tons

Air Dolomiti

The Lufthansa Group has held a majority share in Italian regional carrierAir Dolomiti since April 2003.

At a glance

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Employeesannual average

Revenue

Transported freighttotal

Transport performancetotal fleet

Fleeton 31.12. 2003(active fleet)

Number of destinations served

Locations and property

5,127 (– 1.5 %)

2.16 billion c (– 8.0 %)

1.58 million tons (– 3.3 %)

7.35 billion FTKT (+ 0.3 %)

8 Boeing 747-200 F14 MD-11

450

Frankfurt 8Office surfaces: approx. 24,900 m2

Hangars and warehouses: approx. 84,900 m2

Cafeteria: approx. 1,730 m2

KelsterbachOffice building: approx. 2,490 m2

Fuel consumptionCargo fleet

Fuel consumptionspecific, Cargo fleet

EmissionsCargo fleet

1 Unlike last year’s report, these figures reflect the values for the Lufthansa Cargofleet only. See also “Freight transport.”

863,309 tons (+ 3.5 %)

177 grams / FTKT (+ 1.7 %)

CO2 2,722,876 tons (+ 3.5 %)CO 1,689 tons (+ 4.9 %)NOx 13,733 tons (+ 4.7 %)UHC 681 tons* (+ 7.7 %)

* plus 110 tons from 5 fuel dumps

Environmental data of flight operations1

(changes compared to 2002)

Lufthansa Cargo

Lufthansa Cargo is the worldwide market leader in international scheduled airfreight flights and specializes in so-called airport-to-airport services. Customers can order delivery and pick-up within specific “time windows.”

At a glance (changes compared to 2002) The faster the shipment, the higher the price. LufthansaCargo has developed custom-made solutions for perish-able goods such as foods and medications, for animalsand for the logistic requirements of certain industries. The freight carrier currently serves a network featuring 450destinations around the world.

Last year, Lufthansa Cargo carried 1,576,000 tons of freightand mail, 3.3 percent less than in 2002. However, transportperformance increased by 0.3 percent to 7.34 billion tonkilometers. The airline achieved 47 percent of this perfor-mance with the 22 aircraft in its own fleet, 33 percentaboard the passenger aircraft across the Lufthansa Groupand 17 percent aboard the aircraft of other carriers, such as the members of the WOW Alliance, whose foundationwas initiated by Lufthansa Cargo. For the latter share oftransport performance, it is not possible to indicate fuelconsumption and emissions values, as the necessary information concerning aircraft and engine types, fuel consumption, utilization rates and so on is not available.

In addition, Lufthansa Cargo uses trucks and trains in thecontext of the transport concept “Rolling Highway.” Here,the freight carrier shifts the onward transport of air cargo tothe rails and thus reduces the burden on the environment.Currently, the project comprises three routes with 40 con-nections to Switzerland, Hungary and Italy.

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Fuel consumption and emissions slightly higherLufthansa Cargo’s freight aircraft consumed 863,309 tons of kerosene (+3.5 percent) last year. As a result of theSARS crisis, the war in Iraq and the poor economic perfor-mance around the world, utilization declined by 1.5 per-centage points to 72.9 percent. Specific fuel consumptionincreased by 1.7 percent to 177 grams per freight ton kilo-meter. For the first time in many years, emissions increasedslightly. They reached 13,733 tons of nitric oxides (+4.7 per-cent), 1,689 tons of carbon monoxide (+4.9 percent) and681 tons of unburned hydrocarbons (+7.7 percent).

Modern MD-11 freighters are replacing Boeing 747-200sWith an average age of 9.7 years, the Lufthansa Cargo fleetcounts among the most modern and environmentally com-patible freight fleets worldwide. By introducing the MD-11,Lufthansa Cargo was able to reduce the environmentalimpact of its activities considerably. Within the scope ofongoing fleet modernization and standardization, theremaining eight Boeing 747-200 freighters will be replacedby Boeing MD-11s by 2005. The latter are passenger air-craft that are being rebuilt as freighters.

The MD-11 burns about 20 percent less fuel than the Boeing 747-200. Its carbon monoxide emissions are about40 percent less per ton kilometer, its nitric oxide emissions50 percent less, and its unburned hydrocarbon emissions83 percent less. This means that the fuel efficiency ofLufthansa Cargo’s fleet is set to rise further, while emissionsfrom its flight operations will continue to fall in real termsover the years ahead.

The ongoing modernization of the fleet is also good newsfor people living near airports: The MD-11’s noise footprintof 85 dB(A) measures a mere 9.5 square kilometers and is thus one-third smaller than that of the Boeing 747-200.As part of its activities to reduce aircraft noise, LufthansaCargo made one of its MD-11s available for a whole day’sworth of measuring flights organized by the German Aero-space Center (DLR) as part of the research network “QuietTraffic.” As a result, the DLR’s scientists had the opportunityto measure the aircraft with an acoustic camera, a methodused to pinpoint the individual sources of aerodynamicnoise on an aircraft. The researchers also investigated towhat extent a shift in thrust distribution between the twoengines under the MD-11’s wings and the single rearengine might help reduce noise emissions during theapproach phase.

250

225

200

175

150

0

Specific fuel consumption of the Lufthansa Cargo fleet

in grams/freight ton kilometer

98 00 01 02 039594 96 97 99

4.0

3.0

2.0

1.0

0

Specific emissions of the Lufthansa Cargo fleetin grams/freight ton kilometer

NOx emissionsxCO emissions

UHC emissions

98 99 00 01 029594 96 97 03

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While energy consumption and emissions from flight oper-ations account for the largest share of the company’s envi-ronmental burden, Lufthansa Cargo is working across allareas to keep its activities sustainable and environmentallycompatible. This approach is also evidenced by the highrecycling rate for waste materials. Since 2001, it has beenincreased from 65.7 to 79.2 percent.

Commitment to animal protectionLufthansa Cargo is firmly committed in the area of animalprotection and cooperates with Deutsche Umwelthilfe,ProWildlife and the Whale and Dolphin Conservation Society, as well as national and international zoologicalassociations. Lufthansa Cargo supports the transport of liveanimals when necessary, but only under strict conditions.Since 2001, the company has declined all shipmentsinvolving animals caught in the wild and transported forcommercial purposes. Whales, dolphins and animals covered by the Washington animal protection convention,CITES, are excluded from transportation as a rule. And inall cases, the legal origin of the animals must be proven. At the international level, Lufthansa Cargo makes its know-how available to ensure optimum transport conditions foranimals in transit.

Reduce specific fuel consumption by 3 percent from 2000 levels by 2003.

Expand the combined rail-and-road transport.

Develop and implement a strategy for corporate citizenship.

Increase utilization, phase out Boeing 747-200s.

Add further routes.

Set up a steering group, implement direct links with strategic processes.

Status 2003: reduction by 1.6 percent. Goal has not beenattained so far and will remain in effect until the end of 2004.

Since January 2003, Cargo hasused 43 scheduled rail services aweek between Freiburg (southernGermany) and Novarra (Italy).

New measure.

Key environmental goals Environmental measures Degree of attainment Status

"

"

!

Distribution of transport performance2003, in FTKT

2,480,508,301

Passengerairlines

LufthansaCargo

Road/rail

Carriers outsidethe LufthansaGroup

1,290,508,000

204,935,349

3,578,057,000

290

"# !Goal reached Not reached Goal remains valid New goal$

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The scope of our offerings for airlines ranges from classicpilot training and retraining for different aircraft models toservice and emergency training for cabin personnel accord-ing to a customer’s specific requirements. Modern methods,such as the use of Computer Based Training, contribute sig-nificantly toward increasing the efficiency of this instruction,and they are also purchased by other airlines as cost andenergy-saving training concepts from Lufthansa Flight Training (LFT). Simulators are used whenever possible andsensible. The company’s 27 flight simulators clocked up114,088 hours of operation in 2003. They have become anintegral part of high-quality training, while making a consid-erable contribution to environmental care. Studies carriedout at the Lufthansa Simulator Center in Berlin have shownthat 135 simulator hours only consume on average as muchenergy as one real flight hour. As many interlinking flight situations can be “skipped” in the simulators, the trainingthey provide is even more efficient.

Simulators cannot entirely replace flyingTo guarantee training under realistic conditions, current regulations require future pilots to complete a minimumnumber of training hours in the air. There, they practice flying under real weather conditions and cooperating withother aircraft and air traffic control under “live” conditions. At Lufthansa Flight Training, this may take place in Bremenor Phoenix, Arizona. Original plans to use more lightweightand fuel-efficient aircraft, such as the Piper Seneca, havebeen abandoned. Contrary to initial expectations, this type of aircraft would not have allowed LFT to maintain the high-est standards of training quality.

Employeesannual average

Revenue

Locations

Flight training

Simulator training

Fleet

Fuel consumption

518 (– 1.2 %)

119.15 million c (– 5.2 %)

Bremen, Frankfurt, Phoenix (Arizona), Berlin

46,144 hours (– 27.2 %)

114,088 hours (– 24.9 %)

4 PA-42 Cheyenne2 PA-34 Seneca (– 3)

17 PA-28 Archer (– 2)27 F 33 Bonanza (– 5)

6 Grob G 120

1,359 tons of AVGAS (– 24.4 %)1,015 tons of kerosene (+ 6.6 %)

At a glance (changes compared to 2002)

Lufthansa Flight Training

Lufthansa Flight Training ranks among the world’s leading providers ofinstruction for pilots and flight attendants. Increasingly, the company’sexpertise in security-related areas is in demand outside of aviation.

Due to the economic situation, the number of simulatorhours declined by 24.9 percent, while the number of trainingflight hours fell by 27.2 percent. The consumption of AVGASdeclined by 24.4 percent to 1,359 tons. By contrast, LFTrequired 6.6 percent more kerosene for its propeller-drivenPiper Cheyennes.

It is not possible to calculate emissions data for theLufthansa Flight Training fleet, as the manufacturers of thistype of aircraft do not provide base data.

Carry out a comprehensive analysis of environmentally relevant processes.

Set up a comprehensive collection system for environmental data by year-end 2003.

Lufthansa Technik carries out regular environmental audits at the LFT locations in Bremen and Frankfurt.

Implement the measures derived from theaudits in Bremen and Frankfurt.

Store data in the environmental database ofthe Lufthansa Group. Secure data throughcorresponding audits by LHT.

Develop a company waste management concept and a waste balance sheet for LFT’slocations in Bremen and Frankfurt.

Key environmental goals Environmental measures Degree of attainment Status

!

$

"

$

Environmental audit was carried outin 2003.

New measure.

Audit was carried out by LufthansaTechnik in 2003. Environmentaldatabase is updated regularly.

Following evaluation and analysis of the waste-related environmentaldata for LFT’s Bremen location, theresults were depicted in the form of a waste balance sheet.

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Within the Lufthansa Group, Lufthansa Technik is responsi-ble for securing the technical safety, reliability and sustainedvalue of the Group fleet. Deutsche Lufthansa AG is thecompany’s largest single customer. Last year, LufthansaTechnik maintained 959 aircraft of 458 customers.

In Germany, Lufthansa Technik’s largest locations havebeen validated according to the European eco-audit regu-lation EMAS since 1996. The entire company has been cer-tified in accordance with the international environmentalstandard ISO 14001 since 1999.

Stable high-level environmental performanceOver the past years, Lufthansa Technik has laid the founda-tions for high standards in environmental care at its Ger-man locations by making comprehensive investments andintroducing innovative processes. These improvementshave resulted in stabilizing the company’s environmentalimpact at a low level.

As there currently remains little room for further significantimprovements in technology or production processes, anychanges in energy consumption and emissions are mostlya result of fluctuations in production or external factors. Thisapplies to solvent emissions, for example. Last year, theydeclined from 144 to 126 tons. The main reason for thisreduction is the lower number of aircraft paint jobs and thecorresponding fall in paint consumption. Similarly, thedecline of rainwater utilization by almost a quarter in Ham-burg is a direct consequence of 2003’s hot and dry sum-mer.

Lufthansa Technik significantly reduced its burden on peo-ple living near the airport in Hamburg by inaugurating anoise protection hangar large enough for all types of com-mercial aircraft currently in use. This hangar is uniqueworldwide and ensures that the noise level audible in theneighboring residential areas does not exceed 65 dB(A),even when engine run-ups have to be performed at fullpower. That means it is no louder than the other ambientsounds.

Lufthansa Technik

Lufthansa Technik is the worldwide market leader for the maintenanceand overhaul of aircraft, engines and components. To increase itscompetitiveness and participate in the growth of key markets, the company has made its production increasingly international over thepast years. Today, Lufthansa Technik has about 30 subsidiary compa-nies and participations in Europe, Asia and the USA.

Employeesannual average

Revenue

Production performance

Main locations

11,480 (+ 1.2 %)

2.338 billion c (– 4.6 %)

15.30 million man-hours (+ 3.3 %)

Hamburg, Frankfurt, Berlin, Munich

EnergyElectricity consumptionHeat

WaterFreshwater consumptionRainwater consumptionIndustrial wastewater

Wastefor disposalfor recycling

Emissions

1 The environmental data for 2003 and the corresponding changes are comparable only to a limited degree with the preceding year, as all Germanmaintenance stations could be included fully for the first time.

116,697 MWh (± 0.0 %)204,553 MWh (+ 2.5 %)

290,998 m3 (– 0.9 %)8,909 m3 (– 23.2 %)

86,086 m3 (+ 5.6 %)

2,188 tons (–16.9 %)4,804 tons (+ 6.7 %)

CO2 39,664 tons (+ 3.6 %)NOx 109 tons (+ 1.9 %)UHC 9.6 tons (+ 14.3 %)

solvents 126 tons (– 10.0 %)

REG. NO. D-131-00009REG. NO. D-125-00003REG. NO. D-134-00032

At a glance (changes compared to 2002)

Environmental data1 (changes compared to 2002)

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Run-ups at part power which take place in the hangar areno longer audible even on the Lufthansa Technik premises.In 2003, the noise protection hangar was used for all therun-ups at part power (146) and full power (25) taking placein Hamburg.

A total of 1,909 run-ups took place in Frankfurt (–8 percent).Of these, 1,135 were at the idle setting (–8 percent), 585 atpart power (–11 percent) and 189 at full power (+2 percent).While the number of run-ups is primarily determined by thescope of flight operations, the distribution of thrust settingshas largely become stable over the past years.

Dry cleaning process conserves freshwaterThe dry cleaning process for aircraft introduced in 2001 hasproved successful. Last year, 73 of 543 aircraft washingscould be carried out without water, using a cleaning agentand mops. In this way, the average water consumption fellfrom 5.4 to 4.5 cubic meters per aircraft washing. As aresult, the goal of cutting the average water consumption inthis area by 10 percent by 2004 was actually exceeded in2003. In Frankfurt, almost 500,000 liters of precious fresh-water could be conserved.

The primary goal for last year’s investments was to con-serve energy. Important energy savings were realized, forexample, by renovating Canteen 2 in Hamburg. This includ-ed raising the energy efficiency of both the building and thekitchen to the most advanced standards. Likewise, the glaz-ing of the engine workshop in Hamburg was renovated withenergy conservation in mind.

A single standard for hazardous substancesIn 2003, Lufthansa Technik adopted a company-wide policyon hazardous substances. Its aim is to ensure a uniformhandling of substances that represent a danger to people’shealth or to the environment. This single standard alsoapplies to replacement substances and the informationgiven to the employees in the workshops. The new informa-tion system on hazardous substances, “eGIS,” has been inoperation since April 2003. “eGIS” is available on LufthansaTechnik’s intranet and provides information on all relevantsubstances in German and English, complete with detailsabout their hazardous characteristics, correct handling andtransport regulations.

Improve environmental management processes.

Reduce emissions.

Reduce emissions (of solvents).

Increase energy efficiency/energy conservation.

Reduce quantities of waste materials.

Reduce use of freshwater for cleaning aircraft.

Incorporate the environmental management system into a process-oriented, integrated quality management system.

Evaluate the acquisition of vehicles driven by natural gas.

Use non-VOC solvents for cleaning spray paint pistols and change methods for cleaningsurfaces.

Modernize the etching section in the engineparts repair shop.

Develop a concept for reducing the use ofVOCs in cleaning facilities.

Modernize kitchen equipment and building’sstructure of Canteen 2 in Hamburg.

Reduce energy consumption by renovatingglazing in parts of the engine workshop.

Investigate the possibility of extending the life span of cooling lubricants on metalworkingmachines.

Reduce freshwater consumption of aircraftcleaning to 10 percent below 2002 levels by2004 by increasing the share of dry washes inthe area of aircraft maintenance in Frankfurt.

Preparations are under way.

Evaluation is under way.

Implemented in 2003.

New measure.

Modernization completed.

Implemented as planned.

Evaluation is under way.

A reduction of 15 percent wasachieved in 2003.

Key environmental goals Environmental measures Degree of attainment Status

"

!

#

#

"

"

"

#

#

"$ !Goal reached Not reached Goal remains valid New goal#

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Condor/Cargo Technik

Condor/Cargo Technik in Frankfurt is a subsidiary of Lufthansa Technik AG.Within the LHT Group, it is responsible for maintaining the Boeing 757s and 767soperated by Condor and the 14 MD-11 freighters flown by Lufthansa Cargo.

Employeesannual average

Frankfurt location and buildings

Fleet maintained

Production performance

650 (– 0.5 %)

Built-up surface: 23,232 m2

Operations surface: 30,507 m2

9 Boeing 757-200 (+ 1)11 Boeing 757-300 (– 1)

9 Boeing 767-30014 Boeing MD-11

327 A-checks (– 7.9 %)20 C-checks (– 23.1%)

EnergyElectricity consumptionHeat consumption

WaterFreshwater consumptionIndustrial wastewater

WasteWaste for disposalWaste for recyclingRecycling rate

3,682 MWh (– 3.5 %)7,730 MWh (– 13.7 %)

6,306 m3 (+ 7.0 %)6,306 m3 (+ 7.0 %)

29.53 tons (+ 10.84 %)237.74 tons (+ 5.87 %)

89.0 percent (± 0 %)

The main customers of Condor/Cargo Technik GmbH areThomas Cook, for its Boeing 757s and 767s, and LufthansaCargo, for its MD-11 Fs. In 2003, the number of aircraftmaintained remained almost constant, while the number of checks declined significantly due to the reduced numberof flight hours compared to the previous year.

As a result, less energy was consumed, both as electricity(–3.5 percent) and heat (–13.7 percent). Compared with thepreceding year, waste quantities increased by 16.08 tons.This is due to required cleaning work on tanks and main-tenance-related work on the MD-11s, which resulted inmore drained kerosene. This fuel could be recycled forother purposes.

In 2003, Condor/Cargo Technik began archiving the docu-ments related to maintenance records digitally. Customersreceive paper documents only on request. It is expectedthat this switch will lead to significant reductions in paperconsumption.

Develop and introduce an environmental management system by 2006.

Reduce waste quantities.

Reduce freshwater consumption.

Reduce consumption of operating materials.

Develop a computer-based inventory of hazardous substances.

Certification according to ISO 14001.

Switch from small to large containers of Sky-drol, aiming at a further reduction of wastequantities.

Reduce paper consumption, save photocopiesby scanning invoices, introduce job cards,switch to recycling paper.

Test dry cleaning process for aircraft.

Own production of inner packaging from recy-cling paper to reduce and replace other typesof materials used for this purpose.

Goal: Create a basis for improved transparency,find alternative substances and reduce sub-stances that pose a risk for the environment.

Preparations are not fully completed yet.Considering the further development ofCondor/Cargo Technik and its move into a new hangar (3rd quarter 2005), certifica-tion is to be completed in 2006 after thenew hangar has been inaugurated.

The changeover has been made, but the reduction of waste quantities will onlystart in 2005, as the existing stock of small containers must first be used up.

New measure.

The project is still in its test phase.

New measure.

New measure.

Key environmental goals Environmental measures Degree of attainment Status

!

!

"

At a glance (changes compared to 2002)

Environmental data (changes compared to 2002)

"

"

!

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LSG Sky Chefs counts 270 of the world’s 300 internationalairlines among its customers and has a market share of 30 percent. The catering company provides its customerswith high-quality meals and beverages, as well as every-thing else that makes a passenger’s stay on board pleasant.Last year, the company’s 200-plus in-flight kitchens inEurope, Asia, Africa and America produced 313 millionmeals. In 2003, LSG Sky Chefs achieved total revenues of 2.7 billion euros, of which the area of airline catering generated two-thirds.

The industrial production methods necessary for flightcatering lead to a relatively high consumption of resources.They also require extensive surfaces and large buildings.To process large quantities of food, beverages and pack-aging materials, caterers consume electricity, natural gas,fuels, chemicals and freshwater. These activities result inwaste materials, wastewater and emissions. Sophisticatedlogistics are needed to provide all the necessary servicematerials right on time for departure, as well as to clean up and dispose of the resulting wastes after landing.

To use natural resources as sparingly as possible and tominimize environmental pollution, LSG Sky Chefs recordsand analyzes the environmental impact of its activities indetail and develops improvement measures on a continu-ous basis. Its environmental database documents the keyenvironmental indicators for each location. Since 2003, thissystem has comprised all locations in Europe.

Beyond recording the environmental burdens, this data-base is also used to compare locations among one anoth-er. By generating an intense exchange of information, LSGSky Chefs’ environmental management ensures that exem-plary ideas from one location are also adopted by others.One example here is the Copenhagen location and itshighly successful efforts last year to decrease its electricityconsumption and increase its recycling rate.

In a Europe-wide program aimed at increasing the perfor-mance of its dishwashing facilities, LSG took a close look atmore than 150 of these. By introducing a range of technicalmeasures, the company managed to cut water consump-tion by as much as 20 percent, depending on the location.

Employees

Revenue

Locations

Meals prepared

Flights catered

Passengers served

Vehicle fleet

Environmental data

EnergyElectricity consumptionGas consumptionHeating oil consumptionDistrict heating and coolingFuelTotal

WaterFreshwater consumptionFreshwater per mealWastewater

Detergent and cleaningagent consumption

WastesTotal quantityWaste per mealOnboard wastes / wastes for disposalWastes for recyclingRecycling rate

7,576 (+ 3.7 %)

557.7 million c (– 3.8 %)

21

68.08 million (+ 2.3 %)

501,654 (– 0.7 %)

45.1 million (– 0.5 %)

162 forklifts (+ 50)294 lift trucks (– 21)

60 trucks (+ 8) 122 passenger cars (– 2)

47,948 MWh (– 10.1 %) 33,637 MWh (+ 13.1 %)

408 MWh (+ 70.6 %)25,919 MWh (–10.8 %)13,026 MWh (– 7.7 %)

120,938 MWh (– 4.4 %)

407,735 m3 (– 10.2 %)5.99 liters /meal (– 11.7 %)

366,962 m3 (– 10.2 %)

628.9 tons (+ 2.5 %)

35,745 tons (– 4.1 %)525 grams/meal

16,797 tons (– 6.2 %)18,949 tons (– 2.1 %)

53 percent (+ 1.1 PP )

At a glance LSG Sky Chefs Germany(changes compared to 2002)

LSG Sky ChefsLSG Sky Chefs is the leading caterer in world air transport. At more than200 locations in 48 countries, the company provides passengers travel-ing on airlines from around the world with a great variety of high-qualityin-flight meals. At all its locations, LSG Sky Chefs strongly emphasizes ahigh degree of carefulness in production and care for the environment.

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Employees

Revenue

Locations

Meals prepared

Flights catered

Passengers served

Vehicle fleet

Environmental data

EnergyElectricity consumptionGas consumptionHeating oil consumptionDistrict heating and coolingFuelTotal

WaterFreshwater consumptionFreshwater per mealWastewater

Detergent and cleaningagent consumption

WastesTotal quantityWaste per mealOnboard wastes / wastes for disposalWastes for recyclingRecycling rate

At the same time, the consumption of electricity, gas anddishwashing detergents also fell. The bottom line is a con-siderable reduction of both environmental burden and cost.

When planning new locations, environmental considerationsare taken into account right from the start. Accordingly, thenew Customer Service Center at Cologne/Bonn Airport was equipped with an earth heat exchanger in 2002. Thissystem provides the building with warm air in winter andcool air in summer. This technology has proved itself agreat success. Particularly during last year’s extremely hotsummer, it helped to save considerable quantities of energy,which would otherwise have been necessary to cool thebuilding. It is to be used in future building projects when-ever possible.

9594 96 97 98 99 01 02 0300

60

55

50

45

40

0

Recycling rate of LSG Sky Chefs Germany in percent

354

38.3 million c

1

5.43 million

47,878

5.43 million

15 forklifts 44 lift trucks 62 trucks 18 passenger cars

7,448 MWh– MWh– MWh

2,000 MWh– MWh

9,448 MWh

26,748 m3

4.92 liters /meal24,073 m3

n. a.

1,488 tons274 grams/meal

1,254 tons235 tons15.8 percent

109

10.8 million c

1

935,796

13,802

776,374

2 forklifts 7 lift trucks 2 trucks 2 passenger cars

713 MWh1,003 MWh

– MWh– MWh

402 MWh2,118 MWh

6,181 m3

6.61 liters /meal5,563 m3

n. a.

332 tons335 grams/meal

250 tons83 tons

24.8 percent

760

73.7 million c

1

6.32 million

64,642

5.18 million

1 forklift 32 lift trucks

9 trucks 3 passenger cars

4,736 MWh3,121 MWh

– MWh3,769 MWh1,522 MWh13,148 MWh

49,971 m3

7.91 liters /meal44,974 m3

86.1 tons

4,086 tons647 grams/meal

2,633 tons1,453 tons

35.6 percent

565

33.0 million c

5

7.52 million

103,739

5.99 million

4 forklifts 50 lift trucks 78 trucks

4 passenger cars

4,435 MWh1,563 MWh

287 MWh– MWh

2,592 MWh8,877 MWh

78,787 m3

10.48 liters /meal70,908 m3

n. a.

2,275 tons303 grams/meal

1,748 tons528 tons23.2 percent

765

41.8 million c

1

4.09 million

36,153

2.99 million

5 forklifts 38 lift trucks 23 trucks 27 passenger cars

5,055 MWh2,627 MWh

– MWh749 MWh

4,497 MWh12,928 MWh

65,151 m3

15,91 liters /meal58,636 m3

n. a.

2,779 tons679 grams/meal

2,220 tons559 tons20.1 percent

At a glance Belgium Switzerland Denmark Spain France

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Establish a corporate environmental information system.

Create an environmentaldatabase by 2006.

Environmentally relevant data has been recorded since 2000.The reporting procedures are being systematized further.

LSG Sky Chefs Scandinavia

"

Reduce the specific energy consumption per meal to 1.6 kWh by the end of 2005.

Reduce the specific water consumption per meal to 6 liters by the end of 2005.

Reduce the specific water consumption per meal to 5.95 liters by the end of 2005

Increase utilization of catering operations. Conduct detailed monitor-ing of energy consumptionat the individual locations.

Increase utilization of catering operations. Conduct detailed monitor-ing of water consumptionat the individual locations.

Increase utilization of cater-ing operations. Conductdetailed monitoring ofwater consumption at theindividual locations.

The specific energy consumption per meal could be reduced by 5.8 percent from the previous year’s level to 1.78 kWh. An intranet-based measuring program for the LSG’s largedishwashing facilities was developed and implemented at the Frankfurt location. Its introduction has resulted in consid-erable energy savings. The program is to be introduced atfurther European locations in 2004/2005.

The specific water consumption per meal could be reduced by 11.9 percent from the previous year’s level to 5.99 liters.An intranet-based measuring program for the LSG’s largedishwashing facilities was developed and implemented at the Frankfurt location. Its introduction has resulted in consid-erable water savings. The program is to be introduced at further European locations in 2004/2005.

New goal.

Key environmental goals Environmental measures Degree of attainment StatusLSG Sky Chefs Germany

!

"

$

Employees

Revenue

Locations

Meals prepared

Flights catered

Passengers served

Vehicle fleet

Environmental data

EnergyElectricity consumptionGas consumptionHeating oil consumptionDistrict heating and coolingFuelTotal

WaterFreshwater consumptionFreshwater per mealWastewater

Detergent and cleaningagent consumption

WastesTotal quantityWaste per mealOnboard wastes / wastes for disposalWastes for recyclingRecycling rate

895

64.0 million c

3

8.84 million

82,905

8.75 million

14 forklifts 51 lift trucks 19 trucks 20 passenger cars

5,141 MWh4,843 MWh

– MWh1,732 MWh

241 MWh11,957 MWh

138,120 m3

15.63 liters /meal124,308 m3

n. a.

5,264 tons596 grams/meal

4,819 tons445 tons8.5 percent

314

30.1 million c

2

3.82 million

43,195

4.07 million

4 forklifts 13 lift trucks

2 trucks 4 passenger cars

3,052 MWh– MWh– MWh

566 MWh615 MWh

4,233 MWh

10,909 m3

2.86 liters /meal9,818 m3

8.7 tons

995 tons261 grams/meal

680 tons315 tons31.7 percent

600

44.3 million c

1

5.5 million

34,334

7.0 million

6 forklifts 18 lift trucks 33 trucks 14 passenger cars

10,064 MWh3,586 MWh

– MWh– MWh

2,219 MWh15,869 MWh

142,058 m3

25.8 liters /meal127,852 m3

n. a.

4,932 tons896 grams/meal

4,515 tons417 tons8.5 percent

628

71.4 million c

4

7.47 million

93,125

7.61 million

35 forklifts 24 lift trucks

5 trucks 12 passenger cars

6,124 MWh– MWh

1,021 MWh930 MWh

5,630 MWh13,705 MWh

37,913 m3

5.08 liters /meal34,122 m3

18.2 tons

2,092 tons280 grams/meal

1,710 tons382 tons18.3 percent

375

29.2 million c

1

4.44 million

19,363

2.90 million

2 forklifts 23 lift trucks 34 trucks

2 passenger cars

3,001 MWh2,976 MWh

– MWh– MWh

10 MWh5,987 MWh

26,002 m3

5.85 liters /meal2,407 m3

n. a.

4,127 tons929 grams/meal

3,965 tons162 tons3.9 percent

At a glance Italy Norway Portugal Sweden Great Britain

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any operations-related redundancies in its German corebusiness areas and in all but a small number of peripheralareas.

In the area of training as well, continuity and tradition areimportant values at Lufthansa. Despite a difficult businessoutlook, the company did not reduce its training capacitieslast year (see also “Training performance maintained,” p.44).It is important for Lufthansa not only to give young peoplean opportunity to find their way into the working world byoffering appropriate apprenticeship programs, but also tooffer them long-term perspectives within the company. Byconcluding long-term employment contracts with 92 per-cent of the young men and women finishing their vocation-al training last year, Lufthansa again took German industry’stop position in this area.

Diversity as a guiding principleWith their broad ranges of competencies and their dailyperformance on the job, our employees make a decisivecontribution to the company’s success. Therefore, theappreciation of all employees – independent of gender, origin, age, sexual orientation and physical abilities – is an important concern for Lufthansa. Diversity is not an interference factor. Rather, it holds potentials for creativityand innovation and is an expression of tolerance and acosmopolitan outlook, all values that are indispensable for Lufthansa in its role as an international corporation.

Lufthansa has underlined the importance of diversity bycreating the management function “Change Managementand Diversity.” This department cooperates with sub-sidiaries, departments and employee representations todevelop concepts for human resource development thathelp foster the inclusion of all employees and to win thesupport of managers for implementing the spirit of diversityin everyday business.

Facets of varietyIn Germany alone, the Lufthansa Group employs peoplefrom 128 nations; worldwide, this number stands at 150.Today, 37 percent of Lufthansa employees work outside of Germany and the trend points upward. Our employees’broad variety of linguistic and cultural knowledge is animportant resource for the company, especially when itcomes to better understanding the needs of our internation-al customers. Further, the successful interaction between

Achieving a balance between economy, ecology and socialresponsibility is both a yardstick and a commitment forLufthansa. The company has firmly anchored the guidingprinciple of sustainable development in its Mission State-ment. Since late 2002, Lufthansa has also supported the“Global Compact” launched by UN Secretary-General KofiAnnan. This worldwide initiative maintains that the advan-tages of globalization should benefit people everywhere onEarth. The obligations related to the Global Compact areformulated in nine principles concerning the respect forhuman rights, labor standards and environmental protection.

The top positions which Lufthansa holds in key sustainabili-ty indexes are further proof for the company’s efforts tomake its business activities compatible in the social andenvironmental domains. Since 1999, Lufthansa has main-tained first place in the airline industry sections of both theDow Jones Sustainability Index World and the pan-EuropeanDow Jones Sustainability Index STOXX.

Employment policies based on partnership After the heavy economic losses that followed the events ofSeptember 11, 2001, the continued weakness of the econo-my, the war in Iraq and the lung disease SARS combinedlast spring to place a renewed burden on the developmentof business. All economic decisions a company makesalso affect the well-being of its employees – at Lufthansathis means more than 93,000 people around the world1. As an employer, Lufthansa bears the responsibility of securing jobs long-term and preserving these jobs if at allpossible, even in times of economic difficulty. This goal isbest achieved when workable solutions to overcome a crisis can be developed in agreement with our employees.Over the past years, flexible work-time models have playedan important role in this area, especially part-time models(see also “Balance by means of flexible work times,” p. 45).

The collective wage agreement for ground and cabin per-sonnel signed in February 2003 is the first of its kind tocontain a “flexibility clause,” which provides the option ofreducing work hours with corresponding pay cuts if unionsand management jointly agree to declare a crisis situation.Soon thereafter, the heavy losses of revenue mentionedabove made it necessary to invoke this clause.

Together, the successful measures taken to manage thiscrisis have meant that Lufthansa has been able to avoid

Our social responsibility and commitment

To achieve sustainable success, a company must reach a consensuswith its employees and maintain a constructive dialogue with society. As an international corporation and important employer, Lufthansaassumes special responsibilities in this area.

1All figures mentioned in this chapter are as of December 31, 2003 unless stated otherwise.

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people from different cultures is becoming increasinglyimportant as work is becoming more and more internation-alized in the context of worldwide airline groupings, such as the Star Alliance. This is why intercultural competence is considered a key qualification at Lufthansa and has had a high priority in training and continuing education formany years.

About 41 percent of all employees at Lufthansa are women.And their presence in management has more than tripledover the last 12 years. Today, it stands at over 12 percent.And one-third of all managers with staff responsibility are women. Ensuring equal professional opportunities formen and women is also an economic factor for Lufthansa: If the company did not offer career options to qualifiedfemale employees, it would leave their potential unused.That is why Lufthansa makes specific efforts to recruityoung female candidates for pilot training, for example.With success: Today, 3 percent of our employees workingin the cockpit are women – in 1992, this share was lessthan 1 percent.

On “Girls’ Day” 2003, Lufthansa hosted 150 female high-school students and informed them about careers in technical, IT and logistics areas. The girls also had anopportunity to talk to women pilots and female traineesfrom a variety of specializations. The “Girls’ Future Day” is a Germany-wide initiative that aims at opening doors for young women in professional areas that are seen as classic male career options.

The demographic development in the industrialized coun-tries means that the ways in which employees of differentgenerations work together is a concern of increasingimportance. It is a key consideration for Lufthansa that olderemployees, our “Senior Professionals,” are able to applytheir experience and knowledge for the benefit of our com-pany. Therefore, we address this group directly with mea-sures such as “Pro 40,” a program to define one’s position.

* Many Lufthansa Group employees work shifts (e.g. at Lufthansa Technik) or according to a duty roster (e.g. flying staff). The basicoptions to vary work time are incorporated into this framework.

Sovereignty over work time

Flexible work time

Individually-reduced work time

Part-time options

Part-time for seniors

Telework

Mixed models

Work on demand

Results-oriented instead of time-orientedwork, no fixed time volume; setting clear,jointly developed target agreements (formanagers and most employees outside of collective wage agreements).

• Beginning and end of daily work hours are variable and realized without core times in most cases.

• Accumulated time accounts can be transferred to and balanced out in subsequent periods.

Duration and period of reduced work time can be arranged individually; by accumu-lating and withdrawing from time credit balances, employees can control their work hours themselves, in part fully self-determined.

• Reduction by a number of hours• Reduction by a number of days.• Block time, whereby week-long

blocks of work alternate with time off (predominantly for flying personnel).

Reduction of work time by 50 percent, usually spread over several years (for those over 55 years of age).

Where availability is more important than physical presence, individually agreed work phases take place alternately at home and in the office.

Combination of classic part-time options (or other work models) and telework.

A certain number of work hours per year is agreed and requested as needed.

Work time at Lufthansa* Description

Employees taking part in a training course for station staff held at Lufthansa’s Training Center in Seeheim, the “Klaus Bonhoeffer House.”

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Integration of people with handicaps and disabilities:reducing anxieties in working togetherIn all business areas, Lufthansa is working to improve theintegration of people with severe handicaps. These effortsalso include our vocational training program. At LufthansaTechnik in Hamburg, for example, two or three apprenticepositions for tool mechanics are given each training year to young hearing-impaired people. Sign-language inter-preters help explain all technical terms and procedures to them, so that they can take their final examinations justlike any other trainee.

In a corporate forum, Lufthansa has joined partners includ-ing Deutsche Bank and Fraport to develop strategies forintensifying the focus on disabled people, both as custo-mers and as employees. One result of this work is a men-toring program which Lufthansa launched in 2003 to markthe European Year of People with Disabilities. It broughttogether ten disabled “mentorees” and ten managers. The goal of this 12-month program was to reduce thesegroups’ anxieties in dealing with each other, thus creating a basis for a natural way of interacting – key steps towardimproved integration of disabled people in the company. As the results were very positive, this project will be contin-ued in 2004.

Lufthansa intensively supports workshops employing handi-capped people. In 2003, for example, Lufthansa Cargoplaced orders valued at 1.5 million euros with the “Werkstattfür Behinderte Rhein-Main e.V.,” (Workshop for the DisabledRhein-Main), thus securing the jobs of 208 employees atthis rehabilitation institution.

Across the Lufthansa Group, the share of disabled employ-ees in Germany currently stands at 3.1 percent. At individ-ual Group companies – such as LSG Sky Chefs withalmost 10 percent disabled employees and Lufthansa Revenue Services with more than 9 percent – Germany’slegal target employment rate of 5 percent is far surpassed.

In other areas — above all in flight operations — the need tomeet specific physical requirements makes the deploymentof disabled employees difficult. In turn, this restriction affectsthe Group’s overall employment rate. People who are recognized as severely disabled while under contract yetremain fit to fly can continue to work in their field, however.

Training performance maintained despite economiccrisisLufthansa offers young people diverse perspectives. Fromclassic vocational training programs under the dual systemand training courses to become a service professional tothe program allowing university graduates to start work in a related discipline — there are many ways to find a placein the company. In addition, there are internal qualificationprograms that allow our employees to access new profes-sional areas or to switch from one area to another, such as from working as a flight attendant to working in the training area.

Last year, Lufthansa invested a total of 117 million euros in the area of internal training and continuing education.Despite the difficult economic situation, the company main-tained the number of trainee positions it offers and invitedall qualified and interested young people completing theirvocational training to accept long-term employment con-tracts. In Germany alone, 414 new trainees started work in2003, while worldwide there were a total of 582. Thisincludes 94 future aircraft mechanics at Lufthansa Technikin the Philippines, for example. Overall, the Lufthansa Groupcounted more than 1,800 young employees in training in2003. Of these, 1,500 were working in Germany, a 6.5-per-cent increase over the previous year. Outside of Germany,the growth of this figure is above all due to the expansionin the number of group companies being consolidated. Asone of these new additions, Shannon Aerospace in Irelandemployed more than 130 trainees in various technical pro-fessions last year.

Video training during a seminar for pursers. Technical apprentice at Lufthansa Technik.

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With the exception of university graduates, Lufthansa trainsits up-and-coming generation of employees in-house. Thecompany offers training options in 37 different professionalspecializations. Of these, 24 count among the classic voca-tional training professions following the dual training model.In addition, Lufthansa offers specific training courses toqualify service professionals for work as flight attendants inthe cabin, in passenger care at airports or in call centers.As an airline with global operations, Lufthansa places spe-cial emphasis on the international facets of training. There-fore, the Group trains young people around the world tobecome “International Airline Professionals.” At LufthansaFlight Training in Bremen, young pilots can obtain theircommercial pilot’s licenses.

Professional training in combination with university studies is steadily gaining importance. Lufthansa currently offersseven such training courses. Since 2003, the program hasincluded a degree course in mechanical engineering withan emphasis on aviation at the Darmstadt Technical Univer-sity. Also new is a degree course in information technologywith an emphasis on business, which Lufthansa Systemsoffers in cooperation with the Berufsakademie Mannheim(Professional Academy).

Lufthansa School of Business – a competence centerfor staff development and continuing educationWhen the Aviation Group founded the Lufthansa School ofBusiness (LHSB) in 1998, it was Germany’s first corporateuniversity. Today, it is recognized as one of finest corporateuniversities worldwide. The LHSB offers a comprehensiveprogram of qualifications and assists the development of airline managers and talented young employees. Bylaunching our Corporate College in August 2001, Lufthansaopened up yet another segment of continuing educationbelow the management level. The Corporate College offersall Lufthansa employees a wide selection of interdisciplinarycourses and seminars, which serve to deepen personalcompetence and discuss strategic issues that are importantfor the company. Another option is the continuing educa-tion programs outside of working hours. Alternatively,Lufthansa employees can earn a diploma in an officiallyrecognized trainee profession by attending the CorporateCollege on a part-time basis. In 2003, more than 5,000employees took advantage of the courses offered by theLufthansa School of Business.

Social competence is a key qualificationIn a working environment increasingly shaped by the needfor individual responsibility and decision-making, socialcompetence is becoming a key qualification. It includessuch qualities as the ability to work in teams and assumeleadership. It is also inseparably linked to sensitivity towardsocial processes and the importance of assuming respon-sibility within society. For these reasons, social competence

is also an integral element of Lufthansa’s internal qualifica-tion measures. In this spirit, 30 managers participated lastyear in remodeling a Wiesbaden tearoom serving thehomeless, as part of a personnel development project. Forover four weeks, they joined homeless people in rebuildingthe tearoom’s outside facilities, which now feature a pavedcourtyard with seating and landscaped areas.

Participants in the one-year staff development program“Explorers 21” set up a “social marketplace” on Lufthansa’sintranet. This “Take Care Marketplace” serves as a forumfor all social-minded activities at Lufthansa and makes iteasier to establish contacts. Among other services, it offersan exchange for corporate volunteering, where interestedLufthansa employees can access information about aidorganizations in need of support.

Balance by means of flexible work times The “work-life balance” is one of the central goals ofLufthansa’s human resources policy. And the range ofwork-time models Lufthansa offers (see table on page 43)plays an important role in implementing this goal. The com-pany aims at offering individual solutions within the limits ofoperational requirements. Flexible work-time models createroom to maneuver for employees and company alike:Lufthansa gains an instrument that helps it react at shortnotice to market fluctuations with its employees’ support,while employees can reconcile private – and particularlyfamily-related – needs with professional needs.

At a rate of more than 38 percent, part-time solutions areparticularly popular among flying personnel and employeesin the operative areas on the ground. Across the LufthansaGroup, 24 percent of employees worldwide take advantageof part-time offers. The number of men working part-timehas increased continuously over the past years: While theirshare only came to 23 percent in 1996, it stands at 38 per-cent today. An increasingly popular option – particularly forparents – is a mixed model of part-time work and telework-ing. To the extent their jobs permit, participating employeescan then work from home on specified days.

Family-friendly optionsEmployees who need to look after family members or partners in need of care can take advantage of “LufthansaFamily Time,” which grants special unpaid leave of up to364 days. By adding this option to its company policy“Lufthansa and Family,” Lufthansa complements the legalthree-year parental leave in Germany.

Via an external family service, Lufthansa offers its employ-ees who are parents support in finding the right kind ofcare for their children. Employees providing care for olderfamily members can also use this service (“Elder Care”).Lufthansa bears the cost of consultations and placements.

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Together with Fraport, the operators of Frankfurt Airport,the airline has also been testing a short-term type of “ad-hoc child care” since 2002: “FLUGGI-LAND,” which islocated near Frankfurt Airport. FLUGGI-LAND takes overwhenever employees’ regular child-minders are unexpect-edly unavailable or when unplanned appointments haveto be kept. Lufthansa covers the largest part of the childcare costs involved in this project.

HelpAlliance: employees lend a helping hand –worldwideThose who travel a lot see a lot – and not just the brightside of life. Taking advantage of their contacts all aroundthe globe, Lufthansa employees founded the HelpAlliancein 1999. Today, the registered charitable association unitesa total of 14 development aid projects, which Lufthansaemployees have launched in a number of countriesaround the world and continue to support with consider-able personal commitment.

As an umbrella organization, the HelpAlliance ensures apresence within and outside the Lufthansa Group andorganizes joint fundraising projects. The airline’s manage-ment supports this employee initiative financially and orga-nizationally. An in-flight video informs passengers aboutthe work of HelpAlliance and asks for donations. Its bestknown fundraising project is “Small Change for Big Help.”This action has aimed at collecting any foreign currencythat passengers may have left on their flights home –since 2001 on all Lufthansa long-haul flights and since2002 on Thomas Cook Airlines and Condor flights as well.Last year, more than 170,000 euros were collected in thisway.

In the event of catastrophes, the HelpAlliance also worksfor swift and unbureaucratic aid. Last year, the organizationprovided more than 10,000 euros for the victims of the devastating earthquake in the southeast of Iran. An orphan-age in Kerman, near Bam, benefits from this donation. Aportion of the 1,500 children that became orphans as aresult of the earthquake live here. In addition, LufthansaCargo carried three containers with donations in kind toKerman.

Neighborly help – the hands-on wayFrankfurt Airport is Lufthansa’s central hub. With more than33,000 employees working here, the Lufthansa Group isthe largest employer in the state of Hesse. In this role, itmakes a significant contribution to the region’s prosperity.Furthermore, it shares the responsibility for ensuring thatthe concerns of neighboring communities in the flightpaths are taken into consideration and that the airport’splanned expansion is made as environmentally friendlyand socially compatible as possible.

To give its close ties to the region a visible expression,Lufthansa launched the initiative “All of us for Rhein-Main”five years ago. Here, Lufthansa employees agree to act asambassadors for their company in addition to their role ascitizens of their region. They become patrons of worthysocial and cultural projects in the communities surround-ing the airport. The company supports these projects withthe necessary funds. Since 1999, this initiative has sup-ported more than 150 projects. Two examples of initiativesthat received support last year are an integration projectfor immigrants and an employment project for disabledpeople. In Frankfurt, both the Johanniter accident rescueservice and the mobile care unit of Aids-Hilfe (an AIDSsupport service) received a new vehicle.

The HelpAlliance supports projects worldwide including

• a project for the development of villages and training projects in the Tibetan settlement at Dhondenling in southern India

• bush hospitals in Kaloleni, Kenya and Obizi, Nigeria

• a training and recreation project for the children of the“Smoky Mountain” garbage dump in Manila, the Philippines

• orphanages in Nigeria and Brazil

• an infrastructure and training project in Djougou, Benin and Saint-Louis,Senegal

• street kid projects in Thailand, India, the CIS states and Germany

www.help-alliance.com

Aid projects supported by the HelpAlliance

Lufthansa employees lend a helping hand

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EU program AERONETCoordination of European research projects on aviation issues

To intensify the exchange of scientific knowledge and expe-riences, the European Union launched a comprehensivenetwork called AERONET. Almost all important Europeanaviation institutions participate in this program directed bythe German Aerospace Center (DLR). This EU programaims to facilitate the open formulation of questions, helpfind solutions and apply each institution’s individualstrengths in a coordinated way. AERONET also aims tohelp strengthen the competitiveness of Europe’s aviationand space industry. In the meantime, the EU has approvedPhase III of the project, in which Lufthansa will continue toparticipate as an active partner.➜ www.aero-net.org

EU research program MOZAICContinuous measurements of climate-relevant trace gasesat cruising altitude

In the context of the EU research program MOZAIC (Mea-surement of Ozone by Airbus In-Service Aircraft), instru-ments on board five Airbus A340-300 long-haul aircraft –three of which are operated by Lufthansa – continuouslymeasure the ozone and water vapor concentrations in theatmosphere. Every four seconds, at cruising altitude this isonce per kilometer, sensitive instruments weighing 150 kilosrecord these parameters along with the aircraft’s position,wind speed and temperature. Since August 1994, about2,300 MOZAIC flights have been completed per year. At the end of 2003, this added up to exactly 22,003 flightswith a total of 156,652 flight hours.

The MOZAIC measurements have clearly shown that the air at altitudes between 9 and 12 kilometers is much morehumid than had been assumed. The results of the MOZAICproject have a direct impact on the understanding of cloudformation. Thus, they also contribute to improving global climate models.

Since 2001, additional instruments have been in service forroutine measurements of carbon monoxide (CO) and nitricoxides (NO and NO2). This data will enable researchers todetermine where the air masses that the aircraft fly throughactually originate. The German Aerospace Center (DLR)estimates that about 30 percent of emissions originatingfrom the Earth’s surface eventually reach cruising altitudes.Despite many assertions to the contrary, this indicates thatair traffic is not solely responsible for pollution in the upperatmosphere.

After ten years of supporting the program, the EU is unwill-ing to provide further funds. Given the central importance of this project to climate research, the institutes and airlinesparticipating directly in MOZAIC have decided to continuethe measurings at their own expense.➜ www.cnrs.fr ➜ www.aero.obs-mip.fr/mozaic

Lufthansa and research

Knowing exactly what effect flying has on the environment is the keycondition for creating effective policies in environmental care. Only byresearching causes and making realistic prognoses can we achieve an objective view of aviation and find approaches to minimize its environmental burden. This is the reason why Lufthansa supports a number of highly different scientific research projects.

The results from the MOZAIC program help to refine the climatemodels used in atmospheric research further and further.

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CARIBIC(Civil Aircraft for the Regular Investigation of theAtmosphere Based on an Instrument Container)

CARIBIC is a European project to investigate the atmos-phere at altitudes between 8 and 12 kilometers. Once ortwice a month, a container equipped with measuringinstruments will be loaded into the freight compartment ofa long-haul passenger aircraft. There, it will measure thechemical composition of the Earth’s atmosphere duringone rotation, i.e. one return flight.

For this purpose, one of the ten new Airbus A340-600srecently put into service is being modified. A special airinlet system will be installed on the surface of the aircraft’sfuselage. Sample tubes link this inlet to the CARIBIC con-tainer, where the air drawn in is analyzed directly and theconcentrations of a number of trace gases and aerosolsdetermined. In addition, air samples are also taken for laterlaboratory analysis.

A period of two years has been necessary for the technicalimplementation of this project – from designing the air inletsystem and constructing the container to modifying the aircraft to carry the container and verifying the system’sperformance. The first measuring flights with the newCARIBIC system aboard are planned for summer 2004.

CORAXX (COsmic Radiation Aircraft eXposure eXperiment)Optimizing an important model in atmospheric chemistryby measuring 14CO at cruising altitude

In the self-cleaning mechanism of the atmosphere, hydroxylradicals (OH) play a crucial role. Due to their short life spanand low concentrations, however, it is difficult to measureOH radicals directly. For this reason, scientists use complex

model calculations to determine the distribution of OH radi-cals in the atmosphere indirectly. These calculations arecurrently being optimized, which requires basic data indi-cating seasonal effects and the global distribution of OHradicals. This data is generated indirectly by measuringselected markers. One promising candidate here is the14CO molecule, which is formed mainly at high altitudes byreactions between cosmic radiation and the air. Measure-ments aim to determine the global rate of 14CO formation,which will then be compared with theoretical calculations.

To achieve this, pressurized tanks filled with compressedair are installed for one month aboard a long-haul aircraft(Airbus A340). In the course of increasing exposure to cosmic radiation, 14CO is formed in the air sample, whichundergoes no further chemical reactions as it is notexposed to light.

Subsequently, the rate of 14CO formation in the air is com-pared with the formation rate recorded under the sameconditions on the ground and with the mathematically calculated values. The preliminary results from the first tenmeasurement cycles have confirmed that this procedure is suitable for the purpose. The project is jointly conductedwith the Max Planck Institute for Chemistry in Mainz.➜ www.mpch-mainz.mpg.de/~joeckel/coraxx/

Measuring the emissions of jet engines Measurements of engine exhaust emissions with opticalmeasuring techniques to study the effects of agingprocesses

Up to now, emissions data has been collected from factory-new engines in the context of certification. Yet a number ofresearch projects indicate that an engine’s actual emissionsmay depend on such factors as hours in operation, mainte-nance and flight cycles. Emissions characteristics also varybetween individual engines of the same type. Initial tests onrunning engines and auxiliary power units (APUs) carriedout by third-party institutes show that deviations from certifiedvalues may occur in individual cases.

For this reason, a three-year measuring program was jointlylaunched by Lufthansa Technik in Munich and KarlsruheResearch Center’s Institute for Meteorology and ClimateResearch (imk-ifu) in Garmisch-Partenkirchen (formerly theFraunhofer Institute). Here, emissions components in theexhaust jets of specifically selected engines on twoLufthansa A340 aircraft are measured at intervals of 1,000hours of operation, using an optical measuring technique.

The heat radiation of the exhaust near the engine’s outlet isused to determine the concentrations of various exhaustcomponents (e.g CO, CO2, NO, NO2 and N2O). Measure-

A sampling system has beenspecifically developed for theclimate research projectCARIBIC. Mounted on thesurface of the aircraft’s fuse-lage, it features several airintakes as well as a prism-based system for measure-ments made with laser light.

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ments are taken as the engines are started and while theyare running smoothly. The resulting concentration values,combined with data on the composition of the keroseneburned, allow researchers to derive emissions indexes thatcharacterize the current state of an engine.

The results obtained by this project will serve to advancestudies on changes in the overall efficiency of engines andpossible decreases in combustion efficiency at constantfuel burn. Such engine characteristics are also significantfor an airline’s operational costs. The project will be con-cluded in mid-2004. The last measuring dates will be usedto test a newly-developed measuring system. The project’sfinal results are expected during the second half of 2004.➜ http://imk-ifu.fzk.de/

Consave 2050EU project concerning forecasts on growth and emissionsin air transport

In the context of this project, which is supported by the EU,long-term scenarios for air transport are developed. Differ-ent time horizons are applied here: 2020/2025 and 2050.The project is particularly concerned with the developmentof scenarios that assume changes in society. In turn, theeffect of these changes on air transport is forecasted. In thisanalysis, particular attention is given to the climatic effectfrom air transport. Within Consave 2050, Lufthansa headsthe consulting committee, which consists of internationalexperts and accompanies the project work in a discerningmanner.➜ www.dlr.de/VL/consave

Joint project “Quiet Traffic”Interdisciplinary research project to lower traffic-related noise emissions

The “Quiet Traffic” program was initiated by the GermanAerospace Center (DLR). It aims at achieving significantadvances in the reduction of traffic noise by intensifyingcooperation between industry, research institutions and traffic planners. The program is divided into the followingresearch sections: noise impact, road noise, rail noise andaircraft noise. An additional working group is dealing withtraffic management, sound propagation and optimizationissues.

Lufthansa’s Head of Group Environmental Concepts leadsthe program section on aircraft noise. Three of the researchprojects proposed by the project group were approved for support by Germany’s Federal Ministry of Economicsand Labor in the context of the 3rd National AeronauticsResearch Program. The first project, LEXMOS, is headed byRolls-Royce Germany and focuses on quiet engine nozzlesystems and modern methods for the localization of noisesources. The second project, NASGet, is headed by DornierGmbH and aims to develop new types of active and pas-sive systems to reduce noise from the engines. Headed byLufthansa, the third project, FREQUENZ, concentrates onnoise reduction at the source and focuses on selectedareas of fuselage and engines. This project aims at devel-oping a scientific knowledge base (sub-project 1) by carry-ing out a selection of basic experiments (sub-project 2) and thereby creating validated aeroacoustic design tools,which can then be used in implementing individual mea-sures in testable solutions (sub-project 3).

Heat radiation of exhaust gases close to the engine outlet can be used to determine the concentration of a number of exhaust components.

IR radiationsource

UV/vis-radiation source

exhausts

exhausts

“Follow-me” car

exhaust sampling

FTIR spectrometer FTIR + DOAS spectrometer

IR r

adia

tion

of h

ot e

xhau

sts

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These research activities involve the joint efforts of Luft-hansa, aircraft manufacturers, public authorities and theDLR. In fall 2002, noise measuring flights with a BoeingMD-11 operated by Lufthansa Cargo were conducted atParchim Airport in Mecklenburg-Western Pomerania. Thegoal of the data analysis is to describe the aircraft with itsspecific characteristics of noise sources and to deducepossible measures for noise reduction. At the same time,different procedures for approach and landing were testedin Parchim. Concepts for their possible implementation inroutine flight operations are now being developed and arethen to be coordinated with the manufacturer. The secondarea of emphasis of FREQUENZ is a series of noise mea-suring flights in Cochstedt with an Airbus A319 operated byLufthansa. The insights gained from these flights and theprototype noise reduction measures tested here are to befurther developed within the scope of FREQUENZ.

In particular, the project aims at developing so-called vortexgenerators for the wings to the point of production readi-ness by conducting tests both in the wind tunnel and underreal flight conditions. These parts help suppress annoyingwailing sounds from the wings of the A320 family, whichmeans a significant noise reduction of 6 decibels duringthe early approach phase. Other research will focus ondeveloping noise reduction concepts for the front spoilers.This work is complemented by the analysis of tonal sourceson fuselage and engines. Here, the design tools to bedeveloped in sub-projects 1 and 2 are of central impor-tance for the construction of solutions. Furthermore, theresults obtained on test flights with the A319 equipped witha chevron nozzle – jointly developed by Lufthansa andDLR, the nozzle resulted in 1 db(A) less noise from theexhaust jet – are to be freshly assessed on the basis of theoretical and experimental insights from the LEXMOSproject and others.

In addition to Lufthansa, the following partners have joined the FREQUENZ group:• AIRBUS Deutschland GmbH, Bremen • DLR Institute of Aerodynamics and Flow Technology,

Braunschweig• DLR Institute of Propulsion Technology –

Turbulence Research, Berlin • Dornier GmbH, Immenstaad • EADS Deutschland CRC, Munich • Rolls-Royce Deutschland, Dahlewitz • RWTH Aachen, Institute of Aerodynamics, Aachen • TU Berlin, Hermann Föttinger Institute of Flow Technology, Berlin• Universität Stuttgart, Institute of Aerodynamics and

Gas Dynamics, Stuttgart➜ www.fv-leiserverkehr.de/FV-LeiserVerkehr/

bereich_leises_verkehrsflugzeug.htm

Noise-optimized procedures for approach and departureImproved procedures for the approach and departurephases contribute greatly to reducing noise near airports.The so-called “low drag/low power” approach procedure,which Lufthansa helped to develop, has since become aninternational standard. The airline also supports the Contin-uous Descent Approach (CDA), which serves to cut noisenear airports during night hours.

In addition, onboard navigation systems help to concentratethe aircraft’s movement to minimum noise tracks. Measure-ments have proven that noise emissions near airports, par-ticularly those from Lufthansa aircraft, have thus declinedsignificantly.

Based on these methods jointly developed by Lufthansa, anew research project launched by the German governmentwill further investigate current procedures for approach anddeparture by means of advanced simulation techniques.Here, the goal is to identify potential for additional improve-ments. ➜ www.DLR.de; www.fv-leiserverkehr.de

DOSMAX (DOSimetry of Aircrew Exposure to Radiation DuringSolar MAXimum)EU project for the continuous measurement of radiation at cruising altitude during increased solar activity

Scientists hope that the results from the DOSMAX projectwill help to quantify solar flares, a phenomenon rarely measured. These unusual, largely unpredictable events canincrease radiation doses for a short time when eruptionsoccur on the sun. As with the precursor project ACREM(Air Crew Radiation Exposure Monitoring), which took place during a phase with less solar activity (1996–1999),Lufthansa will again install measuring equipment providedby the German Federal Physio-Technical Institution inBraunschweig and the Austrian Research Center Seibers-dorf aboard two of its aircraft. While measurements for the ACREM project only took place on selected flights,measuring equipment for DOSMAX operates continuouslyaboard two Airbus A340s, and started in summer 2003.

Scientific institutions from Austria, England, France, Germany, Ireland, Italy and Sweden are participating in this EU-sponsored research project. The first sets of measuring data are to be published in the course of 2004on the website of the European Radiation Dosimetry Group(EURADOS). ➜ www.eurados.org

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A-check, C-check • Maintenance event involv-ing routine checks of the main technical sys-tems important for an aircraft’s operation plus a thorough touch-up of the cabin. Dependingon the type of aircraft, an A-check is requiredevery 350 to 650 flight hours, or about everytwo months.

A C-check is an in-depth inspection of theaircraft’s structure and a thorough testing of allsystems, which involves the partial removal ofpaneling for detailed examinations. Dependingon the type of aircraft, a C-check takes placeevery 15 to 18 months.

AEA • Association of European Airlines, withheadquarters in Brussels.

APU • Auxiliary Power Unit, ensures an aircraft’senergy supply and air conditioning when nopower source is available on the ground. Inaddition, it provides pressurized air for startingthe engines.

Atmosphere • The whole mass of air surround-ing the Earth. It is divided into various layers,distinguished from one another by distinct differences in vertical bands of temperature. For air traffic, the two lower layers are of impor-tance: the troposphere, where weather-relatedevents take place, and the stratosphere, whichlies above that.

The troposphere’s upper boundaries varydepending on season and latitude. Above the equator, they lie at altitudes of 16 to 18 kilo-meters above sea level, and above the poles at 8 to 12 kilometers. The temperature in the tropopause, the transition layer between tropo-sphere and stratosphere, measures at onlyabout minus 60 degrees Celsius. In the strato-sphere it rises again. There, the concentrationof water vapor is extremely low.

Also in the stratosphere, we find the so-called ozone layer at altitudes of about 25 to 30 kilometers. Today’s commercial aircraft fly at cruising altitudes of between 8 and 13 kilometers. According to the latest research, air traffic emissions do not have a direct impacton the ozone layer.

Block time • In Lufthansa’s traffic statistics, thisterm refers to the time from the moment an aircraft leaves its parking position under its ownor other power to taxi to the runway for takeoff(“off- blocks time”) to the moment it comes to a complete standstill after a flight has beencompleted successfully (“on-blocks time”).Though frequently used, the term “flying hour”is not clearly defined as it can signify eitherflight time or block time.

CAEP • Committee on Aviation EnvironmentalProtection. Environmental workgroup of theInternational Civil Aviation Organization (ICAO),founded in 1983.

Carbon dioxide (CO2) • Gas resulting innature from the burning or decomposition oforganic masses (e.g. plant material) and fromthe breathing process of humans and animals.

CO2 is an important greenhouse gas in theatmosphere, where it remains for about 100years. Scientists attribute the increase of atmo-spheric CO2 over the last 100 years to theburning of fossil fuels (e.g. coal, oil, natural gas)by humans as well as to cement production.Per ton of fuel, 3.154 tons of CO2 result fromthe combustion process. Currently, about 2 per-cent of man-made CO2 emissions are due toair traffic. Climatologists at the IPCC fear thatfurther increases in CO2 emissions could leadto a warming of the atmosphere.

Carbon monoxide (CO) • Chemical com-pound consisting of one carbon and one oxy-gen atom. It forms in the combustion process, mainly as the result of incomplete combustion.For aircraft engines, the level of CO emissionsdepends greatly on the thrust level: At the idlesetting, while taxiing and during approach the emissions per kilogram of fuel burned arehigher than during takeoff and in the climbingphase.

Catering • Internationally used term for thesupplies loaded aboard an aircraft, includingin-flight meals and service items such as newspapers, headphones, blankets, toiletries,etc. Combined, the weight of these suppliescan reach 5 tons on a Boeing 747.

CFCs • Fully halogenated chloroflurocarbons,family of industrially produced organic compounds. In the past, they were used ascooling agents in refrigerators, freezers and airconditioning units. They were also used as acleaning agent in the area of electronics. CFCsare regarded as the most important cause forthe destruction of the ozone layer which scien-tists have been observing for some years now.CFCs are also highly active greenhouse gases.Over the past years, Lufthansa has replacedCFCs in its operations – primarily as coolingagents – with substitutes (e.g. partially halo-genated CFCs, which have little or no potentialfor ozone destruction).

Chapter 3 aircraft • Aircraft that meet the regulations of the strictest noise protection stan-dard currently in force. The maximum noiseemission values for aircraft were introduced bythe ICAO under Annex 16 to the convention oninternational civil aviation. They have been inforce since 1977 and tightened repeatedly.

All new commercial aircraft marketed todaymust meet the regulations of Chapter 3 ofAnnex 16. Noise levels are measured at threemeasuring points: at 6,500 meters from thebeginning of the runway (take-off) and 450meters to the side of the runway for takeoffs(sideline), and at 2,000 meters in front of therunway threshold (approach) for landings. Thelatter corresponds to a flyover altitude of about120 meters.

The permitted values depend on the air-craft’s maximum take-off weight and number ofengines.

In September 2001, the environmental com-mittee (CAEP) of the ICAO reached agreement

on the more stringent Chapter 4 noise standard.It prescribes a cumulative reduction of 10 deci-bels (dB) compared to the maximum valuesnow permitted under Chapter 3.

Chlorinated hydrocarbons • Organic com-pounds whose hydrogen atoms have beenreplaced by chlorine atoms. They are excellentsolvents and were previously used as greasesolvents in metal processing. Considered problematical both from an environmental andoccupational safety point of view, chlorinatedhydrocarbons are no longer used at Lufthansa.

Condensation trails (contrails) • Under cer-tain meteorological conditions, water vapor andparticle emissions from aircraft engines cancause the formation of contrails, whose life spancan occasionally reach several hours. Theoreti-cally, contrails influence the Earth’s radiationbudget by hindering the reflection of heat intospace.

Additional high-altitude cloud cover causedby line-shaped contrails reaches 0.5 percentabove western and central Europe and 1.3 per-cent above the United States. Based on region-al observations, projections indicate a world-wide average of approximately 0.07 percent.According to current calculations by the GermanAerospace Center (DLR), this implies a smallclimatic effect compared to that of CO2 emis-sions.

In recent model calculations, the DLR foundthat the impact of contrails on the radiative forcing is lower by a factor of about 5 than thatestimated by the IPCC in 1999. This makes itlower by a factor of 5 than the impact of avia-tion-related CO2 emissions. The radiative forc-ing determines the temperatures prevalent inthe earth’s atmosphere. In turn, these influencewind and precipitation, i.e. those parameterscommonly referred to as weather or, overlonger periods of time, as climate.

On occasion, contrails develop further into“natural” cirrus clouds, the so-called “contrail-cirrus clouds.” The effect of this type of cloudon the radiation budget and climate is currentlybeing researched.

Decibel (dB) • Measuring unit for the intensityand pressure of sound. The difference in inten-sity between the softest sound the human earcan perceive and the pain threshold is 1:10 bil-lion. To depict this enormous range objectively,acoustics uses the logarithmic decibel scale.On this scale, the value “0” is assigned to theperception threshold (for a sound of 1,000 Hz)and the pain threshold at the value “130.” An increase of 10 dB corresponds to a tenfoldincrease in the sound’s intensity. For the per-ceived volume, a difference of 10 dB corre-sponds to half or double the volume. However,the human ear is not equally sensitive acrossthe entire range of frequencies. Low and highsounds are not perceived as being equallyloud even at the same intensity. For measure-ments, this difference is equalized and notedaccordingly. The best known such notation is

Environmental ABCs Key terms and abbreviations frequently used in aviation

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the “A value,” marked by the index dB(A). To measure aircraft noise, the EPNdB (EffectivePerceived Noise Decibel) unit is used interna-tionally.

Deicing • An aircraft cannot take off with iceand snow on its wings and horizontal stabilizers.Such accumulations alter the aerodynamicsand thus imply an enormous safety risk. Forthis reason, aircraft are forbidden to take offwhen they are covered by hoarfrost, snow orice. Under wintry weather conditions, an air-craft’s critical surfaces must be deiced with amixture of water, propylene glycol and alcohol,which also protects them from icing over again(deicing/anti-icing). On average, about 900liters of deicing fluid are required to deice aBoeing 747 each time. By comparison, only300 liters are needed for a Boeing 737. Thisdeicing fluid is almost completely biodegrad-able and poses no danger for the environment. On an average winter day, about 65,000 litersdeicing fluid are used at German airports. Ondry days with freezing temperatures, this figureis significantly lower. It is even entirely possiblethat on dry days with very cold temperatures,such as those occurring at Russian airports, no deicing is required at all as no ice builds up due to the cold, precipitation-free weatherconditions.

DLR • German Aerospace Center. The DLRserves scientific, economic and social purposes.It employs more than 4,500 people in eightlocations (Berlin, Bonn, Braunschweig, Cologne,Göttingen, Lampoldshausen, Oberpfaffenhofenand Stuttgart). And it maintains 30 institutes,testing facilities and operational sites. Its goal is to help – using the means of aviation andspace flight – to secure and shape the future.In its work, the DLR also seeks cooperation and

allocation of research tasks among Europeanpartners.

EMAS • Environmental Management and AuditScheme. European regulations concerningenvironmental management and certification.

Equivalent continuous noise level (Leq) • TheLeq is a measure for the energetic average ofall sound pressure levels over a defined periodof time. All sound events that differ in intensityand duration are summarized according tomathematical rules. The resulting average valueis an accepted and proven measurement of the“noise quantity” occurring over an observedtime interval.

FANS (Future Air Navigation System) • New air traffic control system, based essentiallyon data exchanges between air traffic controland aircraft. In addition to numerous otheradvantages, FANS enables the use of new,more fuel-efficient routings over remote areaswithout radar coverage.

Freight performance (FTKO / FTKT) • One distinguishes between an airline’s offeredfreight performance (FTKO, freight ton kilome-ters offered) as part of its total performanceoffered and its sold freight performance (FTKT,freight ton kilometers transported) as part of itstotal performance sold. See also ton kilometers.

Fuel dumps • Dumping of fuel in-flight due to emergency situations. A procedure used on long-haul aircraft (Airbus A340, AirbusA330, Boeing 747, Boeing 767, MD-11) beforeunscheduled landings (e.g. in the event of technical problems or serious passenger illness) to decrease the aircraft’s weight to the maximum permissible landing weight. Inthe event of a fuel dump, special airspace is

assigned to the aircraft, if possible aboveunpopulated or thinly populated areas (e.g.North Sea).

Fuel is usually dumped at altitudes of 4–8kilometers. A minimum altitude of 1,500 metersand a minimum speed of 500 km/h arerequired. The aircraft may not fly a fully closedcircle. The dumped kerosene forms a fine mistin the turbulence behind the aircraft. During afuel dump at minimum altitude, 8 percent of the fuel reaches the ground statistically. At anair speed of 500 km/h, this means a groundcontamination of 0.02 grams per square meter.This is as much as a shotglass-full of kerosenedistributed over a surface of 1,000 squaremeters. Despite the use of highly sensitivemethods of analysis, no contamination hasbeen determined so far in plant or soil samplesafter fuel dumps.

Halogenated hydrocarbons • Chemical com-pound that – in addition to carbon and hydro-gen – contains fluorine, bromine, chlorine oriodine. The group of halogenated hydrocarbonsincludes chlorinated hydrocarbons and CFCs.

Halon • Collective term for a group of chemicalcompounds that are used as efficient and reli-able fire extinguishing agents. Chemically, theyare related to the CFCs, very stable and insome cases characterized by a high potentialfor ozone destruction. They may only be usedin cases where this is absolutely necessary forsafety reasons. One of these exceptional casesis air transport, where they are currently theonly certified fire extinguishing agent. For example, halon fire extinguishers are installedon aircraft in the engine areas, toilets and cargocompartments. Lufthansa participates intenselyin the search for halon alternatives.

IATA • International Air Transport Association,the general organization of international com-mercial aviation with headquarters in Geneva.

ICAO • International Civil Aviation Organization,a United Nations agency with headquarters inMontreal. Develops internationally bindingnorms for civil aviation.

IPCC • Intergovernmental Panel on ClimateChange. An international UN panel on climatechange, founded in 1988 by the World Mete-orological Organization (WMO) and the UnitedNations Environmental Program (UNEP). In1999, the IPCC published a special report onissues related to air transport, entitled “Aviationand the Global Atmosphere.” (www.ipcc.ch).

Kerosene • Fuel for jet and propeller enginesthat is chemically similar to petroleum. Likediesel fuel or gasoline, kerosene (also calledJet A1) is produced by distilling crude oil;unlike these fuels, kerosene does not containhalogenated additives. Due to its manufacturingprocess, it does not contain benzol either.

An adaptation regulation issued by theEuropean Union in 2002 has led to the reclas-sification of kerosene according to changed cri-teria in chemical law. It is now considered bothhazardous for health (as before) and hazardousfor the environment (new).

The visible trails that can form at the wing tips and trailing edges when aircraft take off or land inhumid weather conditions are water vapor and not – as is often assumed – fuel being dumped.This phenomenon can be explained quite simply by the rules of physics and meteorology: The aircraft’s speed and the wings’ curvature produce lower pressure above the wings than around the rest of the aircraft’s fuselage. Lower pressure causes the temperature to fall. If the temperaturefalls below a certain point, the so-called “dew point,” the water vapor present in the air condenses.As a result, trails of water vapor become visible at the wingtips – or as in this picture, in the vortexat the flaps.

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Worldwide, aircraft consume almost 170 million tons of kerosene per year. This repre-sents about 5–6 percent of the world’s totalcrude oil production. Military aviation has ashare of 10–20 percent.

Nitric oxides (NOx) • Chemical compoundsconsisting of one nitrogen and several oxygenatoms. NOx is defined as the sum of NO andNO2 compounds. Natural sources include light-ning and microbes in the soil. Nitric oxides arealso generated in combustion processes underhigh pressures and temperatures. Both of theseparameters have been increased in modernaircraft engines to significantly reduce fuel consumption as well as emissions of carbonmonoxide and unburned hydrocarbon. However,future combustion chambers of an advanceddesign could help reduce NOx emissions by85 percent.

Depending on the type of aircraft and oper-ational conditions, this value varies between 6 and 20 kilos. Air traffic has a share of 2–3percent in man-made NOx emissions. Climatemodels show that nitric oxides have increasedthe concentration of ozone at cruising altitudesby a few percentage points.

Ozone (O3) • Molecule consisting of three oxygen atoms. Close to the ground, it is a component of “summer smog” and irritates themucous membranes. In the stratosphere, ozoneabsorbs ultraviolet light (ozone layer). At currentlevels, nitric oxide emissions from air traffic atcruising altitudes cause an increase in atmo-spheric ozone. For heavily-flown North Atlanticroutes, scientists quote ozone increases of 3–4percent. By supporting the MOZAIC researchprogram (Measurement of Ozone by Airbus In-Service Aircraft), Lufthansa helps collect fundamental data to gain an understanding of the ozone budget in the lower atmosphere.

Passenger kilometer (PKT) • Measure for theactual transport performance in passengertransport (number of passengers multiplied bydistance flown). To determine this value, oneuses not the actual length of the flown route –with its air traffic control related detours – butthe great circle distance between the cities oforigin and destination. One also distinguishesbetween available transport performance (PKO,passenger kilometers offered) and actual trans-port performance (PKT, passenger kilometerstransported). Another commonly used term foravailable transport performance is SKO (seatkilometers offered).

Payload • Capacity available on a flight segment (in kilograms) for the carriage of passengers, baggage, freight and mail.

Payload factor • Weight-related measure forthe utilization of aircraft. It is the ratio of trans-ported ton kilometers (TKT) to available tonkilometers (TKO).

Seat kilometer (SKO) • Measure for the trans-port capacity available (SKO, seat kilometersoffered).

Seat load factor • Passenger-related measureof utilization in passenger transport. The ratio oftransport performance (PKT, passenger kilome-ters transported) to capacity (PKO, passengerkilometers offered).

Slot • Designated point in time at which an airline may use an airport’s runway for takeoffor landing. Slots are an important tool for dis-tributing the limited capacity of today’s airportsamong the airlines.

Stratosphere • Layer of air above the tropo-sphere, at altitudes of about 12 to 50 kilometers.Troposphere and stratosphere are separated by the so-called tropopause (transition area).

Sulfur dioxide (SO2) • Consists of one sulfuratom and two oxygen atoms. When burningfossil fuels, SO2 is mainly generated from thesulfur contained in coal, oil and gas. It is con-verted in the atmosphere into sulfuric acid andsulfurous acid, and is one cause of acid rain.SO2 is also an important generator of aerosols.These aerosols have a cooling effect on theatmosphere by scattering incoming sunlight. If one assumes a maximum sulfur content inkerosene as defined by the current internationalnorms (0.3 kilos per ton), then 0.5 kilos of sulfurcompounds are generated per ton of fuel con-sumed. But the emissions from current opera-tions should be significantly below this level,due to the higher quality levels of kerosenenow available. For example, the DLR assumesa sulfur content of 0.03 kg/ton or less forkerosene from German refineries.

Sustainable development • The guiding prin-ciple of sustainable development gained world-wide visibility in 1987, when the World Commis-sion for Development and the Environment(Brundtland Commission) presented its reportentitled “Our Shared Future.” It states: “Sustain-able development is a form of developmentthat meets the needs of today’s generationwithout jeopardizing the abilities of future gen-erations to satisfy their own needs.” For busi-nesses, this means acting in a responsiblemanner, not only in economic matters but alsoin environmental and social issues, in order tosecure growth long-term. All three aspects –economic, ecological and social – must be keptin balance.

Ton kilometers (TKT) • Measure of transportperformance (payload multiplied by distance).One distinguishes between available transportperformance (TKO, ton kilometers offered) andthe actual transport performance (TKT, ton kilometers transported). In calculating payloads,passengers are taken into account by means of a statistical average weight.

Trace gases • Gases of which there are onlyvery small amounts present in the atmosphere(e.g. ozone, methane, nitrous oxide, etc.) butwhich are of great significance for the Earth’sclimate and the chemical processes in theatmosphere.

Tropopause • Transition layer between the troposphere and the stratosphere. Region ofthe lowest temperatures (about –60 degreesCelsius).

Troposphere • Lowest layer of the Earth’satmosphere and location of weather events.Depending on the season, the upper bound-aries of the troposphere reach altitudes of 6–8kilometers above the poles and 16–18 kilome-ters in tropical areas.

Unburned hydrocarbons (UHCs) • Mixture of hydrocarbons that results from incompletecombustion processes. Near the ground, UHCscontribute to the formation of “summer smog.”

Water vapor • Even ahead of carbon dioxide,water vapor is the most important greenhousegas. Without water vapor from natural sources,the earth’s surface would be around 22 degreesCelsius cooler. This makes water vapor respon-sible for two-thirds of the natural greenhouseeffect of 33 degrees Celsius. Unlike carbondioxide, man-made water vapor emissions aretoo insignificant in comparison with naturalsources (e.g. evaporation) to have an influenceon the Earth’s climate.

For each kilo of kerosene burned, 1.24 kilosof water vapor are released. Concerns that airtraffic might increase the concentration of watervapor in the stratosphere and thus change the climate have been refuted by scientificresearch. The German Aerospace Center (DLR) concluded that even a one hundred-foldincrease in the quantity of water vapor emittedby air traffic would not result in a detectable climatic signal.

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Group Environmental Concepts

Dr. Karlheinz Haag Head, Group Environmental ConceptsTelephone: +49/69/696-949 [email protected]

Sustainability communications/CEO’s Department

Environmental Communications

Stefan SchaffrathTelephone: +49/69/696-949 [email protected]

Environmental Sponsoring

Lutz LaemmerholdTelephone: +49/69/696-63 [email protected]

Finance Department

Hans-Peter ArndtTelephone: +49/221/826-33 [email protected]

Hans KroeberTelephone: +49/221/826-22 [email protected]

Contact partners for environmental issues / Environmental Commissioners

Lufthansa Passenger Airline

Volker SchierleTelephone: +49/69/696-23 [email protected]

Michael DietzTelephone: +49/69/[email protected]

Dr. Ines KöhlerTelephone: +49/69/696-283 [email protected]

Lufthansa CityLine GmbH

Charles S. HoferTelephone: +49/2203/[email protected]

Ulrich VornhofTelephone: +49/2203/[email protected]

Stefanie BoorEnvironmental CommunicationsTelephone: +49/2203/[email protected]

Air Dolomiti

Piero ZecchiniTelephone: +39/045/[email protected]

Thomas Cook

Boris OgurskyTelephone: +49/6171/65 10 [email protected]

Norbert MichaelisTelephone: +49/6107/93 95 [email protected]

Walter EmmerlingTelephone: +49/6107/93 95 [email protected]

Group companies

Jan-Ole JacobsEnvironmental ManagementTelephone: +49/69/696-269 [email protected]

Dr. Gerd SaueressigNoise ResearchTelephone: +49/69/696-908 [email protected]

Dr. Andreas WaibelEmissions / ClimateTelephone: +49/69/696-938 [email protected]

Sabine WegnerCosmic RadiationTelephone: +49/69/696-939 [email protected]

Nils Braun Environmental PolicyTelephone: +49/69/696-836 [email protected]

Contact partners for environmental issues in the central management divisions

Human Resources

Dr. Martin SchmittTelephone: +49/69/696-23 [email protected]

Infrastructure Department

Sophie BraumüllerTelephone: +49/69/696-21 [email protected]

Stefan GrießmannTelephone: +49/69/696-947 [email protected]

Contact partners

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Human Resources

Monika RühlCommissioner for Change Management and DiversityTelephone: +49/69/696-283 [email protected]

Corporate Communications

Christine RitzTelephone: +49/69/696-510 [email protected]

HelpAlliance e.V.

Bernadett ScholandChairwomanTelephone: +49/69/696-696 [email protected]

Employee safety

Dr. Michael HammerschmidtTelephone: +49/40/5070-27 [email protected]

Bernd SchröderTelephone: +49/40/5070-20 [email protected]

Contact partners for Corporate Social Responsibility (CSR)

Contact partners for economic issues

Lufthansa Cargo AG

Maren GatzemeierTelephone: +49/69/696-933 [email protected]

Roland MandelDangerous Goods Safety AdvisorTelephone: +49/69/696-49 [email protected]

Lufthansa Flight Training

Hans-Günter LuxaTelephone: +49/421/[email protected]

Cathrin Knoerzer Telephone: +49/69/[email protected]

Lufthansa Technik AG

Ralf WunderlichManager Corporate Environmental Protection / Officer for Waste ManagementTelephone: +49/40/5070-50 [email protected]

Regina GülzowDangerous Goods Safety AdvisorTelephone: +49/40/5070-80 [email protected]

Kirsten HenkeOfficer for Immission Control and Operational IrregularitiesTelephone: +49/40/5070-40 [email protected]

Elisabeth KummerOfficer for Water ProtectionTelephone: +49/40/5070-85 [email protected]

Condor/Cargo Technik GmbH

Silvia Hinkel-SusTelephone: +49/69/695 [email protected]

Uwe BeckmannDangerous Goods Safety AdvisorTelephone: +49/69/695 [email protected]

Group companies

LSG Lufthansa Service Holding AG

Walter VredenTelephone: +49/6102/[email protected]

Lufthansa Systems Group

Stefan HansenTelephone: +49/69/696-88 [email protected]

Werner Barth Telephone: +49/69/696-32 [email protected]

GlobeGround Deutschland GmbH

Patrick FotheringhamTelephone: +49/6142/[email protected]

LZ-Catering GmbH

Marianne AldagTelephone: +49/40/5070-19 [email protected]

Group companies

You can find updated data on business andfinancial performance at

➜ www.lufthansa-financials.com

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Publishing information Publisher: Deutsche Lufthansa AG, Corporate Communications, Senior Vice President: Klaus Walther, © June 2004

Editors: Deutsche Lufthansa AG, Public Relations, D-60546 Frankfurt am Main, E-mail: [email protected]

Consultants: Dr. Karlheinz Haag, Head, Group Environmental Concepts; Jan-Ole Jacobs, Dr. Gerd Saueressig, Dr. Andreas Waibel, Group Environmental Concepts

Photo credits: Lufthansa Photo Archive, Frankfurt, Cologne; DLR, Oberpfaffenhofen; HelpAlliance e.V., Frankfurt; N. Miguletz, Frankfurt

Printed in the Federal Republic of Germany

Lufthansa is a member of

ICC Germany

Forum for SustainableDevelopment

German EnvironmentalManagement Association

Initiative Pro Recycling Paper

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