2. Gulf competition is here to stay
As with LCC competition on short haul, competition in long haul markets from the Big Three Gulf carriers (Emirates, Qatar Airways and Etihad) and Lufthansa's Star Alliance partner Turkish Airlines is not going to go away. For example, Lufthansa's India network provides important feed through Frankfurt into its US network, but the more extensive India networks of Gulf based airlines is taking an increasing share of this traffic through their own hubs.
See related reports:
Emirates Airline to make the United States its third largest source of revenue
US airlines take aim at the Gulf carriers when perhaps they would be better woo-ing them
The Gulf carriers' network of secondary European cities is also taking Europe-Asia traffic that used to connect through Frankfurt. As noted above, Lufthansa has an extensive European network, but much of this is feed for its long haul network. The flipside to its strong European presence is that it is more vulnerable to the growing presence of the Gulf carriers, and of their European partners, in Lufthansa's hinterland.