Lufthansa Technik: higher revenues, operating result increased

As one of the world’s leading providers of technical aircraft services, the Hamburg-based Lufthansa Technik Group was able to improve its result in 2013 once again with higher revenues of 4.2 billion euros. The annual report of the 23 consolidated Lufthansa Technik Group companies shows an operating result of 404 million euros.

„In spite of the generally satisfying development of global aviation, the difficult situation of many airlines – particularly in Europe – and the increasing availability of MRO services around the world continue to challenge our industry and increase price pressures,” said August Wilhelm Henningsen, Chairman of the Executive Board of Lufthansa Technik, on 18 March in Hamburg. „Against this backdrop, the Lufthansa Technik Group has developed very well. Our good order situation and our successful cost reductions have enabled us to boost our operating result significantly. Many of the cost-reducing measures are taking effect, and our sales force has successfully concluded numerous contracts.”

Currently Lufthansa Technik looks after 770 customers and a total of 2,800 aircraft. In 2013 alone, the company won 47 new customers and concluded more than 450 new contracts, reaching a volume of 3.4 billion euros for 2013 and the years to come.

2013 was also marked by the expansion of the service portfolio, particularly for the Boeing 787, as well as significantly extended partnerships with original equipment manufacturers (OEMs), and preparations for the new Boeing 777-9X and Airbus A350 aircraft types and their engines and components. In addition, innovation and research were driven forward.

Henningsen announced that Lufthansa Technik would strengthen its commitment to product and service innovations even more, since they are among the primary drivers of sustainable growth. „We have set up centralized innovation management and markedly increased our investments in this area, from 50 million euros during the past five years to 200 million euros over the coming four years.”

The development of the international Lufthansa Technik network in 2013 was marked by both portfolio streamlining and capacity expansions. Lufthansa Technik Switzerland was closed owing to a collapse in demand, and the closing of Lufthansa Technik Airmotive Ireland in Dublin was initiated at the end of the year owing to strongly declining revenues and inadequate market opportunities.

In contrast, Lufthansa Technik Budapest has expanded its capacities and Lufthansa Technik Malta has extended its capacity for parallel work on several long-haul aircraft through a hangar enlargement. In Asia, Lufthansa Technik Philippines is expanding its portfolio of services for the A380 and Lufthansa Technik Shenzhen has opened two new hangars in order to be able to offer new component, engine and logistics services. And in Hamburg, the newest Lufthansa Technik network company – Lumics, a joint venture with McKinsey – has begun its consulting activities, which are not limited to the aviation sector.

Lufthansa Technik enjoys a solid and stable position in the global aviation market, according to Henningsen. „Lufthansa Technik continues to focus on growth. We will participate in shaping the MRO industry through the development of strategic partnerships with innovative services and products. We have achieved a solid position as regards both competitiveness and growth, and we will continue to pursue this course.”

Source / Author: Lufthansa Technik