Increased revenue and global market share for Lufthansa Technik in 2009 in spite of the crisis
- Revenue and profit greater than previous year
- Technical services for 690 customers worldwide
In 2009, the Hamburg-based Lufthansa Technik Group, one of the world's leading providers of technical services for the aviation industry, recorded a small increase in revenue and stable profits in spite of the decline in demand and earnings in the airline industry as a whole. Revenue increased by 6.6 percent to EUR 4.0 billion. The 2009 annual report presented for the 20 consolidated companies in the Group shows profits of EUR 316 million, a year-on-year improvement of 5.7 percent.
"In view of another significant increase in cost pressure fueled by the economic crisis and the shrinking market for maintenance, repair and overhaul (MRO) as a whole, Lufthansa Technik closed 2009 with excellent results," said August Wilhelm Henningsen, CEO of Lufthansa Technik AG, on March 17 in Hamburg. "The aviation crisis, which resulted in a reduction in the number of flights offered and sharply lower earnings, had an increasing impact on our operations - particularly in the second half of the year. But our broad product range, international strategic orientation, and great flexibility enabled us to further enhance our leading position in the world market."
Thus in 2009 we succeeded to a large extent in aligning working times with demand. "For example, at German facilities with annual working time models we were able to respond flexibly to the decline in demand. And the large number of lean activities helped us increase the efficiency of our production in all operating facilities," said Henningsen.
Winning 40 new customers and thus increasing its worldwide total to 691, Lufthansa Technik remained on a growth course in 2009. 456 new contracts were concluded - with total revenue of EUR 493 million for the year 2009 alone.
Henningsen sees the global group of 31 production companies and more than 26,000 employees (13,000 in Germany, 13,000 in other countries) as a cornerstone for the success of Lufthansa Technik. "Lean processes and effective interaction among all the companies have improved international competitiveness. Through this teamwork, which spans every part of the globe, we have established ourselves on the world's markets and close to our customers. We make the most of regional labor cost advantages, and can at the same time win new customers for the Lufthansa Technik Group."
Thus the new and significantly expanded facility of Lufthansa Technik Malta has been supporting long-haul aircraft in addition to the Boeing 737 and Airbus A320 families since the middle of 2009. At Lufthansa Technik Sofia, a second overhaul line came on stream. LTQ Engineering, an engine overhaul cooperation venture with Qantas, has added new engine models to its portfolio. In Milan, Lufthansa Technik Milan has been offering aircraft maintenance services for regional customers since 2009. In China, Ameco Beijing has opened an additional Boeing 747 overhaul hangar and significantly increased its training capacity.
Lufthansa Technik's industrial base in Germany remains not only an innovation center, but also the most important production location. At the new engine overhaul center in Hamburg, investments are being made in reducing turnaround times even more. In the area of composite material repairs, a new large autoclave was commissioned for working on aircraft parts made of these materials. And at its Hamburg-based Innovation Center opened in early 2009, Lufthansa Technik has pooled all research and development projects, especially those for cabin technologies.
"In spite of cost-effective locations, a modern product portfolio, and programs to increase efficiency, it will be very hard to repeat the good revenue and profit Lufthansa Technik achieved in 2009 during the current year," Henningsen declared.
Lufthansa Technik:
The Lufthansa Technik Group, with more than 30 subsidiaries and about 26,000 employees worldwide, is one of the leading providers of services for the aviation industry. In 2009, the Group's overall revenues stood at 4.0 billion euros. Lufthansa Technik is licensed internationally as a repair, production and development enterprise. The Group's portfolio encompasses the entire spectrum of services for commercial aircraft, engines and components in the areas of maintenance, repair, overhaul, modification and completion.
