Lufthansa Technik Group Grows Faster Than the Market in 2007

The current 2007 Annual Report for the 19 companies that make up Lufthansa Technik AG shows an earnings before tax result of 287 million euros. This represents an improvement of 18.6 percent over the previous year.


In 2007, the Lufthansa Technik Group, one of the world's leading providers of technical services for airplanes, benefited from the growth in the global aviation industry and the maintenance, repair and overhaul market (MRO), once again posting improved results. Revenue from the Lufthansa companies grew slightly, while external revenue increased by 6.7 percent, which is markedly above market growth. Overall, revenue increased by 4.6 percent to 3.6 billion euros. The current 2007 Annual Report for the 19 companies that make up Lufthansa Technik AG shows an earnings before tax result of 287 million euros. This represents an improvement of 18.6 percent over the previous year.

"The Lufthansa Technik Group had a very successful year 2007, thanks to growing fleets and higher capacity utilization in aviation, but at the same time persisting competitive pressure in the industry," said August Wilhelm Henningsen, Chairman of the Lufthansa Technik AG, on March 13 in Hamburg. "We once again posted better growth than the world MRO market and were therefore able to strengthen our leading position." This is largely attributable to the group's modern range of products, global positioning and increases in productivity and efficiency.

In 2007, the number of customers of the Lufthansa Technik Group rose by 47 to 630 worldwide. Lufthansa Technik gained even more customers and achieved higher revenues than the previous year, winning a total of 465 additional contracts, equivalent to revenues of 440 million euros in 2007 alone. The percentage of customers from outside the group increased in the year 2007 by 1.3 percent to currently 61.2 percent. "We are in a good position with the innovative service products we make available around the world," said Henningsen. "And we can react swiftly and flexibly to changes in MRO demand."

Lufthansa Technik offers tailor-made services and support in building up technical operations particularly for new and fast-growing airlines making increasing use of Internet-based IT systems. And the development of new repair procedures is also contributing to a high level of acceptance on the part of the customers.

In addition to a strong position in Germany and Europe, Lufthansa Technik sees its international group with 28 production sites around the world - and a total of over 25,000 employees in the most important aviation markets - as a foundation for its good position in the further growing MRO market. "Our sales successes in the past year prove that this intensive international cooperation helps gain new customers and hence additional business for Germany," Henningsen stated.

As an industrial location, Germany, and in particular the company headquarters Hamburg, are not only centers of innovation and know-how for the Group, but also an interesting production location," Henningsen stressed. Further flexibility in scheduling working hours and increased efficiency through lean programs are paving the way for additional investments in Germany. In February 2008, for example, the cornerstone was laid for a new engine overhaul center. The annual engine throughput will increase significantly owing to the use of the latest methods and processes. More than 80 million euros is being invested in the Landing Gear Overhaul and Airframe Related Components business units, generating 125 new jobs. Also in Hamburg, a new research and development center dedicated primarily to cabin innovation is being built, this being a focus of expertise in Hamburg as center for the aviation industry.

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