Lufthansa Technik

Lufthansa Technik's Restructuring Plans for its Administration Take on Concrete Form

Lufthansa Technik AG intends an extensive reorganization of its administrative structures and processes. The planned changes are part of the Lufthansa Group's program for the future, SCORE.

"We have already implemented many innovations in Production and optimized processes there, and now we intend similar improvements in administration," said August Wilhelm Henningsen, Chairman of the Executive Board of Lufthansa Technik. "Modern, efficient administration is an important condition for the future international growth of Lufthansa Technik AG."

Since the spring of 2012, nearly 200 experts from all areas of Lufthansa Technik have been involved in a SCORE project called NETwork in which all structures and processes were critically assessed. Numerous proposals for improving processes were tested for feasibility. The result is an extensive package of more than 200 individual measures, each with the goal of organizing administration more efficiently and responding more effectively to customer needs.

Business administration functions will be centralized, purchasing activities will be bundled in competence centers, shared services will be implemented more strongly in the personnel area, and stronger regionalization in sales will aim for better proximity to the customer.

The changes in administration in Germany will be effected by the year 2015. 650 positions will likely be eliminated. This reorganization will be implemented in a socially responsible manner.

Semi-retirement, early retirement and severance agreements are being offered on a voluntary basis. In addition, positions that become vacant through natural attrition will not be filled.

Hamburg-based Lufthansa Technik AG, a world market leader in the international aircraft maintenance, repair & overhaul (MRO) market, has already trimmed its production processes very successfully and developed innovative products in the past years. These measures have allowed the company to tap new market potential. For example, within the SCORE program the costs of engine overhaul are been reduced by about 20 percent.

Together with its subsidiaries Lufthansa Technik Logistik Services, Lufthansa Technical Training, Lufthansa Technik Maintenance International and Lufthansa LEOS, Lufthansa Technik employs a total of 13,070 people at its German sites in Hamburg, Frankfurt, Munich and Berlin.

Lufthansa Technik:

The Lufthansa Technik Group, with more than 30 subsidiaries and associates and over 26,000 employees worldwide, is one of the leading manufacturer-independent providers of technical services for the aviation industry. Its portfolio encompasses the entire spectrum of services for commercial aircraft: maintenance, repair, overhaul, modification and conversion, engines and components.