MTU Maintenance Set for Growth

Feb. 24, 2022

MTU Maintenance has consistently and successfully pursued its growth plans. In 2021, the global market leader in customized solutions for aero engines fortified its standing in the engine aftermarket and remained committed to its expansion activities around the globe – in addition to increasing shop inductions to above pre-COVID levels.

“This speaks to the stability of our broad engine portfolio and customer base in nearly every corner of the world, as well as of ingrained entrepreneurship. But above all, it underlines the outstanding expertise and performance of our excellent staff,” says Michael Schreyögg, chief program officer, MTU Aero Engines.

Thanks to a multi-pronged strategy including OEM network participation, joint ventures with airlines and a portfolio across multiple business segments, MTU Maintenance was able to gain new independent MRO contracts worth $4.6 billion. Over 1,100 shop visits were carried out, surpassing pre-COVID volume and to which the ramp-up at EME Aero contributed significantly.

Expanding around the globe

The year 2021 saw moving and construction activities at nearly every MTU Maintenance location. In spring, MTU Maintenance Canada moved into its new site at Delta south of Vancouver while business continued undeterred. New buildings and operations were opened at Dallas in the U.S., Hannover and Ludwigsfelde/Germany – where a new facility with quick turn docks was opened as part of the expansion of MTU’s on-site services network and capabilities. The ASSB extension at Kota Damansara/Malaysia was completed and ready for operations in April 2021. And the year saw the ground-breaking at MTU Maintenance’s biggest construction sites at Nova Pazova/Serbia and Jinwan near Zhuhai/China, where two completely new facilities are scheduled to start operations by mid-2022 and 2024, respectively. MTU Maintenance do Brazil in Sao Paulo received the key aviation authorities’ certifications to perform on-site services for various engines types. Additionally, MTU fully took over MTU Maintenance Lease Services B.V. in Amsterdam and incorporated MTU Maintenance Coating Services GmbH) into MTU Maintenance Berlin-Brandenburg.

Not only the company itself is growing, its business is expanding, too. EME Aero, a 50/50 joint venture with Lufthansa Technik which only started operations in 2020, specializes in Pratt & Whitney GTF engines and is steadily ramping up operations. More than 100 engines were inducted in 2021, among them the first PW1500G. Adding to group growth were MTU Maintenance Canada’s licensing for LEAP accessory repairs or the extension of the CF34 license into 2030 at MTU Maintenance Berlin-Brandenburg, for instance.

Celebrating ongoing success

Celebrating company anniversaries such as 20 years of MTU Maintenance Zhuhai or 30 years of MTU Maintenance Berlin-Brandenburg normally means inviting staff and guests to the site for partying – difficult in pandemic times. The occasions were nevertheless marked by smaller festivities or even partly virtually, as were milestone shop visits like the 9,000th aero engine shop visit at Hanover, the 1,500th industrial gas turbine shop visit and the 5,000th Pratt & Whitney Canada engine at Ludwigsfelde.

On the basis of this, MTU Maintenance remains committed to its organic growth strategy. Soon, the additional capacities will be in high demand, expects Martin Friis-Petersen, SVP MRO Programs, MTU Aero Engines, since “the trend and pace of growth we’ve seen in 2021 are not the result of a one-hit wonder, rather that of astute strategy and dedication to improving flexibility during the pandemic and ensuring customer needs are met now and in the future.” He believes MTU Maintenance is in a market sweet spot thanks to its engine portfolio of over 30 engine types, among them popular regional jet and narrow-body engine families such as the CF34, CFM56, PW1100G-JM, V2500 and the recently added LEAP, which are likely to recover faster after the crisis. Cargo operators, who have flown consistently throughout the pandemic, and military customers such as the U.S. Air Force also belong to its diverse customer base. Furthermore, the company is now offering test runs with sustainable aviation fuel (SAF) and has introduced revolutionary digital services such as its highly-advanced fleet management tool, CORTEX.

“The desire and freedom to travel is beginning to return,” summarizes Schreyögg. “Our flexible and strong network, our ability to adapt to the market, and last but not least our investments in expansion and further products and services enable us to further support our customers with intelligent solutions.”