Dr Johannes Bussmann, the Chairman of the Executive Board of Lufthansa Technik, described 2017 as the “year of sales” after the company achieved record orders valued at in excess of €13bn. This figure helped the MRO firm’s revenues rise from €5.144bn to €5.404bn, an increase of more than 5%. And it resulted in an adjusted EBIT (earnings before interest and taxes) of €415m, up from €411m the year before.
“Lufthansa Technik is and remains the leading provider in our industry,” said Dr Bussmann. “The new contracts, with a total volume of more than €13bn, provide impressive proof. Last year was the year of sales. Our team delivered a fantastic performance, demonstrating the importance of the internationalisation approach adopted by Lufthansa Technik.”
The number of aircraft under exclusive support contracts with the Hamburg-based firm grew by 10% in 2017, to more than 4,550, which is around 20% of all commercial aircraft worldwide.
Dr Bussmann remarked: “A growing number of customers and supported aircraft, along with considerable new business, demonstrate the great trust that we enjoy in the aviation industry around the world.”
Lufthansa Technik is embracing the digital age with a series of new products, managed by its new Digital Fleet Solutions business unit. Among them is AVIATAR, a platform that brings together numerous apps to enable operators to monitor the status of their fleets from a single portal. Key components include Fleet Management, Condition Monitoring and Reliability Management. Information is collated into a single source and using analytical models, recommendations and notifications are generated. Lufthansa Technik says this equips customers to make decisions quicker and on a “sounder basis”.
Dr Bussmann explained: “We have made a very ambitious entry into digitalisation with AVIATAR. The expectations we are placing on ourselves here are very high, because we want to shape the digitalisation of our industry with our modern fleet management solutions. With Wizz Air, we have already won an important AVIATAR partner with a large fleet from outside the Lufthansa Group.”
In September the company opened its new €60m wheels and brakes workshop at its Frankfurt Osthafen site, just two years after construction began. Around 200 people are currently employed at the new facility. The company has also modernised its site in Hamburg, including inducting a new centre of excellence for engine casings and a new x-ray facility.
However, last June Lufthansa Technik closed its aircraft overhaul operations in Hamburg. The company says despite “intensive negotiations” with labour groups it was unable to find a solution that would have made continuing operations in Hamburg commercially viable. Lufthansa Technik offered all employees affected alternative jobs in other divisions at the Hamburg site.
In summary, Dr Bussmann said: “Never before have we generated so much revenue, supported so many aircraft, or employed so many people. With this foundation, we will stick to our course: growing throughout the world and driving the entire industry forward.”