IntellIgence
Lufthansa Technik Reports Significantly Improved Result Even with Stagnating Revenues
Dr. Peter Jansen, Chief Executive Finance of Lufthansa Technik
Lufthansa Technik Group was able to increase its result in 2012, in spite of a decline in revenues, to 4.01 billion euros as announced at their annual press meeting in Hamburg on March 19, 2013. The annual report of the 23 consolidated Lufthansa Technik Group companies showed an operating result of 318 million euros.
“Considering the strained situation of many airlines, especially in Europe, the overcapacity in the maintenance, repair and overhaul (MRO) market and heavy pressure on price levels, Lufthansa Technik Group has developed very positively,” said August Wilhelm Henningsen, chairman of the Executive Board of Lufthansa Technik. Highlights of the year included the successful entry into service of the Boeing 747-8 at Lufthansa and the start of technical services for the Boeing 787. “We were able to achieve this good result because many of our cost reduction measures are taking effect and we have been able to reduce the work required in many processes. In addition, a large number of new contracts contributed to our result in 2012,” explained Henningsen. Further measures to reduce costs and increase revenues have been introduced as part of the Lufthansa Group program SCORE, including restructuring programs in their larger production areas as well as targeted sales activities and
6 Aviation Maintenance |
avm-mag.com | April 2013
administration efficiencies. “We have already implemented many innovations in production and optimized processes there, and we are now striving for similar improvements in administration.” This area of Lufthansa Technik was analyzed by more than 200 experts from across the company with the objective of greater efficiency in all functions that are not directly productive. LHT says the reorganization of its structure and processes will result in the elimination of up to 650 jobs by 2015. Approximately 400 of those jobs will be eliminated in Hamburg. “The measures we have taken as part of the SCORE program have already had a positive influence on the fiscal year 2012 result,” said Dr. Peter Jansen, chief executive finance of Lufthansa Technik. “However, we are dealing with rising personnel and material expenses as well as high price and cost pressures in the maintenance, repair and overhaul (MRO) market. Our business risks also include an economic situation in Europe that continues to be difficult, and overcapacity in the MRO market. But with this good result, we have created a financial foundation for the further restructuring and growth of the Lufthansa Technik Group, with the foremost objective of continuing to improve our competitiveness.” The development of the international Lufthansa Technik network in 2012 was marked by both portfolio streamlining and capacity expansions. LTQ Engineering in Melbourne, Australia was closed and Lufthansa Technik Switzerland in Basel will discontinue operations in April due to reduced demand for line maintenance services. In contrast, Lufthansa Technik Philippines is now offering comprehensive A380 services in its new widebody hangar in Manila and Lufthansa Technik Sofia has doubled its capacity to five overhaul lines through a new complex of hangars. Currently Lufthansa Technik has more than 730 customers and encompassing 2,200 aircraft around the world. In 2012 the company
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Sonja Brüggemann / Lufthansa Technik AG
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