The Lufthansa Group will not seek to involve an external shareholder for Lufthansa Technik, so the company will continue to be 100% owned by the group. The company plans to carry out an ambitious growth plan for Lufthansa’s MRO division on its own.
In early November, the CEO of the Lufthansa Group Carsten Spohr said that the group would consider an investor «If someone provides us with new strategic options, fits culturally, and pays enough money for it to work mathematically». The announcement for indicates that convincing offers to sell part of Lufthansa Technik have not been received.
Ambition 2030 Program
Lufthansa Technik has extensive expansion plans for its services: the project includes the expansion of its facilities and an increase in international presence. The execution plan involves the expansion of digital business models, among other aspects.
The focus is on providing technical assistance for aircraft engines and components. In the commercial aviation market, the number of old engines in operation is increasing, driven by the conversion of passengers to cargo in major Boeing and Airbus models, as well as challenges associated with new engines like Pratt & Whitney.
To reaffirm its growth strategy Lufthansa Technik will work for the first time on a CFM LEAP engine, belonging to the Boeing 737 MAX family. Additionally, the company has the advantage of providing services to Lufthansa Group’s own aircraft, which currently boasts a fleet of 706 planes.
This advantage allows Lufthansa Technik to gain experience by testing all its resources to establish itself as a global MRO. The company’s capabilities are evident in the fastest inspection ever performed on Pratt & Whitney engines by Lufthansa Technik.
New Facilities in Europe
Lufthansa Technik plans to build another maintenance center in European territory in the short term to meet demand and achieve a higher level of vertical integration. Although the company did not disclose further details about the location of this new facility, it also stated its intention to expand collaboration with the German Armed Forces.
Services provided to the German Armed Forces range from technical support to the fleet to the installation and maintenance of military equipment on their aircraft. In 2022, Lufthansa Technik generated revenues of 5.6 billion euros. In 2023, the company has set the goal of achieving revenues exceeding 6 billion euros for the first time since the coronavirus crisis.
