Lufthansa Technik defies global trend

The German tech firm managed to increase its revenues last year.

Share

In the face of a generally shrinking global market, Lufthansa Technik, managed to increase its revenues last year.

The Germany-based provider of aircraft-related technical services showed a revenue increase of 4.1% to US$4.9 billion in 2008.

Twenty companies make up the Lufthansa Technik Group and figures showed a $396 million pre-tax profit, equivalent to an increase of 2.6% year on year.

Lufthansa Technik CEO August Wilhelm Henningsen explained that winning new contracts had helped the company’s healthy growth, but acknowledged that there had been a reduced demand from airlines for maintenance, repair and overhaul (MRO) services.

In 2008, the group gained a further 37 customers, bringing its total number of customers to 668, worldwide. Some 502 new contracts were signed, representing a total volume of $4.3 billion over the entire contractual period (of up to 10 years).

A drop in revenues did occur from customers outside the Lufthansa Group, at 59.6%, a fall of 1.6% from the previous year.

Henningsen outlined the company’s international expansion plans in line with the opening of new hangars around the world capable of handling the Airbus A380, but commented that the global credit crunch will have an effect on Lufthansa Technik’s business.

“This year the global downturn will have more of an effect on us than in the previous year. But Lufthansa Technik sees itself well-armed to meet the challenges of an extremely depressed
market environment.

“Cost-effective locations plus programmes to enhance our efficiency and flexibility give us reason to believe that we will get through the crisis of the aviation industry without major damage.”

Most Popular