Lufthansa Technik presents integrated system solutions
Innovation, engineering, production and maintenance under one roof
Travel experience instead of mere transportation. Lufthansa Technik AG is presenting one-stop service for cabin products at the Aircraft Interiors Expo in Hamburg. For in-flight entertainment, lighting concepts, medical care or seating configurations, with its unique capabilities as an innovative development, production and maintenance organization gained from six decades of experience in day-to-day operations, the Hamburg-based company has set itself the goal of becoming the world's top address for new cabin innovations.
During the past year, Lufthansa Technik bundled all its activities related to the development and production of cabin products in its Original Equipment Innovation (OEI) division, establishing the organizational basis for the expansion of its position as a manufacturing operation. All products offered by Lufthansa Technik as an original equipment manufacturer (OEM) will be developed, planned, manufactured and sold by this new product division headed by Andrew Muirhead.
Over 130 interdisciplinary experts from all over the world work in the unit, combining creativity and hands-on engineering. Depending on their projects, they are supported not only by the extensive capabilities of the in-house engineering unit and the VIP and Base Maintenance interior workshops but also by highly specialized laboratories and interdivisional innovation teams, making Lufthansa Technik able to network skills and flexibly allocate capacity as needed in a way that is unique in the industry. Just recently, the company's funding for research and innovation was quadrupled in a project initially slated to run until 2018. Since April innovation has been under the direct supervision of the new Chairman of the Executive Board of Lufthansa Technik, Dr. Johannes Bussmann.
"We are combining our innovative power with our expertise and capabilities as a production and maintenance operation to produce for our customers exactly the products they need in order to give their passengers the ideal travel experience," says Andrew Muirhead in describing his expectations of his team and of himself.
"For an airline, the aircraft cabin is one of the most significant factors in customer perception and differentiation. Passengers want to enjoy the benefits of new products and experiences more and more often. That offers us a significant opportunity, because due to our MRO and airline experience, we understand the possibilities for implementing and integrating modern systems in cabins and aircraft better than just about anybody else, and we can turn ideas into reality faster than others do. All the expertise in airline requirements, VIP cabin interiors, flight operations, maintenance and much more from throughout Lufthansa Technik comes together in our division."
Among other things, at the 2015 Aircraft Interiors Expo, Andrew Muirhead and his team will be presenting: »chair«, a completely new concept in seating, a solution for integrating tablets and similar devices in aircraft seats, and the premiere of the next-generation Patient Transport Unit (PTU).
Well prepared for technical support of the Boeing 737 MAX
Full featured product portfolio for ensuring smooth operation
When the new Boeing 737 MAX commences regular flight operation as planned next year, Lufthansa Technik will be well prepared to provide technical support for the most recent member of the Boeing 737 family.
Backed by its extensive expertise in the introduction of new aircraft types, Lufthansa Technik will provide a full featured product portfolio for ensuring smooth operation of the Boeing 737 MAX from the very outset. This includes a broad range of maintenance services for components, from individual repair to loan and exchange parts from regional spare parts warehouses through to the most comprehensive and integrated Total Support products.
Lufthansa Technik already offers an extensive range of globally available products and services for operators of the various Boeing 737 types. The spare parts warehouses for the Boeing 737 of the Classic and current Next Generation versions, which are established within easy reach of the customer, are to be extended in the process for the 737 MAX. For the operators of the new medium-haul aircraft, this means availability of material supply matching the high quality standards of Lufthansa Technik with fast response and turnaround times.
The Boeing 737 MAX will be powered exclusively by CFM LEAP-1B engines, whose maintenance – as with the current CFM56 engines – will likewise be included in the Lufthansa Technik portfolio.
When it comes to the Americas, which represents the largest market for the Boeing 737, Lufthansa Technik offers services specially tailored to local customer requirements. The company takes account of this market with regional customer service teams, sales offices and material pools at various locations on the continent as well as a 24/7 hotline for non-routine defects (Aircraft on Ground, AOG), which is based in Southern Florida.
The MRO provider's subsidiary Lufthansa Technik Component Services (LTCS) in Oklahoma is also well positioned in terms of aircraft components thanks to its broadly diversified service portfolio – in particular this also includes testing, repair and overhaul of components. The new American location for aircraft overhauls, Lufthansa Technik Puerto Rico, which commenced operation in November 2015, will also offer overhaul services for Boeing 737 aircraft to North and South American airlines from 2017 in addition to the Airbus A320 family.
With the introduction of the new aircraft, Lufthansa Technik will guarantee smooth operation from day one in its role as integrator. Lufthansa Technik has already been able to demonstrate its accumulated experience and expertise in the introduction of new aircraft types on many occasions, as for example recently with the introduction of the Airbus A350 in January 2015 as well as the entry into service of the Airbus A320neo with Lufthansa in January 2016.
Lufthansa Technik receives Airbus A350 maintenance approval
Ready for every aspect of A350 maintenance and repairs
In time for today's launch of commercial flight operations of the Airbus A350 to Frankfurt, Lufthansa Technik has received approval of the European airworthiness authority EASA (European Aviation Safety Agency) as Maintenance Organization for the new aircraft type (Part 145 approval). The leading maintenance, repair and overhaul (MRO) provider offers now routine maintenance services in Frankfurt.
"We are excited about the entry into service of this newest-generation aircraft with its promising technologies," says Wolfgang Weynell, Senior Vice President Corporate Sales at Lufthansa Technik. "We are very well prepared to maintain the A350, with its carbon fiber structures and its state-of-the-art engines and systems."
For some time now, Lufthansa Technik has been preparing meticulously for technical support of the Airbus A350. The company's Frankfurt and Munich facilities will be able to provide airlines with an extensive package of maintenance and repair services, including troubleshooting and the elimination of technical defects, software management, and both the planned and unplanned replacement of components, engines, and auxiliary power units (APU) in addition to routine checks. Lufthansa Technik will also supply spare parts as needed at both hubs.
As part of its global network, Lufthansa Technik is currently setting up worldwide material supply for the A350 with component pool sites in Asia and Europe. Future operators of the A350 can already benefit from initial component maintenance capacities for this aircraft at Lufthansa Technik's workshops in Hamburg, and these capacities will be expanded continuously with the growth of A350 fleets around the world.
In addition, Lufthansa Technik is preparing the storage and provision of Rolls-Royce Trent XWB spare engines and Honeywell HGT1700 APUs in and from Frankfurt to ensure fast help for A350 operators in the event of planned or unplanned engine or APU replacements.
Lufthansa Airlines will commission its first A350 in the second half of 2016. Every aspect of aircraft maintenance for the carrier's entire fleet of A350s will be looked after by Lufthansa Technik.
Full range of A350 services for commercial and VIP operators
Maintenance, repair, overhaul and cabin completion
With Lufthansa ready to start scheduled A350 operations on February 10, 2017, Lufthansa Technik's support for the newest Airbus widebody is in full swing. Lufthansa Technik is not only licensed and ready to maintain the Airbus A350 in all aspects of the aircraft's life cycle, the company is also the first address for a unique VVIP cabin completion.
Lufthansa Technik has been supporting the A350's development with a special focus on maintainability from the very beginning. The company is 100 percent ready to provide the engineering and line maintenance services for the A350 today. In the area of material supply, Lufthansa Technik covers a large part of the A350 components, in many cases working together with original equipment manufacturers. Several supported customer fleets have already achieved a very high technical dispatch reliability.
At the beginning of 2017, Lufthansa Technik received an extension of its approval as a design organization for the new aircraft from the European Aviation Safety Agency (EASA Part 21/J). The company is thus authorized to develop and approve repairs and modifications to a limited extent under its own responsibility.
Furthermore, a dedicated A350 community was initiated by Lufthansa Technik, with the main goal of enabling airlines worldwide to exchange their experiences with their A350s and benefit from these exchanges. The first workshop was held at the end of 2016, focusing on key topics in A350 technical operations including predictive maintenance, supply chain management and the A350 as an e-enabled aircraft.
At EBACE 2016 in Geneva, Switzerland, Lufthansa Technik presented a brand-new A350 VVIP interior concept called "Welcome Home". The unique cabin is placing the human being in the center of the story and emphasizes a comprehensive approach towards health and well-being on board. It promotes flexible areas for privacy or valuable family time and provides super connectivity in regard to all communication channels.
Comprehensive technical support for the Airbus A350
Complete life cycle support from the beginning of aircraft assembly
Right on time for the market launch of the Airbus A350, Lufthansa Technik is offering operators of this new twin-engine wide-body aircraft a comprehensive, flexible portfolio of maintenance, repair and overhaul (MRO) services for this aircraft type.
The spectrum of services covers the entire life cycle of the A350 and includes production inspections, material supply, maintenance and maintenance management as well as engineering services, entry-into-service support and LRU and engine maintenance. A particular focus of services for the A350 is aircraft IT management, since the aircraft and its maintenance systems are much more cross-linked than those of previous aircraft generations.
"Lufthansa Technik is already excellently prepared to maintain the A350, its carbon fiber structures and state-of-the-art engines and systems," says Wolfgang Weynell, Vice President Corporate Sales and Marketing at Lufthansa Technik. "Our customers also benefit from the operational experience we have gathered in recent years maintaining the A380, which is quite similar to the technological demands of an A350 aircraft. The required performance of engineering and maintenance services are already standard practice at Lufthansa Technik and will be available to A350 operators from the first day of commercial operation. The infrastructure needed to maintain the A350 is already in place, and all of our preparations are on schedule."
In addition to Lufthansa´s experience in both flight operations as well as maintenance on the A380, Lufthansa Technik is investing in the extensive involvement in the development program for the A350. Since 2008 Lufthansa Technik engineers have worked on behalf of Lufthansa, which will take delivery of its first A350s in 2016, with teams of airline experts known as Customer Focus Groups.
These teams have provided support for Airbus with numerous aspects of aircraft design, from flight operations and maintenance all the way to cockpit layout. The involvement of these experts is intended to ensure a high degree of maturity and reliability for the A350 from the first delivery and its very first day in scheduled service.
Lufthansa Technik offers advanced Cyclean® engine wash
Washing cycles up to -10 degrees Celsius air temperature
Lufthansa Technik is offering an advanced version of its Cyclean® engine wash system. Based on the large success of the first Cyclean® version Lufthansa Technik's product engineering has further optimized the system. The temperature range has been significantly extended in which Cyclean® can be used. The advanced system is operational up to -10 degrees Celsius outside air temperature compared to +5 degrees Celsius of the current version.
To avoid the danger of water freezing below +5 Celsius which limited the use of Cyclean® so far, the advanced Cyclean® unit has been modified. The system is now automatically adding a glycol-mixture to the water jet. Depending on the outside temperature the user can select between different admixture programs. The new temperature limit of -10 degrees Celsius is giving customers a significantly larger flexibility for their engine washes, as they can also be executed in wintertime now.
The first advanced Cyclean® system has been positioned at London-Heathrow and has already proven is operational readiness by performing regular engine washes. A second system has been deployed at Zurich airport / Switzerland, followed by a third system which will start performing wash services at Montréal-Trudeau / Canada in October. It is also planned to further extend the engine portfolio for the advanced Cyclean® system to all popular engine types by the winter period 2016 / 2017 at the latest.
In parallel Lufthansa Technik is working on a research & development project, called Cyclean® 2.0, to further shorten time and performance of the wash cycle and to replace water by CO2 dry ice pellets as the washing medium.
Lufthansa Technik increases turnover and profit significantly in 2015
Growth course continues
Lufthansa Technik AG, headquartered in Hamburg, significantly increased its turnover and profit in 2015, continuing its growth course. Sales revenues grew by 17.6 per cent to around 5.1 billion euros (+762 million euros). The company achieved 20 percent growth in its adjusted EBIT (Earnings Before Interest and Taxes) to 454 million euros (previous year: 380 million euros). This is revealed in the consolidated annual report, released today, for Lufthansa Technik AG and 22 holdings.
"This is a strong result," said the Chairman of the Executive Board at Lufthansa Technik AG, Dr. Johannes Bussmann, at the presentation of the annual results in Hamburg. "We have stayed on our growth path and have used the year to more strongly position ourselves internationally and within the regional market. Our customers have honored these efforts!"
Business with customers outside the Lufthansa Group grew disproportionately. External revenue from outside the Group grew by 21.8 percent to 3.3 billion euros. Revenue from companies within the Group rose over the previous year to 1.8 billion euros (+179 million euros), essentially as a result of the largest modification program in Lufthansa's history. Revenue development was further aided by the US dollar exchange rate.
"Lufthansa Technik has a solid financial foundation. But we have benefited as well from effects which were out of our control, such as the dollar rate. It will therefore be a challenge to continue delivering such results," commented Constanze Hufenbecher, Chief Financial Officer at Lufthansa Technik.
In 2015, Lufthansa Technik AG acquired 27 new customers (bringing the total to around 800) and concluded 375 new contracts with a total volume within the company itself (excluding subsidiaries) of 3.1 billion euros for 2015 and the following years. The number of aircraft supported by Lufthansa Technik rose by twelve percent to around 3,700.
Important contracts cover new aircraft such as the Airbus A350 and the Boeing 787. Comprehensive new component services contracts, for example, have been signed with Finnair, the first European operator of the new Airbus A350, and Air Europa Lineas Aéreas for its Boeing 787 fleet.
"We support all of the world's modern airliners, including the A320neo. With this technical expertise, we are outstandingly well prepared for further growth," continued Bussmann.
With the opening of a new overseas location in July 2015, in Puerto Rico, Lufthansa Technik now has its own overhaul site in the important American market. The opening of the first two of five planned overhaul lines at Lufthansa Technik Puerto Rico was an important step in the company's ongoing internationalization. In Asia, Lufthansa Technik Philippines brought additional hangar space for the overhaul of Airbus A380 and Boeing 777 aircraft online. Construction work has also begun for a new wheels and brakes workshop in Frankfurt, representing an investment of around 60 million euros in this German site.
"The market is growing – especially in Asia and South America. And our customers expect us to be close to them. We will therefore continue to further expand our international presence, so as to take advantage of the expected growth in international aviation," said Johannes Bussmann.
The market for maintenance and servicing in aviation will grow further, but it is also going to change significantly. "We are seeing a powerful dynamic in the aviation industry. At the current time, more new aircraft models with new technologies, materials, components, and engines are entering operation than has been the case for decades. At the same time, new competitors are aggressively entering the market," continued Bussmann.
"This dynamic is a great opportunity for us, but it also demands a considerable willingness to change if we are to remain on a profitable growth path," emphasized Constanze Hufenbecher. For 2016, the company expects turnover growth accompanied by a significant decline in profit.
The company therefore invested a significant amount of money in development last year. Major areas of focus are innovation and product development, including new technologies, mastering new materials, and the automation of repair processes. Digitalization is a defining trend, set to bring massive changes to the industry in the coming years.
"Lufthansa Technik can and must be at the forefront of this. That is why we are investing many millions of euros in development and research – right here at our Hamburg site," emphasized Bussmann.
Lufthansa Technik's international growth continues in 2016
High levels of investment in sites and innovation
Lufthansa Technik AG, headquartered in Hamburg, continued its track record for international growth in 2016 and produced a good result with significantly more investment. The increase in revenue with non-group companies overcompensated the decline in internal orders.
Sales revenue climbed by 45 million euros from 5.099 billion euros to 5.144 billion euros. The company achieved earnings before interest and tax (adjusted EBIT) of 411.3 million euros (previous year: 454.4 million euros). These figures from Lufthansa Technik AG and 22 fully consolidated companies were presented at a press conference today.
"In 2016, we have cemented our position as the leading provider in our industry," said the Chairman of the Executive Board of Lufthansa Technik AG, Dr. Johannes Bussmann, at the announcement of the annual result in Hamburg. "At the same time, we were able to make important preparations for future growth."
"Lufthansa Technik is commercially very stable. In particular outside the Lufthansa Group, Lufthansa Technik has continued its course of growth, and it has done so in a highly profitable way," says Constanze Hufenbecher, Chief Financial Officer of Lufthansa Technik. "In view of the competition and price pressure, this is a very pleasing result."
Business with customers outside the Lufthansa Group grew disproportionately. External revenue from outside the Group grew by eight percent to 3.5 billion euros. Revenue from group companies fell significantly, declining 11.7 percent to 1.6 billion euros, because of the finalization of the modification program for the Lufthansa long-haul fleet.
Revenue grew disproportionately in the growth regions of Asia and the USA. The substantial growth in revenue in the American market that was seen in 2015 continued unabated in 2016, with growth of 14 percent and revenue of around 900 million euros. In Asia, Lufthansa Technik achieved even higher growth of 23 percent. With revenue now at around 600 million euros, this market is rapidly gaining in importance for Lufthansa Technik.
"This development demonstrates that our internationalization strategy is working," says Constanze Hufenbecher. "This encourages us to continue along the path we have chosen."
More than 4,000 aircraft under contract for first time
For the first time, the number of aircraft covered by support contracts with the company has surpassed the 4,000 mark; with a growth rate of twelve percent, a new record of more than 4,100 aircraft has been set.
In 2016, Lufthansa Technik AG acquired 42 new customers (previous year: 27) and concluded 456 new contracts (previous year: 375), with a revenue volume for 2016 and subsequent years totalling 5.7 billion euros (previous year: 3.1).
Important contracts were concluded for new aircraft models such as the Airbus A350. "In 2016, following on from Finnair, we concluded long-term contracts for component supply with China Airlines and Ethiopian Airlines. This makes us the leading provider for this forward-looking model," emphasized Dr. Johannes Bussmann.
Lufthansa Technik also won more contracts in the low-cost segment. Together with easyJet, the company is operating a maintenance hangar at London Gatwick, supporting the 55 aircraft stationed there. Beyond this, Lufthansa Technik Malta will carry out some 100 aircraft overhauls for easyJet over the coming five years. The close partnership with WizzAir was expanded in 2016. The A320neo and A321neo aircraft, new to the fleet, will also be supported by Lufthansa Technik.
Internationalization with new organization
Lufthansa Technik will push ahead with the expansion of its international presence and the regionalization of its activities in 2017. After the successful implementation of regional sales structures, the next major step along the pathway of internationalization will take place in April. Aircraft Overhaul in Manila will be positioned to serve the entire region. Component Services will acquire a second mainstay in addition to Hamburg, with an Asian base in Hong Kong. The leadership of Landing Gear business unit will be moved from Hamburg to London.
With the massive expansion of its global logistics network, Lufthansa Technik has taken further decisive steps along the road to internationalization of the group. New warehouses in London, Hong Kong, the USA, Düsseldorf, and Munich along with the launch of two companies, Lufthansa Technik Component Services Asia Pacific and Lufthansa Technik Middle East, improve the global supply of components.
"This is a major step as we transform this globally active Hamburg company into an international corporation with strong roots in Hamburg," says Bussmann.
Lufthansa Technik secured long-term access to servicing essential future engine models in 2016, with new cooperative agreements. Hamburg will be the center for the new LEAP motor, making it the home of overhaul for one of the most important engines in the civil aviation industry. With the XEOS joint venture, the company has successfully entered the overhaul market for the big new GE engines. A strategic partnership with Pratt & Whitney has brought Lufthansa Technik into the service network for the geared turbofan. At the end of February, an agreement was signed with MTU Aero Engines for the planned development of a joint engine workshop. N3 Engine Overhaul Services, the joint venture with Rolls Royce in Arnstadt, now also supports the Airbus A350 engines.
Lufthansa Technik invested more than 216 million euros in development to secure its own future, some 40 percent more than in 2015. Major areas of focus were innovation and product development, new technologies, mastering new materials, the automation of repair processes, and digitalization. The company established its new "Digital Fleet Solutions" division in Hamburg. Last year also saw expenditure of around 200 million euros to expand the material pool.
"The changing MRO market presents opportunities that we want to exploit early with new business models so that we can play a decisive role in shaping the industry," emphasized Bussmann.
August Wilhelm Henningsen receives award for life's work
ATE&M Lifetime Achievement Award
August Wilhelm Henningsen, who was Chairman of the Executive Board of Lufthansa Technik through April 2015, was honored at an event in London by the industry publication Aircraft Technology, Engineering & Maintenance (ATE&M) for his life's work. The jury commended Henningsen's lifelong and successful commitment to the aviation industry worldwide.
On occasion of the awards ceremony, Henningsen said, "I am extremely honored to have been nominated and selected by the jury to receive the esteemed ATE&M Lifetime Achievement Award. I would like to dedicate this award to the 26,000 highly qualified and motivated Lufthansa Technik employees in more than 30 companies around the world."
Dr. Johannes Bussmann, who succeeded Henningsen as CEO of Lufthansa Technik, commented: "Under the leadership of August Wilhelm Henningsen, Lufthansa Technik rose to the top of the world's MRO industry. His outstanding achievements for the good of the company and the industry are a strong motivation for me and the entire Lufthansa Technik management team. We are very grateful to him for the strength of his commitment over so many years."
Twenty years after its founding, Lufthansa Technik AG is one of the leading maintenance, repair and overhaul (MRO) organizations in the world, providing services to the Lufthansa Group and nearly 800 airline customers around the globe. The company currently supports more than 3,200 aircraft, and is continuing to expand its role as an innovation leader through a sizable investment program for research and development.
Henningsen began his career in 1979 as a system engineer at Deutsche Lufthansa in Hamburg. After holding a variety of management positions, including work in the overhaul and component maintenance areas, Henningsen was named General Manager of Ameco Beijing in 1997. He joined the Executive Board in April 2000 with responsibility for the Product and Service area until he was elected Chairman in January 2001.
Increased revenue in 2014, result at very high level
Good order situation / further cost reductions
In fiscal year 2014, the Hamburg-based Lufthansa Technik Group achieved a very good result just under last year's record level, with increased revenue of EUR 4.3 billion. The annual accounts of the 22 consolidated Lufthansa Technik Group companies show an operating result of EUR 392 billion.
"In spite of a good year for global aviation on the whole, price pressures on technical services providers have not let up. Against this backdrop, Lufthansa Technik has continued to develop well," said retiring Chairman of the Board August Wilhelm Henningsen on 17 March in Hamburg.
After fourteen years at the helm of the company, on 1 April Henningsen will turn over the leadership of Lufthansa Technik AG to his fellow Board member Dr. Johannes Bussmann, who has been responsible to date for Human Resources, Engine & VIP Services.
"Through the continuation of our successful cost reductions and a positive order situation, we nearly reached last year's very good result. We have maintained our market position and remain the world's leader among independent providers of maintenance, repair and overhaul (MRO) services for aircraft," added Henningsen.
Currently Lufthansa Technik looks after 800 customers and a total of 3,200 aircraft. In 2014, the Group was able to win 30 new customers and conclude 325 new contracts, reaching a volume of 3.1 billion euros for 2014 and the years to come.
Lufthansa Technik has expanded its development of technical services for the newest aircraft types even further. Numerous customers now entrust Lufthansa Technik with the technical care of components and systems from their fleets of Boeing 787s. Since the Airbus A350's first day of scheduled service a few weeks ago, Lufthansa Technik has offered extensive maintenance services for this aircraft at its facilities in Frankfurt and Munich. Material supply for Asia and Europe is also being developed. Co-operations for both aircraft types with important systems manufacturers such as UTC Aerospace Systems or Honeywell are being expanded significantly through long-term partnerships.
Investments in innovation, research and development were boosted strongly in 2014. Plans call for EUR 200 million to be invested by the year 2018 – four times as high as during the previous five years.
With 30 facilities around the world, the Lufthansa Technik network was expanded in line with market requirements. Capacities were extended at Lufthansa Technik Budapest and at the company's facility in Shenzhen, China. In Manila, the A380 hangar was enlarged to allow simultaneous work on two Airbus A380s, and in Puerto Rico a new five-bay facility will open in autumn for overhauls of short-haul and medium-haul jets. EUR 60 million is being invested in Frankfurt in the construction of a new wheel and brake workshop that will go into operation in early 2017.
In addition to its diverse investment plans, Henningsen also stressed the company's successful cost management. In its third year, Lufthansa's future program SCORE resulted in EUR 500 million in measures that were realizable in income, and the administrative streamlining and restructuring that concluded in 2014 also contributed significantly to the Group's result.
"In its twentieth year of business, Lufthansa Technik enjoys a good, stable position as an independent company. Over the last two decades, the company's performance in terms of competitiveness and growth has been very solid," said Henningsen. "This is a strong team achievement in which Johannes Bussmann has also played a role, for many years and in key positions, which is why I am pleased to hand over to him both the helm and a very strong team."
Hamburg: Investment in Lufthansa Technik Group site logistics
Automatic storage rack system AutoStore
Lufthansa Technik Logistik Services GmbH (LTLS) has commissioned the innovative, automatic storage rack system AutoStore for small parts in Hamburg. More than three million euros have been invested at Lufthansa Technik's home base over the last two years under the project name "ABLS@HAM" as part of the ongoing modernization program by the company in the city of Hamburg.
"AutoStore" is a storage and retrieval system in which plastic containers are stacked one on top of the other. At LTLS, a total of 19 robots travel on an aluminum base frame, retrieving items from stock and transporting them to seven picking stations. 75 stock inputs and up to 200 stock outputs are possible per hour.
The compact storage concept delivers space savings of more than 50 percent compared with the legacy system. The area covered by the automated storage system extends to 700 square meters, with 24,000 containers accommodating 215,000 batches. Capacity and speed can be enhanced almost infinitely during operation.
"The new system represents a major step toward forward-looking, innovative, and ergonomically optimized logistics," said Lufthansa Technik CFO Dr. Peter Jansen at the official opening. Andreas Meisel, Managing Director of Lufthansa Technik Logistik Services added: "LTLS has invested a good 3 million euros in the AutoStore system in the last 24 months and consequently in the efficient deployment of employees. At the same time this allows us to further improve working conditions. We have thus successfully moved away from the ‘person-to-goods' approach formerly adopted to a more modern ‘goods-to-person' retrieval principle."
The investment in the new logistics system represents a further step forward in Lufthansa Technik's modernization program at the Hamburg location. Following construction of a new engine overhaul center, a separate building for the new "Original Equipment Innovation" product division, and considerable investment in the area of composite material repairs, a building has recently been constructed that includes a completely new chemistry lab among other facilities. Lufthansa Technik has quadrupled its investments in research and development in the past year.
Lufthansa Technik presents "AVIATAR"
First innovation of newly created product division
At MRO Americas 2017 Lufthansa Technik is presenting AVIATAR, the initial product of its newly created division Digital Fleet Solutions for the first time.
AVIATAR is an innovative and holistic platform that offers an extensive variety of digital products and services for Maintenance, Repair and Overhaul (MRO) by combining multiple apps, web-based, and in one place.
Lufthansa Technik's new product division Digital Fleet Solutions has been initiated on 1 April 2017. The new division drives the digital transformation within Lufthansa Technik, creating internal synergies and efficiencies. Furthermore, the unit is focused on creating additional value and benefits for and with customers by integrating as well as interconnecting new digital products and services.
By 2025, more than 38,000 aircraft are forecasted to be in operation worldwide. Ultimately, 50 times more data will be produced by new aircraft types alone. More than half of the total airline's operating costs are directly or indirectly affected by MRO services. In aviation, especially for MRO suppliers, this means an increasing amount of data knowledge along with a growing complexity of their businesses. The available data volume does not only have to be collected, but sorted, analyzed, interpreted and integrated into meaningful MRO measures.
"Digital transformation has evolved to shape economies and industries enormously – no sector being spared. New technologies arise, turning long-term standards out-of-date: processes change fundamentally and even proven and successful business models become outdated. This development has also a significant impact on the MRO industry", said Dr. Johannes Bussmann, Chairman of the Executive Board at Lufthansa Technik. "Lufthansa Technik takes the digital transformation of the aviation industry to the next level. We want to shape the future of aviation by being a pioneer in offering unique digital MRO solutions – not just for our clients, but with them. Close customer collaboration has always been a key element of our successful products and services. Our digital journey has just begun."
AVIATAR will support customers to manage complex fleet conditions in real time and to forecast probabilities of failure of single components. It provides exchange of information across interfaces. It aggregates as well as consolidates information at one central place. The platform applies analytical models to provide new insights, recommendations and notifications, enabling clients to make faster and better decisions. AVIATAR rewards its users through the optimization of operating hours, reduced consequential costs and safer as well as more reliable fleet operations, serving airline passengers around the world.
"Lufthansa Technik uniquely unites profound engineering know-how, large amounts and expertise in historical MRO data and substantial analytics competence", added Dr. Christian Langer, Head of Digital Fleet Solutions at Lufthansa Technik. "With this distinctive combination of skills and our new digital drivers, we still do what we have always been best at: creating and mastering products and services that elevate our clients' businesses, by increasing operating hours, decreasing irregularities, and raising efficiency. With AVIATAR we are connecting our digital threads and united forces."
The characteristics of AVIATAR are:
Open - AVIATAR lives from the conjunction of visionaries. That is why the platform is completely open for partners, clients, developers to co-create the future of aviation with Lufthansa Technik or to connect their apps to AVIATAR. The first externally integrated app is provided by Lufthansa Technik's partner FLYdocs.
Modular - Users, such as airlines, MROs, OEMs, or lessors, can benefit from the platform's modular approach. The platform serves as a central and connecting hub for apps that offer digital products and services for the aviation industry. But AVIATAR is not a set bundle of apps. Specified to the individual needs, clients can select from those apps and chose the ones they prefer. However, every app can also be used as a standalone product.
Neutral – AVIATAR is an independent platform that aligns to the client's specific, technical requirements – it is an OEM-spanning platform, independent of Lufthansa Technik and any MRO service contracts.
AVIATAR starts with seven apps - all designed to fulfill the user's first needs. "Fleet Management" and "Performance Metrics" provide basic features needed by clients to overview their fleet and key performance indicators in real-time. The combination of "Condition Analytics", "Fault Analytics" and "Predictor Plugins" enables customers to monitor their fleet, analyze their data and predict maintenance ahead of time.
AVIATAR's first 3rd party app, "Record Status" by FLYdocs, displays the completeness of the clients' records and at the same time reflects how the integration of apps can work on the platform. Furthermore, the platform gains a large benefit from the constant growth of its user base. For example, the app "Reliability Benchmarking" will allow operators to benchmark their technical reliability anonymously against the world's leading airlines.
The variety of the different apps reflects the diversity of Lufthansa Technik's customers, as each user can individually select the combination which meets his needs best. While each single app provides value in its stand-alone version, it is the interplay of multiple apps, which creates the unique value proposition for the individual user.
At MRO Americas 2017 Lufthansa Technik will present AVIATAR and different applications at its booth (no. 4418). Experts from Lufthansa Technik's new Digital Fleet Solutions division will be available for detailed information.
Supervisory Board extends Executive Board mandates
Dr. Johannes Bussmann and Antonio Schulthess confirmed until 2023
At its meeting on November 17, the Supervisory Board of Lufthansa Technik AG appointed Dr. Johannes Bussmann as Chairman of the Executive Board of Lufthansa Technik AG for a further five years until March 31, 2023. Antonio Schulthess was also appointed as Chief Human Resources Officer for a further five years until March 31, 2023.
Dr. Johannes Bussmann has been Chairman of the Executive Board of Lufthansa Technik AG since April 2015. In addition to Strategy and Innovation as well as Communication and Marketing, his responsibilities include Corporate Sales, Digital Fleet Solutions and Original Equipment Innovation.
Antonio Schulthess has been a member of the Executive Board of Lufthansa Technik AG since April 2015 and is responsible for Human Resources and Technical Services, including the engine business, the Aircraft Systems division and Process and Lean Management.
"Rapid Repair" becomes mobile with "CAIRE"
Robot-based CFRP material repair for mobile deployment
Lufthansa Technik AG has developed a procedure which should mean that pure gluing repairs to critical high-performance composite fiber structures can now be made certifiable. With the help of a milling robot which uses special software to recognise even 3-dimensional surfaces, it is now possible for the first time to carry out automated repairs away from maintenance sites.
In the previous research project, "Rapid Repair", Lufthansa Technik AG already successfully developed a complete process chain for the rapid, automated, reproducible repair of CFRP materials. The three year follow-on project, "Composite Adaptable Inspection and Repair" (CAIRE), has further enhanced the original stationary milling robot to allow for mobile repairs.
Speaking about the great potential of this development, "CAIRE" project manager Jan Popp of Lufthansa Technik said: "Thanks to the new robot we can even repair large surface damage on the fuselage or wing in an ‘on wing' procedure. Repairs that were barely imaginable until very recently are now possible." The new repair procedure will primarily be used for large surfaces with monolithic and sandwich structures. Until now, damage to these skin surfaces has meant intensive diagnostics and repair work in a specialist workshop or in the field.
The new repair procedure, complete with robot, will be presented to the public for the first time at the Lufthansa Technik stand at this year's ILA Berlin Air Show.
Process for safe cabin installations in CFC aircraft developed
Methods for load transmission into the CFC-fuselage
In the framework of the "Fiber Force" research project, started in 2010, working together with the German Aerospace Center (DLR) and the Technical University of Darmstadt, Lufthansa Technik has developed methods for load transmission into carbon fiber composites (CFC) aircraft fuselage structures for VIP customer aircraft.
New generations of aircraft, such as the Airbus A350 and the Boeing 787, are manufactured predominantly out of CFC. As these aircraft will also play an increasingly important role for VIP customers in the future, appropriate changes to the original aircraft structure are essential for manufacturer-independent modifications and individual cabin solutions. It must be made possible to install specific cabin components at the desired location in an aircraft, and the primary structure must be reinforced in such a way that the additional load can be introduced and distributed safely.
Within the project, funded by the Federal Ministry of Economics and Technology (BMWI), it has now been possible to define the maximal load on the floor panels for the first time, and to develop highly efficient connectors, known as "floorpanel hardpoints". These components, comparable to inserts, are small enough to fit into the palm of the hand and can be individually fitted to the cabin floor by gluing them to the floorpanels. They facilitate the flexible fixing of special cabin fittings such as cupboards, tables and partition walls in the aircraft cabin with a maximal load of up to 3,000 newtons.
"The results of the "Fiber Force" research project and the resultant force transmission concepts help us decisively in the VIP Completion business to continue successfully meeting the challenges of installing cabin interiors in the new composite fiber aircraft designs," said Dr. Hans Schmitz, Senior Vice President VIP & Executive Jet Solutions.
The results of the research project and the know-how acquired are already being used in current Lufthansa Technik completion projects. A total of 40 of the newly developed "floorpanel hardpoints" are currently being installed in a Boeing 747-8.
The complete study and especially the execution of test series were significantly assisted by a virtual R&D simulation.
In further subprojects, amongst other things, Lufthansa Technik has been investigating ways to compensate for a sudden drop of pressure in a VIP cabin, which often consists of many smaller rooms. Beyond this, possibilities for load introduction in the side and upper fuselage structure are being developed. The overall "Fiber Force" project is due for completion by the end of November 2013.
»chair« now available for airline customers
New seating concept at Aircraft Interiors Expo
At the world's leading trade fair for aircraft cabins, the Aircraft Interiors Expo in Hamburg, Lufthansa Technik AG is presenting its revolutionary »chair« seating concept for airline customers for the first time. A family of chairs with a design that breaks new ground for the customization of aircraft cabins, »chair« is among the finalists for this year's Crystal Cabin Award.
With »chair«, designers of aircraft interiors can adapt chair structure and functionality to the specific purposes and requirements of airline, business jet and VIP customers. The seating concept runs the gamut from basic office chairs to lounge and dining chairs and beds, with considerable savings in space and weight.
"On board an airplane, the seats are the central interface between the passengers and the cabin," says Andrew Muirhead, Head of the Original Equipment Innovation unit at Lufthansa Technik. "For decades, seats have mostly changed only in shape and color. Today's passengers have much higher expectations at every level, from the most basic to top-of-the-line seats. They expect the comfort and convenience of an innovative cabin along with the diversity they're accustomed to from home furnishings, and more freedom of movement in the cabin."
The »chair« concept was developed in cooperation with the renowned cabin interior designer Jacques Pierrejean, founder of Pierrejean Design Studios. He describes »chair« with this analogy: "This chair is my friend. It dresses differently depending on the comfort I need, the situation I'm in and the culture I'm living in. The concept of »chair« gives cabin interior designers an unequaled degree of freedom."
"»chair« makes it possible to rethink cabin design," says Oliver Thomaschewski, »chair« product manager and Head of „Seating and Structures" at Lufthansa Technik's Product Division „Original Equipment Innovation". "It's a completely new design approach intended to give designers unprecedented flexibility in choosing the perfect chair configuration and arrangement for any cabin floor plan. The »chair« family concept offers thousands of configuration options."
The new »chairs« are made in Germany in cooperation with the premium automotive supplier Dräxlmaier. All chair configurations are based on a primary seat structure perfectly adapted to the human body. Seat backs in different heights and with custom-contoured ribs, customized upholstery in any desired thickness, ergonomic features in arm rests and seat backs, and a wide variety of other flexible add-on elements allow hitherto undreamed-of versatility.
The »chair« product family is currently undergoing certification by the aviation authorities (certification as a 16g seat according to crash safety regulations). Many of the tests have already been completed.
Lufthansa Technik presents »chair« family
Concept enables completely new design possibilities
At EBACE 2014, for the first time Lufthansa Technik is presenting its product »chair«, a ground-breaking and original family of chairs dedicated to VIP and business jet aircraft.
Designers can adapt the seat to designated purposes and interior requirements, from basic working chairs, to lounge and dining chairs or to full flat sleeping beds. Besides weight and space savings in the cabin, »chair« also offers other new features such as "active seating" for children and adults.
"On board of an aircraft, the seats are the central interfaces between the passengers and the cabin", said Andrew Muirhead, head of Lufthansa Technik's new "Original Equipment Innovation" product division. "After decades in which VIP and business jet seating only changed its shape or colour, passengers want something new at the highest and most basic levels - the comfort and convenience of the most innovative cabin along with the wealth of options they know from home furnishings and more room to move freely in the cabin."
While the technical design of »chair« was developed by Lufthansa Technik, the aesthetic design of the exposed »chair« versions was developed in parallel as one possible design line together with the renowned aircraft interior designer, Jacques Pierrejean, Design Office Manager from Pierrejean Design Studio.
Pierrejean said: "This seat is my friend. It wears a different cover depending on the comfort I need, the situation I'm in and the culture I live in. The concept of »chair« opens up an unequalled degree of freedom for cabin interior designers."
"»chair« is not just another VIP seat, it is a unique approach to offer designers completely new possibilities to select the perfect »chair« configuration for every cabin floor plan. The family concept offers several thousand different configuration possibilities", said Oliver Thomaschewski, product manager »chair« at Lufthansa Technik.
Made in Germany in cooperation with the premium automotive supplier Dräxlmaier, all »chair« configurations are based on a seat frame developed in bionic harmony with the human body and an extremely slim load-bearing primary structure. Individually sized ribs, customized upholstery of every thickness, back rests in different heights, ergonomic functions such as leg and arm rests and a variety of other flexible add-on elements produce a hitherto undreamed-of variability.
The »chair« family is in the process to be certified as a 16g seat. First dynamic tests have already been completed.
Clear varnish system introduced into the VIP-completion market
Project achieves solvent proportion reduction by two-thirds
Lufthansa Technik has successfully introduced its "Environmentally friendly varnished veneer surfaces" (ULF) research and development project into the VIP completion market. Over the past months Lufthansa Technik has used the new varnish in the completion process of a VIP-widebody aircraft for the first time.
From January 2010 to February 2013, Lufthansa Technik had developed the new varnish system that not only meets fire protection, health and environmental requirements, but satisfies high quality standards as well. In the new product the proportion of solvent has been reduced from 60 percent to 20 without any adverse effect on processing quality.
The result of the project, which was funded by the Federal Ministry of Economics and Technology, satisfies the latest EU directives on the protection of humans and the environment. Additionally, thanks to a chemical reaction triggered by ultraviolet light, the varnish hardens more quickly so that the subsequent grinding process can begin earlier.
Dr. Mathias Nolte, ULF project manager at Lufthansa Technik's VIP & Executive Jet Solutions Division, said: "Lufthansa Technik has gained a lot of expertise in the area of new varnishing and processing technologies, especially for our VIP business. By using this globally unique varnish, for which we have already filed a patent application, we are meeting our high aspirations as regards time and cost efficiency, employee protection, quality and official safety requirements in full."
Like all the other materials used in aircraft construction, the high-gloss polished wooden surfaces that are typically installed in VIP cabins have to meet safety standards from the aviation authorities. For optical purposes and to comply with fire protection regulations, these surfaces have to be treated with effective flame retardants and clear varnishes containing a high proportion of organic solvents. To achieve the desired quality, up to ten coats of clear varnish plus a final special top coat are applied to the wooden decorative surfaces.
Lufthansa Technik wishes Croatia Airlines a happy 25th birthday
One of the longest-standing and most loyal customers
Lufthansa Technik AG wishes its long-time customer and partner Croatia Airlines a happy 25th birthday. For 22 years the airline has put its trust in the services of Lufthansa Technik, making Croatia Airlines one of its longest-standing and most loyal customers. "Our business relationship with Croatia began at the moment when Boeing 737 aircraft joined its fleet. We have been providing technical services to the airline without interruption ever since. We maintain cordial relations and have a true partnership of equals," said Jens Henningsen, Senior Sales Executive at Lufthansa Technik. "We wish Croatia Airlines a very happy 25th birthday and look forward to many more years of fruitful cooperation."
The original contract for the Boeing 737-200 aircraft included material supply as well as repair and overhaul of the JT8D engines. The Airbus era began for Croatia in 1997, and Lufthansa Technik took over component support for the A319 and A320 aircraft under a Total Component Support TCS® contract as well as maintenance work on the auxiliary power units, wheels and brakes and technical support for the CFM56-5 engines. Since 2008, Lufthansa Technik has also been providing MRO services for the Bombardier Q400 aircraft that joined the Croatia Airlines fleet.
"In addition to the quality of service and professional staff, over the last quarter of a century more than 29,000,000 passengers recognised Croatia Airlines also for the safety of our flights. More than two decades of cooperation with Lufthansa Technik in the field of aircraft maintenance has undoubtedly contributed to that. I am glad that an increase in the capacity of our technical centre in Zagreb, which is expected at the beginning of the next year, will open new opportunities for future cooperation to our mutual benefit", said Krešimir Kučko, President of the Management Board of Croatia Airlines.
With a fleet now totaling 12 aircraft and 970 employees, the Star Alliance partner Croatia Airlines serves 32 destinations in 18 countries.
"The cooperation between Croatia Airlines and Lufthansa Technik has always adapted to the airline's development. We're looking forward to the next 25 years," said Jens Henningsen.
Foundation for profitable growth: Cost management and investment strength
Dr. Peter Jansen: Securing our course for growth
In fiscal year 2014, the Lufthansa Technik Group increased its sales revenue by 3.8% to EUR 4.3 billion. Owing to a large modification program for Lufthansa, the 5% increase in Lufthansa Group business was higher this year than growth in business with the company's nearly 800 non-Lufthansa Group customers around the world, whose share in total revenues was 61.7%. With a margin of 9.4%, the operating result of EUR 392 million lay just under the previous year's high level.
According to Chief Executive Finance, Dr. Peter Jansen, an important factor in securing Lufthansa Technik's economic success was the company's contributions to Lufthansa's efficiency-enhancing future program SCORE: a variety of projects for reducing costs in all the product divisions, the restructuring and streamlining of Lufthansa Technik's administration, the consolidation and development of its network, and a sales approach that concentrates on growth regions.
Jansen described the key financial figures at the Lufthansa Technik Group as solid, as they were the previous year. At EUR 118 million, investments were not quite as high as last year, but remained higher than the long-term average. The largest share went for the purchase of spare engines and technical facilities as well as for technology and innovation projects that are part of the company's growth strategy.
Operating expenses climbed by 2.9% in 2014 to reach EUR 4.1 billion. Owing to the higher volume of modifications and an increase in engine maintenance business, the cost of materials rose 4.1% to EUR 2.2 billion. Personnel costs (EUR 1.2 billion) declined slightly as a result of consolidation within the network and the shift of administrative work.
Despite growth in revenues, Lufthansa Technik is continuing its restrictive policy as regards new hires. This and the closures and restructurings of some of its companies resulted in the average workforce remaining stable at 20,085 employees, which is comparable to last year (+ 0.8%).
"Following our successful cost and efficiency management in 2014, the continuation and implementation of all the various SCORE measures will naturally remain on the agenda," Jansen emphasized. The volume of the measures planned for this year amounts to EUR 175 million. "Part of securing a course for growth that is at least as strong as the market is the implementation of our core project ‘We Grow', which is intended to result in significant increases in revenue by 2018." It focuses primarily on strengthening sales in the growth regions Asia and the Americas as well as expanded cooperation management with all the Group's airlines.
"Sustainably profitable growth assumes that we can strike a balance between new growth and innovation projects, additions to our staff, new IT projects, etc., and yet continue to pursue our long-term requirement of increased cost efficiency in all our administrative and production areas. This is the only way to remain competitive and grow steadily and continually."