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."