Lufthansa Technik: increased revenue in 2014, result at very high level

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 million. The annual accounts of the 22
consolidated Lufthansa Technik Group companies show an operating
result of EUR 392 million.

“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.”