Lufthansa Technik starts Innovation Boost Program

-200 million Euro investment in the next four years
-Bundling activities of development and production for cabin products

Lufthansa Technik AG is significantly increasing its efforts in the
area of product, service and technological developments by starting
an innovation boost program. The investment in this area is to be
quadrupled, from 50 million Euros over the past five years, to 200
million Euros over the next four years. Both, Lufthansa Technik’s
conventional maintenance, repair and overhaul business, the company’s
VIP and Executive Jet business will also benefit from this new
approach.

“The development of product and service innovations is the key to
open up new markets and to win new customers. The adoption of new
materials and technologies offers great opportunities to further
reduce costs for our services, making them even more reliable and
customized, hence more attractive for our customers”, said Walter
Heerdt, Senior Vice President Marketing and Sales, at Lufthansa
Technik.

“We have made the experience that sometimes the market just doesn’t
offer products to the liking of our customers or their delivery takes
such long that it negatively influences the re-delivery of the
aircraft. With our approach, we will do our utmost to fill the gap
between expectations and products presently available. With the
enhanced, innovative products and ideas we are opening new
opportunities for designers and engineers to create a cabin to the
liking of the owners.”

Along with the financial investment, Lufthansa Technik has changed
its organization to create an optimal base for its innovation
activities. To strengthen innovation management, the department –
Corporate Innovation Management and Product Development – has been
set up. Under the leadership of Dr. Helge Sachs this department will
promote, coordinate and control company-wide technology and product
development projects and will be responsible for the increased
central innovation budget. Additionally, the department will be
responsible for the creation of standards and processes for
innovation management and for the further development of the
corporate innovation and technology roadmap.

Lufthansa Technik has also reorganized its activities in the
development and production of cabin elements by bundling all of them
into a new Product Division for Original Equipment Innovation. This
step has created an organizational foundation for expanding the
company’s position as a manufacturing operation.

The head of this new product division is Andrew Muirhead, one of the
company’s most experienced innovation managers. Muirhead previously
headed the Innovation Business Unit at Lufthansa Technik. He is
leading a team of over 80 interdisciplinary employees – with more to
come – as the consolidation process takes shape.

“We’ve set some very ambitious goals for the years ahead,” said
Muirhead. “The aircraft cabin is one of the most significant factors
in customer perception and product differentiation. The expectations
are rising and innovation cycles are becoming shorter and shorter.
That offers us a significant opportunity, because we understand the
possibilities for implementing and integrating modern technology and
systems into cabins and aircraft better than nearly any other
company. With our own workshops and a worldwide network of partners,
we have the potential to turn ideas into reality faster than others
do. All of the company’s know-how in airline installations, VIP
completion, flight operations and maintenance is utilized here in
this new organization.”

All products offered by Lufthansa Technik as an original equipment
manufacturer (OEM) will be developed, planned, manufactured and sold
from the new product division. Innovative systems and products – such
as nice®, niceview™, GuideU or the Patient Transport Unit (PTU) –
have already been successfully introduced to the market, and others
will follow as part of the planned expansion. By bundling all of
Lufthansa Technik’s OEM products, the company will be able to
efficiently and cost-effectively manage the know-how, development and
planning processes, as well as the sales and customer support
processes jointly.

At this year’s EBACE conference Original Equipment Innovation will be
demonstrating a new cabin interior concept from INAIRVATION – a new
joint venture between Lufthansa Technik AG and List Components and
Furniture GmbH – the concept is “Technology meets Cabin” and will
demonstrate a completely integrated cabin solution. Original
Equipment Innovation will also feature a new seat family called
chair™ – a new innovation in VIP seating, providing customers with
maximum comfort, aesthetic design and flexibility in configurations.

All of these products and further information on the new product
division can be experienced at the Lufthansa Technik stand (Hall 6,
Stand 5634) at EBACE 2014.