30
11
2023

Lufthansa Technik launches growth program “Ambition 2030”

- Changed market development for engines opens up new prospects
- Growth without external investor
- Lufthansa Technik expects second record year in a row in 2023
- Lufthansa Technik develops new First Class for Lufthansa 747-8
- Dr. Detlef Kayser: "We have big plans for Lufthansa Technik"
With "Ambition 2030", Lufthansa Technik is launching an ambitious growth program to further expand its leading global position in the technical support of aircraft fleets. The company expects a long-term increase in demand for repair and overhaul services, particularly in the engine sector. In addition to the increasing number of older engines in global flight operations, the higher maintenance intensity of newly developed engines is also contributing to this.

Dr. Detlef Kayser, Chairman of the Supervisory Board of Lufthansa Technik, says: "As the world's leading airline group, we operate over 700 aircraft in 13 flight operations. This makes us one of the largest airlines in the world. In view of the ongoing manufacturer problems - especially with engines - the strategic value of our Lufthansa Technik as an integral part of the Lufthansa Group has again increased significantly in recent months. We see this as a great opportunity to further develop our MRO division strategically with an ambitious growth program and to further increase its profitability. As the first address for airlines from all over the world and an attractive employer for many thousands of people, Lufthansa Technik will continue to be an integral part of the Lufthansa Group's economic success in the future. We have big plans for Lufthansa Technik!"

The "Ambition 2030" program plans extensive investments in the expansion of the core business, the expansion of locations and the international presence, potentially also through acquisitions, as well as the expansion of digital business models in the coming years. In 2022, Lufthansa Technik generated revenue of 5.6 billion euros with around 22,000 employees worldwide. In the current year, the company is targeting revenue of more than 6 billion euros for the first time since the coronavirus crisis. In 2023, Lufthansa Technik is expected to achieve its second record year in a row.

The overproportional growth driver will be the technical support business for engines and aircraft components. In the repair and maintenance of engines, Lufthansa Technik will benefit from the introduction of new generations of propulsion technologies and new mobile service offerings. In the area of aircraft components, Lufthansa Technik is planning to step up its activities in the USA in particular.

In addition to the expansion and modernization of different locations around the world, the rapid construction of a further European facility is also planned to meet the expected high demand and to achieve a higher level of vertical integration. Acquisitions are also possible. At the same time, Lufthansa Technik will drive forward the digitalization of its core business and expand its range of digital products around AVIATAR, the platform for data-based analytics solutions. Lufthansa Technik is thus creating a Digital Tech Ops Ecosystem and ensuring comprehensive data coverage along the entire value stream in technical operations. Lufthansa Technik also intends to significantly advance its cooperation with the German Armed Forces in the technical support and military outfitting of aircraft in the coming years.

Lufthansa Group and Lufthansa Technik are convinced that they will be able to implement this ambitious program under their own strength. Plans to acquire a further shareholder in Lufthansa Technik are therefore not being pursued.

Sören Stark, CEO Lufthansa Technik, says: "Lufthansa Technik should continue to be the determining factor in our very dynamic industry in the future. We have very ambitious goals for the coming years: We will invest in the expansion of our services as well as in the digitalization of our business and the expansion of our international presence. This will benefit our customers and our employees around the world. The airlines of the Lufthansa Group will continue to benefit from the intensive cooperation, direct access to maintenance capacities and the expertise of our employees, which is unmatched worldwide."

The entire aviation industry is suffering from a shortage of resources among suppliers and service providers. Full access to Lufthansa Technik's MRO expertise and resources also represents a major strategic advantage for the Lufthansa Group in the long term. One example of this is the development of a new First Class for Lufthansa Airlines Boeing 747-8 fleet. Lufthansa Technik will be responsible for this new development and implement the new premium seats.

Lufthansa Technik AG is headquartered in Hamburg and is the world's leading provider of technical aircraft services. These include the maintenance, repair and overhaul of aircraft, their components and engines (maintenance, repair, overhaul; MRO). Around 4,500 commercially operated aircraft are currently under contract, accounting for around one in five commercial aircraft in the world.