Turbulence at Technik: How Lufthansa's MRO division is handling the pandemic

After a year bedevilled by uncertainty, Lufthansa Technik is resetting its expectations – and there are green shoots. Ian Harbison discovers more from CEO Johannes Bussmann

img_36-1.jpg
Arrival of the first German Air Force A350 at Lufthansa Technik in Hamburg for cabin outfitting LUFTHANSA TECHNIK

The drop in air traffic in 2020 has resulted in a massive reduction in MRO (maintenance, repair, and overhaul) requirements for aircraft, engines and components.

Like many businesses, industry behemoth Lufthansa Technik has felt the impact keenly. It has seen its revenue fall by 43% year-on-year to €3.747m (2019: €6.572m). Johannes Bussmann, the company’s CEO said the revenue was equal to that in 2008, wiping out the progress made since then. Adjusted EBIT (earnings before interest and taxes) dropped well into the red to €-383m, compared to €463 million for 2019.

Become a Premium Member to Read More

This is a premium article and requires an active Key.Aero subscription to view. You can also access it if you’re subscribed to one of our Key Publishing magazines.

I’m an existing member, sign me in!

I don’t have a subscription…

Why not join our community of aviation enthusiasts? Pick one of our introductory offers and access a wealth of world-class aviation content.