Lufthansa cancels sale of shares in maintenance division
Lufthansa intends to retain its maintenance division in its entirety after all. The plan to sell a minority stake in Lufthansa Technik will no longer be pursued, the company announced. Instead, the growth plans developed in recent months are to be implemented independently. Sören Stark, head of the division, spoke of "very ambitious goals for the coming years".
The Group actually wants to concentrate more on its airlines and thus its core business and had therefore planned to sell part of its maintenance division. According to earlier information from the Bloomberg news agency, a stake of at least one fifth was in play. The entire unit was valued at around eight billion euros.
Financial investors are said to have already expressed interest in the spring. There are good reasons for the current shift: Lufthansa Technik spoke of a change in the market development for engines, which opened up new prospects for the company.
In view of ongoing manufacturer problems in this area, the strategic value of Lufthansa Technik as a part of the Group has increased significantly, explained Detlef Kayser, Chairman of the Supervisory Board of the maintenance company. The management expects a sustained increase in demand for engine repair and overhaul services. In addition to an increasing number of older engines in flight operations, the higher maintenance intensity of newly developed engines is also contributing to this.
Help with engine problems
Engine manufacturer Pratt & Whitney is currently experiencing problems, having launched an extensive recall for its geared turbofan engine in the summer. According to previous information, Lufthansa has more than 60 aircraft with geared turbofans. At the beginning of November, Group CEO Carsten Spohr said that 146 turbines, including replacement engines, would have to be serviced throughout the Group as a result of the recall. With the help of Lufthansa Technik, he wants to significantly reduce the maintenance time. However, as a maintenance service provider for other airlines, the division is also likely to earn money from the engine crisis.
Lufthansa Technik now wants to make progress and become more profitable with its own growth program called "Ambition 2030". Extensive investments in the core business are planned, it is said. Locations are to be expanded. In addition, the rapid construction of a further plant in Europe is planned in order to meet the increased demand. Acquisitions are also possible in order to expand the company's international presence. Lufthansa Technik is also planning to expand its digital business models.
Meanwhile, Lufthansa Technik is heading for significant growth this year. Last year, the company generated revenue of almost 5.6 billion euros with around 22,000 employees worldwide. This was around 17 percent of the Lufthansa Group's total revenue. Lufthansa Technik is targeting revenue of more than 6 billion euros for 2023.
Despite cancelling the sale of shares in its maintenance division, Lufthansa Air traffic continues to rely on Lufthansa Technik for engine repair and overhaul services, as the strategic value of the division has increased due to market developments and ongoing manufacturer issues. With its growth program "Ambition 2030", Lufthansa Technik aims to expand its international presence and digital business models, targeting revenue of over 6 billion euros by 2023.
Source: www.dpa.com
