Lufthansa Technik aims to work on "armed systems"
Lufthansa Technik Expanding Its Arms Business
Germany's largest airline's daughter company, Lufthansa Technik, has been partnering with the Bundeswehr for years, focusing on their aircraft's equipment and maintenance. Now, they're looking to take this partnership to the next level not just within Germany's borders.
Lufthansa aims to broaden their arms business activities and provide services for weapons systems. Lufthansa Technik CEO, Soren Stark, announced this to Handelsblatt. Right now, the company is bidding to maintain and repair 30 F-35 fighter jets and 60 CH-47F Chinook transport helicopters that are on the Bundeswehr's shopping list. In the near future, they're planning to offer their services to foreign militaries as well. "It's logical to make this offer for work we're already doing in Germany available to our friendly allies," says Stark.
For decades, Lufthansa Technik has been in partnership with the Bundeswehr, but they've never ventured into "weapons-carrying systems." The company, for instance, maintains the fleet used by the Flight Service, which transports members of the German government. Additionally, they've adapted Airbus aircraft to suit the Flight Service's specific requirements.
Entering the world of weapons systems is uncharted territory for the company, said Stark. "We've always been good at understanding and maintaining new aircraft and their technology in record time." Lufthansa Technik is the leading maintenance provider for civil aviation globally, and they service around 5000 aircraft as per their claims.
Lufthansa Technik's goal, as per their "Ambition 2030" program, is to reach sales of 10 billion euros and profit of one billion euros, almost a 50% increase. Their plan isn't just about taking advantage of the growing defense spending in Germany. The intention to expand their arms business pre-dates the often-highlighted "turning point" after Russia's 2022 assault war.
Gerald Wissel, from the consulting firm Airborne Consulting, explains this new venture as "a consistent further development" of Lufthansa Technik's earlier strategy, which was solely focused on "growing further on the world market for aircraft maintenance." However, the profits from this new business aren't likely to show up for several years. The fighter jets and transport helicopters the Bundeswehr expects to receive won't be delivered until 2030 and beyond, so Lufthansa Technik can start making profits then too.
Stark highlighted the need for collaboration on military aircraft in his statement to Handelsblatt. "This is a field where more than one provider is needed because service work on military aircraft is quite complex."
Read also:
Lufthansa Technik's expansion into the defense industry is not limited to Germany's Bundeswehr, as they aim to offer their services to foreign militaries as well, acknowledging the logical next step in their partnerships.
The German Armed Forces have long relied on Lufthansa Technik for aircraft maintenance, but now, the company is venturing into the aviation sector of the defense industry, aiming to maintain and repair advanced weapons systems such as the F-35 fighter jets and CH-47F Chinook transport helicopters.
