Lufthansa Technik Focuses On Asia MRO Growth

Lufthansa Technik chairman August Henningsen wants to serve the Asia-Pacific region as broadly as possible in the aftermarket – and expects the group’s revenues to grow from 15% of its total business to 20% within three years.

After Europe, Asia represents the second-biggest share of the LHT’s earnings.

Here at the show, the MRO announced that Eva Air’s technical service provider, Egat, selected Lufthansa Technik to provide component overhaul and engineering services for the airline’s AirbusA321 fleet, as well as warehousing and pooling from LHT’s warehouse here in Singapore.

In addition, Thai carrier Nok Air extended the number of aircraft covered by LHT from 14 737NGs to up to 30 aircraft as part of a Total Technical Support contract.

Henningsen says that Lufthansa Technik Logistics Services will double its footprint here in the region to be closer to customers in order to respond faster to their needs. Its new customs bonded distribution center in Shenzhen, China, is scheduled to open in May.

In related news, VietJet Air selected the logistics division to provide transport management for its growing fleet, which includes 11 A320s but should increase by five to 10 aircraft each year until 2022.

Also in Shenzhen, Lufthansa Technik is tripling the size of its warehouse and workshops to 82,000 sq ft (25,000 sq m) to expand its component supply and logistics services. This location also will be home to the new Airline Support Team services, which is designed to facilitate efficient engine services – from inspections to documentation and logistics for airlines and lessors in the region.

Regarding its two big MRO facilities in the region, LHT is adding A380 C4 checks in the Philippines, and Ameco Beijing, its joint venture with Air China, has cut turnaround times by 10% through Lean efforts.

It’s not just about adding new capabilities and capacity, stressed Henningsen. “It’s about using technology in MRO processes” to reduce turnaround time and expedite material delivery, which LHT has focused on greatly the last couple years as part of its effort to reduce costs and increase productivity.

When asked about the proliferation of new MRO facilities in the region, Henningsen says, “It’s not about having a hangar, but how to operate it efficiently,” a mantra of Lufthansa Technik.