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April 2018

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FL Technics finished last year with net profit of over €5.6 million. CEO Zilvinas Lapinskas noted that, after careful evaluation, it is clear that diversification of the client portfolio, a focus on team and customer satisfaction and LEAN-based management has led to a great year. Last year, FL Technics launched the Bay system (dedicated teams working on one aircraft) and invested in mechanical training of the base maintenance staff. Currently, Corendon, Eurowings, Germanwings, Luxair, Pegasus and SWISS are maintained in FL Technics hangars. Line maintenance business grew by opening eight new line stations in Germany, Latvia, Spain, Russia and the UK. FL Technics, together with its subsidiary UK-based Storm Aviation, is serving clients in 15 countries in Europe, Russia, CIS, and Africa. Last year, the company has attracted 30 aircraft for CAMO services, and it is further expanding with successful implementation of Commsoft OASES MRO software. The DOE team closed the year with 85 aircraft modifications. Technical training services success was gained by expanding the scope of training programmes (reaching 170), opening seven new training locations (57 in total), and increasing the number of the online courses to 2,500. In 2017, FL Technics issued almost 5.000 mechanical training certificates.


GMF AeroAsia successfully booked revenues of $439.3 million in 2017, an increase of 13% compared to 2016 revenue of $388.7 million. Net profit increased by 15%, from $44.2 million (before Employee Benefit Obligation) increased to $50.9 million in 2017. In the previous year, GMF net profit according to the audited financial statements amounted to $57.7 million. This is the profit of GMF with Extra Ordinary Transaction, which is Employee Benefit Obligation (EBO). Without EBO, GMF earned a $44.2 million profit.  Therefore, GMF net profit in 2017 increased by 15.3% year on year.

The largest revenue portion came from aircraft component maintenance (31%), followed by base maintenance (22%), line maintenance (21%) and engine maintenance (19%).

The company also experienced a significant increase in assets in 2017 of 22%, from $442.6 million in 2016 to $539.2 million in 2017. The increase in assets was influenced by large corporate actions where the company sold its shares to the public in 2017 and managed to raise funds of Rp 1.129 trillion. This also produced a significant increase in corporate equity by 77%. Meanwhile, cash flow in 2017 increased by 38% compared to 2016.

From an operational aspect GMF also recorded 100% on three indicators, namely Service Level Agreement Fulfillment; Turn Around Time; and Capability & Capacity Development. In order to support GMF operations in 2017, it made various efforts to increase its capacity and capability, including engaging partnerships with world-class companies. In line with the business theme in 2017, Strengthen Core Business, GMF business scale development in the main sector also succeeded by base maintenance hangar utilisation increased by 33%; from business line, manpower utilisation by 19%; machine maintenance by 36%; and machine utilisation by 58%.

Business coming from international customers increased by 5% and is expected to increase by 30% in 2021. Non-affiliated revenue growth reached 41%, increasing revenue contribution from non-affiliated customers to 37% of total revenue, and is expected to continue to increase to 55% by 2021.

In 2018, GMF is targeting a significant investment growth of nearly 400% over 2017. The investment target of more than $100 million will be used for organic and inorganic programmes that primarily focus on business expansion by extending GMF’s international footprint, as well as several strategic initiatives to increase capacity and capability. This significant investment is expected not only to increase GMF revenue in the coming years, but also to improve the aircraft maintenance market that GMF can work in. In terms of revenue in 2018, GMF is targeting to grow about 15% compared to revenue achievement in 2017. With this target, the company is optimistic that net income growth in 2018 will increase by more than 10%.


Lufthansa Technik maintained its growth course in 2017 with a new revenue record and the best sales result in the company’s history, while investments were raised once again and the final result was a slight improvement over the previous year.

Sales revenue from Lufthansa Technik and 22 fully consolidated companies grew significantly, increasing by €260 million from the previous year’s €5.144 billion to €5.404 billion (+5%). The company achieved an adjusted EBIT of €415 million (previous year: €411 million).

New contracts were signed with a total volume of more than €13 billion, while the number of aircraft under exclusive support contracts with Lufthansa Technik grew by a further 10% to more than 4,550. This equates to around 20% of all commercial aircraft worldwide.

Investment activity has almost doubled since 2014 to €233 million and the company plans to pursue this approach further.


MTU Maintenance secured over $3.7 billion in contract wins in 2017, an impressive $1.5 billion more than in 2016. Of about 270 contracts signed last year, 47 were with new customers or existing customers sending new engine types to the company’s MRO facilities.

In addition to significant contract wins, the MTU Maintenance network of facilities carried out over 1,000 repair and overhaul shop visits in a single year, taking the total number of visits performed to well over 18,000 in 2017. Of these, over 300 visits were for the V2500 engine family, the highest ever, and 125 were for the CF34 family, also a record figure for the company. Further highlights were achieved at MTU Maintenance Hannover, which has just passed the 8,000th shop visit mark, and MTU Maintenance Canada, which introduced the V2500 line to its facility.

In light of the high volumes already entering MTU Maintenance’s shops and the global engine MRO growth trend, MTU is expanding capacity and employing new staff at all facilities. In particular, the capacity of 300 shop visits per year at MTU Maintenance Zhuhai is to be expanded by another 50% within the coming years so as to keep up with local market growth, as well as to accommodate any new programs in due course.”

Additionally, MTU announced in December that a joint venture, named Engine Maintenance Europe, or EME Aero for short, had been founded with Lufthansa Technik. According to current plans, the facility will be operational in 2020 and have an annual capacity of over 400 shops visits. It will service the PW1000G-series geared turbofan engines as part of the OEM network.

MTU Maintenance Lease Services, operating out of Amsterdam, also broke records in 2017, more than doubling sales versus 2016, welcomed over 60 new lease and asset management customers and nearly doubled its pool of lease engines. In 2018, the company will be focusing on technical engine asset management services as well as flexible MRO and asset management solutions for asset owners and operators.
Airfoil Services (ASSB), a joint venture between MTU Maintenance and Lufthansa Technik, also had a great year in 2017. Repair volume increased by around 35% year on year. Growth was down to strong demand for CFM56 blade repairs and continued strong volume in V2500 blade and vane repairs. Furthermore, ASSB started repairing LPT and HPC blades for GP7000 engines last year and is a single source supplier for these components. Alongside MTU and LHT business, third party work makes up 36% of ASSB’s business.

Within MTU Aero Engines, the commercial maintenance business achieved the highest growth rate in terms of revenues in 2017, having increased by 19% to €2,285.3 million (2016: €1,914.4 million). The company’s revenue forecast for its commercial maintenance business, expressed in US dollars, is for a growth rate in the high teens in 2018.

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