Annual Report 2020
Toughest year in company's history
The crisis in the aviation industry brought on by the coronavirus pandemic has hit Lufthansa Technik AG hard. Our revenue dropped by 40 percent. Due to the temporary suspension of the majority of air traffic world wide, demand for MRO services for aircraft, engines and components also suffered significantly.
Broad international positioning paid off
In fiscal year 2020, we had more than 4,500 aircraft under exclusive contracts. Over the course of the year, we won 16 new customers and concluded more than 500 new contracts with a total volume of €2.3 billion for 2021 and the following years.
Among other things, our broad international positioning paid off here: When demand came to an almost complete standstill in some regional markets, business in other regions was already beginning to stabilize. Although the broad product portfolio was not enough to offset the considerable economic consequences of the pandemic, it did mitigate them considerably. The VIP & Special Mission Aircraft Services division, for example, enjoyed very good capacity utilization throughout the year. Notable projects include the cabin completion of the first Airbus A350 for the Special Air Mission Wing of the German Ministry of Defense as well as the support provided for SOFIA, the flying telescope operated by NASA and the German Aerospace Center (DLR).
Many of the contracts signed in 2020 were for specially developed crisis products, showing that we were able to respond quickly and flexibly to changes in customer demand. Examples include solutions to temporarily convert passenger aircraft into auxiliary freighters as well as parking and storage services for decommissioned aircraft, engines or components.
Employees as of 31 Dec
The way out of the crisis
In the second half of 2020 we launched the RISE program. With RISE we aim to improve our competitiveness, for example by introducing a leaner and more efficient corporate structure adapted to the new challenges arising from the coronavirus crisis and able to accommodate the permanent changes in the MRO market.