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Lufthansa Technik AG
In recent weeks, Lufthansa Technik AG sealed major new long-term contracts for the strategic component support of renowned ultra low-cost (ULCC) airline brands Wizz Air, Frontier Airlines and Volaris. The new agreements take into account the three carriers' rapidly growing fleets, and thereby offering new levels of synergies and flexibility for further growth. Based on current fleet plans, the new Total Component Support (TCS) deals will ultimately cover approximately 1,000 aircraft of the Airbus A320 family.
Lufthansa Technik's Total Component Support (TCS) usually encompasses services such as spare parts pooling and an MRO (maintenance, repair & overhaul) coverage for thousands of part numbers required in regular airline operations. While all three aforementioned airlines will make extensive use of these standard offerings, the recently signed contracts also include more specialized service packages that directly address any airline's individual requirements and tailor the contracted component supply accordingly.
The ten-year contract with Wizz Air Hungary, Wizz Air UK, Wizz Air Abu Dhabi, and Wizz Air Malta, for example adds dedicated component lease and supply services to six logistic hubs in Europe (Katowice, Budapest, Bucharest, Sofia, Rome, London) and one in the Middle East (Abu Dhabi). Moreover, the contract provides additional flexibility for the airline that can now easily extend it to additional AOCs (Air Operator Certificates) it might set up in the future. Currently, Wizz Air operates a fleet of 166 A320 family aircraft, but it is set to grow to 500 aircraft by 2030.
The agreement with Frontier Airlines also includes special on-site team support in which Lufthansa Technik's experts will be working hand in hand with the airline's local teams to supply, return and troubleshoot components at eleven maintenance stations throughout the United States. The airline can also rely on lufthansa Technik's extensive local component MRO capabilities. An overarching supply concept will moreover make sure that critical material is strategically positioned in dedicated homebase stocks and warehouses all across Frontier's operation. By 2029, Frontier's fleet will have nearly tripled from 115 A320-family aircraft today to 272 aircraft.
The contract with Volaris boosts Lufthansa Technik's components business in the Americas by another triple-digit number of aircraft. From 114 aircraft operating today, the carrier´s fleet is set to almost double in the duration of the contract. Volaris will not only benefit from the MRO provider's local parts pooling capabilities, they will moreover make intensive use of Lufthansa Technik's AVIATAR digital operations suite, jointly exploiting smart services such as Condition Monitoring, Reliability Monitoring and predictive component maintenance with the aim to avoid in-flight component failures and keep the number of technical diversions to a minimum.
"We are pleased to extend our Total Component Support contract with Lufthansa Technik, which we have worked with since Wizz Air was founded in 2003. Lufthansa Technik is a trusted partner that understands and can support our ambitious growth plans," said Michael Delehant, Executive Vice President & Group Chief Operations Officer of Wizz Air. "We look forward to working even more closely with the team as we grow our fleet to 500 aircraft by the end of the decade."
"Frontier is very pleased with the execution of a favorable, long-term extension of our Total Component Support Agreement with Lufthansa Technik. By extending this relationship through the end of 2031, we are not only showing the trust that we have in Lufthansa Technik to support Frontier's rapidly growing operation, but we are also establishing a strategic partnership that will only strengthen Frontier's position as a leader in the ULCC marketplace. At Frontier we believe the sky is for everyone, and with a partner like Lufthansa Technik, we are confident we will be able to continue to offer the low fares our customers have come to know and love," said Spencer Thwaytes, Vice President and Treasurer, Frontier Airlines.
"Volaris will benefit to continue having access to one of the largest and most reliable aircraft component pool, MRO component solutions and home base stock expert advise that will support our three Air Operator's Certificates in Mexico, El Salvador and Costa Rica," said Holger Blankenstein, Executive Vice President of Volaris Airlines.
"Wizz Air, Frontier und Volaris are impressive examples of successful ultra-low-cost carriers that are embarking upon ambitious growth plans. We feel honoured being chosen to accompany and support their success stories as an integral partner," said Soeren Stark, Chief Executive Officer of Lufthansa Technik. "The long-term extension of the components contracts with these three airlines not only underlines our competitiveness in a price-sensitive and more and more digitally-driven market, it also provides a significant boost for our components business in the Americas and Europe."
Wizz Air, Frontier and Volaris already enjoy a long-standing and successful business relationship with Lufthansa Technik. The MRO company's services for Wizz Air even date back to the airline's foundation in 2003. Besides the recently extended component services, Lufthansa Technik takes care of the Subcontracted Continuous Airworthiness Management Tasks (SCAMT) for various AOCs of Wizz Air and provides the airline with comprehensive digital services from its AVIATAR portfolio. Frontier has been a customer since 2014 and also receives overhauls and Mobile Engine Services (MES) for its CFM56-5B engines as well as Cyclean engine washes from Lufthansa Technik. Volaris first contracted Lufthansa Technik in 2012 and, beside the components support, has meanwhile also received MES for its V2500 engines.