Lufthansa Technik believes it will be hard to achieve last year's profit margins in the current fiscal year because the worldwide MRO market continues to suffer from overcapacity and price pressure. Given the depressed market, the maintenance, repair and overhaul provider is looking for new markets to remain financially healthy, and the U.S. is emerging as a prime candidate. Although the U.S. is the largest MRO market, Lufthansa Technik is a relatively small player there. The company's business is dominated by activities in Europe, where it has about a 30% market share, followed by Asia and the Middle East. Its U.S. presence ranks as a relatively lackluster fourth. Sustained losses by U.S. carriers aren't enough to dissuade Lufthansa Technik, either. "There is a lot of turmoil in the U.S. market from an economic point of view," but it is the biggest and therefore "it is still a very interesting market for us," says Lufthansa Technik Vice President for Marketing and Sales Andreas Meisel.
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