The Asia-Pacific market for maintenance, repair, and overhaul (MRO) services would appear to favor well-resourced providers offering certainty to airlines averse to the risks they see in using smaller, independent outfits. Airframers and engine OEMs have come to benefit in that environment, as have big MRO providers such as Lufthansa Technik (LHT), which has invested significantly to serve the region's varying needs.
For the technical arm of the German flagcarrier new business opportunities depend on strong ties with the various governments in the region, most notably in China, where LHT controls 80 percent of a joint venture in Shenzhen with Beijing Kailan Aviation Technology Company. While the Asia-Pacific region accounts for some 20 percent of its revenues, China theoretically presents a huge growth opportunity but also challenges to navigate its bureaucracies and develop relationships, according to LHT's head of corporate strategy and market analytics Sven Taubert.
In this article
More In Maintenance and Modifications
