MTU Maintenance in 2016

Eleanor Steed
By Eleanor Steed April 26, 2017 17:23

MTU Maintenance in 2016

In 2016, MTU Maintenance, the maintenance, repair and overhaul (MRO) arm of MTU Aero Engines, signed independent deals with a contract volume of $2.2 billion with the program families CF34, CFM56, and LM industrial gas turbines (IGTs) enjoying particular success.

“Over 250 new contracts were signed in 2016 and 26 new customers joined the company’s engine and IGT MRO customer lists,” explains Michael Schreyögg, Chief Program Officer at MTU Aero Engines. “Underlining our customers’ trust in MTU Maintenance’s technology, market and engineering expertise. Additionally, the company receives shop visit volume from contracts signed with MTU Aero Engines and partners through the OEM network that is not counted here.”

MTU Maintenance grew its revenue by 21% to $2.1 billion in 2016 and was up 23% in the fourth quarter. Nearly 1,000 engines were delivered to the company’s locations around the world for repair and overhaul in 2016 – bringing the total shop visit count to over 17,000 in more than 35 years. The largest share of turnover came from the V2500 engine family, for which MTU Maintenance is the number one MRO provider worldwide with a market share percentage in the mid-thirties in 2016. Growth is set to continue into 2017 as well: MTU Aero Engines foresees around 10% overall growth in US Dollar its MRO segment for the coming year.

MTU Maintenance has over 30 different engine models in its MRO portfolio, more than any other MRO services provider in the world. When it comes to programs beyond the V2500, the company also secured its leading independent status in 2016. For instance, it is number one independent provider on the CFM56 engines types it serves with a percentage of market share in the low teens. And with a high teens and low teens percentage of market share respectively the company is also number one independent engine services provider for the CF6 and CF34 engine families. Schreyögg says: “Our market position is a result of our customer-centric approach, flexible alternative solutions and optimization across the lifecycle. We maximize the value of assets and minimize the cost of operations, as evidenced by the continued trust and support of our customers.”

Beyond engine MRO, MTU Maintenance also saw success in its leasing and asset management operations. Launched in 2014, MTU Maintenance Lease Services B.V., a joint venture between MTU Maintenance and the Sumitomo Corporation, doubled revenue in 2016 – well ahead of the company’s original business plan. The company’s engine pool now contains over 40 engines and services are continually being expanded both in terms of spare engine support for operators as well as through customized solutions dedicated to lessors.

Schreyögg states: “We are delighted with our performance in 2016. Our unique combination of technical, MRO expertise and in-depth market knowledge puts us in a unique position when it comes to comprehensive leasing and asset management solutions for our customers.”

Eleanor Steed
By Eleanor Steed April 26, 2017 17:23