Long and winding road

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The 9/11 terrorist attacks may have crippled several aviation players, but MRO operator Lufthansa Technik bounced back quicker than most.

Senior executive Walter Heerdt reveals the secret behind the company's speedy revival.

The road to recovery following 9/11 has been an arduous journey for the aviation industry.

More than six years have passed since the World Trade Centre attacks, but it's taken several companies just as long to bounce back.

Amid the aftermath, profit margins plummeted overnight as air travellers, fearing further terrorist assaults, stopped flying. An industry downturn soon followed, with most companies feeling the pinch.

German maintenance, repair and overhaul provider Lufthansa Technik was no exception, according to Walter Heerdt. But the senior vice president for marketing and sales insists the MRO company was better equipped than most.

"When the downturn in 2001 happened, we saw lots of companies struggling, especially those that were buying or working on older planes," he says.

"But we weren't just relying on older models and engines - we also had the capabilities to repair and maintain newer components. It gave us a quicker rate of recovery and helped the company overcome the initial shock following the attacks."

Having emerged relatively unscathed, Lufthansa' management has since focused on expanding the company's operation. In Germany alone, the directors oversee nine offices covering logistics and technical training, engine overhaul and cargo.

Elsewhere in Europe, it has several facilities providing similar services across Italy, Malta, Ireland, Belgium and Hungary.

Further a field, the MRO provider's network covers Asia and the US. It also has a sales office with four workers in Dubai and line maintenance stations across the Middle East.

Since 2001, the company's global operation has grown to some 12,500 employees, 450 customers and several partnerships.

Its finances have also improved, with the group generating US$5 million in 2006 compared to $4.5 million the previous year. On the downside, operating results for the same period dropped to $363,182 from $379,658 in 2005.

According to Heerdt, Europe and the US are Lufthansa's biggest markets. But he insists other regions will eventually prove just as lucrative. "We are seeing emerging markets and that's not just Dubai," he says.

"China is another one with opportunities to help customers and provide MRO assistance if, for example, a client is introducing new aircraft to its fleet. The network that we started building in the early 1990s is growing."

As a regular visitor to the region, Heerdt is well aware of the Middle East's strong aviation industry.

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