Cost containment has been a focus here at MRO Europe, and people are cautious about expenditures. August Henningsen, CEO of Lufthansa Technik, talked about the market conditions and said the MRO is seeing a change in customers' paying behaviors. He also said LHT is seeing less work from some existing contracts and fewer modifications/cargo conversions.
However, Lufthansa Technik has grown its customer base this year and increased revenues, but profits are down, according to Hennigsen, partly because of increased material expenses and cost pressures from customers.
Several MROs here at the conference and exhibition have said getting paid for maintenance work can be a concern. A few have lost customers because they ceased flying.
All is not doom and gloom here, however. Actually, it's quite the opposite. Many MROs are innovating and creating new services or bundling them in ways to better serve customers. Many are Leaning operations to be a more efficient business. Of course the mood is cautious, but it's relatively upbeat.
As Mario Lobato, OGMA VP industrial relations told me today, you can look at today's business climate as simply challenging or as a time to create new opportunities to better business. Good advice.