AUGUST W. HENNINGSEN, CHAIRMAN OF THE EXECUTIVE BOARD, LUFTHANSA TECHNIK

PARIS AIR SHOW 2001

	June 17	June 18	June 19	June 20

On the Record with
AUGUST W. HENNINGSEN, CHAIRMAN OF THE EXECUTIVE BOARD, LUFTHANSA TECHNIK

Lufthansa to Bring Internet to the Air

Lufthansa appears set to be the first airline in the world to offer its passengers true inflight Internet and e-mail access when Lufthansa Technik begins outfitting its fleet in 2003.

That's the assertion of Lufthansa Technik chairman August Henningsen, who also insists that current interim solutions claiming to offer e-mail (but that really do not have live, interactive access) "are not what the customer wants."

While Tenzing Communications has signed contracts to provide e-mail to Singapore Airlines, Virgin Atlantic and Cathay Pacific, this "slow speed" system stores e-mails on the aircraft and sends them periodically in "bursts," uploading data the same way.

Henningsen told Show News that Lufthansa Technik believes that for many clients such narrowband Satcom will not provide a satisfactory download/uplink of data in the volumes required. So Lufthansa Technik is working with manufacturers to develop a high-speed, live, broadband service.

"We need the right antennas, and appropriate access to transponders and satellites," Henningsen says. "And that, in the final analysis, is the deciding factor. You must have the technology on both the aircraft side, and the satellite side." He believes that by 2003 both will be available in the quantity and quality needed to go ahead.

Lufthansa Technik has already equipped and integrated one aircraft with what it believes is one of the first true inflight Internet installations. The head-of-state A340 was fitted with dual-phased array Ku-band antennas developed by Boeing and utilized in its Connexion inflight communication service, which has not yet attracted any airline customers. These were integrated by Lufthansa Technik with equipment from other manufacturers.

The German company is also developing its just-certified live TV and Satcom TIOS antenna (it stands for Two In One Service) for e-mail and Internet applications as well.

Such development work by Lufthansa Technik pays off for parent Lufthansa, Henningsen says. Plans call to equip the airline's fleet with true e-mail over a year and a half, with the service aimed at first class and business passengers. The inflight Internet system will also be offered to other airlines, he added.

By John Morris

Up with the MRO Leaders

If revenues are anything to go by, Lufthansa Technik's 2.3 billion euros turnover last year placed it amongst the world's leaders in MRO, with some 10% of the available (i.e. non-captive) world market share. And this year is shaping up to be even stronger.

"GE Engine Services is about par with us on MRO, then others such as Air France Industries, SR Technics and Haeco," says Lufthansa Technik chairman August Hennsinger.

While revenues rose 24% last year, pretax profits at Lufthansa Technik doubled to 37.1 million euros.

With some 50% of its sales outside the Lufthansa Group, it is not surprising that much of the improvement came from third party business. Particularly noteworthy were improvements in engines and components, and in the completions business for VIP and very large executive aircraft. The strength of the dollar also helped boost the results when quoted in euros.

Much sharper than the rise in sales was the year 2000 increase in the cost of materials, which soared 31.9%.

At year's end Lufthansa Technik had 10,738 employees, while its 20 subsidiaries and affiliates had nearly another 10,700. Lufthansa Technik last year filled orders from 319 customers around the world and serviced 663 aircraft, including those of Lufthansa group fleets. Of those, 379 were serviced under the company's TTS Total technical Support "worry-free" maintenance contracts.

New facilities include Lufthasa Technik Philippines, a joint venture with MacroAsia, which already employs 1,600 in Manila, and a new 737 overhaul center in Budapest.
-- J.M.

Elite Clients Push Technology

Strong investment of 10 million euros since 1998 to make Lufthansa Technik the world's leading completion center for large business jets (BBJs, A319 Corporate Jetliners and Fairchild Dornier Envoy 7s, as well as larger airliners) has had another spinoff: the Hamburg shop has become a center for innovation.

With wealthy clientele wanting the latest and best, Lufthansa Technik finds it has already dealt with technical, design and certification problems by the time the airlines come knocking on the door. Examples: large format plasma displays, invisible "flat panel" speakers, and uncomplicated power supplies to power laptops while in flight.

Lufthansa Technik completed five large business jets last year-on time, according to chairman August Henningsen, in contrast to much of the global industry. It plans to deliver eight a year for the foreseeable future from five production lines in Hamburg. Backlog includes 11 firm and 20 option BBJs for NetJets.

Henningsen believes the business jet boom will continue for another three to four years, after which any slack in completion work will be more than made up by demand for XXL-size jets as corporate shuttles.
-- J.M.


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