Lufthansa Technik Planning FBOs

Lufthansa Technik is looking at the possibility of getting into the FBO business, but is not ready to announce immediate plans, svp marketing and sales Dr. Hans Schmitz said here yesterday.

Joachim von Holtzapfel, director, sales of VIP and XXL business, added, "We've had demands for other services such as FBOs from our VIP outfitting customers. The market demand came, and we are answering that. By the end of the year we will have a better idea of what those services could look like."

Lufthansa Technik is currently conducting an analysis of the potential market for add-on FBO businesses, which are likely to be launched in Europe, expanding later to North America via its Tulsa, Oklahoma-based service company BizJet.

Peter Loeb, president and CEO of BizJet, noted, "Aftermarket support for the Boeing Business Jet fleet is in place, and we're looking to see if we need to expand that into other areas."

Meanwhile, "significantly increased" demand for VIP/VVIP outfitting of widebody airliners in the wake of September 11 has prompted Lufthansa Technik to establish a second widebody completion line at its Hamburg facility, to be inaugurated in first quarter 2002.

"Safety and security, including on-ground security," are key issues driving demand for large VIP aircraft, along with the age, rising maintenance costs and urgent need for interior replacement on types such as the Boeing 747 and 747SP operating in VVIP and head of state fleets, said Dr. Schmitz.