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IP Interview
Published October 12, 2023

Lufthansa Technik: 30 years of Base & Line Maintenance

Executive Bio

Former VP at Lufthansa Technik

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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What's the biggest challenge in component pooling?

The challenge with pooling is ensuring you have enough components, but not too many. If you overstock your stores, you end up tying up capital, which is what you aim to avoid. For instance, an airline might pool only for 0.3 units but expects to have one when they need it. If you don't have one, you risk losing the customer. That's the biggest challenge. There are different models, but a good one is to pay per hour.

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What are the EBIT margins for engine, component, and base maintenance, typically?

Component is about 20, engines are 10 to 12. Base always depends on how they market their summer on short range. Every airline wants to fly in summer. Today, the maintenance schedule provides a two-year period for C check. Once you are in the winter, you stay in the winter. It's exactly two years from the last event to the next event and you try to bring all your airplanes in the wintertime into that network.

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