Lufthansa Technik sale not ruled out (but not yet)

Lufthansa Technik remains 100 pc subsidiary but potential transaction not ruled out
Previous divestment talks ended without deal after 2020 downturn
Multi-year efficiency push affects every part of Lufthansa Group
Any future deal must consider partner benefits beyond purchase price
Company focusing on increasing value before considering partnership options

Lufthansa Technik (LHT) remains a key property in Lufthansa Group’s portfolio, but the German conglomerate has not ruled out seeking an equity partnership in its aftermarket specialist. Lufthansa explored divesting a minority stake in LHT following the 2020 downturn to help strengthen its balance sheet, but ended three years of talks without a deal. Instead, the group continued to invest in its global aftermarket juggernaut.

Now Lufthansa is in the midst of a multiyear push to improve efficiency across the board. While most of the changes affect the group’s airlines, every part of the company is affected. Technik forms one of the pearls in the portfolio, and therefore the company decided to develop the business on its own as a 100 pc subsidiary. That does not mean that for all time in the future, any potential transaction is fully ruled out.

Any deal must go beyond an attractive purchase price. The previous effort prioritised a package of factors, including what the partner brought to the table and how well it could help Lufthansa develop LHT. In the end, the entirety of the factors that mattered did not sit well.

Lufthansa Technik operates major aircraft maintenance, repair, and overhaul (MRO) and component services across multiple key hubs in Shannon, Celbridge (County Kildare), and Dublin, employing over 300 highly skilled professionals in Ireland.

Marc-Dominic Nettesheim shared “Currently, we’re not preparing specifically for this. “We want to increase the value of the company first, and then we take it from there. Technik is one of the pearls in our portfolio, and therefore we decided to develop the company on our own as a 100pc subsidiary. That does not mean that for all time in the future, any potential transaction is fully ruled out.”