Lufthansa Technik expands Defense business with focus on NATO and aircraft conversion

Lufthansa Technik is seeking to significantly expand its Defense business, including the maintenance and conversion of military aircraft for NATO and other allies. The company also offers technical support for the new P-8A Poseidon aircraft and has plans for global expansion.

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Takeaways:

• Lufthansa Technik is aggressively expanding its Defense business. They’re moving beyond just servicing commercial airlines and are now looking to maintain, repair, and even convert military aircraft.
• Focus on NATO and European market: A significant part of their defense strategy seems to be focused on securing contracts with NATO and other European countries.
• Global ambitions beyond Europe: While there’s a focus on Europe, Lufthansa Technik is also exploring opportunities for military MRO (Maintenance, Repair, and Overhaul) services in other regions like the Indo-Pacific.

Expansion into Defense

In addition to services for civil and commercial aircraft operators, Lufthansa Technik is pressing ahead with the expansion of the new “Defense” business unit.

“We are delighted to have succeeded in expanding our collaboration with the German Armed Forces, and we also want to do more to support them beyond the Special Air Missions Wing,” said Soeren Stark CEO of Lufthansa Technik in a press release issued in March this year.

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The company is now also a member of the German industrial teams responsible for supporting the CH-47 Chinook heavy transport helicopter and F-35 Lightning II fifth-generation fighter programs. Lufthansa Technik is an important partner in the PEGASUS project, which involves the conversion of three Global 6000 executive jets into signals intelligence (SIGINT) platforms for the Luftwaffe. The company also actively participates in the technical support of the German Navy’s (Deutsche Marine) new P-8A Poseidon maritime patrol aircraft, particularly by offering training and qualification courses for technical teams to provide support on the Boeing 737NG, the aircraft family on which the P-8A is based. Lufthansa Technik has been supporting the Special Air Mission Wing for over 60 years. Last year, Lufthansa Technik delivered another new Airbus A350 government aircraft, the «Theodor Heuss.»

Beyond Germany

According to a report by Handelsblatt, the Lufthansa Group subsidiary does not only want to take over the maintenance and repair of military aircraft and helicopters for the German Armed Forces. In the future, the company also wants to convert commercial aircraft into military aircraft, with a focus on the European market and NATO.

One of the lucrative Defense businesses that Lufthansa Technik aspires to is the replacement of NATO‘s aging fleet of E-3 AWACS aircraft with six new AEW&C aircrafts (a purchase valued at nearly four billion dollars), based on the Boeing E-7, also acquired by the USAF. «We could also carry out the conversion of the civilian Boeing 737 into a NATO E-7 aircraft in Hamburg, in close coordination with Boeing,» Sören Stark told Handelsblatt. The new NATO E-7A fleet will be primarily stationed in Germany from 2031 onwards, leaving the Hamburg-based company in a prime position to secure the future support and maintenance contract.

Beyond Europe

Global expansion is also part of the company’s strategy, particularly in the MRO military/governmental business.

Lufthansa Technik is in talks with another P-8 user about technical support for the fleet. «Of course, it makes sense to make this offer also to allies and friends for work in which we are already active in Germany,» said Stark. «We will soon be able to announce another user that will be supplied by us,» he added, perhaps referring to potential customers in the Indian Ocean or Pacific region, where Boeing has achieved significant commercial success with its Poseidon platform.