Lufthansa Technik risks losing quarter-billion revenues in Russia

The sanctions on Russia not only affect Russian airlines, but also MRO companies in Europe and across the world. For example, Lufthansa Technik risks losing €240 to 250 million in annual revenues if the Russian market disappears, it said on March 9 during its 2021 results presentation. Lufthansa Technik risks losing quarter-billion revenues in Russia.

According to Chairman and CEO Johannes Bussman, Lufthansa Technik has contracts with twelve airlines in Russia and former CIS states – including Redwings and Smartavia – for component and engine services for some 400 aircraft. Some of these aircraft might have been confiscated when outside Russia and are to be returned to leasing companies, which have placed some 550 aircraft in the country. Following the EU and US sanctions, lessors from across the world have requested the return of their aircraft.
LH Technik also has a large warehouse and spares position near Moscow in a partnership called Lufthansa Technik Vostok Services. The value of these spares isn’t known.