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Lufthansa Technik Seeks Growth in Asia with Hong Kong RHQ for Component Business

Leading provider of commercial aircraft maintenance services from Germany is expanding its presence in the top-growth region

Formally established in 1994 as a wholly owned subsidiary of Deutsche Lufthansa AG, Lufthansa Technik offers aircraft maintenance services for both airlines under its parent company and third-party carriers around the world. With its headquarters in Hamburg, the company continues to regionalise and set up a regional hub for its component business unit in Hong Kong in 2016.

Lufthansa Technik Seeks Growth in Asia with Hong Kong RHQ for Component Business

“We have decided on Hong Kong for three major reasons. The first one is the ease of doing business, as it is easy to set up a company in this city and it has a very open-minded labour market, which we felt would allow us to find the right people to work for us,” Marcel Pastuska, Senior Director Asia Pacific – Aircraft Component Services, said.

“Secondly, Hong Kong is the best location to reach most of our Asian customers within reasonable amounts of flying hours. And the third reason is the proximity to our existing repair facility in Shenzhen.”

Pastuska has recently relocated to the city and is tasked with setting up the customer service and fulfilment teams. His division takes care of aircraft components, which include everything from flight computers to coffee machines.

Lufthansa Technik serves about 4,000 aircraft under maintenance contracts, and its overall global revenue from component business is in excess of US$1.5 billion dollars. Pastuska explained that the aviation market in Asia is expanding at around 10 percent per year and, together with potential new business, his team hopes to outperform the market and grow the market share of Lufthansa Technik in Asia.

The regional headquarters has been established alongside a new warehouse in Shatin to ensure timely delivery of components to airline customers in the region.

“Hong Kong has an advantage when it comes to customs and the speed of logistics,” Pastuska said. “Having a warehouse here means more materials for our customers in the region, delivered from one of the best-connected airports in Asia.”

Lufthansa Technik also has employees in Mainland China, India, the Philippines, Malaysia, Japan and Singapore. The Hong Kong team consists of some 40 employees, most of them local hires. Pastuska said that he expected to increase the headcount in the near future.

“Hong Kong is a true hub in the way people are connected in their mindset, and they have this global view and attitude that we need to support a regional business. We have found what we were looking for,” Pastuska concluded.

Tuesday, March 7, 2017

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Fast Facts

  • Set up the regional headquarters and a new warehouse for component business in Hong Kong in 2016
  • Provides maintenance services for both airlines under its parent company and third-party carriers
  • Hopes to achieve further growth in the region

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