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October 25, 2021

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Lufthansa Technik could come to a decision on sale of Shannon organization by mid-July

Aircraft upkeep professional Lufthansa Technik could determine on a sale of its Shannon Airport organization to area participant Atlantic Aviation Group or an additional consumer, by mid-July.

Fears for the long run of 503 Lufthansa Technik staff grew this week when the German-owned group confirmed it was reviewing the Irish business following the affect of globally Covid travel curbs on its business.

The enterprise is probably to make the outcome of the assessment, which could entail a sale, restructuring or closure, known by mid-July.

Lufthansa Technik has been in talks on a probable sale with Atlantic Aviation Team, a further Shannon-dependent aircraft maintenance firm, which has been eyeing probable enlargement possibilities.

Neither side would comment on the negotiations on Monday. Lufthansa Technik verified that Atlantic was just one of quite a few get-togethers fascinated in purchasing its business.

Atlantic acknowledged that acquisition was component of its advancement method. “With any acquisition system, the organization would be bound by confidentiality agreements and respectfully cannot comment at this time,” mentioned a spokesman.

Irish-owned Atlantic Aviation final 12 months bought Flybe Aviation Providers Ltd, which maintains cargo plane for the UK’s Royal Air Force, at Brize Norton in Oxfordshire in England.

Assessment

Lufthansa maintained that the evaluation of its company was necessary specified the effect of the past 15 months on its small business.

“This indicates placing all solutions on the desk and examining them and we are wanting at what modifications, if any, want to be implemented to allow for us to navigate a person of the most complicated durations in our buying and selling history,” mentioned the organization.

As lately as two many years back, Lufthansa Technik was slated to work a new “minor” aircraft engine restore facility in Celbridge, Co Kildare with the possible to employ 150 persons.

Michael McNamara, Clare impartial TD, stated he hoped a sale could rescue the organization.

“Lufthansa Technik is served by a hugely expert workforce with many employees having been with the business for more than 20 a long time,” said Deputy McNamara.

Led by chief executive, Shane O’Neill, Atlantic Aviation, formerly regarded as Transaero, emerged from Substantial Courtroom safety in 2015 with an expense of €2.5 million from backer Patrick Jordan.

Existing customers incorporate logistics team DHL, Ryanair, cargo professional ASL Airlines, Star Air, Tui Team, Jet 2 and significant plane lessors this kind of as Gecas, Aer Cap, SMBC Aviation Cash, Aergo and Avolon.

The Brize Norton offer introduced Atlantic Aviation’s full headcount to a lot more than 400. The Irish company has 320 staff and 24 trainees, when the lately bought British operation employs 112 people.

Atlantic Aviation has two hangars at Shannon. Its functions include retaining, restoring and overhauling plane for airways, constant airworthiness management.

The company reported before this year that it supposed to continue on expanding, despite the difficulties posed by Covid to air travel.