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Working with OEMs key to MTU's success

In celebrating the 35th anniversary of MTU Maintenance’s entrance into the MRO market, the firm’s president, Stefan Weingartner, confirmed that he believes working with OEMs has been a key contributor to MTU’s longevity and will remain so in future.

In celebrating the 35th anniversary of MTU Maintenance’s entrance into the MRO market, the firm’s president, Stefan Weingartner, confirmed that he believes working with OEMs has been a key contributor to MTU’s longevity and will remain so in future.

“Our success is based on a hybrid business model as we benefit both from our independent approach and our close alliance to the OEMs in engine programmes where MTU is a risk and revenue share partner,” he said. “We strongly believe that this strategy will continue to be successful, especially for future engine models.”

MTU Aero Engines has worked on the CF6, GP7200 and GEnx engines and in July was confirmed as a revenue-sharing partner in the GE9x programme – a deal worth an estimated €4bn ($5.4bn) to MTU across the lifetime of the programme, more than the company’s total sales in 2013.

This relationship benefits the firm’s maintenance division, as exemplified by the news earlier this month that MTU will provide MRO services for the GEnx turbine centre frame as a part of GE Aviation’s MRO Network.

The agreement is estimated to be worth a cool $3.7bn in sales to MTU Maintenance.

It is no wonder then that, in the face of greater OEM incursion into the aftermarket, MTU Aero Engine’s chief programme officer Michael Schreyögg confirmed: “We are planning to combine our OEM and MRO activities more closely.”

Weingartner was just as explicit in outlining MTU Maintenance’s strategy for the future. “We want to further dominate the independent segment and will continue to offer a broad portfolio of repairs, services and competences. In addition, we want to offer our services as a partner to the OEMs to participate in this growing market as well,” he said.

Some may argue with the idea that an MRO can remain truly “independent” while partnering with OEMs, but given OEMs’ aftermarket ambitions and their hold on the intellectual property for next generation technologies is there an alternative?

MTU Maintenance is being very clear on what its strategy for future growth is, how many other MROs are so confident?

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