*Atlantic Aviation Group’s Shannon base.
Over 300 jobs in Shannon have been secured with Atlantic Aviation Group (AAG) acquiring the Lufthansa Technik Shannon Ltd. business from its German parent Lufthansa Technik (AG).
Under the terms of the deal, approximately 300 Lufthansa Technik Shannon employees will join the AAG group. This will bring AAG’s total workforce to approximately 740 people across sites in Shannon and Brize Norton in the UK.
For the remainder of 2021, both companies will focus on transition planning with the aim to have a smooth integration in early 2022. The deal is subject to approval from the LHT Supervisory Board, and the terms of the sale will remain confidential, a spokesperson told The Clare Echo.
The purchase of Lufthansa Technik Shannon will make AAG the largest MRO in Ireland and put the business firmly on track to become one of the largest independent MROs in Europe. Like AAG, Lufthansa Technik Shannon has a strong reputation in the global market for its maintenance standards and a highly skilled workforce.
In February, AAG announced the acquisition of Flybe’s former aviation maintenance services operations at Brize Norton in Oxfordshire, England. It was rebranded as AAG Defence Services in June 2020.
AAG offers services in Maintenance, Repair and Overhaul, Aircraft Modifications, Continuous Airworthiness Management, Aviation Training and Defence Services. Its customers include DHL, Ryanair, ASL Airlines, Star Air, TUI Group, Jet 2, and major aircraft lessors such as GECAS, Aer Cap, Bank of America, SMBC, BBAM, Seraph, Aergo and Avolon.
In June, Lufthansa Technik began carrying out a strategic review of its Shannon operations which posed worries for the 300 jobs in the county. Among the options it considered were a restructuring of its Irish operation, closing down of the plant and the selling of the business.
Prior to COVID-19, over 500 persons were employed by Lufthansa Technik in Shannon. However the onset of the pandemic resulted in this figure dropping to in or around the 300 mark.
An operating loss of €318m was recorded by Lufthansa last year, this compares with a €403m operating profit from 2019. Combined sales of €65m in 2020 were recorded by the German firm’s Shannon business, this was a 28 percent drop on the €90m in sales a year previously.
Chief Executive of AAG, Shane O’Neill said the development represented “a good day for Irish aviation”. He stated, In bringing Lufthansa Technik Shannon into the AAG family, we will be creating a platform for future success. We are proud to be able to secure approximately 300 jobs for the region – a majority of roles from the outgoing Lufthansa Technik Shannon business. We look forward to welcoming this highly skilled team to our operations and adding to our incredibly talented and experienced team at AAG.
“We foster close customer relationships at AAG, and our customers have been incredibly supportive of our growth plans. Through the acquisition of Lufthansa Technik Shannon, we will be able to service more customer fleets and offer A320 and B787 aircraft maintenance solutions. We see the expertise and experience of the LTSL team as being a hugely positive addition to our own expertise,” O’Neill added.
AAG was acquired in April 2015 by Patrick Jordan. He said the acquisition of Lufthansa Technik Shannon was in line with AAG’s goal “to become one of the world’s very best aviation solutions companies. A company with the best quality people and skills and with a growth strategy and ambition to match. I am looking to the future with confidence and excitement”.
CEO of Shannon Group, Mary Considine noted the importance of both companies to the region. “As customers of Shannon Group, both AAG and Lufthansa are an important part of the Shannon Free Zone’s ecosystem and the cluster of aviation businesses here, and I would like to congratulate AAG and wish them every success into the future”.