Atlantic Aviation Group (AAG) has confirmed that it has acquired the Lufthansa Technik Shannon Ltd. business from its German parent Lufthansa Technik (AG).
The acquisition positions AAG to continue its ongoing growth trajectory and to avail of the opportunities provided by the post-pandemic rebound in international aviation.
AAG confirmed today that it has formally acquired the Lufthansa Technik Shannon business from Lufthansa Technik (AG). Under the terms of the deal, approximately 300 Lufthansa Technik Shannon employees will join the AAG group. It’s estimated however that over 100 other positions will be lost.
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.
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.
Commenting on today’s announcement, AAG Chief Executive Shane O’Neill, said: “Today is a good day for Irish aviation. 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.”
AAG was acquired in April 2015 by Patrick Jordan. Commenting on the acquisition of Lufthansa Technik Shannon, Mr. Jordan said:
“Our goal at AAG has always been 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.”
Despite the challenges facing some parts of the aviation sector during the Covid-19 pandemic, AAG has strategically developed its customer base, international reach, and the breadth of its boardroom expertise.
As one of Europe’s leading independent aviation organisations, it offers services in Maintenance, Repair and Overhaul, Aircraft Modifications, Continuous Airworthiness Management, Aviation Training and Defence Services.
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.
Shannon Group CEO, Mary Considine, has welcomed today’s announcement. “Today’s announcement by Atlantic Aviation Group that they are acquiring Lufthansa Technik Shannon, and that this business will remain in Shannon is welcome news.
“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,“ said Mary Considine, CEO, Shannon Group.”
Fianna Fáil Spokesperson on Tourism and Aviation Cathal Crowe has also welcomed the announcement
He said: “This is a massively welcome development for not only the Atlantic Aviation Group but also Shannon Airport and aviation in the Midwest as a whole. It’s been four months since Lufthansa Technik began carrying out a review of its Shannon operations – a move that was a huge concern to all with a vested interest in aviation in the Midwest.
“Prior to the Covid-19 pandemic, some 500 workers were employed by the firm in Shannon – this now stands at around 300, with all of these employees to come under the AAG umbrella once the acquisition is complete. Both companies will now spend the remainder of the year ensuring a clean and smooth transition into the new era for AAG.”
Shannon Chamber president Stephen Keogh stated: “Lufthansa Technik Shannon Ltd., has provided valuable employment in Shannon in a critical area in aviation – maintenance, repair and overhaul (MRO) – since its establishment at Shannon and contributed greatly to the growth of this sector at Shannon. This retention of 300 skilled employees as a result of this acquisition is therefore most welcome.
“AAG has had a very positive impact on the aviation sector in Shannon and in Europe since its executive chairman, Patrick Jordan, acquired the business from Transaero in 2015. Under his stewardship, AAG has grown phenomenally, not just through increasing employment levels at Shannon from 220 in 2015 to its current levels of 437, now set to increase by 300, but also, through expanding its capabilities and range of business operations.
“A decision of this nature is difficult for everyone, particularly employees and their families who will be impacted. The impact of the pandemic has weighed heavily on the aviation sector for near two years now and the recovery has been slow and challenging for many companies. With aircraft grounded for over a year, the MRO sector has been particularly impacted. However, this acquisition by AAG, instils confidence that aviation businesses and the MRO sector is on a recovery trajectory. We wish chairman Patrick Jordan, CEO Shane O’Neill and his management team success on the journey ahead and congratulate them on their achievement of positioning Shannon as a leading contributor to MRO in Europe. We look forward to working alongside AAG as it takes the company to a new level.
“Shannon Chamber is very much committed to supporting Lufthansa Technik Shannon Ltd.’s CEO, Pat Shine, and his colleagues as they manage this transition in the months ahead. We will endeavour to support employees negatively impacted by this announcement via Shannon Chamber Skillnet. The supports we have secured from Skillnet Ireland under the Skills Connect programme to support employees impacted in similar situations in the past have been welcomed as they have significantly improved their future employment opportunities. Skillnet Ireland’sability to grant us funding to support employers and employees via our Skillnet has been unprecedented and very much welcomed in the region,” added Mr Keogh.