buglerbilly
14-07-10, 05:31 PM
MTU is a partner on the TP400-D6 engine programme for the A400M.
Interview with Mr Egon Behle, CEO of MTU Aero Engines
08:58 GMT, July 14, 2010 With its three locations in Germany and a global workforce of about 7,500 employees, MTU Aero Engines is Germany's leading aircraft engine manufacturer and a strong player in the development, manufacturing and repair of commercial and military engines, both nationally and internationally. In an interview with MILITARY TECHNOLOGY, a media partner of defpro.com, Egon Behle, Chief Executive Officer of MTU Aero Engines, explains how the company keeps strengthening their world-class position.
MT: We have not yet seen the end of the global economic crisis. How is MTU faring in the current climate?
Behle: MTU has been performing well so far this year, and the industry as a whole is showing first signs of recovery. The company did well even in the crisis year of 2009, despite the difficult economic environment. We posted total revenues of €2.6 billion, just about 4% down on the result of the previous, record year of 2008. Our EBIT dropped by around 12% to €292 million and our earnings after taxes fell from around €180-140 million. It should be noted, though, that we fully met or even slightly exceeded our forecast for the year. Compare our performance with the results of our competitors and companies outside the engine industry and you will see that not many have been as fortunate as we were.
MT: What is your assessment of the impact of the present economic situation on the global aviation business?
Behle: After the global aviation industry had seen a dramatic decline in passengers carried, business is now picking up again. Asia is currently experiencing the highest rates of growth. Naturally, we want both our OEM and MRO businesses to profit from this upward trend, and we have already taken a number of decisive steps into the right direction. This year, we want to maintain our revenues and earnings at least at last year’s level, and the latest figures confirm that we are well on track to accomplishing that goal.
MT: In which major national and international programmes does MTU hold stakes?
Behle: With its wide range of products, MTU has content in engines of all thrust classes in the commercial area. We excel particularly in high-pressure compressors and low-pressure turbines. Flagship products include the best-selling V2500 engine, which powers the A320 family, the CF6, which powers Airbus and Boeing wide-body aircraft, and the GP7000 for the largest passenger aircraft in the world, the Airbus A380.
MTU is also a partner in all big European military engine programmes: the RB199 for the TORNADO, the EJ200 for the EUROFIGHTER TYPHOON, the TP400-D6 for the new A400M transport aircraft, and the MTR390 for the TIGER combat helicopter. We will continue to play a major role in the defence sector also in the future.
MT: To what extent has MTU’s product portfolio changed recently?
Behle: Over the last two years, MTU has acquired significant stakes in new engine programmes. In the military business, the company is now a partner to General Electric, manufacturing parts for the F404 and F414 engines. The F414 is the sole powerplant of the F/A-18 Super HORNET. We play a similar role in General Electric’s F110, which powers the F-16 and other aircraft. In the case of the GE38, the engine earmarked for Sikorsky’s CH-53K heavy-lift helicopter, MTU is a risk-and-revenue-sharing partner, holding an 18% stake in the programme and having responsibility not just for the production but also the development of certain parts. The GE38 would also be a suitable candidate for future European heavy-lift transport helicopters.
In the commercial business, we have taken a stake in GE’s next-generation GEnx engine, which has been selected for the Boeing 787 DREAMLINER and is the engine to provide exclusive power for the Boeing 747-8. Moreover, MTU is a major partner in Pratt & Whitney’s PUREPOWER PW1000G engine, a geared turbofan boasting completely new, eco-efficient propulsion technology. Adding this engine to our portfolio marked a decisive step towards securing MTU’s future. Over the next decades, we expect the sales volume to be worth around €10 billion from the Bombardier C-Series and Mitsubishi Regional Jet applications alone.
MT: What new technologies is MTU working on?
Behle: The geared turbofan for commercial applications and its further development are at the very top of our agenda. We have defined our goals in the roadmap for our Clean Air Engine (CLAIRE) technology programme. We are confident that we will succeed in reducing fuel consumption - and hence CO2 emissions - by as much as 30% by 2035. Another important target is to halve perceived noise levels.
Incidentally, the geared turbofan is also a textbook example of technology programme funding that pays dividends. Two of its key components - the high-speed low-pressure turbine and the extremely efficient high-pressure compressor - are based on technologies that were developed as part of national and European research funding programmes. MTU is setting global benchmarks with these components. Indeed, the company’s competitive technological edge is one of its most important strategic assets that helps ensure competitiveness and secure high-tech jobs long term, both in Germany and its other locations.
MT: You have already mentioned the issue of funding for new technologies in the commercial area. How about the military arena?
Behle: For Germany to remain competitive internationally, government support for military projects is urgently required. Engine control and monitoring systems (CMS) are a core technology for future highly integrated military propulsion systems. To ensure competitive viability, we would consider it to be reasonable to launch a military CMS technology programme to meet the technological challenges in this field.
MT: Who are MTU’s national and international partners?
Behle: In the domestic market, the German Armed Forces are our biggest partner, and cooperation with the Air Force is our number-one priority. MTU launched this cooperation, then dubbed the cooperative model of industry-military maintenance, more than seven years ago. Meanwhile, our joint activities have proved extraordinarily successful. We jointly provide support for five different engine types, and both partners are extremely satisfied with the arrangement and the results.
On an international level, we work in partnership with all the big players in the global engine industry, including General Electric, Pratt & Whitney and Rolls-Royce. I am proud to say that MTU has decades of experience and boasts one of the most extensive cooperation networks in the industry.
MT: Please give us an overview of markets and customers you serve, with respect to new markets you would like to enter.
Behle: MTU is a long-established player in the European and US markets, where we are involved in both OEM and MRO activities. We have operated a maintenance subsidiary in China for some ten years now under a joint-venture agreement with China Southern, one of the country’s major airlines. At the beginning of the year, we set up a new representation office in Shanghai, which now coordinates our various activities in the Chinese OEM market.
With our products and services, we are presently in the process of expanding our foothold in the Middle East. In Saudi Arabia, we have secured a stake in a military company that maintains engines for the Royal Saudi Air Force, and we are currently looking into business options in the entire Gulf region.
Notwithstanding all these activities, one thing will not change: MTU is the industrial lead for practically all engines flown by the German Air Force and will remain so in the future.
MT: In your opinion, how will the military market develop in the future?
Behle: It is no secret that the military market in Europe is about to enter a period of stagnation. If we want to make sure that our military business remains stable and profitable in the long run, we need to expand our activities to markets in other regions - first and foremost to the US market, which is far and away the largest military market in the world. MTU has already been able to secure significant stakes there.
To ward off all risks of losing our technological prowess, we must do everything in our power to maintain and strengthen our military expertise in Germany. Cooperation with the German Air Force plays an important role here. It secures valuable know-how, apart from saving both parties time and money.
Another important aspect to keep in mind is export prospects. With the EUROFIGHTER TYPHOON, Europe has an outstanding product with significant sales potential. Austria and Saudi Arabia have already procured the aircraft; India, Japan and Switzerland are considering buying the fighter, too. It is important that the government supports campaigns in these potential export markets - not least to secure jobs in Germany. Bearing in mind the approach taken by our competitors, for instance in the US, it is clear we urgently need that political support.
MT: Finally, a few words about the A400M. What progress has been made on its engines?
Behle: After its successful maiden flight, the A400M has now completed a whole series of test flights without any problems, and a second prototype has meanwhile taken to the skies. There is consensus among everybody involved that there is no way doing without this aircraft. You won’t find an alternative to it, anywhere in the world. And this, I think, should make us proud.
In a few years’ time, when the A400M officially enters service, we want to continue providing support to the German Air Force, bringing our engine expertise and MRO capabilities to the table. It goes without saying that the Air Force can count on our ongoing cooperation.
Military Technology (MILTECH)
Company or Organisation Portrait:
This interview has been published in the latest MILITARY TECHNOLOGY (MILTECH). MILTECH was founded in 1977. It is the world's leading international tri-service defence monthly magazine in the English language.
For more information, please visit:
http://moench-group.com/military-technology.php
Interview with Mr Egon Behle, CEO of MTU Aero Engines
08:58 GMT, July 14, 2010 With its three locations in Germany and a global workforce of about 7,500 employees, MTU Aero Engines is Germany's leading aircraft engine manufacturer and a strong player in the development, manufacturing and repair of commercial and military engines, both nationally and internationally. In an interview with MILITARY TECHNOLOGY, a media partner of defpro.com, Egon Behle, Chief Executive Officer of MTU Aero Engines, explains how the company keeps strengthening their world-class position.
MT: We have not yet seen the end of the global economic crisis. How is MTU faring in the current climate?
Behle: MTU has been performing well so far this year, and the industry as a whole is showing first signs of recovery. The company did well even in the crisis year of 2009, despite the difficult economic environment. We posted total revenues of €2.6 billion, just about 4% down on the result of the previous, record year of 2008. Our EBIT dropped by around 12% to €292 million and our earnings after taxes fell from around €180-140 million. It should be noted, though, that we fully met or even slightly exceeded our forecast for the year. Compare our performance with the results of our competitors and companies outside the engine industry and you will see that not many have been as fortunate as we were.
MT: What is your assessment of the impact of the present economic situation on the global aviation business?
Behle: After the global aviation industry had seen a dramatic decline in passengers carried, business is now picking up again. Asia is currently experiencing the highest rates of growth. Naturally, we want both our OEM and MRO businesses to profit from this upward trend, and we have already taken a number of decisive steps into the right direction. This year, we want to maintain our revenues and earnings at least at last year’s level, and the latest figures confirm that we are well on track to accomplishing that goal.
MT: In which major national and international programmes does MTU hold stakes?
Behle: With its wide range of products, MTU has content in engines of all thrust classes in the commercial area. We excel particularly in high-pressure compressors and low-pressure turbines. Flagship products include the best-selling V2500 engine, which powers the A320 family, the CF6, which powers Airbus and Boeing wide-body aircraft, and the GP7000 for the largest passenger aircraft in the world, the Airbus A380.
MTU is also a partner in all big European military engine programmes: the RB199 for the TORNADO, the EJ200 for the EUROFIGHTER TYPHOON, the TP400-D6 for the new A400M transport aircraft, and the MTR390 for the TIGER combat helicopter. We will continue to play a major role in the defence sector also in the future.
MT: To what extent has MTU’s product portfolio changed recently?
Behle: Over the last two years, MTU has acquired significant stakes in new engine programmes. In the military business, the company is now a partner to General Electric, manufacturing parts for the F404 and F414 engines. The F414 is the sole powerplant of the F/A-18 Super HORNET. We play a similar role in General Electric’s F110, which powers the F-16 and other aircraft. In the case of the GE38, the engine earmarked for Sikorsky’s CH-53K heavy-lift helicopter, MTU is a risk-and-revenue-sharing partner, holding an 18% stake in the programme and having responsibility not just for the production but also the development of certain parts. The GE38 would also be a suitable candidate for future European heavy-lift transport helicopters.
In the commercial business, we have taken a stake in GE’s next-generation GEnx engine, which has been selected for the Boeing 787 DREAMLINER and is the engine to provide exclusive power for the Boeing 747-8. Moreover, MTU is a major partner in Pratt & Whitney’s PUREPOWER PW1000G engine, a geared turbofan boasting completely new, eco-efficient propulsion technology. Adding this engine to our portfolio marked a decisive step towards securing MTU’s future. Over the next decades, we expect the sales volume to be worth around €10 billion from the Bombardier C-Series and Mitsubishi Regional Jet applications alone.
MT: What new technologies is MTU working on?
Behle: The geared turbofan for commercial applications and its further development are at the very top of our agenda. We have defined our goals in the roadmap for our Clean Air Engine (CLAIRE) technology programme. We are confident that we will succeed in reducing fuel consumption - and hence CO2 emissions - by as much as 30% by 2035. Another important target is to halve perceived noise levels.
Incidentally, the geared turbofan is also a textbook example of technology programme funding that pays dividends. Two of its key components - the high-speed low-pressure turbine and the extremely efficient high-pressure compressor - are based on technologies that were developed as part of national and European research funding programmes. MTU is setting global benchmarks with these components. Indeed, the company’s competitive technological edge is one of its most important strategic assets that helps ensure competitiveness and secure high-tech jobs long term, both in Germany and its other locations.
MT: You have already mentioned the issue of funding for new technologies in the commercial area. How about the military arena?
Behle: For Germany to remain competitive internationally, government support for military projects is urgently required. Engine control and monitoring systems (CMS) are a core technology for future highly integrated military propulsion systems. To ensure competitive viability, we would consider it to be reasonable to launch a military CMS technology programme to meet the technological challenges in this field.
MT: Who are MTU’s national and international partners?
Behle: In the domestic market, the German Armed Forces are our biggest partner, and cooperation with the Air Force is our number-one priority. MTU launched this cooperation, then dubbed the cooperative model of industry-military maintenance, more than seven years ago. Meanwhile, our joint activities have proved extraordinarily successful. We jointly provide support for five different engine types, and both partners are extremely satisfied with the arrangement and the results.
On an international level, we work in partnership with all the big players in the global engine industry, including General Electric, Pratt & Whitney and Rolls-Royce. I am proud to say that MTU has decades of experience and boasts one of the most extensive cooperation networks in the industry.
MT: Please give us an overview of markets and customers you serve, with respect to new markets you would like to enter.
Behle: MTU is a long-established player in the European and US markets, where we are involved in both OEM and MRO activities. We have operated a maintenance subsidiary in China for some ten years now under a joint-venture agreement with China Southern, one of the country’s major airlines. At the beginning of the year, we set up a new representation office in Shanghai, which now coordinates our various activities in the Chinese OEM market.
With our products and services, we are presently in the process of expanding our foothold in the Middle East. In Saudi Arabia, we have secured a stake in a military company that maintains engines for the Royal Saudi Air Force, and we are currently looking into business options in the entire Gulf region.
Notwithstanding all these activities, one thing will not change: MTU is the industrial lead for practically all engines flown by the German Air Force and will remain so in the future.
MT: In your opinion, how will the military market develop in the future?
Behle: It is no secret that the military market in Europe is about to enter a period of stagnation. If we want to make sure that our military business remains stable and profitable in the long run, we need to expand our activities to markets in other regions - first and foremost to the US market, which is far and away the largest military market in the world. MTU has already been able to secure significant stakes there.
To ward off all risks of losing our technological prowess, we must do everything in our power to maintain and strengthen our military expertise in Germany. Cooperation with the German Air Force plays an important role here. It secures valuable know-how, apart from saving both parties time and money.
Another important aspect to keep in mind is export prospects. With the EUROFIGHTER TYPHOON, Europe has an outstanding product with significant sales potential. Austria and Saudi Arabia have already procured the aircraft; India, Japan and Switzerland are considering buying the fighter, too. It is important that the government supports campaigns in these potential export markets - not least to secure jobs in Germany. Bearing in mind the approach taken by our competitors, for instance in the US, it is clear we urgently need that political support.
MT: Finally, a few words about the A400M. What progress has been made on its engines?
Behle: After its successful maiden flight, the A400M has now completed a whole series of test flights without any problems, and a second prototype has meanwhile taken to the skies. There is consensus among everybody involved that there is no way doing without this aircraft. You won’t find an alternative to it, anywhere in the world. And this, I think, should make us proud.
In a few years’ time, when the A400M officially enters service, we want to continue providing support to the German Air Force, bringing our engine expertise and MRO capabilities to the table. It goes without saying that the Air Force can count on our ongoing cooperation.
Military Technology (MILTECH)
Company or Organisation Portrait:
This interview has been published in the latest MILITARY TECHNOLOGY (MILTECH). MILTECH was founded in 1977. It is the world's leading international tri-service defence monthly magazine in the English language.
For more information, please visit:
http://moench-group.com/military-technology.php