Air Transport World

Aer Lingus eyes expanding E&M business. (engineering and maintenance )

Aer Lingus eyes expanding E&M business

Since Aer Lingus began selling its maintenance and associated support services abroad the airline has parlayed its expertise into a business much larger than the norm in relation to the airline that spawned it. Not satisfied with the appreciable accomplishments already in hand, the leaders of the Aer Lingus maintenance effort plan for what they hope to be a further expansion in a hotly competitive field.

The importance of Aer Lingus' diversified activities to the company health has been often noted, but the contribution of just the maintenance and overhaul subsidiaries and profit centers was emphasized even more in the financial data released for the fiscal year 1986, ended March 31. In that period the three major Aer Lingus maintenance units contributed revenues of IR110 million ($148.5 million), about 19.6% of the company's total revenue of IR561.3 million ($757.8 million).

In terms of profits, however, maintenance and overhaul posted an after-tax net of IR6 million, about 35% of the company's total net earnings for the year.

The overwhelming majority of Aer Lingus' maintenance revenues comes from work done on or near its Dublin Airport maintenance base. Contract work at the airport accounts for IR50 million, while the Airmotive Ireland engine overhaul subsidiary near the Dublin Airport contributes another IR40 million, according to M. C. McGovern, Aer Lingus general manager-maintenance and engineering. …

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