The Irish division of aircraft services group, Lufthansa Technik, received $18.4 million (€18.9m) in Covid wage subsidies last year from the Government, in advance of the sale of its aircraft maintenance division at Shannon which resulted in the loss of 180 of the jobs whose wages were subsidised.
The taxpayer payments are outlined in the recently filed 2021 financial results for the main cog of the group’s Irish operations, Lufthansa Technik Airmotive Ireland Holdings, which reports its performance in US dollars.
The results show that overall turnover was up almost 15 per cent last year in the three divisions of the Irish operation, including an engine repair operation, an aircraft leasing operation, and the Lufthansa Technik Shannon maintenance operation, which was sold to Atlantic Aviation earlier this year.
Profits rose more than 54 per cent last year to $52.4 million across the entire Irish operations of the group, including the since-sold Shannon maintenance arm. The company, which is ultimately owned by Lufthansa airline, said 2021 was still a challenging year, however. It expects its operations to be affected in the post-pandemic era “for a number of years to come”.
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The deal to sell the Shannon maintenance division was struck last October and closed in March. The accounts say sales at the division rose 15 per cent last year and it was profitable on a stand-alone basis, in part due to “receipts from the Irish Government”.
Wage subsidies were also claimed by its engine repair arm, Lufthansa Technik Turbine Shannon, which it says was “sustained” by Irish taxpayers in 2021 and which returned to profitability this year.
The overall group claimed a further $10.6 million in State Covid supports in 2020. At the end of last year, the group had accumulated profits on its balance sheet of $479.7 million.
While 180 jobs were lost when the Shannon division was sold, a further 300 roles were secured at the facility.
Lufthansa Technik in Germany has not responded to a request for comment.
