The aviation industry, from airlines to leasing, is well known to be strong in Ireland, with 14 out of 15 of the top leasing companies based here, as well as globally known indigenous airlines Aer Lingus and Ryanair. However, there’s more to aviation than just aircraft and finance, there’s the key issue of maintenance, and in this sector Ireland is also a leader.
What encourages companies such as Lufthansa Technik and Vortex Aviation to be based in Ireland, and how can we continue to attract them?
Another Irish success story
“The aviation sector in Ireland is performing very well in what are clearly difficult times; it has been and is a very resilient and innovative sector, and you see companies outside of your traditional airlines and lessors continuing to develop services and solutions for the sector and in Ireland and abroad,” says Kieran O’Brien, head of aviation advisory, KPMG. Some of the reasons why companies base themselves here is historic, says O’Brien. “There have been a number of base businesses that have changed hands or been sold a number of times, but that also shows that there is value in the underlying business.
“I would also say that the level of aviation activity, in general, has created the ability to build services around the sector; clearly the availability of talent has been significant as well.”
Calling Ireland home
German company Lufthansa Technik provides worldwide maintenance, repair and overhaul services for aircraft, engines and components. Lufthansa Technik AG has had a presence in Shannon since 1992 and already employs 252 people in the region at Irish subsidiary Lufthansa Technik Turbine Shannon (LTTS), which specialises in the repair of components for specific aircraft engine types. A further 24 technical support personnel are located at the company’s offices in Dublin, says Michael Malewski, chief executive of LTTS.
“At the end of 2022, a €28 million investment was announced for Kildare as LTTS officially opened its new mobile engine services facility in Celbridge. The state-of-the-art facility was established for the service and repair of engines for airline and aviation leasing companies from Ireland and across the EMEA [Europe, Middle East and Africa] region.”
A look ahead to 2023
Malewski says that with a presence in Dublin, Kildare and Shannon and with further growth plans for Shannon to be announced in January, there are a number of reasons why Lufthansa Technik has chosen Ireland as one of its key markets for aircraft engine maintenance and repair. “Ireland offers an existing skilled workforce of aviation engineers, mechanics and technicians. The country is also recognised for its high standards of education and is attractive to companies such as Lufthansa Technik because of its highly educated population and workforce.
“When international companies need advice, local market insight and support in identifying suitable locations, the IDA has proven to be a strong and consistent partner in supporting the growth and development of LTTS in Ireland.”
Malewski says market location is also important; Ireland is a midway point between customers in Asia and those in the US. “English is the language of the aviation industry, which is another key factor when it comes to choosing our locations.”
Talent attraction and retention challenges
Finding skilled workers in any industry is always an issue, but in the aviation maintenance sector the industry was badly hit by Covid, with a lot of people leaving the sector. “Like many other sectors, finding the right candidates is a challenge for us right now and when it comes to highly skilled technical personnel, aviation is competing with industries such as medical devices, pharma and IT,” says Malewski. “We are experiencing similar challenges to many other multinationals operating in Ireland such as rising energy costs, a skilled labour shortage and the issues surrounding housing and accommodation for our people.”
More specifically, Malewski says the industry is competing with lower-cost markets, which affects competitiveness, “but is a challenge we have always been able to manage, due to the high levels and standards of service we offer our customers”.
“The aviation industry has so much to offer the right candidates – even if they have no previous experience. We offer training and great opportunities to travel internationally and to work abroad, and to be part of a globally recognised industry expert [company].”
