Strategy

Strategy

In all of its businesses, MTU Aero Engines is pursuing a strategy of long-term growth. This strategy is designed to strengthen the strategic position of the company and to further expand it swiftly by driving profitable growth. The sustainable engine and service portfolio, stable and long-term customer relations, motivated employees and a global presence in growth markets lay the groundwork for future growth.

MTU’s strategy is founded on the strategic pillars:

  • cutting-edge technologies – maintaining and expanding the company’s technological leadership,
  • a balanced portfolio – participating in new programs that promise strong growth, and
  • competitiveness – attaining benchmark levels by raising productivity through improved structures and process and by reducing tied-up capital.

Extension of technological leadership
Against the backdrop of the progressing climate change and increasing kerosene prices, new engine programs focus on environmental compatibility and cost efficiency. In close cooperation with partners from industry and research, MTU is working on the development and implementation of innovative, cost-effective and environmentally friendly engines. With its efforts, the company is further strengthening its leading technological position. A case in point for innovative engine technology is the geared turbofan™ engine, on which the fan and the low-pressure turbine are decoupled through a gearbox. This permits both components to run at their respective optimum speeds, which results in a reduction in fuel consumption and noise levels. In its engine maintenance activities, too, MTU is expanding its technological leadership, developing as it does innovative, cost-efficient repair techniques.

Participation in the fastest-growing new engine programs
The long life cycles in the engine business call for the company to take stakes in promising future programs early on. In this manner, MTU secures its excellent market position in the commercial and military engine arena. In the commercial engine business, participations in new propulsion systems for envisaged long-haul aircraft and for narrowbody aircraft take center stage. The entry into the GEnx program for the Boeing 787 Dreamliner long-range airliner is a case in point, illustrating the company's successful efforts to implement the strategy. With the decision by Airbus to use the PW1100G as one of the two new engine options for the A320neo, the re-engined version of the successful A320 family, MTU has achieved this strategic target in the narrowbody market as well.

Improving economic competitiveness
The company strives for profitable growth, which demands sound  financial underpinnings.  This is why MTU strives constantly to improve its competitiveness and maintain its financial strength. Preparations for the highly successful new GTF programs and the ramp-up of further programs require substantial capital expenditure on development and production resources. MTU will implement additional measures in the coming years in order to contain the associated increase in costs. At the same time, the company wants to accelerate the pace of productivity gains. These measures, which are concentrated in the “Cash for Future” project, are designed to achieve long-term cost reductions of several tens of millions of euros per year. Through these savings, the company aims to retain sufficient scope to invest in additional engine programs.