1990er – The slump
Between 1992 and 1995, MTU was hard hit by the turbulence rocking the global market. A 50% slip in military orders, a simultaneous falloff in commercial business and a plunging dollar all conspired to bring MTU heavy losses that seriously threatened its very existence. Aggressive restructuring and a strategic expansion of its line of products and services, however, soon relieved the company's economic woes.
1991 – Launch of MTU Maintenance Berlin-Brandenburg and MTU Maintenance Malaysia
In the 1990's, MTU's MRO activities grew in keeping with rising demand for engine services. It naturally followed that the company launched another repair shop in 1991, this time on the premises of the former state-owned Luftfahrttechnik shop at Germany's Ludwigsfelde, where in the days of the former GDR military engines had been serviced and repaired. This military pattern was continued in the earlier phase of the new MTU shop which initially provided repair services mostly for engines of the German forces.
In November 1991 Airfoil Services was set up as a joint venture between Malaysia Airlines and MTU Maintenance Hannover. Today, Airfoil services is a joint venture between MTU and Lufthansa Technik.
1991 – Strong with strong partners
To meet the challenges of the global market of the 1990s, the need to enter into strategic alliances and cooperative ventures became increasingly apparent. In 1991, MTU and Pratt & Whitney signed an agreement on a strategic alliance for global cooperation in the commercial turbine engine sector, with the partners agreeing to involve each other as preferred partners in emerging commercial engine programs.
1998 – Turnaround
While in 1995 the company's existence was still in serious jeopardy, strategic expansion of the company's portfolio of products and services, precipitated product development, launch of global affiliates (MTU Maintenance Canada in 1998) and sweeping restructuring turned MTU around. Innovative production processes, a rollover of military technology into the commercial sector and participation in long-term technology programs (Engine 3E and others) became the major drivers behind the company's upswing.
1999 – Globalization
Progressive globalization was marked by the launch of the MTU Aero Engine Design and MTU Maintenance do Brasil Ltda. affiliates.
In 1999, MTU and Honeywell (formerly known as AlliedSignal) founded "Vericor Power Systems" as a 50/50 joint venture. The company, based in Alpharetta (Georgia, U.S.A.), was then taken over in its entirety by MTU in 2002, including all the rights to the TF series of gas turbines.