Lufthansa continued to invest in expanding its leading role in the aviation industry in 2008. The volume of capital expenditure in the Lufthansa Group rose to EUR 2.2bn, or 23.9 per cent more than in the previous year (EUR 1.7bn – before deduction of cash acquired with consolidated companies). This covered primary capital expenditure, i.e. funds for the purchase of aircraft and engines amounting to EUR 1.3bn (previous year: EUR 1.1bn), used for final payments as well as advance payments for aircraft, overhauls, equipment and spare engines.
A total of EUR 372m (previous year: EUR 398m) was invested in other property, plant and equipment, such as the new training centre in Seeheim and new catering capacities in Frankfurt. Some EUR 84m (previous year: EUR 79m) was invested in intangible assets such as licences and goodwill. In total, secondary capital expenditure amounted to EUR 456m (–4.0 per cent). A total of EUR 354m (previous year: EUR 116m) was used for financial investments. As well as providing capital for equity investments and other lending, this principally included EUR 214m for the acquisition of the minority stake in JetBlue Airways Corporation in January 2008.
The Passenger Transportation business segment had the greatest capital expenditure, rising by EUR 162m to EUR 1.4bn. Expenditure was primarily on new aircraft and down payments for aircraft. A total of thirteen new civil aircraft commenced operations at Lufthansa Passenger Airline: five Airbus A321s, four Airbus A330s and four Airbus A340s. Two aircraft were also acquired that had previously been used on operating leases. Three aircraft were sold: one Airbus A300-600 and two regional planes. At Germanwings three Airbus A320s were replaced by five Airbus A319s. SWISS invested in three Airbus A320s and one Airbus A319 and Lufthansa Private Jet received two Cessna Citations.
The Logistics business segment had hardly any capital expenditure in comparison (EUR 22m, previous year: EUR 18m). This went mainly on airfreight containers and other operating and office equipment.
The MRO business segment reduced its capital expenditure to EUR 122m (–37.1 per cent). This was principally used for purchasing new machinery and technical equipment as well as for the construction of the new engine overhaul centre in Hamburg. The fall compared with the previous year stems mainly from the high capital expenditure in 2007, in connection with the construction of the A380 MRO hangar in Frankfurt.
Capital expenditure in the IT Services business segment of EUR 58m (previous year: EUR 54m) served principally to safeguard existing business.
The Catering business segment had capital expenditure of EUR 116m (–24.2 per cent) in 2008. The funds were mainly used to expand existing production facilities and build new ones. In the previous year considerable amounts were invested in expanding the catering facilities in Frankfurt.