Ruag trims back in response to net loss
The Ruag Group has streamlined its business aircraft maintenance facilities in response to a net loss in that sector of approximately $103 million for 2009 compared with a net profit of $50 million in 2008. However, Ruag Holding CEO Lukas Braunschweiler pointed out that the loss is allocated entirely to its aircraft component manufacturing division, where low-cost competition is exerting strong pressure on prices.
The cumulative profits achieved by all other sectors, including executive aircraft maintenance, repair and overhaul (MRO) operations, could not compensate for those losses, he said. The company hopes to return to profitability next year, he said, following additional restructuring, including some possible layoffs in component manufacturing.