Schwaebisch Hall, Germany, Recaro Aircraft Seating sales reached record heights in fiscal year 2011. In the past year, the aircraft seat supplier, based in Schwaebisch Hall generated revenues of 304 million Euros.

Recaro Aircraft Seating sales revenues reached 304.3 million Euros in 2011. This represents a growth of about six percent over the previous year (2010: 288 million Euros). The company also set a new record for the number of units delivered: In the past year, Recaro Aircraft Seating produced more than 85,500 seats at its three worldwide production sites (2010: 70,000).

Dr. Mark Hiller chief executive officer explains “Thanks to various programs aimed at expanding our capacity, we have been able to increase our rate of production while maintaining on-time delivery rates of 100 percent. Correspondingly positive ratings from Airbus and Boeing confirm this success.” 

Recaro Aircraft Seating delivered nearly 34,000 units of the BL3520 seat to the Lufthansa Group in the last year alone.  Recaro Aircraft Seating received orders or more than 100,000 passenger seats since the seat’s market launch in late 2010. Additional orders in 2011 were a major order from Qatar Airways for "several thousand" CL3620 seats for the airline’s new B787 and A350 aircraft. The company also increased its workforce in 2011. By the end of the year Recaro Aircraft Seating employed some 1,630 people worldwide (2010: 1,480) 

The industry will develop favorably over the long term: The market will begin to grow stronger in the foreseeable future and accordingly, we will keep to our present course. Strong increases in passenger numbers and therefore increases in the size of aircraft fleets are expected in the coming years. To save weight and thereby cost, airlines will retrofit their existing fleets and invest in new, fuel- efficient aircraft. The high fuel prices are also accelerating the demand for new, innovative lightweight seats. Recaro Aircraft Seating

Andreas Lindemann chief sales officer commented  “In our Schwaebisch Hall headquarters alone, our employee base has grown about 16 percent in the past year – that corresponds to 110 new jobs.” 

Dr. Hiller added “We have a good contract base – our order books are full. At the same time, there is a lot of movement in the market, which demands maximum flexibility from us.” The reasons for this lie in the persistent high oil prices, which are a real challenge for the airline industry. According to the IATA (International Air Transport Association), fuel costs account for 34 percent of airline operating expenses. Since the price of aircraft fuel is expected to increase further, the IATA anticipates that airlines will face falling profits this year. The airlines are responding with short-term measures, such as cancelling or delaying aircraft deliveries.” 

According to Recaro Aircraft Seating it is anticipating a positive trend in the years to come: In five years, Recaro Aircraft Seating  projects to have revenues of 500 million Euros and production capacity for more than 120,000 seats. The aircraft seat supplier intends to invest more than 80 million Euros in the expansion of the company that includes research and development over the next years

Source: Recaro Aircraft Seating