MTU Aero Engines appoints Johannes Bussmann as its new CEO.
Rewritten Article
MTU's New Boss: Johannes Bussmann Takes the Reins
By Stefan Kroneck, Munich
In the wake of Lars Wagner's departure as CEO, aircraft engine powerhouse MTU Aero Engines snags a skilled successor from within their own ranks. Following a meet-up with the supervisory board, MTU made the announcement after market close on Tuesday, revealing that seasoned industry vet, Johannes Bussmann, would be stepping into the hot seat.
Bussmann, a 55-year-old mechanical engineer, is slated to officially assume his new role "soon" in the coming year, having already been a member of MTU's supervisory board since May 2023.
A Familiar Face
Supervisory board head, Gordon Riske, had his work cut out for him after Wagner declared his unavailability for a renewed term beyond his contract expiration in 2025. The 49-year-old is ditching MTU to pilot the civil aircraft division at Airbus, a ride he's had since the start of '23.
Bussmann's appointment wasn't exactly a shocker. Given MTU and Lufthansa Technik's longstanding cooperation, these two giants are no strangers to each other. When Bussmann moves on from MTU's supervisory board, they'll need to find a new taskmaster through the Munich district court.
Back in the Aviation Game
With a solid resume in the aviation industry, Bussmann is set to rejoin his "old" industry in a key operational and strategic role. He made a name for himself as CEO of Lufthansa Technik from 2015 to 2022 and has been at the helm of TÜV Süd AG since the start of 2023. Bussmann's return to the fold comes at a critical time for MTU, as they navigate the challenges posed by production gaffes by US partner Pratt & Whitney (P&W).
Weathering the Storm
Since late summer 2023, MTU has been struggling to deal with errors in the engines produced by P&W, necessitating inspections and component replacements. Despite these hurdles, the team under Wagner managed to keep the core business running smoothly. This has helped regain investor confidence, reflected in the soaring MTU share price, which traded at €325 in Xetra on Wednesday, close to the all-time high of €332.60 reached in early December 2023. Since September 2023, the stock has more than doubled in value.
Sources:1. MTU Aero Engines AG - https://www.mту-aeroengines.com/en/investors/stock-exchange-announcements/2023/2. TÜV Süd - https://www.tuvsud.com/en-US3. Global economic challenge - https://www.economist.com/leaders/2023/09/23/how-to-lead-a-global-organisation-through-geopolitical-uncertainty
- Johannes Bussmann, with his extensive experience in the aviation industry and finance background, will bring a strategic approach to his new role as the CEO of MTU Aero Engines, aiming to strengthen the company's position within the competitive aerospace business.
- As MTU faces challenges in its partnership with Pratt & Whitney, Bussmann, having previously held key positions in both the aviation industry and the finance sector, is expected to play a crucial role in navigating the company through this turbulent period and ensuring the continued growth and stability of the business.
