Lufthansa Technik investing P15B to expand capacity in Philippines

Aircraft maintenance, repair, and overhaul (MRO) provider Lufthansa Technik Philippines (LTP) is investing about P15 billion to build new hangars in a bid to expand its capacity in the country.

“We are maxed out here in NAIA (Ninoy Aquino International Airport), so we cannot build anything anymore. New hangars have to be built somewhere else. We are looking at Clark because its airport is ready, it fits our operations,” said LTP president and CEO Elmar Lutter in a chance interview with reporters.

“What we want to build in Phase 1 is two large hangar bases, which can accommodate [Airbus] A380s as well. A380s are large aircraft, which is also a problem in NAIA, but in Clark, the space is much better for us and it is much better for the airport,” he said.

For the first phase of its expansion plan, the LTP chief said the investment cost would be about P5 billion.

For the second phase, the required amount would be P10 billion.

“Probably P10 billion to make it a full complement for the whole wide-body portfolio, which we have: [Boeing] 777, A330. That will be built either in Clark or in one of the new airports,” Lutter said.

A joint venture between Germany’s Lufthansa Technik AG and Lucio Tan-led MacroAsia Corp., LTP provides aircraft maintenance, repair, and overhaul (MRO) services to both local and international carriers.

Established in 2000, the LTP joint venture’s equity structure consists of 51% Hamburg-based Lufthansa Technik and 49% MacroAsia.

Lutter said the expansion plan is still subject to necessary approvals.

“We are a joint venture, so we have to get approvals from both of our shareholders,” he said.

“We have to get the necessary approvals. And then we have to sign the contracts, negotiate the contracts with the government and the parties, the landlord. I hope that we can get that started in the first quarter of next year,” he said, adding that the construction would take a “maximum of two years.”

LTP currently employs more than 2,600 Filipinos across its facilities in Manila, Clark in Pampanga, Cebu, Davao, Kalibo in Aklan, and Puerto Princesa in Palawan. —VAL, GMA Integrated News