Lufthansa Technik allots P1.115-B for expansion of RP aircraft repair facility

Lufthansa Technik Philippines Inc. is expanding its presence in the country with an additional investment of P1.115 billion to refurbish an existing facility for its plan to transfer the maintenance operations for Lufthansa’s Airbus 330/340 aircraft.

Lufthansa Technik Philippines Inc., which is engaged in aircraft engine and aircraft components maintenance, repair and overhaul, is a joint venture company majority owned by Lufthansa German Airlines and minority by Lucio Tan’s Macroasia Corp.

The P1.115-billion additional investment will be used to upgrade and refurbish the former Philippine Airlines technical center located at the Macroasia Special Economic Zone (MA-SEZ) in Villamor Airbase.

The MA-SEZ was granted special ecozone status by the Philippine Economic Zone Authority (PEZA) because it caters to foreign airlines and its income from services is, thus, considered an export sale.

Trade and Industry Secretary Manuel Roxas II welcomed the new investment.

"The project does not only bring new capital into the country, but it will also allow us to build up our expertise through effective technology transfer in highly specialized fields like aviation and aircraft maintenance," Roxas said.

Lufthansa Technik Philippines Inc. president and chief executive officer Thomas Gocker had informed the government that more than 100 Filipino mechanics have been sent to Germany for extensive on-the-job training to prepare them for the new project.

According to Gocker, Lufthansa Technik Philippines has been certified by the European Aviation Authority after it acquired new machinery, tools, equipment and spare materials and met the specific qualification requirements for the staff.

The new project is expected to generate annual average export sales of $16.56 million over the next five years and would result in additional direct employment for 415 workers on top of the existing 1,800 workers of LTP.

Gockel said the upgrade and refurbishing would include two state-of-the art docking facilities plus all the necessary back shops.

Lufthansa Technik said 33 percent of the global Airbus 330/340 fleet is operated by Asian airlines, while the market for heavy maintenance and overhaul in Asia is expected to grow by 49 percent by 2006.