Lufthansa Technik eyes Clark, Cebu for new facility

Lufthansa Technik Philippines (LTP) is looking to build a maintenance, repair, overhaul (MRO) facility in Clark or Cebu to expand operations in the country.

LTP president and chief executive officer Elmar Lutter told reporters, the firm is considering expanding operations by setting up a facility for MRO of aircraft either in Clark or Cebu.

He said the firm is considering expansion possibilities as the existing facility inside the special economic zone at the Ninoy Aquino International Airport (NAIA) has reached a high utilization level.

There is also strong demand for aircraft MRO services.

“We have just started the evaluation seriously and once we decide and bring it forward to our board, we would need one and a half years to open operations,” Lutter said.

Lutter said it is too early to say how much worth of investments would be needed as the evaluation is still in the early stage.

“We are just starting to build the business case and we cannot really give you an estimate right now because it depends on the market evaluation and that’s why we also have to make a decision whether Clark or Cebu would be more suitable for us,” he said.

He said the firm would also like to expand MRO operations in the country as it wants the Philippines to serve as the headquarters for the Asian market.

The Philippines is seen as a key strategic location as it is at the center of Southeast Asia, a region experiencing fast growth both in regional travel and aircraft demand.

Established in 2000, LTP is a joint venture of Lufthansa Technik AG of Germany and Philippine aviation service provider MacroAsia Corp.

LTP’s main facility which is located at the NAIA, covers a 200,000-square meter lot with eight hangar bays.

It provides base maintenance for the Airbus A320 family, A330, A340, A380, and Boeing 777, and serves both domestic and international carriers.

Apart from the facility in Manila, the firm has satellite offices in Cebu, Clark and Davao.