Lufthansa Technik expands MRO operations in Cebu

Lufthansa Technik Philippines Inc. (LTPI) is expanding its operations in Cebu to beef up its maintenance, repair and overhaul (MRO) and aircraft components services to flag carrier Philippine Airlines and Germany’s Lufthansa Airlines.

Malacanang has already approved the proclamation of the MacroAsia Cebu Special Economic Zone, a 5-hectare property within the Mactan Cebu International Airport, on which LTPI will locate its MRO operation. MacroAsia is spending 120-million in land development for the originallyapproved 10-hectare property.

LTPI is an export-oriented enterprise registered with the Philippine Economic Zone Authority (PEZA) with operations within the MacroAsia Special Economic Zone in Ninoy Aquino International Airport in Pasay City, providing MRO services to PAL and Lufthansa airlines.

PEZA did not specify the cost of LTPI’s expansion in Cebu, but said that the company’s expansion project, which is ready for immediate implementation upon proclamation of MacroAsia Cebu SEZ, will redound to added investments, particularly for the province of Cebu and the adjoining provinces as well.

According to PEZA, LTPI’s total investments already reached 17.562 billion as of December 2017. The company has also generated average three-year export sales of $ 185.524 million and currently employs 3,324 Filipinos.

PEZA said that an MRO operation does not require large footprint, but it requires sophisticated facilities and highly technical personnel. LTPI’s Filipino Aviation Engineers with average monthly salary of 1300,000.

LTPI is a joint venture project of Lufthansa Technik AG and Philippine aviation service provider MacroAsia Corp., which is owned by tycoon Lucio Tan.