Lufthansa Technik Philippines (LTP), the leading provider of aircraft maintenance, repair, and overhaul (MRO) services, plans to expand to other parts of the country when demand for its services exceeds the maximum capacity of its facility in Metro Manila
LTP recently inaugurated its newly built Hangar 1A at the MacroAsia Special Economic Zone in Villamor Airbase, Pasay City.
LTP vice president for marketing and sales Rainer Janke told reporters during the launch that they have no more possibility to expand further at the Ninoy Aquino International Airport (NAIA), “so we have to, at one point, make a step out.”
Janke made no mention of LTP’s future expansion site but hinted that “Clark Special Economic Zone is very attractive” for this kind of investment. “We also have a small facility in Cebu,” he added.
Janke said LTP’s expansion in the future might involve servicing different aircraft. In its existing facilities, LTP provides MRO services to Airbus aircraft A320, A321, A330, A340, even up to A380, as well as Boeing 777.
“(Boeing) 737, the narrow body will follow,” he said, adding that LTP spent US$25 million for the expansion of Hangar 1A, higher than its initial investment of US$20 million.
In a press conference last year, LTP president Elmar Lutter said the company has also to spend another US$20 million on the tools and auxiliaries of the facility.
In total, LTP has invested US$45 million for its NAIA facility expansion. “We want to be there when the market comes back, and that’s at the moment,” Janke said.
He said they have seen the recovery of the industry since August last year, mostly from clients in Europe and the Middle East, but not much from the Asia Pacific, noting that the easing of travel restrictions across the world has fueled the increase in demand for MRO services.
“This is what we see now, after travel restrictions have eased, and that’s encouraging airlines to reactivate aircraft. And the aircraft have been parked for the last one-and-a-half or two years, they all need maintenance,” he said,
Janke said LTP remains optimistic about the recovery of the aviation industry despite the higher fuel prices and inflation because people want to travel after two years of being locked down by the pandemic.
LTP’s Philippines’ facility services are Philippine Airlines, British Airways, Korean Airlines, Asiana, Qantas, and Lufthansa, along with the low-cost carriers in the region — Cebu Pacific, Indigo of India, Jetstar Japan, and VietJet of Vietnam.