MRO company looks at Clark for next expansion

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The Philippines strengthen its bid to become a hub for aviation maintenance, repair and overhaul (MRO) in the region with the  expansion projects of German-owned Lufthansa Technik Philippines  (LTP) in Clark.

“The Philippines is an excellent place for aviation with Asia’s oldest airline, Philippine Airlines, its tradition, infrastructure, and the depth and the breadth of its talent pool.  We are optimistic to soon further grow our business again.  We are looking for expanding our footprint further … We will seek discussions with possible partners and explore possibilities in the Philippines and beyond with the end in mind to add affordable high-quality MRO to our region and deliver safety and reliability to our customers,” said Elmar Lutter, LTP president and chief executive officer, at the opening of its new $25-million hangar at the MacroAsia Special Economic Zone in Pasay City on Friday.

When asked for details of the expansion, Rainer Janke,  LTP vice  for Marketing & Sales, said “Clark is very attractive. We also have a small facility in Cebu.”

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Janke  said LTP wants to expand its services to other aircraft types.

“Here in NAIA (Ninoy Aquino International Airport),  we have no possibility anymore to expand, so we have to at one point makes a step out. We have a quite nice range here, we have for the Airbus aircraft, from the narrow body A320, A321, A330, A340 even up to A380. What we would expect is Boeing… we have 777 which is important. The 737, the narrow body will follow,” Janke said.

Janke said the company has seen business coming back as early as  August and  September last year.

Demand has been coming from  Europe and Middle East.

“Travel restrictions have eased .. that’s encouraging now airlines to reactivate aircraft (which)  have been parked for the last  two years. They all need maintenance. The airlines had to save cost, maintenance was deferred, and only the minimum was done to keep the aircraft in proper condition. But now, the checks have to be done, that’s actually an opportunity for us. We are here now with a new hangar,” Janke said.

Janke expressed hope demand will return to pre-pandemic levels but high fuel cost and rising inflation continue to be a challenge.

Trade Secretary Alfredo Pascual said Pascual said LTP’s expansion will help the country achieve its goal of becoming the aerospace industry hub in  Asia-Pacific for manufacturing, avionics, and after-market services.

Exports in the Philippine aero space sector reached $407 million in 2020  and is projected to reach $2.6 billion by the end of 2022.

The inauguration of the 9,000-square meter  Hangar 1A adds three lines to the existing 7 base maintenance lines, add 20 percent to LTP’s capacity and employ at least 275 more personnel.

The company currently has 2,600 Filipinos across the key cities nationwide, including Clark, Cebu, Davao, Kalibo, and Puerto Princesa.

LTP has the capacity to service aircraft coming to and from major international hubs such as Tokyo, Singapore and Hong Kong.A joint venture between Lufthansa Technik AG and MacroAsia Corp., LTP is a globally certified provider of aircraft MRO services qualified by the European Union’s Aviation Safety Agency, the United States FAA and other airworthiness authorities from around the world. – Irma Isip

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