Lufthansa Technik Philippines (LTP) is set to embark on a massive expansion plan, with an investment of approximately PHP15B, aimed at establishing state-of-the-art hangars in Clark, Pampanga. This strategic move comes as a response to the escalating demands of the aviation industry due to increasing air traffic, according to Elmar Lutter, President and CEO of the MRO company.
LTP, currently headquartered at the Ninoy Aquino International Airport (NAIA), recognizes the necessity to expand its operations to accommodate the growing needs of airlines. As Lutter emphasized, “We cannot build anything anymore. New hangars have to be built somewhere else.”
The ambitious endeavor is a joint venture between the Lucio Tan-led MacroAsia Corporation (MAC) and the Germany-based Lufthansa Technik AG, with plans to roll out the expansion in two distinct phases. While the entire project is still subject to regulatory approvals, LTP is enthusiastic about moving forward.
The first phase of the expansion project envisions the construction of hangars with the capacity to service two aircraft simultaneously. Subsequently, the second phase will introduce facilities designed to handle up to six planes at a time. Lutter expressed the company’s commitment to breaking ground on the project in 2024 and completing construction within two years, targeting a completion date of 2026.
In 2022, LTP inaugurated a 9,000-square-meter hangar in Pasay City, following nearly two years of delays caused by the COVID-19 pandemic. The hangar, boasting three additional lines alongside its existing seven base maintenance lines, caters to commercial aircraft of various capacities, including Airbus A320, A330, A380, and Boeing 777.
In addition, MAC, which saw its net income attributable to the parent company surge by 340% to PHP285.77M in the first semester, witnessed significant growth in its in-flight and catering businesses. This segment, contributing 51% to its top line, experienced a remarkable 143% increase in revenue, serving 11.11 million meals, a 552% surge from the previous year. Meanwhile, revenues from ground handling and aviation services nearly doubled to PHP1.49B, driven by an increase in flight volumes, with the number of flights handled rising by 57% to over 88,400.
The expansion plan by Lufthansa Technik Philippines represents a significant step forward in the country’s aviation sector, further bolstering its capacity to cater to the ever-growing air traffic demands. As the project unfolds, it is expected to not only stimulate economic growth in the region but also enhance the quality of aircraft maintenance and repair services for domestic and international airlines.