German aviation provider Lufthansa Technik believes the Philippines is well-positioned to become one of Asia’s leading centers for aircraft maintenance, repair and overhaul (MRO).
Since 2000, the Hamburg-based company put in $200 million in a joint venture with MacroAsia Corp. called Lufthansa Technik Philippines.
LTP spent another $40 million to expand its hangar to 9,000 square meters, which was unveiled in 2022. It operates a second facility in Cebu in the central Philippines and is now evaluating whether to launch another MRO site in Clark Freeport Zone, north of Manila.
“I think airlines will give us even more consideration in the future so as to develop alternatives to MRO options in China because of the known challenges there,” said Lufthansa Technik Philippines President and CEO Elmar Lutter.
“The Philippines has a long aviation history. We have great pilots, technicians and excellent aviation colleges. Also, most of the international aviation maintenance workforce comes from the Philippines and this gives us quite a talent pipeline,” Lutter added.
LTP services flag carriers Philippines Airlines, British Airways, Qantas, Asiana, Korean Airlines, and Lufthansa, as well as regional low-cost airlines Jetstar of Japan, Vietjet of Vietnam, Indigo of India, and AirAsiaX.
“We have a central role in our expansion in Asia and Lufthansa Technik CEO Soeren Stark also thinks that the Philippine operations are vital to Lufthansa Technik AG’s success. We have a good foundation and a good base to operate from,” Lutter said.