Lufthansa Technik signs 12-year contract with PAL

By Roderick T. dela Cruz

April 1, 2009

Philippine Airlines has signed a multi-million-dollar contract for the engine repair of its Airbus fleet at the facility of Lufthansa Technik AG in Germany.

Lufthansa Technik, a global leader in the maintenance, repair and overhaul of commercial aircraft, engines and components, said in a statement it sealed a 12-year engine maintenance contract with the Lucio Tan-owned carrier.

Liza Martija, senior marketing officer of Lufthansa Technik Philippines based at the MacroAsia Special Economic Zone in Pasay City, did not cite the cost of the contract, but said an engine overhaul cost up to $100 million.

“This is a side contract for engine repair, aside from our off-wing support services contract with PAL,” Martija said.

Under the new contract, Lufthansa Technik AG will perform repair and overhaul of CFM56-5B engines removed from PAL’s A320 and A319 aircraft.

Its Philippine subsidiary, Lufthansa Technik Philippines, will provide off-wing support services, including engine shop visit support, engine preservation and fan re-lube.

Philippine Airlines president Jaime Bautista said that with the new contract, the airline would be able to concentrate in fulfilling its goals, including the growing network to more destinations throughout the country and overseas.