Lufthansa Technik Opens New Hangar

 

LTP has officially opened new hangar which adds 3 more maintenance lines to the existing seven.

 30 August 2022

Lufthansa Technik Philippines (LTP) has officially opened a new hangar Friday, which adds three more maintenance lines to its existing seven lines and is expected to increase growing demand for aircraft maintenance, repair, and overhaul (MROs) services by up to 20 percent at Ninoy Aquino International Airport (NAIA) in Manila, and provide work for additional 275 employees. 

The MRO facility will provide base maintenance for various commercial aircraft of short-to long-range capacities, including Airbus jets A320, A330, A380, and the Boeing 777.

The new Hangar dubbed A1 is the company’s fourth, and initially broke ground in November 27, 2019. It was originally scheduled to open in September 2020 but was delayed due to the Covid-19 pandemic. Despite the two-year delay, the construction of the new Hangar was completed this year.

LTP, a joint venture of Germany’s Lufthansa Technik AG and MacroAsia Corp., inaugurated its Hangar 1A, which is a 9,000-square-meter facility that can be configured according to the need to provide room for four narrow-body aircraft, or one wide-body aircraft and two narrow-body aircraft. Alternatively, an Airbus A380 can also be accommodated.

President and Chief Executive Officer of Lufthansa Technik Philippines, Elmar Lutter has described the opening of the new hangar as a special milestone for Lufthansa Technik Philippines in the 22nd year of its existence in the country.

“It marks a transition from some of the most difficult times we have experienced as a company due to the pandemic to the current phase of noticeable recovery. This is concrete, tangible evidence that we see clearer skies ahead of us.” Lutter said.

LTP operates around the country servicing other airports in The Philippines, including Clark, Cebu, Davao, Kalibo, and Puerto Princesa. The MRO provider currently employs 2,600 Filipinos across these key cities.

LTP Axes 20% of Work Force

15 February 2021

Lufthansa Technik Philippines (LTP) has announced that it would cut 20 percent of its workforce, or 300 employees beginning April, saying downsizing is necessary amid the impact of the Covid19 pandemic that hit the aviation industry.

LTP said its "rightsizing program" would be carried out in 2 phases: first by voluntary separation, then by retrenchment, if necessary.

LTP president and CEO Elmar Lutter said layoffs would be "temporary until our industry fully recovers," and that rehires in the future would prioritize outgoing workers.

Some 2,700 will remain after the layoffs. The company had as many as 3,400 employees before the health crisis. 400 Contractual workers were earlier let go because of the pandemic.

PAL Brings Back Maintenance Home

16 March 2015



Philippine Airlines (PAL) has awarded back to Lufthansa Technik Philippines, Inc. (LTP) its two-year base maintenance services for its Airbus fleet.

The airline said LTP will handle all heavy maintenance visits for the A320s, A321s, A330s and A340s for calendar years 2015 and 2016.

LTP is also the line maintenance service provider for PAL’s Boeing and Airbus aircraft.

 

LTP Upgrades A380 Hangar for MRO

20 July 2013

  

Lufthansa Technik Philippines will spend US$20 million

this year to expand its MRO) operation in Manila

Lufthansa Tecknik Philippines (LTP) announced a $20 million expansion of its A380 hangar to accommodate aircraft overhaul from the present cabin modifications.

At the sidelines of the company's stockholders meeting, MacroAsia president Joseph T. Chua said the expansion is necessary to address the needs of its clients, particularly Qantas.

LTP is a joint venture between MacroAsia and Germany's Lufthansa Technik AG, providing line and base maintenance as well as MRO services to at least 50 customers from around the world in its facilities at the Ninoy Aquino International Airport, Clark , Cebu and Davao.

Among LTP's long time base customers are Qantas Airways, Cathay Pacific, Virgin Atlantic, Lufthansa Airlines, Austrian Airways, Swiss Airlines and Philippine Airlines. 

Line customers include among others Qatar Airways, Hawaiian Airlines, Japan Airlines, ANA, China Eastern, Air China, Cebu Pacific, Air Niugini, Eva Air, Etihad, China Airlines and Korean Air

IndiGo Airlines taps LTP

For Maintenance Services

By: Paolo G. Montecillo
 March 29, 2012

MANILA, Philippines—IndiGo, India’s largest budget airline, has tapped the services of local aircraft maintenance provider Lufthansa Technik Philippines (LTP).

In a statement, LTP said it had been hired by IndiGo to conduct “lease return checks” on seven of its Airbus A320 aircraft. The first of the planes will arrive at LTP’s Manila hangar in June 2012.

“Our partnership with LTP, one of the leading maintenance, repair and overhaul providers in Asia, will enable IndiGo to use LTP’s proven competence, experience and expertise in on-time completion of lease return checks,” IndiGo said.

LTP is a joint venture between MacroAsia Corp., a sister company of flag carrier Philippine Airlines, and Germany’s Lufthansa, the world’s largest aviation conglomerate.

“We are very pleased to welcome India’s fastest growing airlines and largest low-cost operator to LTP this June,” LTP vice-president for marketing and sales Dominik Wiener-Silva said.

“We are fully committed in providing our expert support to ensure timely lease return of IndiGo’s A320 aircraft. We hope that this agreement is a start of a long-term partnership with one of India’s leading airlines today,” he said.

Earlier this month, LTP inaugurated its new $30 million hangar located at the Ninoy Aquino International Airport complex in Pasay.

The new facility is capable of providing maintenance services for Airbus A380 planes, the biggest passenger planes in the world. The A380, manufactured by the European Aeronautic Defence and Space Company N.V. (EADS), can seat as many as 850 passengers.

With a fleet of 50 planes, IndiGo is the second largest budget airline in India with the second largest share of the subcontinent’s domestic travel, trailing behind Jet Airways.

IndiGo is also known to have placed one of the largest orders for planes in commercial aviation history during 2011, when Airbus won the $15-billion deal with the company for 180 aircraft.

LTP Opens A380 Checks

February 12, 2012

By Recto Mercene
Correspondent

Qantas A380 to make port of call in April

President Aquino pushes the throttle of amake-believe A380 during the inauguration of the $30-million Lufthansa Technik Philippines hangar on Friday night. Among his “passengers” were (from left) LTP Chairman Washington Sycip, Lucio Tan (partly hidden), Transportation Secretary Manuel Roxas II and LTP Chairman of the Executive Board August Wilhelm Henningsen.

PRESIDENT Aquino  on Saturday piloted a make-believe Airbus A380 during the inauguration of Lufthansa Technik Philippines’s (LTP) maintenance hangar, throwing the wooden throttle of the giant airplane into full power, and taking to the skies to tour a virtual world projected on a giant screen.

The plane soars to the skies and took them to Australia, South America, Africa, Europe and the United States before finally landing in the Philippines.

Sitting behind him as passengers were the entire executive board headed by Chairman Washington Sycip, and board members Lucio Tan, August Wilhelm Henningsen, Joseph Chua, Dr. Peter Jansen, Soeren Stark and Gerald Frielinghaus.

The venue is the newly built, $30-million A380 hangar, one of only four in the world, and at 8,500 square meter area, with a height of 35 meters, is dubbed the largest hangar in the country. It offers space to work simultaneously on one widebody and two narrowbody aircraft.

Mr. Aquino lauded the hard work and the vigorous planning of LTP and Philippines MacroAsia Corp., a joint venture between the German firm, which has a 51 percent stake, and Lucio Tan’s MacroAsia Corp. with 49 percent share.

“I want to emphasize that this is not just any hangar. This is a hangar built to service the Airbus A380—the biggest passenger airliner in the world,” Mr. Aquino said.

He added that the hangar makes the Philippines one of the few locations around the world capable of providing maintenance service to the A380.

Earlier, Executive Board Chairman August Wilhelm Henningsen said that with the new hangar, the country would be able to keep up with the increasing demand for technical services for long-haul Airbus aircraft, particularly in the Asian market.

Washington Sycip, chairman of LTP Philippines, said “the opening of the new hangar service reaffirms the Filipino aviation worker’s place among the world’s best and underscores LTP’s long-term plans of operating in the Philippines.

The hangar is the fourth maintenance bay in the same location at the former Villamor Air Base. It’s specialty is the maintenance, repair and overhaul of all types of the Airbus family, the A320, A330, A340 and A380.

The joint venture started with a capitalization of P5 million in 2000 and 1,300 personnel, which has now grown to 2,700 of which 99 percent are highly skilled Filipino technicians and engineers.

“This is a big step for LTP. Since initially investing more than P5 billion here in the country in 2000, you have invested billions more, and have given livelihoods to thousands of our countrymen.” Mr. Aquino said. The hangar’s first customer would be an A380 from Qantas, which would undergo cabin modification in April this year.

LTP Opens A380 Maintenance Hangar

February 10, 2012

Lufthansa Technik Philippines (LTP), one of the largest providers of aircraft maintenance services in Asia, has opened a third hangar in Manila for work on widebody aircraft. With this step, the company is preparing for the technical support of the world's largest commercial aircraft.

Lufthansa Technik Philippines, a joint venture between Lufthansa Technik (51%) and the Philippine MacroAsia Corporation (49%), invested USD 30 million in the construction of the new hangar, which is 8,500 square meters large and 35 meters in height. The new hangar offers space to work simultaneously on one widebody and two narrowbody aircraft.

"With the new hangar, we will be able to keep up with the increasing demand for technical services for long-haul aircraft, particularly in the Asian market," said Lufthansa Technik Chairman of the Executive Board, August Wilhelm Henningsen. "By adding A380 capability, it underscores Lufthansa Technik Philippines' role as global aircraft overhaul center."

"The continuous growth of the company leads to up to 400 new highly-technology and high-skills jobs in addition to the existing 2,700 jobs," explained Gerald Frielinghaus, President and CEO of LTP.

Eleven years after its founding, Lufthansa Technik Philippines, located at Manila's Ninoy Aquino International Airport, offers comprehensive technical services including lease return checks and cabin modification for the Airbus A330/A340 and A320 families and now also for the Airbus A380.

LTP has 30 overhaul customers including Philippine Airlines, Lufthansa, Qantas, Virgin Atlantic, LAN Chile and AirAsia X. It has about 20 approvals from aviation authorities including the American FAA and the European EASA.

Lufthansa Technik

The Lufthansa Technik Group, with more than 30 subsidiaries and associates and over 26,000 employees worldwide, is one of the leading manufacturer-independent providers of technical services for the aviation industry. Its portfolio encompasses the entire spectrum of services for commercial aircraft: maintenance, repair, overhaul, modification and refit, engines and components.

LTP personnels undergo A380 training in Frankfurt

January 5, 2011

MANILA, Philippines — Eighteen Lufthansa Technik Philippines (LTP) employees and instructors have undergone an extensive Airbus A380 training program at the Lufthansa technical training facilities in Frankfurt, Germany after a strict selection process.

The group consisted of a shift manager, team leaders, crew chief, inspectors and mechanics. The training program covered heavy classroom-type and hands-on training for the world’s biggest Airbus aircraft today.

In this training exposure, LTP mechanics were performing C-checks together with their counterparts at Lufthansa Technik.

LTP heavily invests in its workforce to ensure that it delivers high quality service that follows internationally established standards to its airline customers worldwide.

It is currently building its biggest maintenance hangar that is capable of servicing the A380. The training program for the selected and qualified employees is in response to this capability expansion as well as for fulfillment of the requirements to acquire certification for the A380 aircraft type.

Meanwhile, 14 LTP mechanics composed of 12 airframe and powerplant were recently deployed for a first assignment in Lufthansa Technik Milan (LTMIL).

The deployment, which will last for five months, will support the Milan office on scheduled A-checks for the A319, A320 and A330 aircraft types.

Backed by rigorous training and experience of LTP’s rated mechanics to perform A-checks, the LTMIL management was pleased with the results of the accomplished checks.

This early success will soon be followed by another batch of A&P and structural mechanics from LTP for immediate deployment to LTMIL, a subsidiary of Lufthansa Technik AG. (EHL)

FAA inspections finds fault on Lufthansa Technik

Finds repeated difficulties following US Regulations

June 22, 2010

By JOAN LOWY
Associated Press

WASHINGTON (AP) — A repair station in the Philippines that services planes for nearly 50 airlines around the world has shown a pattern of stubborn problems that safety experts say underscore concerns about the airline industry's outsourcing of maintenance to facilities in developing countries.

The Federal Aviation Administration inspections of Lufthansa Technik Philippines in Manila said the facility had repeated difficulties in following U.S. regulations on matters ranging from record-keeping to calibrating tools used to make repairs. The records, which cover inspections from 2008 through last month, also cite recurring problems with training workers to FAA standards and unfamiliarity by in-house inspectors at Lufthansa Technik, a subsidiary of Lufthansa Airlines, with U.S. regulations.

Lufthansa Technik's "quality assurance department demonstrated an inability to effectively audit the repair station for compliance with all aspects of (U.S. regulations), specifically, appropriate facilities, tools/equipment, personnel and training requirements," according to an inspection in May.

A 2009 inspection noted that two in-house inspectors were unfamiliar with FAA aircraft maintenance regulations. The inspectors had recently received four hours of training in the regulations, but weren't tested for their knowledge afterward, it said.

The same inspection noted that "throughout the repair station numerous personnel are not aware of which airline they are providing maintenance for" and which country's regulations applied.

The reports show problems scattered throughout the facility rather than in one department, which indicates the problems are systemic, said John Goglia, a former National Transportation Safety Board member and an expert on aircraft maintenance. The result, he said, is an erosion of the margin of safety.

"As they expand into Third World countries to take advantage of the labor rates and lower costs these problems keep coming back because you just don't have the people infrastructure," Goglia said. "How many trained people do you think there are the Philippines, in Malaysia and in Indonesia? They are expanding a big operation with a relatively thin technical workforce."

The Manila facility employs 2,800 aircraft mechanics and other employees. It's certified by the FAA and aviation authorities from 20 nations to perform maintenance work ranging from routine repairs to major overhauls, according to Lufthansa Technik. The company recently began construction of a new hangar so that Airbus A380s — the world's largest airliner capable of seating up to 853 passengers — can be serviced at the facility.

The records were obtained from the FAA through a Freedom of Information Act request by a labor union, Unite Here, which represents employees of Lufthansa's catering subsidiary in North America, SkyChef. The union and the airline are in contract negotiations.

"None of the mentioned FAA audit findings had significant impact on safety and reliability of aircraft and components," Lufthansa Technik said in a statement.

"Each finding has been treated as an opportunity to enhance the existing system, as it is an industry standard to deal with findings from internal and external audits," the statement said. "Corrective actions have always been implemented and accepted by the FAA."

However, the report on last month's inspection said numerous problems cited in an August 2010 inspection still had not been corrected. "An acceptable corrective plan has been submitted, but due to recent failures, an on-site follow-up inspection ... is required," it said.

Bill Voss, president of the Flight Safety Foundation, an industry-supported group that promotes aviation safety worldwide, said the inspections indicate Lufthansa Technik Philippines has a problem with quality control, but he cautioned against making more general judgments about offshore aircraft repair stations.

"It's a huge leap to suggest this is representative of all foreign repair stations," Voss said. "I'm not sure offshore equals bad."

The FAA said in a statement that it holds foreign repair facilities to the same standards as U.S. facilities. Repair facilities that don't meet those standards can lose their certification. The FAA has certified Lufthansa Technik Philippines for repairs since 2000.

The Transportation Department Office of Inspector General announced in December it has launched an investigation of the FAA's oversight of maintenance performed for U.S. passenger airlines by outside contractors, including oversight of overseas repair stations.

A 2008 report by the inspector general said nine big U.S. airlines farm out aircraft maintenance at twice the rate of four years earlier and hire outside contractors for more than 70 percent of major work. While most of the outsourced work is still done in the U.S., often at nonunion repair shops, more than one-quarter of the repairs are done overseas, it said.

A bill backed by House Democrats that would have required the FAA to step up inspections of foreign repair stations from once a year to twice a year died last year. It was opposed by the European Union, which threatened to cut back on planes its airlines send to repair facilities in the U.S.

Lufthansa, one of the world's largest airlines, owns 51 percent of Lufthansa Technik Philippines, while the Philippine MacroAsia Corp. owns 49 percent.

The only U.S. carrier that sends planes to Lufthansa Technik Philippines for major maintenance work is Hawaiian Airlines, which flies to destinations in the Western United States, the Pacific and Asia. Lufthansa, Swiss Air, Qantas, LAN, Philippine Airlines, Cathay Pacific, Vietnam Airlines, Gulf Air, Kuwait Airways and Jet Airways are among some of the other airlines that use the facility for major work.

A380 Hangar to rise in the Philippines

5th in the World

April 30, 2011

German aviation services firm Lufthansa Technik (LTP), conducted a ground breaking ceremony yesterday for its repair air dock facility in the Philippines dedicated to its Airbus A380s.

Airbus A380 is the world's largest commercial passenger jetliner which first entered commercial service in 2007 through Singapore Airlines.

LTP said the $30 million facility will rise at the Ninoy Aquino International Airport Complex.

“The new $30 million hangar indicates the continuing commitment of Lufthansa Technik Philippines to build up its investment in the Philippines and create hundreds of high-tech, high-skill jobs for Filipinos,” the firm said in a statement.

No other project details were disclosed however.

But customers Lufthansa and Qantas airways are already lining up its cue to use the facility. The company already provides services for Qantas, Qatar Airways, and Cathay Pacific as well as several regional airlines.

“There are only four locations worldwide where the A380 can be maintained and the Philippines hopes to join this rank,” the firm added. They are currently found in France, Germany, China, and Singapore.

Recently, AirAsia X, the world’s first successful long-haul, low-cost airline, has renewed its contract with the Manila-based maintenance, repair and overhaul (MRO) company to AirAsia X’s Airbus fleet of nine A330s and two A340s.

Lufthansa Technik Philippines is a joint venture between Lufthansa Airlines and local company MacroAsia Corp.

LTP seals deal with AirAsiaX

Inks A330/A340 MRO

by Aaron Karp
February 7, 2010

Singapore - Lufthansa Technik Philippines, a joint venture between MacroAsia and LHT, signed a contract last week with Malaysia's AirAsia X to provide MRO services on the carrier's long haul fleet of eight A330s/A340s for three years beginning in March.

LHT Chairman August Wilhelm Henningsen told reporters at a Press Conference that its investments at LTP in Manila and Ameco in Beijing signifies its strong commitment in Asia.

Asia represents "our highest commitment in terms of investments and we are going to expand if needed," he said. LTP for instance, now has 3,000 employees in Manila.

The deal was signed at the Singapore Airshow. The work will take place at LTP's Manila facility. LTP will provide four C-checks and a heavy maintenance check in the first year and also has committed to performing cabin retrofit services. The deal's value was not disclosed.

Henningsen said the recession did not have as severe an impact on MRO providers as airlines. MRO "is not so heavily affected up to now" by the financial downturn, he explained, noting that the "we have not seen the reduction in flight frequencies that we've seen in past crises," particularly in 2001 and 1991. He did concede that MRO work on freighter aircraft has taken a serious hit owing to "a lot of cargo airplanes that have been grounded."

Separately, Ameco Beijing, the joint venture between Air China (60%) and LHT (40%), was awarded a five-year contract for heavy maintenance on United Airlines' 747-400 fleet. Value was not supplied. In 2005, UA chose Ameco to maintain its 777s under a five-year contract, which has been extended for an additional five years. Additionally, LHT and Aeroflot Russian Airlines signed a contract in January under which LHT will provide C checks on Aeroflot's four 767-300ERs with the work to be performed by Ameco.

Lufthansa Technik Philippines pushes for regional growth

By Siva Govindasamy
December 1, 2009

If the Philippines has gained a reputation for being a place for good quality and efficient aircraft maintenance, repair and overhaul services over the last decade, that is mainly due to the formation of Lufthansa Technik Philippines (LTP) in 2000.

The company, which is 51% owned by German MRO firm Lufthansa Technik and 49% by Philippine-based MacroAsia, an aviation services company, is based at Manila's Ninoy Aquino International airport, which is the country's main air gateway.

Lufthansa Technik has taken advantage of the country's strategic location, low labour costs and high-quality workforce to establish what many in the industry recognise as one of South East Asia's leading maintenance houses. It offers a broad spectrum of MRO services, with an especially strong focus on the Airbus 320, and A330/340 family.

© Lufthansa Technik Philippines

"By taking this position, we are able to support the fleet of our key customer, Philippine Airlines, the capability on the A320 enables us to tap into the growing regional market, and the A330/A340 capability gives us a global reach," says Dominik Wiener-Silva, vice-president for marketing and sales. "We provide integrated MRO services for cost-efficient and reliable flight operations."

PAL SUPPORT

It began by offering support for PAL's entire fleet of aircraft, and soon after added Lufthansa and Austrian Airlines as its first international customers. After gradually expanding its capabilities and facilities, it now provides third-party services for more than 20 airlines.

This includes line maintenance services to carriers such as Japan Airlines, Jet Airways, Korean Air and Singapore Airlines, and base maintenance services for airlines such as Hong Kong's Cathay Pacific Airways and Australia's Qantas, along with Europe-based BMI, Thomas Cook Airlines and Virgin Atlantic.

All of its work is performed at 26,000m2 (280,000ft2) hangars and 27,000m2 workshops in Manila within the airport. The company also has a five-bay hangar that includes two exclusive A330/A340 production lines with custom-designed docking facilities.

One of its advantages is its location inside a free trade zone. This "guarantees the speedy customs release of urgently needed aircraft parts", says the company. Aside from its Manila base, LTP also has maintenance stations in Cebu, Clark and Davao.

Over the past nine years, the company has acquired capabilities for a variety of aircraft. Line maintenance is offered on the Airbus A320 family, A330/A340, Boeing 737 Classics and the 747 and 777 families. "We tailor timetables and requirements, 24h a day, seven days a week," says the company.

It can also perform C checks on the A320 family, A330/A340, 737 Classics and 747s, in addition to the D checks on the A320 family and A330/A340 aircraft. For base maintenance, in addition to the five widebody hangar bays, the company has several backshops designed in line with Lufthansa Technik's standards.

In September 2007, Lufthansa Technik Philippines received European Aviation Safety Agency certification for all maintenance work on the latest Airbus variant in the A340 family, the A340-600. A widebody hangar was added recently to meet increasing demand for A330/A340 base maintenance checks. And with PAL due to receive its first two 777s by year-end, that capability will also be added.

© Lufthansa Technik Philippines Lufthansa Technik Philippines offers its line maintenance services at Manila airport

The company offers engine MRO services, giving support for line and base maintenance for powerplants including the CFM International CFM56 series, General Electric CF6-80 series, IAE V2500 Pratt & Whitney PW4000 and Rolls-Royce Trent 500/700.

Major aircraft modifications, cabin reconfiguration and refurbishment services, cabin window overhaul, non-destructive testing and component support for line and base maintenance are also available, as are a slew of engineering services.

It is also strong in aircraft painting services. "Whether a single aircraft or an entire fleet, customers take advantage of LTP's in-depth expertise in aircraft painting," says Lufthansa Technik.

By offering such comprehensive engineering solutions, the company says that it allows the carriers "to focus on their core business", which is running the airline operation. To this end, LTP has received regulatory approval from the Civil Aviation Authority of the Philippines, the US Federal Aviation Administration and the European Aviation Safety Agency.

GROWTH STRATEGY

Given the growth of South East Asia as an airline and tourist market, the company feels its focus on the region remains an important component of the broader Lufthansa Technik growth strategy. This is especially true in an economic crisis, when airlines are looking at various ways to keep their costs down.

"As we see it, the region remains as the most important growth market because of the strong growth in fleet size and the increasing number of start-up airlines. These factors bring about a continuous demand for MRO services. In this time of economic crisis, the logic in having a subsidiary in the region is justified even more," says Wiener-Silva.

"With a set-up in this region of growth, Lufthansa Technik, despite the downturn, is still able to offer an attractive package to the customers. LTP is able to do this because of its close proximity to the customers."

That has paid dividends over the years as LTP has kept its older customers and added new ones. It started work on its 100th heavy maintenance check on an A340 in November.

"The expertise we have developed through the years on the A330/A340 has enabled us to reach this achievement," says Bernhard Krueger Sprengel, Lufthansa Technik Philippines' president and chief executive. "It is because of our strong focus on the aircraft type and commitment to quality and fast turnaround time that we are able to convince old and new customers to put their trust in us."

The company says its commitment to quality and fast turnaround time serves as a challenge, and pushes it to constantly improve its services. To this end, Lufthansa Technik Philippines adopted the Lean principles in 2007 for its overhaul operations, resulting in significant reductions in turnaround times. Together with Airbus, LTP was also able to perform Frame 47 modification incorporated to a heavy check on a number of A340-600s.

"It was in LTP that this critical modification was first performed outside an Airbus facility, further raising the bar in A330/A340 heavy maintenance. Through the adoption of Lean practices, LTP was not only successful in integrating the modification but was also able to reduce the Frame 47 modification turnaround time to only nine days," says the company.

One aspect of its presence in the Philippines is to train a high-quality local workforce - Lufthansa Technik Philippines has 2,800 English-speaking mechanics, engineers and support personnel. Through a partnership with Lufthansa Technical Training Philippines (LTTP), the company's mechanics are certificated through EASA Part 66-compliant courses. It also has a combination of classroom and on-the-job training programmes, and there is a regular exchange of personnel between Lufthansa Technik and other subsidiaries.

The company is also looking to secure business from further afield, with China and India in its radar. It is also in talks with many of Asia's growing band of low-cost carriers.

While investments in infrastructure are always a possibility - and there appears to be scope for further expansion at the airport site - that is unlikely to take place in the immediate future in the face of the economic crisis.

"We expect 2010 to be a year of slow recovery. By saying that, we expect an economic revival in South East Asia as well. This recovery is quicker compared to Europe because in South East Asia we have a younger fleet and a more dynamic market," says Wiener-Silva.

LTP prepares China Invasion

September 12, 2009

By Leithen Francis

Lufthansa Technik Philippines is hoping to secure work from China thanks to a regulatory change in the country.

The Chinese authorities are making it easier for overseas MROs to get recognition if the firm has Hong Kong regulatory approval, the company's vice-president for marketing and sales Dominik Wiener-Silva said at Asian Aerospace.

The Hong Kong authorities have recognised Lufthansa Technik Philippines, a joint-venture between the Lufthansa Technik group and Philippine Airlines' MacroAsia, as it has done overflow work for carriers there, he adds.

His company is waiting to secure a contract from a mainland Chinese carrier before proceeding with the application for Civil Aviation Administration of China approval.

The MRO firm's heavy maintenance work is focused on the Airbus A320s, Airbus A330s and Airbus A340s. But it will be adding Boeing 777 heavy maintenance capability as Philippine Airlines will get its first two 777s by year-end, he says.

Its major third-party heavy maintenance customers include Virgin Atlantic Airways and Qantas Airways/Jetstar.

Qantas announced in May that A330 heavy maintenance work will be shifting from Lufthansa Technik Philippines to Qantas engineering and maintenance in Brisbane.

But Wiener-Silva says Lufthansa Technik Philippines will still be doing the 'D-checks' on the Qantas and Jetstar A330s and it is only 'C-checks' that are moving to Brisbane in the near term.

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.

RP touted to have the best aviation school and MRO facility in Asia Pacific

MANILA - Research firm Frost & Sullivan recently categorized the Philippine aviation industry as a niche segment in Pilot training and aircraft maintenance in Asian Aviation.

Pilot training market in Asia Pacific became a $ 10-billion industry in 2008 with compound annual growth rate (CAGR) at 11 percent, according to Frost & Sullivan.

Subhranshu Sekhar Das, Malaysia-based Frost & Sullivan Asia Pacific director for aerospace & defense, said that "In Asia Pacific, there are requirements in pilot training and I'm not surprised if any of the investment is going to be in the Philippines, recruiting new cadets and giving them the training for PPL (private pilot license), CPL (commercial pilot license), or ATPL (airline transport pilot license) licensing."

There has been an upsurge of aviation school opening in the Philippines with foreign students from India and South Korea taking flying courses due to Western style teaching patterned after the United States and English proficient instructions.

Das reported that while there is a current slump in air travel the aviation industry as a whole has been experiencing a shortage of pilots, which drives the market for training he added during the firm's 2009 aviation summit held in Singapore earlier this month.

There are close to 700 pilots in the Philippines and demand is growing. They may have some shortage by 2013. Pilot requirement may have to grow to almost six percent CAGR.

Frost & Sullivan 2008 data showed that China has most of the pilots accounting 37% of the entire Asia Pacific aviation market, followed by India and Japan at 12% market share, while Australia, Malaysia, and South Korea each accounting for 6 percent. Thailand meanwhile has 5%, New Zealand, Indonesia and Singapore has 4% each while The Philippines and Vietnam accounted for two percent of the total number of pilots in the Asia Pacific region last year.

Also, the Aircraft maintenance business, known in the aviation industry as maintenance, repair and overhaul (MRO), is also emerging as another niche for the Philippines.

In 2008, Frost & Sullivan projected the region's overall MRO business to have generated $ 22.55 billion in revenues. It forecasts revenues to reach $ 66.58 billion by 2030, with the commercial fixed wing segment accounting for 54 percent of MRO business from 45 percent last year. By 2030, the global consultancy firm expects diminished markets for the military rotary and fixed wing segments, as well as for civil rotary wing.

Good MRO Performance

Among the US Federal Aviation Administration(FAA) -certified repair stations in the country are FFC Services Asia-Pacific Operations and Honeywell Ceasa Subic Bay Co. Inc., both located at the Subic Bay Freeport Zone; International Aviation Service Assistance at the Clark Special Economic Zone (CSEZ); Moog Controls Corp. at the Baguio ecozone; Lufthansa Technik Philippines (LTP) headquartered at the MacroAsia Special Economic Zone of Villamor Airbase, with operations in Cebu, Clark and Davao; as well as Nordisk Aviation Services Phils. Corp. located in Parañaque City.

The 2008 performance of LTP, a joint venture between MacroAsia Corp. and Lufthansa AG initially formed to service the fleet of Philippine Airlines (PAL), boosts the positive outlook on MRO business in the Philippines. In its 2008 annual report presented in March 12, Lufthansa Technik Group announced LTP revenues for the year at 160 million euros (equivalent to P10.6 billion).

Aviation Week, an industry magazine, noted in its report on the financial results that LTP was among the strongest revenue earners in the global network of the Lufthansa Technik Group last year, next only to its sister plant, Ameco Beijing, the latter's joint venture with Air China, and N3 Engine Overhaul Services, the joint venture with Rolls Royce Plc.

LTP is currently providing MRO services from its facility in NAIA to PAL, Lufthansa Airlines, Singapore Airlines, Cathay Pacific Airways and other international airlines that fly to Manila. It also provides technical ground handling services to Air Niugini, China Airlines, Egypt Air, Eva Air, KLM Royal Dutch, Korean Air, Malaysia Airlines, Silk Air and Cathay Pacific Airways.

The Regional Race for MRO Hub

There is a race between Singapore and Malaysia to become the regional MRO hub. Currently, Singapore corners 90 percent of the region's MRO business, but Malaysia and the Philippines is catching up and may eat up Singapore's share in the future.

Currently, work is underway for the 300-hectare Seletar Aerospace Park in Singapore, which it touts to be a world-class industrial park for a wide range of aerospace activities, including MRO, OEM and training for pilots, aviation professionals and technical personnel. It is expected to be completed by 2018.

Meanwhile, Malaysia plans to transform itself into a global aerospace player by 2015 through its Malaysia International Aerospace Center being developed at the former Subang Airport.

Here in the Philippines, a 2,715-hectare Civil Aviation Complex is being developed at the Clark-Subic Economic Zone (CSEZ). The Clark International Airport Corp. announced last year two major locators at the Civil Aviation Complex. These were Kuwait Gulf and Link, which plans to build 125-hectare logistics park, and Singapore Airlines Engineering Co. (SIAEC), a joint venture between Singapore Airlines and Cebu Pacific ,which will locate a 10-hectare MRO facility at the DMIA that will complement existing operations at Singapore's Changi Airport.

"It's all about the country strength and weaknesses and how they are going to position the country to create that environment. There are opportunities in the Philippines. It all depends on how the government is going to attract the investors to set up the industries," Das said.

Since Asia Pacific region can never be an Original Equipment Manufacturer (OEM), it can be a big OEM integrators [that] could also tap the Philippines for Tier 1 or Tier 2 components or parts manufacturing. Manufacturing industries are definitely China and India. Singapore and Malaysia can drive the research and development in other high-tech jobs. The Philippines can probably continue MRO industries, pilot training schools or maybe create the general aviation potential for the other countries.

Other opportunities would also be presented by the massive airport development in China and India until 2020, which could generate design and build projects for Philippine contractors.

But Das noted the country's strongest suit remains with service-oriented segments of the aviation industry due to its skilled workforce and their English language proficiency.

LTP declares $18-M cash dividend

by Honey Madrilejos-Reyes
February 24, 2009

Lufthansa Technik Philippines (LTP) has declared a cash dividend of $18.4 million to its two major shareholders, MacroAsia Corp. of the Lucio Tan Group and Lufthansa Technik AG.

Of the total dividend payout, MacroAsia, which owns 49 percent of LTP, will get $9.016 million (roughly P433 million) while Lufthansa Technik AG will secure $9.384 million for its 51 percent stake in the joint venture firm.

The first payment of $16.2 million will be made on or before the end of March and the second payment covering the balance of $2.2 million will be done in October.

MacroAsia said they will reserve the dividend payout for future expansion plans.

LTP is the only company which provides a wide range of aircraft maintenance, repairs and overhaul (MRO) services at the Ninoy Aquino International Airport (NAIA) and the Clark International Airport.

Following the signing of the joint venture agreement on July 12, 2000 and its subsequent registration with the Philippine Economic Zone Authority (PEZA) as an economic zone locator on August 30, 2000, LTP started its commercial operations on September 1, 2000. It consistently generates both domestic and export revenues and enjoys tax incentives as a PEZA-registered entity.

LTP also has a concession agreement with the Manila International Airport Authority (MIAA) which grants the company the right to operate as a provider of aircraft MRO services at NAIA.

Among its major clients are flag carrier Philippine Airlines, Lufthansa Airlines, Singapore Airlines, Cathay Pacific Airways and other international airlines that fly to Manila.

The company also provides technical ground handling services to Air Niugini, China Airlines, Egypt Air, Eva Air, KLM Royal Dutch, Korean Air, Malaysia Airlines, Silk Air and Cathay Pacific Airways. - BM