P8-B Lufthansa pledge secured

P8-B Lufthansa pledge secured | Daily Tribune

German airline firm Lufthansa Technik plans a second hangar in Clark, valued at around $150 million or P8 billion following their successful maintenance, repair, and overhaul operations in the Philippines, the Department of Trade and Industry said on Thursday.

Elmar Lutter, president and CEO of Lufthansa Technik Philippines during his meeting with President Ferdinand Marcos Jr. unwrapped the investment package to the economic team led by Trade and Industry Secretary Fred Pascual on 12 March.

The planned P8 billion hangar project was on top of the $4 billion investment pledges from German firms that were announced by Mr. Marcos on Wednesday.

“What was mentioned during the meeting was a $150 million (P 8 billion) expansion — a 2-hectare hangar able to accommodate 2 Airbus A380s — in Clark. This is part of phase 1. Phase 2 would either be an additional hangar in Clark, Bulacan, or Sangley,” the DTI’s Office of the Secretary told reporters.

Direct flights from Europe

During the meeting, Pascual said “We appreciate Lufthansa’s recent consideration of Manila as a destination for one of its direct flights from Europe to Southeast Asia. It not only opens tourism opportunities but also other business services of Lufthansa that the Philippines can support.”

The local delegation also emphasized that the expansion plan of LTP will also provide high-quality and better-paying jobs to Filipinos while strengthening the aerospace industry capabilities of the country.

The proposed hangar, covering two hectares of leased land, is expected to employ at least 400 workers during its construction.

This facility in Clark will complement LTP’s existing 23-hectare technical base and hangar at the Ninoy Aquino International Airport, built in the 1980s.

The hangar can accommodate at least two Airbus A380s, with a construction timeline of two years.

Via Maharlika

Meanwhile, the LTP said they are considering a partnership with Maharlika Investment Corporation for the project, with initial discussions already underway with Maharlika Fund’s President and CEO, Rafael Consing Jr.

LTP also discussed that their customers will include British Airways, Korean Air, Lufthansa, Emirates and Qantas.

The company shared the possibility of a Phase 2 expansion, either in Clark or at new airport sites in Bulacan or Sangley Point.

In the meeting, the Philippine delegation reassured LTP officials of the government’s commitment to upholding its existing contracts, addressing Lufthansa’s concerns about the impact of future developments in NAIA.

To date, LTP employs around 2,800 mechanics, engineers, and support personnel in the Philippines, operating eight hangar bays and workshops designed to the latest industry standards.

These facilities support a range of services from light to heavy maintenance checks, major modifications, cabin reconfiguration/retrofit programs, and lease return checks.