Lufthansa Technik restarts building of $40M hangar

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Ongoing construction of Hangar A1 at Lufthansa Technik Philippines' facility at the MacroAsia Special Economic Zone. Photo courtesy of Lufthansa Technik Philippines.
  • Lufthansa Technik Philippines resumed construction of its US$40-million hangar in Pasay
  • Hangar A1 is targeted for completion by the first quarter of 2021
  • LTP president and CEO Elmar Lutter said easing of travel restrictions worldwide has brought back demand, with hangars being “much again full and we have a line of customer airlines waiting”
  • Hangar A1 has a total area of 9,000 square meters
  • Once complete, it will expand LTP’s capacity by 25% while creating 275 jobs
  • Hangar A1 will provide base and line maintenance to commercial aircraft, such as Airbus A320, A330, A350, and A380, as well as Boeing 777

Lufthansa Technik Philippines (LTP) resumed construction of its US$40-million hangar in Pasay City after pandemic-related delays and demand for aircraft maintenance, repair and overhaul (MRO) services steadily picking up.

LTP president and chief executive officer Elmar Lutter in a virtual press briefing said construction of the hangar, dubbed Hangar A1, and its ancillary buildings is targeted for completion in the first quarter of 2022. Construction cost for the hangar is $20 million and for ancillary buildings and tools cost another $20 million.

The addition of Hangar 1A, which covers a total area of 9,000 square meters, at LTP’s facility in the MacroAsia Special Economic Zone, Villamor Airbase, Pasay City will expand the MRO service provider’s capacity by 25% while creating 275 jobs.

LTP earlier said Hangar A1, its fourth, will be an exact replica of Hangar 1, which services aircraft from various airlines.

Hangar A1 will provide base and line maintenance to commercial aircraft, such as Airbus A320, A330, A350, and A380, as well as Boeing 777.

READ: New hangar to boost capacity of Lufthansa Technik’s MRO facility

LTP announced the expansion project in 2019 with an original schedule for completion of September 2020, but construction slowed down when demand for MRO services was dampened by travel restrictions that negatively impacted the aviation industry.

LTP also had to downsize its workforce to 80% due to the impact of the pandemic, but it now plans to start rehiring aviation mechanics and staff soon to support the initial production and capacity of Hangar 1A.

Lutter said they are pushing for completion of Hangar A1 with indications showing a “recovery coming strong… as many aircraft come out from parking.”

He said the recent easing of travel restrictions around the world, including in the Philippines, has brought demand back, with hangars being “much again full and we have a line of customer airlines waiting to be served by our very able Filipino workforce that has spent the last two years preparing, training, and expanding their skills for this moment.”

Established in 2000, LTP is a joint venture between Hamburg-based Lufthansa Technik AG and Philippine aviation support service provider MacroAsia Corporation. It has more than 2,600 employees across its key sites nationwide, including Clark, Cebu, Davao, Kalibo, and Puerto Princesa.