Lufthansa Technik PHL targets to complete $40-M hangar in Feb

WORK on Lufthansa Technik Philippines, Inc.’s (LTP) $40-million hangar expansion project in Pasay City has resumed after being halted due to the pandemic crisis, its chief executive officer said on Wednesday.

“So, our decision was made at the end of August, [at a] board meeting, to unfreeze the additional investment to complete the hangar, so we fully mobilized in September,” LTP President and Chief Executive Officer Elmar Lutter said at a virtual briefing.

The aircraft maintenance and repair company also intend to rehire the employees who were laid off last year.

“The rehiring will start soon… We have 2,700 employees at the moment. I hope that by next year, we will be back to 3,400. We reduced by 700 employees, a mixture of early retirement, voluntary separation and also a small portion of retrenchment,” Mr. Lutter said.

The company broke ground for its new hangar at the MacroAsia Special Economic Zone in Pasay City in November 2019.

The hangar, which will be known as Hangar 1A, is part of the company’s efforts to expand its capacity in the Philippines.

The 9,000-square meter hangar is expected to contribute 20% to LTP’s revenues. It was initially expected to start operations in the fourth quarter of 2020.

“The new target [for] completion is February next year. We are pushing for the completion because we think the demand will come back sustainably… We think that the indications, which we have from the industry, show us that we will see recovery coming strong even in the first phase as many aircraft come out of parking,” Mr. Lutter said.

The new hangar will allow LTP to service more aircraft including Airbus A380.

“The hangar alone is $20 million, and all the ancillary buildings and tools related to full capacity is another $20 million,” Mr. Lutter said.

At the same briefing, Trade Secretary Ramon M. Lopez said the government is now looking at the possibility of reducing the quarantine period for air travelers in order to help the industry.

“As to the discussion on reducing the number of days for quarantine, yes, it is being taken up now… First at the technical level and for consideration… probably at this week’s meeting or next week,” he said.

“While COVID-19 (coronavirus disease 2019) may have temporarily affected the operations of the entire aviation industry, we are happy to note that now, with the anticipated completion of Hangar 1A…, and the re-opening of Lufthansa Technik Philippines’ aircraft maintenance, repair, and overhaul services, we can say that indeed our country’s aviation industry and its support sector are beginning to bounce back from the effects of the global health crisis,” Mr. Lopez also said. — Arjay L. Balinbin