Lufthansa Technik bags PAL, 3 other airline deals

The aircraft services provider of Lucio Tan’s MacroAsia Corp. and Germany’s Lufthansa Group announced on Monday a string of airline contracts.

Lufthansa Technik Philippines (LTP) said it signed agreements with Philippine Airlines (PAL), Lufthansa Airlines, Korean Air and Asiana Airlines, adding these would “continue its growth momentum and solidify its foothold as a leading MRO (maintenance, repair and overhaul) provider in the Philippines.”

Among these was a deal signed on June 24 with Lufthansa Airlines for its fleet of Airbus A380 aircraft.

“This latest deal caps off a fruitful A380 program for the MRO provider, as it comes at the heels of other customers who contracted LTP for their base maintenance services as well—Korean Air and Asiana Airlines,” LTP said on Monday.

For LTP, all A380 contracts would generate more than $200 million in terms of “export business” and would support more than 500 jobs within the company.

“With plans to expand its operations and facility, LTP is seeking to ramp up its capabilities and to aggressively capture future market opportunities,” it added.

PAL had earlier tapped LTP to maintain its new Airbus jets in a deal valued at over $260 million. The agreement formalizes the assignment of line maintenance services for PAL’s incoming A350s and A321 Neos.

LTP provides aircraft MRO services to airline companies from all over the world. It is also the largest majority-controlled company of the 30 subsidiaries within the Lufthansa Technik Network.

MacroAsia owns 49 percent of LTP. The venture booked a net income of $37.5 million last year, up 76 percent, MacroAsia had earlier announced. MacroAsia shares rose 3.33 percent to P24.80 per share yesterday.