Lufthansa Technik expanding operations in PH | Inquirer Business

Lufthansa Technik expanding operations in PH

/ 05:00 AM July 20, 2019

Aircraft maintenance, repair and overhaul (MRO) company Lufthansa Technik Philippines is planning to invest $40 million in expanding its operations in the Philippines, according to the Department of Trade and Industry.

In a statement, the DTI said the planned expansion would add 300 jobs to the company’s current 3,200-workforce.


Lufthansa has been in the country for 20 years, operating on a 229,000 square-meter lot in Villamor Airbase and employing 3,200 people. It also operates in Cebu, Davao, Pampanga, Palawan and Aklan.

Lufthansa president and CEO Elmar Lutter said the global MRO market was expected to grow by 4 to 5 percent a year, one third of which would come from the Asia-Pacific Region.


Lutter said job opportunities in other industries and the growing global demand for MRO skilled workers might lead to a labor shortage in the Philippine MRO industry.

The company enjoys fiscal and nonfiscal incentives, according to the DTI.

These incentives, Lutter said, helped Lufthansa deal with challenges, such as stiff competition in the Asia Pacific Region and the logistical costs of operating in an island country.

“The Philippines is positioning itself as the hub for aerospace manufacturing and aftermarket services in the Asia-Pacific Region. We have the young, educated and highly-trainable workforce that is a boon to investors,” Trade and Industry Secretary Ramon Lopez said.

“If we achieve this, we can increase our high-value exports and provide decent jobs to more Filipinos,” he added.—ROY C. CANIVEL

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TAGS: Airline industry, aviation, jets, Lufthansa
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