BIZ BUZZ: LTP seeks better terms
When the San Miguel Corp.-led group took over the operations of Ninoy Aquino International Airport, the costs (e.g. parking fees) have gone up in line with the concession agreement set by the government.
Along with these is the rise of leasing rates, which can cause financial strain on locators, including maintenance, repair and overhaul company Lufthansa Technik Philippines (LTP).
The company, a joint venture of Lucio Tan-led MacroAsia Corp. and German aircraft maintenance company Lufthansa Technik AG, is currently negotiating for favorable lease terms, a source told Biz Buzz. This is amid speculations of Lufthansa potentially pulling out of the country due to expensive rent.
LTP’s current lease rates, which was based on the contract signed 25 years ago when the Special MacroAsia Economic Zone was established, will only be effective until Aug. 31 this year.
“Discussions are still ongoing with the government for the rates that will apply after this date,” said the source.
It’s obviously preferable if LTP would agree to retain the existing rates, but the source acknowledged there would eventually be a compromise.
It is vital to have “flexibility from all sides” to reach an agreement, the source quipped.
