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Lufthansa, FedEx gear up for expansion in Clark
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Lufthansa, FedEx gear up for expansion in Clark

Logan Kal-El M. Zapanta

Aircraft maintenance provider Lufthansa Technik Philippines (LTP) is ramping up its expansion beyond Ninoy Aquino International Airport (Naia) after signing a lease agreement at Clark International Airport.

Meanwhile, Federal Express Corp. (FedEx) is targeting to begin construction this quarter on the expansion of its facility at the Pampanga airport, as the global logistics giant moves to strengthen the Philippines’ role within its Asia-Pacific network.

On Tuesday, Lucio Tan-led MacroAsia Corp.—which operates LTP through a joint venture with Germany-based Lufthansa Technik AG—said the maintenance, repair and overhaul (MRO) provider signed the Clark lease deal on May 18.

This marks LTP’s second major lease transaction in just a month, following its extension deal with New Naia Infrastructure Corp. for its 226,000-square-meter facility at the Naia after its original 25-year lease expired in 2025.

While LTP did not disclose the terms of the Clark agreement, the firm has long been eyeing an MRO expansion in Central Luzon as congestion at Naia continues to constrain growth.

In 2023, the company said it planned to invest P15 billion in a two-phase Clark expansion by 2026. The proposed facility was designed to accommodate up to eight aircraft simultaneously, adding to LTP’s existing 10 base maintenance lines.

But Joshua Bingcang, president and CEO of the Bases Conversion and Development Authority, said last February that LTP was already considering a larger $400-million, or nearly P25-billion, investment for a 15-hectare MRO complex in Clark.

The planned hangar facility is expected to accommodate widebody aircraft, including the Airbus A380, the world’s largest commercial passenger jet.

With the new lease, LTP formalizes an expansion it has long viewed as key to broadening its operations beyond the congested Naia.

Also on Tuesday, FedEx said its upgraded Clark facility would eventually span more than 78,000 square meters, expanding its handling and operational capabilities to improve shipment flow and service reliability.

This, the company added, would support express, e-commerce and freight shipments.

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Robinsons Land Corp. was tapped as the project developer.

“The expansion of our Clark gateway reflects our continued commitment to the Philippines and to building a smarter, more resilient network across the region,” said Masamichi Ujiie, FedEx president in the North Pacific and South Pacific.

“By enhancing our operational capabilities at Clark, we are better positioned to support Philippine businesses, enable efficient cross-border trade and provide more reliable connectivity to global markets,” he added.

In an earlier interview, BCDA’s Bingcang said FedEx was prepared to invest as much as $80 million for its Clark expansion.

This amount covers the facility alone, while investments in equipment could potentially double the value of the initial build, Bingcang said.

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