Lufthansa Technik sees growing demand for MRO
The Philippines’ aircraft maintenance, repair and overhaul (MRO) sector is poised for further growth due to rising demand from international airlines, according to Lufthansa Technik Philippines (LTP).
“The MRO facility and the MRO business are going to grow here in the Philippines,” LTP president and CEO Holger Beck said in an interview with reporters.
Beck said the demand is largely driven by foreign airlines flying into the Philippines.
“We see a lot of demand coming into the Philippines, also because of the geopolitical tension that we see everywhere,” Beck said on the sidelines of German Federal President Frank-Walter Steinmeier’s visit to the LTP facility in Pasay City.
“The Philippines is a neutral place and we as Lufthansa Technik, we would like to be here and we are going to contribute to the growth of the country and the growth of the MRO industry over here,” he said.
Beck added that the Philippines is a very competitive country, noting that the country has a pool of skilled and motivated people who can work in the industry.
“If we in the Philippines are not competitive, then the customers are going to fly to any other neighboring country here in the Southeast Asian region. It’s not that we are competing in the Philippines, we are competing in the region,” he said.
LTP, a joint venture between Lucio Tan-led MacroAsia Corp. and Germany-based Lufthansa Technik AG, had signed a lease agreement for the development of a 157,000-square-meter MRO facility at the Clark International Airport .
The Clark facility, designed to accommodate up to nine widebody aircraft bays, will complement LTP’s existing operations at the Ninoy Aquino International Airport.
LTP, which has been in the country for over 25 years, said this will also help strengthen the Philippines’ presence in the Asia-Pacific region.
“Asia-Pacific is one of the fastest-growing aviation markets in the world, and the Philippines is central to our strategy in this region,” Lufthansa Technik CEO Soeren Stark said in a statement.
Beck explained that LTP chose Clark as the next site for the planned facility due to ready access to a logistics hub, connectivity to different parts of the country, proximity to the Subic seaport and the area’s growing aviation environment.
The facility’s operations are expected to start in 2028, with Beck saying the development will take about 18 to 24 months.
