German airline Lufthansa’s unit in the Philippines has presented the first phase of its expansion plans in the country to President Ferdinand R. Marcos Jr., who recently concluded his official trip to Berlin.
In a statement Thursday, Department of Trade and Industry (DTI) Secretary Alfredo Pascual said Lufthansa Technik Philippines (LTP) president and chief executive officer Elmer Lutter discussed the company’s plan to invest USD150 million (PHP8 billion) in Clark, Pampanga.
The DTI said this investment pledge from LTP is on top of the USD4 billion commitments presented to the Chief Executive in a business forum in Berlin on Tuesday.
“This facility in Clark will complement LTP’s existing 23-hectare technical base and hangar at the Ninoy Aquino International Airport (NAIA), built in the 1980s,” the DTI said.
At the launching of LTP Hangar 1A at the MacroAsia Special Economic Zone in Villamor Airbase, Pasay City in August 2022, LTP vice-president for marketing and sales Rainer Janke said the company has reached the maximum capacity of its Metro Manila facility and needed to search for new locations for its expansion.
Janke then mentioned that the Clark Special Economic Zone is “very attractive” for LTP’s next investment.
Moreover, the DTI mentioned that LTP will be leasing 2 hectares of land in Clark for the new hangar that can accommodate at least two Airbus A380 aircraft.
The construction of its second hangar will span for two years, the DTI said.
The new project is expected to employ an additional 400 workers, it added.
“(T)he expansion plan of LTP will also provide high-quality and better-paying jobs to Filipinos while strengthening the aerospace MRO (maintenance, repair, and overhaul) capabilities of the country,” the trade department said.
In a Viber message, the DTI said the PHP8-billion investment in Clark is part of the first phase of its expansion in the country.
“The company shared the possibility of a Phase 2 expansion, either in Clark or at new airport sites in Bulacan or Sangley Point,” the DTI added.
To recall, Lutter said in October last year that the company is eyeing a PHP15-billion investment to build additional hangars in Clark but this has yet to be approved by Lufthansa’s bosses.
Meanwhile, LTP is looking into tapping the Maharlika Investment Corp. to fund the project. LTP executives are set to meet Maharlika Fund president and CEO Rafael Consing Jr., the DTI said.
Aside from the expansion of its MRO operations in the country, Pascual said Lufthansa also considers Manila as the next destination for its direct flights between Europe and Southeast Asia.
“It does not only open opportunities for tourism but also for other business services of Lufthansa that the Philippines can support,” Pascual said. (PNA)
