Lufthansa to put up P15 billion hangars in Clark

MANILA, Philippines — The Philippine unit of Lufthansa Technik will invest at least P15 billion to build new hangars in Clark, as it ramps up space for aircraft maintenance, repair and overhaul (MRO) outside Manila.

Lufthansa Technik Philippines (LTP) will put up new bases outside of its headquarters in Ninoy Aquino International Airport (NAIA) in two phases.

The first phase will cover the construction of hangars in Clark that can serve aircraft as large as Airbus A380s and Boeing 777s.

The second phase of the project will expand LTP’s portfolio of bases meant for wide-body jets. LTP president and CEO Elmar Lutter said the company will invest P5 billion in the first phase and P10 billion in the second phase.

“We are maxed out here in NAIA, so we cannot build anything anymore. Our new hangars have to be built somewhere else,” Lutter said.

LTP will locate its new hangars in Clark for two reasons: first, because the area hosts the Clark International Airport – the main gateway to Manila next to NAIA – and second, because it has all the space needed for aircraft maintenance.

“What we want to build in Phase 1 is two large hangar bases, which can accommodate A380s as well. A380s are large aircraft, which is a problem in NAIA. In Clark, the space is much better,” Lutter said.

For the second part of the project, LTP wants to put up a base in an area with an emerging airport where it can situate a facility that can handle up to six aircraft.

Lutter said both phases of the development have yet to be approved by the board of directors of LTP’s parent. Once the plan is endorsed, the Philippine arm of Lufthansa Technik hopes to kick off negotiations of contracts in 2024 with the goal of completing the facilities by 2026.

“That is our logical step to move forward and in the long term, we have to build an alternative to NAIA. There are new airports that might also shift our priorities toward NAIA,” Lutter said.

LTP received the commitment of Transportation Secretary Jaime Bautista that the P15 billion expansion will be supported by the government through incentives.

LTP, a joint venture between Lufthansa Technik AG and MacroAsia Corp., employs about 2,600 Filipinos in its aviation facilities across the Philippines.