Lufthansa to invest $400 million for Clark maintenance hub

MANILA, Philippines — Lufthansa Technik Philippines (LTP) is planning to invest $400 million for a maintenance, repair and overhaul (MRO) facility in Clark, according to the Bases Conversion and Development Authority (BCDA).

In a briefing yesterday, BCDA president and CEO Joshua Bingcang said that it received LTP’s investment proposal for MRO operations covering a 15-hectare area in the Clark aviation capital (CAC) last month.

CAC is an area surrounding the Clark International Airport.

Bingcang said the firm is looking to invest at least $400 million to build hangars that can accommodate the A380, the world’s largest passenger aircraft.

“We’re negotiating right now,” he said.

He said the BCDA hopes to complete the negotiations with LTP for the planned expansion within the first quarter.

The contract is expected to cover 25 years with an option for renewal.

“They already did the initial survey, ground assessment (work). They have already spent on pre-development activities,” he said.

Asked if the investment proposal includes the possibility of moving LTP’s operations from the Villamor Air Base in Pasay to Clark amid lease adjustments in the former, he said the proposal only covers the firm’s expansion in Clark.

LTP is a joint venture between Lufthansa Technik AG and Lucio Tan-owned MacroAsia Corp.

At present, LTP operates at a 226,000 square-meter facility at the MacroAsia Economic Zone in Villamor Air Base.

Lease rates are being adjusted following the takeover of the San Miguel Corp.-led New NAIA Infra Corp. of the country’s main international gateway.