Lufthansa Technik bullish on Philippine MRO growth

By Ashley Erika O. Jose, Reporter

LUFTHANSA Technik Philippines (LTP) is optimistic about the growth prospects of the country’s maintenance, repair, and overhaul (MRO) industry as it moves to expand its operations in Clark and maintain its long-term presence in Manila.

“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 MRO industry,” LTP President and Chief Executive Officer Holger Beck told reporters on the sidelines of an event on Tuesday.

His remarks came after LTP signed a lease agreement with the Bases Conversion and Development Authority (BCDA) and Luzon International Premiere Airport Development Corp. (LIPAD) for the expansion of its aviation MRO operations within the Clark International Airport complex.

The agreement covers a 157,000-square-meter site that may also be developed into engine support and repair facilities.

“This investment by Lufthansa Technik reflects the confidence global aviation leaders have in Clark International Airport and in the opportunities available in Central Luzon,” LIPAD Chief Executive Officer Noel F. Manankil said in a statement on Wednesday.

LIPAD, the operator of Clark International Airport, said the facility is designed to support the continued growth of Clark as an aviation and logistics hub.

Mr. Beck said LTP remains focused on its operations in Manila and Clark and has no immediate plans to establish maintenance hubs elsewhere in the country.

“We are focused on Manila and Clark. We have two maintenance hubs and that will be long-term commitments,” he said.

“Setting up another maintenance hub requires a lot of details like logistical chain, where do we get your components. And in the Philippines at the moment, Manila and Clark are the best options from our perspective,” he added.

LTP expects its Clark maintenance facility to be completed by 2028.

“It takes around 18 to 24 months to have the hub operational in Clark. So we are focusing on the beginning of 2028,” Mr. Beck said.

He said the company competes with MRO providers across the region rather than within the Philippines.

“It is not that we are competing in the Philippines, we are competing in the region. The Philippines is a very competitive country, in particular for the very skilled, motivated people who are willing to work in the industry,” he said.

Lufthansa Technik Philippines is a joint venture between Germany-based Lufthansa Technik AG and listed aviation services provider MacroAsia Corp., part of the Lucio Tan Group.

In May, MacroAsia said Lufthansa Technik had signed a lease contract with New NAIA Infra Corp. (NNIC), the operator of Ninoy Aquino International Airport (NAIA).

San Miguel-led NNIC assumed the operations and maintenance of NAIA in September 2024 and has since implemented higher airport fees, including increased monthly lease charges, under a revised administrative order tied to its concession agreement.

LTP operates within the NAIA complex under a sublease agreement with MacroAsia Properties Development Corp. (MAPDC).

The original sublease agreement, which had a term of 25 years, expired in August 2025 and may be renewed for another 25 years.

In its 2025 annual report, MacroAsia said MAPDC had informed NNIC in May last year of its intention to renew the lease for another 25 years, although the extension had yet to be finalized.

The company also said it had been negotiating with airport authorities to determine the final lease rate applicable to the property.

LTP provides base maintenance services for Airbus A320, A330, A340, and A380 aircraft, as well as Boeing 777 aircraft. Its services also include structural modifications, cabin retrofit programs, and lease-return inspections.

For the first quarter, MacroAsia’s attributable net income fell 58.9% to P129.05 million from P313.91 million a year earlier, which the company attributed to lower equity earnings from associates and higher rental adjustment rates under Manila International Airport Authority Revised Administrative Order No. 1, Series of 2024.

Total revenues rose 11.2% to P2.63 billion, while gross expenses increased 13.9% to P2.46 billion.

Shares of MacroAsia gained six centavos, or 1.56%, to close at P3.91 each on Wednesday.