Lufthansa Technik and MTU Aero Engines to establish MRO joint venture

Lufthansa Technik and MTU Aero Engines are planning to set up a joint venture company for the MRO of geared turbofan (GTF) engines, with each of the partners holding a 50-percent stake. An agreement to this effect was signed by the two companies in Berlin (Germany) on the 20th of February 2017 after the feasibility of such a joint venture had been examined over the past few months. Subject to different approvals (e.g. by the relevant antitrust authorities) both parties act on the assumption of the joint venture foundation within the second half of 2017.

According to the plans, the new facility will be up and running by 2020 and have a workforce of over 500 employees. By 2020, a total amount of around 150 million euros will be invested into the new location. In terms of annual capacity, the facility will be designed to accommodate over 300 shop visits of PW1000G-family GTF engines for the Airbus A320neo family of jetliners and other aircraft. The search for a globally competitive location in or outside Europe will be completed within a few months’ time.

Johannes Bussmann, Chairman of the Executive Board of Lufthansa Technik AG, said: “We are pleased to have found a strong partner in MTU with whom we can steer our joint company to success. For Lufthansa Technik, this move marks another important step in strengthening and expanding its partnerships with reputable engine manufacturers.”

Michael Schreyƶgg, Chief Program Officer of MTU Aero Engines AG, commented: “With the new joint venture, MTU is continuing its successful partnership strategy. Lufthansa Technik is the ideal partner for us in this endeavor. By setting up a joint facility, capital investments can be shared and opportunities for synergy and scale generated for both companies. Our objective is to build the most efficient MRO shop for GTF engines around.”

According to LHT, it has been maintaining various Pratt & Whitney engine types for decades. Back in July 2016, Lufthansa Technik became a member of the aftersales service network for the U.S. company’s GTF engines. The network offers the whole range of MRO services for PW1000G engines.

MTU Aero Engines is a partner of Pratt & Whitney in the PW1000G programs. To date, airlines around the world have ordered more than 8,000 of the engines incorporating geared turbofan technology to modernize their fleets.

Lufthansa Technik and MTU have been partnering in a successful, 50-50 joint venture in Malaysia since 2003. Airfoil Services Sdn. Bhd. (ASSB) near Kuala Lumpur specializes in the repair of low-pressure turbine and high-pressure compressor airfoils.