Lufthansa Technik and MTU Aero Engines agree on concluding a joint maintenance company

Lufthansa Technik and MTU Aero Engines are planning to set up a joint venture company for the maintenance, repair and overhaul (MRO) of geared turbofan (GTF) engines, with each of the partners holding a 50% stake. An agreement to this effect was signed by the two companies in Berlin on February 20, 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 €150m 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. 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.