Lufthansa Technik and MTU Aero Engines Partner Over GTF Engine Maintenance

Lufthansa Technik and MTU Aero Engines have signed an agreement to establish a joint venture company for the maintenance, repair and overhaul of geared turbofan (GTF) engines. Signed on 20 February this year, it is expected to come into force in the second half of 2017. Each company will hold a 50 percent stake.

According to the plans, €150 million will be invested in the new facility which will be operational by 2020 and have a workforce of over 500 employees. It is being designed to Iaccommodate over 300 shop visits of PW1000G-family GTF engines for the Airbus A320neo family and other aircraft. The search for a globally competitive location in or outside Europe will be completed within a few months’ time.

Dr. 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 Schreyögg, 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.”

In July 2016, Lufthansa Technik became a member of the aftersales service network for GTF engines. MTU Aero Engines is a partner of Pratt & Whitney in the PW1000G programs; the engines have been selected as the propulsion systems for new aircraft programs launched by five different aircraft manufacturers. To date, airlines around the world have ordered more than 8,000 of the engines.

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

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