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Manila Bulletin devider devider PAL, Lufthansa Technik Phils. ink $260-M maintenance deal

PAL, Lufthansa Technik Phils. ink $260-M maintenance deal

Published May 18, 2018 12:00 am
By James A. Loyola MacroAsia Corporation, the airline services unit of the Lucio Tan group reported that Philippine Airlines (PAL) and 49 percent-owned Lufthansa Technik Philippines have signed a US$260-million maintenance agreement. In a disclosure to the Philippine Stock Exchange, MacroAsia said the 12-year maintenance agreement formalizes the turnover of line maintenance services for PAL’s incoming A350s and A321 Neos, effective May 31, 2018. The volume from this 12-year agreement is estimated to be worth more than US$260 million during the life of the agreement. LTP started preparing for the servicing of the A321neo and the A350-900 as early as 2016. To be ready for the entry into service of these new planes, LTP is investing about US$15 million to cover for the training of mechanics, facility adjustments and for tooling and materials. “This agreement between PAL and LTP is a testament to their solid partnership, aligned with the overall goal of delivering a better flying experience for PAL’s passengers,” MacroAsia said. In 2018, PAL expects to get four A350-900s, six Airbus A321neos and five Bombardier Q400s. PAL foresees to end the year with 98 aircraft in its fleet as it currently has 89 aircraft. PAL’s move to modernize its fleet, with LTP’s help, is part of the initiatives being implemented to achieve a five-star rating for PAL by 2020.
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