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Manila Bulletin devider Business devider Trade & Industry devider Lufthansa Technik eyes $400-million Clark aviation hub

Lufthansa Technik eyes $400-million Clark aviation hub

Published Feb 5, 2026 03:40 pm

Aircraft maintenance provider Lufthansa Technik Philippines (LTP) is planning to invest around $400 million to build a maintenance, repair, and operations (MRO) facility at Clark Aviation Capital (CAC), positioning the estate as a premier aviation hub.

Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer (CEO) Joshua Bingcang on Thursday, Feb. 5, said LTP, which currently operates a facility at Ninoy Aquino International Airport (NAIA), submitted a project proposal to the state-run firm last month.

Bingcang said the Lucio Tan-backed company plans to construct an MRO facility spanning 15 hectares (ha) on prime government land surrounding Clark International Airport, also known as CAC.

LTP is branching out into CAC largely due to growth constraints at NAIA, given the heavy congestion at the country’s primary gateway.

The move also comes amid rumors that LTP may pull out of NAIA after lease costs for its 226,000-square-meter (sqm) facility ballooned following the airport’s takeover by a private operator in 2024.

Asked whether the CAC project could be part of such a pullout plan, Bingcang said he believes LTP will remain at NAIA and that the project is simply part of the company’s business expansion.

Bingcang said negotiations on the lease rate for the proposed site are ongoing, noting that pricing would be aligned with those of other MRO facilities at CAC.

The contract is expected to span up to 25 years, with an option for extension.

Bingcang said he hopes BCDA and LTP will complete contract negotiations by the first quarter, with construction expected to begin immediately afterward and completion targeted within two to three years.

LTP is currently in the pre-development stage of the proposed facility, which is expected to house hangars capable of accommodating widebody aircraft such as the Airbus A380.

Bingcang said the capability to handle large aircraft is a key advantage of CAC’s spacious runway, which is set for further development.

He said BCDA is investing around $7 billion to build a second runway, taxiway, and apron to further support airport operations and cater to increased demand from logistics locators.

In particular, Bingcang said the upgrades are designed to support the planned expansion of logistics giant Federal Express Corp. (FedEx) in Clark.

From its current three flights per day, FedEx aims to expand its daily flight schedule to 20, supported by an 80,000-sqm facility estimated to cost around $200 million.

Bingcang said construction of the airport apron will begin this year and is expected to be completed in the second quarter of next year, with FedEx’s new facility slated to open in the following quarter.

Meanwhile, construction of the taxiway and the second runway will start next year.

Once completed, Bingcang said these projects are expected to solidify CAC as FedEx’s main hub in Southeast Asia.

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