Home' Asian Aviation : AAV November 2010 Contents LTP expands product offering
Lufthansa Technik Philippines (LTP) is expanding
its product offering to cover overhaul layovers
-- base maintenance covering C-checks -- and
cabin refurbishment aimed at low-cost carriers
LTP secured Malaysian long-haul LCC AirAsia
X as a customer four months ago. With five
hangar bays and workshops, the company
offers C-checks, C4, and C8 capability for
Airbus A340/A330 and A320 family aircraft. It
also offers stripping and painting of the same
aircraft types as well as Boeing 747-400s.
Additional capabilities include repair and
overhaul of galleys, lavatories, passenger and
crew seats, rescue and safety equipment,
in-flight entertainment (IFE) and avionics
modifications, and structural programmes. LTP
plans to convert of one of its hangars for use by
LCCs, accommodating three to four single-aisle
A320-family aircraft light C-checks and C4/
LTP is an engine parts and accessories repair
centre for Lufthansa Technik, specialising in
shroud repair. It is the first subsidiary under the
Lufthansa Technik Group to receive the EASA
21 Design Organisation Approval, paving the
way for the company to develop minor repairs
and alterations without the assistance of
original-equipment manufacturers (OEMs) like
Airbus and Boeing.
Vice president for marketing and sales
Dominik Wiener-Silva said the approval has
been instrumental in helping LTP achieve
reduced turnaround times.
LTP, which started operations in 2000
with a workforce of 1,300 at Ninoy Aquino
International Airport in Manila, has expanded it
to 2,700. It has 24 aircraft overhaul customers.
"In view of growth, especially in the Asian
market, and our competitive product, we aim
to expand our customer base [and] not just in
the region," said Bernhard Krueger-Sprengel,
the company's president and chief executive
LTP is a joint venture of Germany's Lufthansa
Technik, which owns 70 percent of the company,
with MacroAsia Corp of the Philippines, which
holds the remaining 30 percent.
New hangar, new
Boeing Shanghai Aviation Services was set up
in June 2006 as a joint venture between US
manufacturer Boeing, Shanghai Airlines and
Shanghai Airport Authority.
It is based at Shanghai Pudong International
Airport, and started out using Shanghai
Airlines' engineering hangar. It has since
added a new, two-bay hangar that opened in
The company recently celebrated a new
success, with the signature of a five-year heavy
maintenance contract for Boeing 767 jetliners
with Aeroflot Russian Airlines. The company
has not revealed the value of the contract.
At the same time, Boeing Shanghai has
signed a Memorandum of Understanding
with Boeing Commercial Airplanes to be a
supplier of Fleet Management and GoldCare
MRO services, covering line and scheduled
maintenance, component management,
engineering and planning.
During the past year the MRO venture
has won approval from the US Federal
Aviation Administration (FAA), European
Aviation Safety Agency (EASA) and Thailand's
Department of Civil Aviation (DCA) for all
levels of scheduled maintenance on Next-
Generation 737 and 767 jetliners.
Boeing Shanghai also offers cabin upgrades,
and maintenance of avionics and in-flight
entertainment systems, as well as being an
approved passenger-to-freighter conversion
centre for 737 aircraft.
projected total US$42.3 billion spend, engine
MRO will account for 43 percent, followed
by heavy maintenance and modifications (21
percent of the total) and line and component
maintenance (18 per cent each).
With the introduction of new aircraft, requiring
less maintenance, the average MRO cost per
aircraft per year has dropped from US$2.4 million
in 2009 to US$2.1 million this year.
The global MRO industry is projected to
grow 4.4 per cent a year to US$65.3 billion
through to 2020. The engine MRO market
is set to become even more competitive, as
more MRO service providers expand their
product offering, responding to airline fleet
changes and expansion.
With airlines having realigned their business
strategies to deal with the crisis, operators are
increasingly favouring more flexible commercial
MRO solutions that provide value-added services
justifying their cost. Carriers have been seeking
to maximise profitability through increased
aircraft utilisation, which leads to heightened
demand for maintenance services.
Incumbents and entrants in the MRO market
face the challenge of being more competitive
while also offering greater flexibility in their
product offering to achieve sustainable growth
and long-term profitability.
Air travel demand in the Asia-Pacific is rapidly
gaining momentum, driven especially by
burgeoning economies such as those of China
and India. Analysts predict that this will continue
over the next few decades.
Growth in air travel demand is closely linked
to economic expansion and an increasingly
affluent population. China's domestic air travel
sector recovered faster than projected last year
thanks to the country's healthy economy.
In the first half of this year, China's domestic
civil aviation market grew an impressive 31.5
percent, as the economy expanded 11.1 percent
to 17.28 trillion yuan (US$2.55 trillion).
Technik Philippines has more
than doubled its workforce
over the past decade.
24 AsianAviation | NOVEMBER 2010
Links Archive AAV October 2010 AAV Dec Jan 2010 Navigation Previous Page Next Page