Lufthansa Technik and MTU Aero Engines exploring setting up a joint maintenance company

September 20, 2016
  • Joint venture for PW1000G geared turbofan engine MRO
  • Companies expect to leverage significant synergy effects

Lufthansa Technik and MTU Aero Engines are looking into options to jointly provide maintenance, repair and overhaul (MRO) services for the PW1000G family of geared turbofan engines. The two companies have signed a memorandum of understanding to explore the possibility of establishing an MRO joint venture at a globally competitive location. First decisions will be made by the end of the year.

The joint venture could handle a substantial amount of GTF shop visits already in the first few years of business. In the industry’s highly cost-competitive environment, the objective of set-ting up a joint facility is to generate opportunities for synergy and scale for both companies.

Lufthansa Technik has been maintaining various Pratt & Whitney engine types for decades. Just recently, in July, Lufthansa Technik became a member of the aftersales service network for the U.S. company’s geared turbofan (GTF) engines. The network offers the whole range of MRO services for PW1000G engines. With Lufthansa being the first airline to put a GTF-powered jet into commercial service, Lufthansa Technik is excellently positioned as an MRO services provider for GTF engine operators. The move will not affect the further development of LHT’s existing facilities.

MTU Aero Engines is a partner of Pratt & Whitney in the PW1000G program; 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 about 8,200 of the engines incorporating geared turbofan technology to modernize their fleets. Over the coming decade, the high-volume engine program will contribute substantially to MTU Maintenance’s revenues. Thanks to MTU’s broad portfolio of other engines, the existing facilities will have a sufficient workload also in the years to come.

The two companies 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.