Lufthansa Technik Philippines, Inc, (LTP), a joint undertaking between MAC (49%) and Lufthansa Technik AG of Germany (51%), started commercial operations on September 1, 2000 and has since consistently generated local and export revenues as a locator at the MacroAsia Special Economic Zone in the Ninoy Aquino International Airport (NAIA). 

LTP is a global aircraft maintenance, repair and overhaul (MRO) company that is putting the Philippines in the global aviation map by assuring safe and reliable airline operations to its worldwide customers through quality and cost-effective services that strictly adhere to international industry regulations and Lufthansa Technik standards.  It is certified by 17 airworthiness organizations worldwide as a qualified provider of aircraft MRO services including the Civil Aviation Authority of the Philippines (CAAP), the United States’ Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA).

Now on its 10th year of service, LTP continues to have Philippine Airlines as its most important customer while expanding its global reach to include customers from six continents which entrust their Airbus A320, A330/A340 aircraft for the more complicated maintenance and overhaul checks. Currently totaling close to 30, these customers include Lufthansa German Airlines, Virgin Atlantic, Qantas Airways, AirAsia X, LAN Airlines, Vladivostok, Air Mauritius, Austrian Airlines, Kuwait Airways, Swiss International Air Lines, among others.

Aside from providing aircraft maintenance at the NAIA, LTP is also present in the international airports in Clark, Cebu and Davao.
 
Its facility at the NAIA comprises five widebody and two narrowbody hangar bays covering an area of 26,000 m2 and various workshops measuring 27,000 m2, capable of servicing seven aircraft at a time. 

2010 Operating Results
 
LTP’s revenues went down from US$ 226 million in 2009 to US$ 211 million in 2010 – a US$15 million or 7% decrease due to a 33% decline in heavy maintenance services.  Despite the revenue decline and pressure on operating costs, gross profit rate was maintained as direct costs were kept in check.  General and administrative expenses were likewise curbed by US$10 million or 29% compared to 2009.  In spite of the stronger peso vis-à-vis the US dollar, LTP recorded a foreign exchange gain amounting to US$0.5 million.  Bottom-line-wise, the company booked an increase of US$ 8.7 million or 65% compared to 2009 and managed to sustain a net income after tax ratio of about 10%.

Looking Forward

LTP will break ground in 2011 for the construction of a new aircraft hangar designed to meet the growing world demand for widebody aircraft maintenance and overhaul.

The new hangar project in Manila represents a US$ 30 million investment and capacity expansion by LTP and is expected to boost its capability in servicing the growing range of Airbus models that includes the A320, the A330 and the A340.  The proposed new hangar could also give LTP the option to accommodate the A380 aircraft which would allow the company to further build up its capability on the Airbus family.

Upon completion, the facility will be capable of accommodating one widebody and two narrowbodies or four narrowbodies at any given time.

Also, it has acquired a bigger space near the existing hangar at Mactan, Cebu that could be used to build an overflow unit for narrowbody maintenance works in the future.

With the additional capacity and expanded capability, continuing improvements in its operational efficiencies, and the anticipated recovery of the worldwide aviation market, the company is confident of  its future business.

MacroAsia Ecozone, Villamor Airbase
Pasay City 1300 Philippines
Tel. Nos. +63 2 855-2222
Fax Nos. +63 2 855-9392
www.ltp.com.ph