DUBAI—Lufthansa Technik Middle East Services (LHTMES) is considering adding capacity—up to twice what it has now—and capability in Dubai.
LHTMES could announce a letter of intent this week for a space that could be ready in a little more than a year, according to Ziad Faisal Al Hazmi, CEO of the Dubai-based company.
The potential growth stems from regionalizing customer support—putting more parts, more repairs and more technical expertise here, which can lower turnaround times and cut costs, says Al Hazmi.
LHTMES started with a limited range of technical services and sales activities, but has added composite repairs and painting, material support and Cyclean engine washing in Dubai.
“We’ve built up logistics processes this past year so we can store, repair and replenish customers’ parts,” he says.
When asked about adding capabilities, Al Hazmi says the company considers service solutions that make economic sense to perform in the region. For instance, given that transporting a large thrust reverser from Dubai to Europe and back can cost $40,000 or more, placing these types of services in region can quickly cut maintenance bills, says Al Hazmi.
Aviation Week forecasts that Middle East operators will spend $4.6 billion on MRO in 2015, with 41% of that on engines and 22% on components.