Lufthansa_Technik_MTU_JV_2017.jpg Lufthansa Technik

Lufthansa Technik, MTU Announce GTF JV

MRO partnership will aim for 300 annual shop visits from 2020.

Lufthansa Technik and MTU Aero Engines are to set up a 50-50 joint venture company for the maintenance of Pratt & Whitney PW1000G-family geared turbofan (GTF) engines.

The agreement was signed by both parties in Berlin yesterday (Feb. 20) after discussions around the JV’s feasibility were concluded.

Subject to different approvals including relevant antitrust authorities, both parties intend to inaugurate the JV in the second half of 2017.

A new €150 million ($158 million) facility in a yet to be selected location will be setup by 2020 and will have a workforce of more than 500 staff.

Both parties said they are actively searching for a location either inside or outside of Europe, with a decision expected in the next few months.

Once operational, the facility will accommodate in excess of 300 shop visits of the PW1000G-family GTF engine for the Airbus A320neo family aircraft, which entered into service on a Lufthansa-operated A320neo in January 2016.

Johannes Bussmann, chairman of the executive board of Lufthansa Technik, says the announcement of the new JV is another step towards strengthening and expanding its partnerships with “reputable engine manufacturers.”

Lufthansa Technik has maintained various Pratt & Whitney engine types for a number of years and in July 2016, became a member of the aftersales service network for the U.S. company's GTF engines.

MTU is an existing partner of the PW1000G program, which will also be used for the Bombardier CSeries, Embraer E-Jet, the Russian-built Irkut MC-21 and Japan’s Mitsubishi Regional Jet.

Michael Schreyögg, chief program officer of MTU Aero Engines, believes Lufthansa Technik is the ideal partner for the new venture.

“By setting up a joint facility, capital investments can be shared and opportunities for synergy and scale generated for both companies,” Schreyögg says. “Our objective is to build the most efficient MRO shop for GTF engines around.”

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