News
LHT and MTU form engine maintenance joint venture
February 24th 2017
Germany’s two MRO heavyweights, Lufthansa Technik (LHT) and MTU Aero Engines, will form a joint-venture company for the maintenance, repair and overhaul (MRO) of Pratt & Whitney geared turbofan engines (GTFs). Read More »
Each partner will have a 50% holding in the joint venture with a total investment of €150 million (US$158 million) by 2020. A search for a competitive location has been launched. The JV partners plan to open the engine shop in 2020 with a workforce of 500 with a facility designed for more than 300 shop visits of PW1000G GTFs.
The PW1000G GTF is the sole engine choice for the Bombardier CSeries, the Mitsubishi Regional Jet and Embraer’s E-Jet E2s and one of two options for the A320neo Family.
MTU chief program officer, Michael Schreyögg, said: “Lufthansa Technik is the ideal partner for us in this endeavour. By setting up a joint facility, capital investments can be shared and opportunities for synergy and scale generated for both companies. Our objective is to build the most efficient MRO shop for GTF engines around.”
The LHT-MTU tie-up is one of a growing number of joint ventures, mergers and acquisitions among aviation suppliers. Earlier this month, Safran Aircraft Engines launched a controversial €8.5 billion takeover bid for Zodiac Aerospace that is now attracting shareholder opposition.
