LUFTHANSA Technik Philippines (LTP) on Wednesday said it has no plans to relocate outside of the Philippines, despite concerns over the proposed Comprehensive Income Tax and Incentives Rationalization Act (CITIRA).

This comes as the aircraft maintenance and repair company broke ground for a new hangar at the MacroAsia Special Economic Zone in Villamor Airbase, Pasay City.

“We are not yet looking to relocate because we trust the current process,” LTP President and Chief Executive Officer Elmar Lutter told reporters on Wednesday when asked if the company plans to relocate outside of the Philippines with the expected passage of the proposed CITIRA.

LTP earlier said that it was hoping to continue to enjoy tax-free and duty-free spare parts imports under the proposed CITIRA. This was supported by the Trade department.

“We have reached out to the government and we already handed in our position about the matter,” Mr. Lutter said, noting the Senate has not started deliberations on the CITIRA bill.

The new hangar, which will be known as Hangar 1A, is part of the company’s efforts to expand its capacity in the Philippines.

The 9,000-square meter (sq.m.) hangar is expected to contribute 20% to LTP’s revenues, and will start operations in the fourth quarter of 2020. It will allow LTP to service more aircraft including Airbus A380 aircraft.

Mr. Lutter said the company is allotting $40 million for the facility, which will create 275 new jobs.

“Lufthansa Technik Philippines has always been the country’s forerunner in the MRO (maintenance, repair and overhaul) industry. As we approach our 20th year, it’s about time we showcase the Philippines as an aviation stronghold in Asia-Pacific. The company strongly believes in the ability of the Philippines to be a hub for aviation services in the region, and proof of this is our expansion and continued commitment to the country,” Mr. Lutter was quoted as saying in a statement.

“With the expansion of our facilities and services through the construction of Hangar 1A, we will be opening LTP’s doors to 275 more Filipino workers to help the Philippine MRO industry grow, together with the sustained growth of the Philippine economy,” he added.

The company said it provides maintenance services to various commercial aircraft including Airbus A320, A330, A350, A380, and Boeing B777.

LTP is a joint venture of Hamburg-based Lufthansa Technik AG and Philippines’ biggest aviation support service provider MacroAsia Corporation. It currently employs 3,300 workers in key cities such as Clark, Cebu, Davao, Kalibo, and Puerto Princesa. — Arjay L. Balinbin

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