Lufthansa Technik in talks to set up $400-M Clark facility

LUFTHANSA TECHNIK Philippines is currently in talks to establish a $400-million 15-hectare aircraft maintenance and repair operation at the Clark Aviation Capital that can service jets as large as the Airbus A380, the Bases Conversion and Development Authority (BCDA) said.

BCDA President and Chief Executive Officer Joshua M. Bingcang said Lufthansa Technik “sent a letter of proposal to us, so we are negotiating right now,” he told reporters on Thursday, noting that the operation could eventually occupy a bigger area.

“Our target is to close this deal by the first quarter,” he said, adding that the initial facility is expected to take two or three years to build.

“Because of the quality of the runway at Clark Airport, they will be building hangars for the A380, the biggest commercial aircraft,” he added.

Lufthansa Technik also operates a facility at the Ninoy Aquino International Airport (NAIA).

Lufthansa “has done the initial survey and ground assessment. So ginastusan na nila ’yong pre-development activities, nagtatawaran na lang ng commercial lease (It has invested in pre-development activities, and we are discussing commercial lease terms),” he said.

He said that the contract is expected to run for 25 years, renewable for another 25.

The BCDA is investing P7 billion for improvements at the airport, including a new apron, runway, and taxiway.

“Right now, there is a shortlist of consultants. By March, it will be awarded. This is going to be a milestone contract,” he said, referring to the apron project.

He said the apron will cost P2 billion, and forms part of the BCDA’s commitment to Federal Express Corp., which is planning to expand its 3,000-square-meter facility.

“The investment of FedEx for the facility will cover 80,000 square meters; that is bigger than NAIA Terminal 1 and NAIA Terminal 2 and is almost as big as the Clark Airport,” he said.

“FedEx really made Clark their Southeast Asian hub. Right now, they have three to four flights a day, but when their new headquarters is finished, it is going to be 20 planes a day,” he added.

He said the FedEx headquarters alone will require an investment of $80 million.

“Pero, ’yong laman (But the contents), the equipment, I think is worth twice,” he added, estimating the company’s investment in the expansion at around $240 million.

FedEx plans to open the new facility by the third quarter of 2027, putting pressure on the BCDA to complete the apron.

“Dapat two months kaming mauna kasi i-tetest pa nila. (We need the apron completed two months in advance to allow FedEx to run tests). “They have chosen a developer, and permits have been applied for,” he added. — Justine Irish D. Tabile