Lufthansa Technik Philippines proposes $400 million MRO complex at Clark

Lufthansa Technik Philippines (LTP), a Germany-based aircraft maintenance provider, is planning to invest approximately $400 million (€337 million) in a 15-hectare maintenance, repair, and operations (MRO) complex at Clark Aviation Capital, according to ABS-CBN News.

The project could further boost Clark's emergence as a key aviation centre in the Philippines.

Bases Conversion and Development Authority (BCDA) President and Chief Executive Officer Joshua Bingcang stated the aircraft maintenance provider formally presented its proposal to the government-owned firm last month. Bingcang expressed hope to close the deal with Lufthansa by the first quarter of this year.

Bingcang noted negotiations are ongoing regarding lease rates. The company is seeking a 15-hectare expansion at Clark Airport, representing significant foreign direct investment. Beyond revenue, the investment and jobs the project will bring are priorities for the authority.

The quality of the Clark Airport runway enables the construction of hangars to accommodate Airbus A380 aircraft, the largest commercial aircraft globally. The contract is expected to run for up to 25 years.

This development comes as the Lucio Tan-backed LTP is currently negotiating a lease renewal for its MRO facility at Ninoy Aquino International Airport following the expiration of its 25-year contract in August 2025. LTP experienced sharp lease cost increases for its 22.6-hectare NAIA facility following the takeover by the San Miguel-led consortium, New NAIA Infra Corp., in 2024.

Bingcang downplayed speculation of a NAIA pullout, stating LTP plans to retain operations there and the Clark project is meant to support company expansion.

Read the full story on Lufthansa Technik Philippines' proposed Clark aviation hub.