Lufthansa Technik Philippines (LTP) is eyeing to rehire previously laid off employees after it has resumed the construction of its $40-million hangar.
LTP President Elmar Lutter said in a press briefing on Wednesday that the maintenance, repair and overhaul (MRO) services provider started picking up where it left off in August and began construction again a month after.
The 9,000-square-meter facility was originally scheduled for completion in September last year but the demand slump for MRO services amid the travel restrictions delayed the project.
The Hangar 1A is now slated to be completed in February next year, he said. Lutter noted that the accompanying auxiliary buildings “will take a little longer” but are still expected to be done in the first half of 2022.
“We are pushing for the completion because we think the demand will come back sustainably,” he said. For now, however, Lutter said demand has yet to return to pre-pandemic levels.
Despite the delay and losses caused by the pandemic, Lutter said the project—funded by loans and LTP’s own money—remains intact.
“We have to manage our cash. We have to be careful with the investment, but the plan is that not only we’ll complete the core investment of the Hangar, but also all the auxiliary investments,” he said.
Once completed, the facility will add 25 percent to its capacity, requiring an additional 275 jobs. It will be the MRO firm’s fourth hangar providing base and line maintenance to commercial aircrafts, including Airbus A320, A330, A350, A380 and B777.
As such, Lutter said they will begin building up their staff again. He shared that 700 employees were let go last year—through retrenchment and retirement. The company is targeting to expand its workforce to 3,400 in 2022.
“The rehiring will start soon. We had to reduce to 80 percent. I think we will cross 80 percent the first quarter [next year], and especially with the additional production capacity in Hangar 1A,” he said.
Meanwhile, Lutter said LTP looks forward to servicing up to six smaller planes—from two—next year given the demand.
“Some routes see fewer passengers and can be served with smaller planes. For us, it means that we will also shift our intention to smaller planes and will increase our production capacity for the smaller planes and wait a little bit longer to expand our wide body offers,” he said.
For his part, Department of Trade and Industry (DTI) Secretary Ramon Lopez said the resumption of the facility’s construction signals that the “country’s aviation industry and its support sector is beginning to bounce back from the effects of the global health crisis.”
The DTI official said the government wants to further help the sector by driving demand through the easing of restrictions amid the vaccination rollout.
“If we are in the process of easing, we can welcome as many as possible and lift the demand for aviation and transportation,” Lopez said.
Image courtesy of https://www.lht-philippines.com/