Gov't steps in to keep Lufthansa operating in Phl

The government is exploring ways to convince a prized investor at the Ninoy Aquino International Airport (NAIA) to stay, as it reportedly considers exiting the Philippines after its lease ballooned by 11 times.

- ELIJAH FELICE ROSALES

Transportation Secretary Vince Dizon is working with aircraft maintenance, repair and overhaul (MRO) provider Lufthansa Technik Philippines (LTP) to address its issues on lease rates, which have gone up since NAIA was privatized last year.

Under the Manila International Airport Authority's Administrative Order 1, land lease in NAIA was raised to P710 per square meter per month.

LTP operates a 226,000-square-meter facility at the MacroAsia Economic Zone in Villamor Air Base, so it spends P160 million monthly for lease. Aviation industry sources told The STAR that LTP used to pay just P14 million a month for lease.

Given this, there are concerns that LTP may eventually pack up operations in NAIA and relocate business elsewhere. This will be particularly painful for carriers requiring regular MRO for their fleet since currently, LTP can repair six widebodies and three narrow bodies at the same time.