Dornier Technology seeks financing for expansion

Dornier Technology, which recently secured its US FAA certification as a foreign repair station for heavy maintenance on the Airbus A320 aircraft family, is in talks with local and foreign banks, as well as possible equity investors, to finance its expansion plans for its existing facilities at the Clark International Airport (CRK) in Pampanga.

- MARIANNE GO

In an exclusive interview, Dornier Technology CEO Nikos Gitsis revealed that he is already in talks with some local and international banks to secure as much as $42 million to finance the company’s plan to expand and build a new hangar in Clark to accommodate more MRO (maintenance, repair, overhaul) work on Airbus aircraft following the US FAA certification.

Securing the US FAA certification, he said, was “the catalyst for growing the business, or a reason to grow the business.”

Based on Gitsis’s timetable, he is negotiating to secure at least $16 million for the first tranche in the next six months to one year to build a second hangar, and an additional $26 million or more for the second tranche to fully develop and maximize the MRO facilities down the line.

According to Gitsis, Dornier Technology only has one hangar that is around 6,000 square meters that can accommodate one to two aircraft inside the hangar, and another one to two outside the hangar.

However, it has leased additional land from CRK, which is operated by the Luzon International Premiere Airport Development (LIPAD) Corp., a special purpose company established to manage the operations and maintenance of CRK.

The members of LIPAD Corp are Filinvest Development Corp., JG Summit Holdings Inc., Philippine Airport Ground Support Solutions Inc. and Changi Airports Philippines (I) Pte. Ltd., a wholly-owned subsidiary of Changi Airports International. The consortium members each have vast experience in airport operations, air transportation and property development.