Aircraft maintenance firm to double capacity

The aircraft maintenance company Lufthansa Technik Malta is expected to open a second production line towards the end of 2006 - a move which should practically double its capacity as a maintenance, repair and overhaul competitor in the Mediterranean region.

Thanks to heavy investment by mother company Lufthansa Technik AG, the local firm will be able to perform C-checks on two aircraft at the same time, the chief executive officer of Lufthansa Technik Malta, Louis Giordimaina, said at a business breakfast yesterday.

A "C-check" is a comprehensive maintenance programme where the aircraft is checked for structural damage and undergoes corrosion tests. The programme requires 2,000 man-hours and takes from five to six days to perform.

A second production line for Boeing 737s and Airbus A320s required a new investment in tools and equipment and most of all the recruitment of apprentices and retraining of employees, Mr Giordamaina said.

"Through our collaboration with the Malta College of Arts, Science and Technology and the Employment and Training Corporation, we will take 20 apprentices on board in July. A number of technicians already working for Lufthansa Technik Malta will be sent on a course for certified staff," Mr Giordimaina said.

Lufthansa Technik AG will spend more than $1 million on new tools and equipment for the second production line and around $500,000 to retrain its staff. This excludes the costs of the recruitment exercise.

Another 30 apprentices will be taken on board in September, while the new tools and equipment will be bought at the beginning of 2006. The second line should be up and running by the fourth quarter of 2006.

Since it started operating on January 1, 2003, the company has performed 150 C-checks which employed more that 100,000 man hours per year.

The number of airlines demanding the services of Lufthansa Technik Malta had increased because of Malta's strategic position and because the company was fast earning a reputation for excellence, Mr Giordimaina said.

"As a relatively young member of the Lufthansa Technik Group we are taking a most far-reaching step this year. The new production line will not only enable us to increase capacities for our existing and additional customers but also to use our resources in a more flexible manner," Mr Giordimaina said.

During the last few months, Lufthansa Technik Malta had broadened its portfolio with additional services that clients requested in addition to the standard C-Checks, such as cabin modifications for Hellas Jet from Greece and Spanair. An enhanced ground proximity warning system modification was done on a Boeing 737-300 fleet of Africa Karthago Airlines from Tunisia.

The main customer continues to be Lufthansa, which accounts for the majority of jet liners serviced in Malta. Other customers include BlueWings (Germany) and Windjet (Italy). For Alitalia, Lufthansa Technik Malta has just signed a contract to perform line maintenance for two daily flights from and to Italy. The Italian company Neos also decided to send its fleet for base maintenance in Malta.

In January 2005, the company entered the market also for the Boeing737 Next Generation with EuroCypria Airlines as the launch customer. Besides work on the Air Malta fleet, the main client continues to be Lufthansa. Lufthansa Technik AG chief executive product and services, Thomas Stüger said the new investment was a commitment to strengthen the company's position as a centre of excellence for C-checks on narrow-body aircraft.

Lufthansa Technik AG has 27 companies worldwide employing 24,000 people. As of July this year, Lufthansa Technik AG will hold 75 per cent of the shares of the Malta subsidiary while Air Malta will own the remaining 25 per cent of the shares. The equity share of Lufthansa Technik AG had been 51 per cent when the company was set up. Air Malta owned the remaining 49 per cent.