Lufthansa Technik picks up 50 per cent stake in Qantas' engine MRO

Lufthansa Technik said it has won a significant contract from Australian flag carrier, Qantas, for technical support of GE and CFM56-7 engines, which currently power the carrier's 737, 767, 747 and A330 aircraft.

The 10-year deal gives this division of the Lufthansa Group a 50% stake in Jet Turbine Services (JTS), a Melbourne-based MRO company.

"This major engine overhaul contract is a significant breakthrough for Lufthansa Technik in the Asia/Pacific growth market," chairman, August Wilhelm Henningsen said. "Qantas can depend on the quality of the world's largest and best-known manufacturer-independent engine MRO provider. This contract enables us to secure high-tech jobs in Germany and at our new joint venture in Melbourne. We will also be able to offer an extended range of services in the region."

An estimated 600 engines will be processed over the next decade at JTS.

According to Lufthansa, assembly and testing for CF6-80s, CFM56-7s and CFM56-3s will take place in Melbourne while engine part and component repair will occur largely at its shop in Hamburg.

"The partnership between Lufthansa Technik and Qantas is one of the most significant commercial aircraft maintenance joint ventures in Australia, combining Qantas's expertise with that of the world's largest independent aircraft maintenance, repair and overhaul operator," QF CEO Geoff Dixon said. "The partnership will provide JTS with global expertise, improved technical capability and an increased scale of operation."