Philippine Airlines signed a 12-year maintenance agreement with Lufthansa Technik Philippines for its incoming A350s and A321 Neos effective May 31 this year.
The volume from the 12-year agreement is estimated to be worth over $260 million.
LTP started preparing for the servicing of the A321neo and the A350-900 as early as 2016.
“To be ready for the entry into service of these new planes, LTP is investing about $15 million to cover for the training of mechanics, facility adjustments and for tooling and materials,” LTP said.
PAL this year expects to get four A350-900s, six Airbus A321neos and five Bombardier Q400s.
PAL expects to end the year with 98 aircraft in its fleet from the current 89. Its move to modernize the fleet, with LTP’s help, is part of the initiatives being implemented to achieve a five-star rating for PAL by 2020.
Parent PAL Holdings Inc. earlier reported a lower net loss of P201.67 million in the first quarter from P533.97 million year-on-year. Total revenues in the first quarter rose 12.7 percent to P36.79 billion from P32.65 billion a year ago.