Lufthansa Technik and MTU Aero Engines plan to set up a joint venture for the maintenance, repair and overhaul (MRO) of geared turbofan (GTF) engines. Each partner will hold a 50% stake.

The two companies signed an agreement in Berlin on February 20, following several months of feasibility studies. Subject to different approvals (e.g. by the relevant antitrust authorities), the two parties expect the joint venture to be created within the second half of 2017.

Under current plans, the new facility will be up and running by 2020 with a workforce of over 500 employees. Total investment in the new location will amount to €150m by that date. In terms of annual capacity, the facility will be designed to accommodate over 300 shop visits of PW1000G-family GTF engines per year.

The companies are currently searching for “a globally competitive location in or outside Europe”.  They expect to identify a site within the next few months.

Lufthansa Technik has been maintaining various Pratt & Whitney engine types for decades. In July 2016, it became a member of the after-sales service network for the U.S. company's GTF engines. The network offers the whole range of MRO services for PW1000G engines.

MTU Aero Engines is a partner of Pratt & Whitney in the PW1000G programme. In addition to the A320neo, on which it is one of the two engine options, GTF engines have been selected to power the Bombardier C Series, the Mitsubishi MRJ, the Irkut MC-21 and Embraer’s E-Jet E2 family. More than 8,000 geared turbofan engines have been ordered to date.

Lufthansa Technik and MTU have been partners in a 50-50 joint venture in Malaysia since 2003. Airfoil Services Sdn. Bhd. (ASSB) near Kuala Lumpur specializes in the repair of low-pressure turbine and high-pressure compressor airfoils.