Alitalia Engineering & Maintenance and Lufthansa Technik have agreed to create a joint venture for civil engine servicing.
The German overhaul giant is expected to take a 40% stake in a separate company that will take over Alitalia's existing engine shop in Rome, says Luca Paodone, vice-president marketing planning for Alitalia.
The deal should be agreed by 1 July,
Although the Italian carrier did talk with other potential partners, "if you look at the market situation and facilities in Europe only Lufthansa Technik needs to enlarge their potential capacity," says Paodone.
"Other engine shops in Europe are in an overcapacity situation."
The new company will focus on GE CF6-50 and -80 engines, and from mid-2004 will add the CFM International CFM56-5 to its portfolio, says Paodone.
Increase
At present, Alitalia is overhauling 80 engines a year, but the aim is to increase this to 150 under the new venture. Lufthansa Technik will invest in the operation and transfer technology to the company, including repair techniques, he says.
The engine unit spin-off is the first element of an eventual sell-off of the entire Alitalia Engineering & Maintenance Division, but this plan is postponed until market conditions are more suitable, says Paodone.
Germany's MTU Maintenance, Hannover, an MTU Aero Engines affiliate, has just returned to its operator the 3,000th engine that has visited the shop for full repair and overhaul.
This particular engine happened to be an IAI V2500, from TAM Brazilian Airlines.
The V2500 series of engines - which is celebrating its 20th birthday at Le Bourget - has become MTU Hannover's No 1 visitor, edging out the CF6 in numbers of shop visits.
With 140 visits last year, the V2500 was already hard on the heels of the CF6 and already this year the V2500 accounts for 57% of all visits to the shop.
MTU's parent company is a shareholder and partner in IAI.
Source: Flight Daily News
