Lufthansa is to refocus the activities of its Chinese maintenance, repair and overhaul (MRO) venture towards third parties as part of a $100 million investment strategy.
Ameco Beijing (formerly Ameco Aircraft Maintenance & Engineering), an Air China-led joint venture with Lufthansa, has been tasked with attracting heavy-check work from other Chinese and Asian carriers as it expands its facilities.
The Lufthansa group is to invest $40 million over the next four years, with 500 million yuan ($60 million) to be injected by Chinese flag carrier Air China over the same period, in line with each company's shareholdings. The two recently signed a 25-year extension to their 1989 joint venture following approval from China's commerce ministry.
Ameco Beijing says it has embarked on the $100 million "appreciable expansion" of its maintenance services to "meet the needs of the growing fleet of Air China and of the fleets of other domestic and international customers". Lufthansa Technik (LHT), the German flag carrier's MRO arm, which manages Lufthansa's stake in the venture, says there will be no changes to the structure, but a refocus towards third parties is part of the expansion. "There is 10-15% growth in the Chinese air transport market, and around 10% overall in Asia, so we want to grow the business in line with this," says LHT.
Details of the expansion plan have not been released because Ameco Beijing says a draft feasibility study has yet to be approved by its board of directors. Beijing Capital international airport is embarking on an extension project and some of the investment funds will pay for hangar upgrades as part of the runway expansion programme, says LHT. Lufthansa says the venture has made a profit every year since it was established and currently has a capital base of $88 million.
NICHOLAS IONIDES / SINGAPORE & JUSTIN WASTNAGE / LONDON
Source: Flight International
