September 20, 2016 / 9:47 AM / in 2 years

UPDATE 2-Lufthansa Technik and MTU Aero Engines plan maintenance alliance

* Aim to provide engine maintenance for new narrow-bodied jets

* Details to be finalised by year-end

* Companies say JV will bring savings, boost efficiency (Writes through)

By Victoria Bryan

BERLIN, Sept 20 (Reuters) - Lufthansa’s maintenance business and MTU Aero Engines are planning a joint venture to increase efficiency and keep costs under control as they cater to growing fleets of new narrow-bodied jets.

The operation would provide maintenance and repair services for the PW1000G Pratt & Whitney engines that power planes such as the Airbus A320neo and Bombardier CSeries, the two German companies said on Tuesday.

They expect working together could help them both to deal with the challenges of increased work volumes and generate significant savings, an MTU spokeswoman said.

Lufthansa was the first airline customer to start flying the A320neo with the Pratt & Whitney engine this year. Global orders of the engines have risen to more than 8,200, MTU said.

MTU and Lufthansa Technik have signed a memorandum of understanding and will now discuss details such as where the maintenance and repair operations will take place. Decisions will be made by the of the year, the companies said.

“In the industry’s highly cost-competitive environment, the objective of setting up a joint facility is to generate opportunities for synergy and scale for both companies,” MTU said in a statement.

The move will not affect future development of Lufthansa Technik’s existing facilities, while MTU said that its existing facilities will have sufficient work from other engine programmes in the coming years. (Editing by David Goodman)

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