Aircraft maintenance, repair and overhaul services provider Lufthansa Technik Philippines said Wednesday it will rehire at least 700 staff who were laid off because of the pandemic, as it now sees a bright future ahead.
“The rehiring will start soon. So, we have actually reduced 80 percent [of our manpower]. At the moment after the rightsizing, [we have] 2,700 employees and I hope that by next year we will go back to our old strength with 3,400,” said Elmar Lutter, president and chief executive of LTP in a virtual briefing.
“With this additional production capacity at Hangar 1A, we will start soon to rehire those mechanics and other staff,” he said.
The new hangar, called Hangar 1A which is a replica of Hangar 1, will start operations by February 2022 and will increase its capacity by 30 percent.
LTP started the construction of the expanded facility in September 2019, but the completion was delayed for one and a half years because of the global pandemic. It was supposed to be completed by the fourth quarter of 2020.
The company invested $40 million for the new hangar.
“We are very happy that with the perseverance and support from the Philippine government for the business recovery, LTP is stepping out of the darkness and now we see the future more brightly,” Lutter said.
“Our business has been down by 40 percent … but we see sign of hope,” he said.
Lutter said the easing of travel restrictions globally, including in the Philippines, brought back demand for MRP and “our hangars are much full again.”
Hangar 1 services aircraft of various airlines, including Philippine Airlinesm British Airways, Korean Air, Asian Airlines and Saudi Arabian Airlines.
LTP also expects to reduce losses in 2022. “Next year, we will be in average at minus 20 percent compared to pre-pandemic level. Our business has been down by 40 percent, plus-minus, depending on the specific business and the region. Some regions are already back to pre-pandemic level. The Americas is almost there. China was the first market to rebound and Southeast Asia,” he said. With Othel V. Campos