Lufthansa Technik is evaluating establishment of a joint-venture overhaul shop for Pratt & Whitney PW1000G geared turbofans with the engine's programme partner MTU.

The two German companies say in a joint statement that they signed a tentative agreement to "explore the possibility of establishing an MRO joint venture at a globally competitive location".

They add that "first decisions" about the site are to be made by year-end. However, Munich-headquartered MTU – which manufactures the PW1000G's low-pressure turbine and a section of the high-pressure compressor – confirms that the site will not be located in Germany.

Since 2003, LHT and MTU have operated a joint-venture repair shop for compressor aerofoils in Malaysia.

LHT services the geared turbofan's predecessor model – the International Aero Engines V2500 series – at its overhaul shop in Hamburg, while MTU supports that powerplant at its MRO facility in Hannover.

In July, Pratt & Whitney disclosed a decision to recruit LHT as a "key member" of the manufacturer's aftermarket network to provide the "full scope of MRO services" for PW1100G and PW1500G engines, which power Airbus's re-engined A320neo and the Bombardier CSeries respectively.

However, MTU tells FlightGlobal that the new overhaul shop is aimed at supporting the entire PW1000G family, which also includes variants for the Embraer E2 E-Jets, Irkut MC-21 and Mitsubishi Regional Jet.

LHT and MTU state that a jointly operated overhaul shop will deliver "significant synergy effects" as the two partners would together be able to generate a greater business scale than if they were to service engines individually. "The joint venture could handle a substantial amount of GTF shop visits already in the first few years of business."

Earlier this year, Hamburg-based LHT revealed a plan to shed a third of its 1,800 engine shop staff over the next decade as new-generation powerplants are set to require fewer overhauls than current equipment.

However, the MRO group insists that the new site "will not affect the further development of LHT's existing facilities".

In spite of the new project, MTU will still be able to repair and overhaul geared turbofans in Hannover to cater for unscheduled service requirements during the early in-service period of the PW1000G.

The engine entered service on the first A320neo at Lufthansa in January and, in July, on the first CS100 at sister carrier Swiss.

MTU tells FlightGlobal it has not yet decided whether or not it will operate a PW1000G overhaul line in addition to the planned joint-venture facility with LHT.

Source: Cirium Dashboard