Australia's LTQ Engineering, a joint venture between Lufthansa Technik and Qantas Airways, will cease operations and close its Tullamarine, Melbourne facility in September.

August Wilhelm Henningsen, LTQ chairman and Lufthansa Technik chief executive, says falling demand due to improved engine reliability has "directly impacted the viability of the business".

"Simply put, LTQ does not have the scale of engine maintenance work to be competitive," he adds.

In May, Qantas announced that it plans to cut 500 jobs at its heavy maintenance and engineering divisions in Melbourne and Victoria, citing a 30% cost-base differential with its competitors.

Source: Air Transport Intelligence news