Labour costs will be the factor that determines the location of MTU's planned overhaul joint venture with Lufthansa Technik.

Earlier this month, the two partners formalised plans for a MRO venture for Pratt & Whitney PW1000G geared turbofans, having first disclosed them in 2016. Construction is scheduled to later this year, but a location has not been revealed yet.

MTU programme chief Michael Schreyogg said at a results briefing in Munich on 23 February that good ground transport infrastructure, availability of well-educated staff, and local government support were relevant to the location decision. But he stresses that the location must provide low labour costs because the new shop's services will be limited to labour-intensive disassembly, reassembly and testing of engines. Part repairs will be conducted at other locations.

A decision about the site is to be made by mid-year, he adds.

MTU is a partner in Pratt & Whitney's PW1000G programme. LHT – which services CFM International CFM56s and International Aero Engines V2500s as an independent MRO provider – became part of Pratt & Whitney's aftermarket network for the PW1000G in 2016, and will thus be allocated shop visits for the geared turbofans of operators that have signed aftermarket service agreements with the manufacturer.

Schreyogg confirms that MTU and LHT are evaluating sites outside Germany, in Europe and Asia.

MTU has a production plant near Polish city Rzeszow. Meanwhile, LHT and General Electric are separately establishing an overhaul shop in Wroclaw, further west in Poland, to service GEnx-2B and GE9X engines.

Source: Cirium Dashboard