Philippine Airlines (PAL) has signed a 12-year contract with Lufthansa Technik to handle repair and overhaul work on the engines used to power its Airbus A320-family aircraft.

The carrier says in a statement the 12-year contract with Lufthansa Technik further strengthens the relationship between the two.

It also says it has signed a 12-year contract with Lufthansa Technik Philippines to perform off-wing support services including engine shop visit support, engine preservation work and fan re-lube.

Lufthansa Technik Philippines is a joint venture between Lufthansa Technik and MacroAsia, a Philippine aviation services firm linked to PAL.

A Lufthansa Technik Philippines spokeswoman in Manila says Lufthansa Technik's work will largely be done in Germany.

She says Lufthansa Technik was already doing repair and overhaul work on the CFM International CFM56 engines used to power the A320-family aircraft.

This agreement is significant because it is for 12 years, has different terms and conditions than before and it covers the new A320-family aircraft PAL has been adding, says the spokeswoman.

According to Flight's ACAS database PAL has 22 A320-family aircraft with another three on order.

Source: Air Transport Intelligence news