BERLIN, Feb 21 (Reuters) - Lufthansa's maintenance arm and aircraft engine maker MTU Aero Engines have agreed on a new joint venture to serve growing demand for maintenance and repair of geared-turbofan engines that are used in planes such as the Airbus A320neo.
The two companies will each own a 50 percent stake in the new company and total investment is expected to be around 150 million euros ($158 million), Lufthansa Technik said in a statement on Tuesday.
The two companies are still considering a suitable location for the new venture, but expect a decision in the next few months. The unit will employ around 500 people and start operating in 2020.
The two hope the joint venture will allow them to increase efficiency and keep costs down as they cater to growing fleets of narrow body jets using the PW1000G Pratt & Whitney engines.
$1 = 0.9487 euros Reporting by Victoria Bryan; Editing by Maria Sheahan