BERLIN Feb 21 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
($1 = 0.9487 euros)
(Reporting by Victoria Bryan; Editing by Maria Sheahan)