Lufthansen Technik may renew lease despite higher charges

Lufthansa Technik Philippines (LTP), a major aircraft maintenance provider at Ninoy Aquino International Airport (NAIA), is likely to renew its lease despite concerns over higher charges.

Transportation Secretary Vince Dizon emphasized the importance of retaining LTP, which employs over 3,200 Filipinos and supports local aviation expansion.

San Miguel-led New NAIA Infrastructure Corp. is charging P710 per square meter for a new lease, significantly higher than the current rate.

Dizon stressed that finding a common solution between San Miguel and Lufthansa is crucial to maintaining the airport's status as an aviation hub.

Financial analyst Luis Limlingan suggested that securing either a fixed preferential rate or gradual rental increases would be optimal for LTP’s profitability.

MacroAsia Corp., which owns 49 percent of LTP, reported a 75 percent increase in earnings from associates to P611 million in the first half.