MacroAsia in talks for new Lufthansa lease

MANILA, Philippines — Aviation support service provider MacroAsia Corp. Said it is talking to regulators for a new lease contract for Lufthansa Technik Philippines (LTP), demanding that rates be made competitive for business viability.

MacroAsia yesterday said it is negotiating with authorities for the renewal of LTP’s lease at the Ninoy Aquino International Airport (NAIA), with the contract set to expire in September after 25 years.

If the Manila International Airport Authority’s Administrative Order 1 is to be followed, LTP has to pay P710 per square meter per month for operating in NAIA.

LTP manages a 226,000-square meter facility at the MacroAsia Economic Zone in Villamor Air Base, so the increase would force it to pay P160 million monthly for lease. Aviation industry sources told The STAR that LTP is charged just P14 million a month for lease right now.

Given this, MacroAsia is asking the government to consider the competitive advantage brought in by LTP in deciding the rates for its new contract. LTP serves mostly international carriers that MacroAsia believes would benefit minimally from the P170.6-billion rehabilitation of NAIA.

LTP primarily serves international airlines that do not operate commercially in the Philippines, meaning they do not directly benefit from NAIA’s capacity enhancements, MacroAsia said.

Given this, MacroAsia Properties, as an ecozone developer, and LTP, as an ecozone locator, are actively engaging with authorities to negotiate terms of the ecozone renewal, ensuring continued operational viability and competitiveness, MacroAsia said.

NAIA is undergoing a 15-year rehabilitation led by the New NAIA Infrastructure Corp., which is authorized to jack up airport fees to fund the project.

In spite of cost uncertainties, LTP is making progress in expanding its clientele, as it secured new customers in Air Canada and Air India. LTP is an aircraft maintenance, repair and overhaul firm owned jointly by MacroAsia and German manufacturer Lufthansa Technik AG.

MacroAsia, for its part, is thriving in the pandemic aftermath. The company booked a 32-percent increase in profit to P1.12 billion last year, from P851.1 million in 2023, as revenue went up by 18 percent to P9.44 billion.

MacroAsia’s core business of in-flight catering contributed 47 percent of revenues, growing by 11 percent to P4.4 billion on more demand from airlines.

Likewise, MacroAsia grew its ground handling revenues by a third to P4.17 billion, as it handled more flights driven by the surge in air travel.