Lufthansa Technik to move to Dubai South
It will be the anchor tenant in upcoming aviation district.
Lufthansa Technik Middle East is planning to move its operational facility to Dubai South by the third quarter of 2016, its CEO said.
"Currently, we have a facility at Dubai Airport Free Zone Authority, or Dafza, but we need to increase our capacity and capability due to the growing demand. Dubai South will not only connect us to our customers but is also strategically closer to the airport.
"So, it will also take care of the turnaround time, making us deliver promptly as we cannot have a long waiting period," Ziad Al Hazmi, CEO, Lufthansa Technik Middle East Services, said during the Dubai Airshow.
A letter of intent, or LoI, has already been signed at the MRO Middle East 2015 event in Dubai. Under the agreement, Lufthansa Technik becomes the anchor tenant of the aerospace supply chain facilities that Dubai South is shaping within its aviation district.
The intended Lufthansa Technik facility will articulate the organisation's strategy to expand its operational footprint across the Middle East.
Al Hazmi said: "Dubai South will put us in prime position as a leader in the aerospace supply chain sphere, and help us enhance value for our growing list of customers through offering optimised technical services, such as our airworthiness review certificate, or ARC, a portfolio which includes aircraft MRO [maintenance, repair and overhaul] services - literally from nose to tail."
Aerospace supply chain facilities are being developed by Dubai South's aviation district, and will include three developments spread across 45,000 square meters.
Estimated to cost Dh120 million, the project will feature a multi-purpose building for tenants that are a part of the aerospace supply chain.
The aviation district is a 6.7 square kilometre master-planned district adjacent to Al Maktoum International Airport. It offers ready-to-build world-class aviation infrastructure as part of Dubai's strategic vision for the sector.
Beyond its aviation focus, the district will also offer well-defined zones for sectors such as hospitality, education, research and development and other mixed-used developments.
Currently, Lufthansa Technik boasts 750 customers and more than 2,000 aircraft under contract. It has recently started a material help desk, material storage facility and is planning to augment its spare parts facility.
"With a six per cent market growth, the region is doing very well compared to Europe and other parts of the world," said Al Hazmi.
During the Dubai Airshow 2015, Lufthansa Technik and low-cost carrier Air Arabia signed an airframe related component contract for radome repair. The contract runs over a period of three years and covers radome maintenance for Air Arabia's A320 fleet.
This was followed by an agreement with Royal Jet, the Middle East's foremost private charter company, for the completion of two Boeing 737-700 BBJ in 2016.
The two projects will be completed at Lufthansa Technik's VIP and executive jet solutions site in Hamburg. The aircraft will be redelivered in Q3 and Q4 2016.
Also, Mercedes-Benz Style and Lufthansa Technik AG are presenting their new VIP cabin design to initial customers at the Dubai Airshow.
Driven by the large interest of the VIP market for a Mercedes-Benz style VIP cabin design in recent months, the two companies are now presenting the first impressions of this unique conceptual floorplan.
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