Lufthansa Technik Philippines, Inc. (LTP) is preparing to roughly double both the size and investment of its new aircraft maintenance facility in Clark once the first phase becomes operational in 2028, as the company seeks to position the Philippines as a key destination for widebody aircraft servicing.

The company broke ground on Thursday for the first phase of the project, covering approximately 157,000 square meters and requiring a nine-figure-dollar investment.

"For the second phase, roughly, it is double the size and investment of the first phase," LTP President and Chief Executive Officer Holger Beck told reporters. "We stage module one, then we become fully operational, and then we expand step by step to phase two."

Beck declined to provide a timetable for the second phase, noting that it will depend on the performance and capacity requirements of the initial facility.

The Clark site will serve as LTP's second major base-maintenance location in the Philippines, complementing its existing operations at Ninoy Aquino International Airport (NAIA), which has long faced slot constraints and limited room for physical expansion. Operations are expected to commence in 2028.

"We truly believe this is the place to be here in the Philippines for the MRO industry," Beck said. "We are very glad to have the opportunity to build up this facility in the Clark and Pampanga area and create jobs for up to 1,200 people."

The new facility will provide maintenance, repair, and overhaul (MRO) services for selected Airbus and Boeing widebody aircraft. LTP also intends to develop future capabilities for newer long-haul aircraft such as the Airbus A350 and Boeing 787, contingent on the necessary certifications and market demand.

LTP signed a lease agreement in June for the site within the Clark International Airport complex. Beck explained that Clark was chosen for its airport infrastructure, available space, logistics connections, and ability to accommodate large aircraft without the operational limitations present at more congested airports.

"It is important that we have an airport that is fully capable of serving an aircraft like the Airbus A380," he said. "We need a long and wide runway. The second part is the logistics and the connection to the supply chain."

The facility is expected to bolster the Philippines' standing in the global aviation-maintenance industry, competing with established regional hubs like Singapore. The sector drives demand for highly skilled engineers and technicians, as well as parts, logistics, and other support services.

LTP is a joint venture between Germany-based Lufthansa Technik AG and listed aviation services provider MacroAsia Corp., part of the Lucio Tan Group.

The company will maintain its NAIA operations even after the Clark facility opens. "We are continuing in Manila as it is at the moment," Beck said. "We are focused there on base maintenance."

The Manila facility currently has seven maintenance bays, while the Clark site is planned to include approximately nine. The company did not immediately clarify whether all nine bays would be part of the first phase. Once completed, the Clark development could become LTP's largest Philippine maintenance base by number of planned bays.

Beck indicated that the company remains open to further investment opportunities in the Philippines as global demand for aircraft maintenance continues to grow. "I would never exclude investments because the industry is growing, and we are also on the lookout for opportunities," he said. "When we selected Clark, the most important part was that the aircraft could operate without restrictions, as well as the logistics."

He noted that the company has not ruled out opportunities tied to other airport developments, including the New Manila International Airport under construction in Bulacan, though he disclosed no definite plans for an additional Philippine facility.

For Luzon International Premier Airport Development Corp. (LIPAD), the operator of Clark International Airport, the LTP investment is expected to advance its plan to build a broader aviation and logistics district around the airport.

"The development further strengthens Clark's aviation ecosystem and reinforces the airport's role as a strategic hub for aviation, logistics and aerospace-related industries in the Philippines," LIPAD said.

LIPAD previously announced plans to develop a 759-hectare aviation, logistics, and business hub known as the Clark AeroDistrict. The operator expects to finalize the district's master plan by the end of the year as it works to transform Clark into a wider economic gateway for Central and Northern Luzon. The district is designed to accommodate aviation maintenance companies, logistics providers, aerospace suppliers, and other airport-related businesses.

LTP's expansion comes at a time when airlines worldwide are driving increased demand for maintenance services amid recovering passenger traffic, growing aircraft fleets, and prolonged delays in new-plane deliveries that force carriers to keep older jets in service longer. The Clark facility will enable LTP to expand its widebody maintenance capacity while providing room for further growth that is constrained at its existing NAIA base.