The Lucio Tan–backed joint venture with Germany’s Lufthansa Technik is seeking easier terms to blunt the impact of the steep hike in lease rates,.
The Inquirer's Biz Buzz column reported that the concessions on the table include a possible exemption from additional fees tied to the concession deal between the government and the San Miguel–led New NAIA Infra Corp. that assumed control of NAIA last year.
Ang, the chair and CEO of SMC, has long maintained that his group will stick to the terms of their contract to avoid any breach. Asked about the exemptions being sought by LTP, he kept to this stance.
“Only government can make this decision,” Ang told InsiderPH in a text message.
What’s the issue about?
Parties had been negotiating well ahead of the deadline, but a key sticking point has been the steep increase in fees that had been fixed since 2000.
From about P65 per square meter, the new rate has been repriced to P710 per sqm or roughly P160.4 million in monthly lease payments.
The Department of Transportation had previously expressed preference for LTP to remain at NAIA.
What’s at stake?
MROs like LTP, which is controlled by Tan’s listed MacroAsia Corp., provide a host of services such as heavy aircraft checks, major repairs, and cabin retrofits for global carriers.
LTP is also the biggest employer in the sector, with its NAIA facility staffing over 3,000 workers, many of them highly skilled personnel.
The company’s 22.6-hectare site serves a wide range of domestic and international carriers with base and line maintenance for major aircraft types such as the A320, A330, A380, and Boeing 777.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
