The Philippine-based operation of Lufthansa Technik – Lufthansa Technik Philippines (LTP) – is planning to cut 300 employees.
Affecting 20A% of its workforce, the company stated it reached the decision after a “careful study and consideration of the company's state of finances that reeled from the effects of the pandemic, both on the local and global aviation industry.” Once the process of retrenchment is completed, the company will operate with a workforce of around 2.700.
Similar to other programs implemented last year, the company added the move is temporary until the industry fully recovered.
LTP is a venture between Germany's Lufthansa Technik and aviation services firm MacroAsia Corp. The company offers aircraft maintenance, repair and overhaul services for airlinees such as Philippine Airlines. Its flagship maintenance facilitiy is located within Villamor Airbase at Manila's Ninoy Aquino International Airport.
In a letter to employees on February 11, LTP President and CEO Elmar Lutter said: “As a maintenance, repair and overhaul provider for aircraft, the significant fleet reductions announced by various [customer] airlines with some already in bankruptcy proceedings have a direct negative effect on LTP’s business.”
LTP has pledged to assist the affected employees after separation, which will include the option to enroll in the Salute program to help keep skills and authorizations current. These employees will be prioritized for rehire in the future.
“While we look forward to the soonest recovery of the aviation industry and wish for the same for all other industries affected by the pandemic, we also have to face the reality of its current state and make the necessary adjustments to ensure operational efficiency,” Lutter added.