PAL turns over M&E unit to Lufthansa

Philippine Airlines formally handed over today the ownership of its maintenance and engineering division to German-led joint venture Lufthansa Technik Philippines (LTP).

In symbolic turnover rites at the PAL Technical Center in Paranaque City, PAL president Avelino L. Zapanta shook hands with LTP president and chief executive officer Thomas Gockel.

The ceremonies were witnessed by top officials of PAL, led by chairman Lucio Tan, and LTP, as well as by the roughly 1,500 employees of the department, the bulk of whom were retained by LTP.

Today is the last day the M&E unit will operate under PAL management.

Tomorrow (September 1), the unit will open for business under the LTP name.

The new company will be managed by Hamburg-based Lufthansa Technik AG, the world's largest provider of aircraft maintenance services.

PAL sold its M&E operation in accordance with the provisions of its rehabilitation plan, which mandates the disposal of the airline's non-core assets.

In an emotional farewell address to employees, Tan paid tribute to the M&E staff. "For over 50 years, your work has become synonymous with PAL's top-class maintenance service. Today, we pass on that tradition of excellence to LTP."

He added: "You will always be part of the PAL family, whatever name your ID tag sports. That is something that will not change through the ups and downs of our corporate life."

For his part, Gockel exhorted the incoming LTP staff to continue striving for quality and excellence in their work.

Two employees delivered responses on behalf of the work force, over 90% of whom were hired by LTP and the rest by PAL.

Rosanna Argante, speaking for those absorbed by LTP, thanked their new employer for its trust and confidence in their capabilities. Ma. Margerette Misajon, responding for employees retained by PAL, likewise expressed gratitude to the flag carrier.

The M&E department was one of PAL's major operating units. It operated a 226,000-square-meter maintenance base at the Ninoy Aquino International Airport complex and a small hangar at the Mactan International Airport in Cebu.

The Paranaque maintenance base includes a four-bay hangar able to accommodate four widebody aircraft, an engine overhaul shop with test cell, several repair and overhaul shops, and logistics and equipment inventory.

The unit traces its origins to 1946, five years after PAL was founded, when a small repair division was formed to provide minor maintenance work for the flag carrier's fledgling fleet. Repair work was initially done at the Nielsen Airport in Makati.

The M&E operation moved to the Manila International Airport in 1954 and then to the massive PAL Technical Center in Balagbag, Paranaque in April 1982.