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  • Lufthansa Technik Philippines' Winning LCC Strategy
    Posted by Elyse Moody 4:02 PM on Mar 10, 2011

    blog post photo

    A Jetstar Airways aircraft at Lufthansa Technik Philippines. [Photo credit: Lufthansa Technik Philippines]

    I wrote yesterday about Lufthansa Technik Philippines' success in retaining airframe maintenance work for long-haul LCC AirAsia X. Turns out the MRO is developing its LCC strategy more fully than I realized. Here are the details:

    A recent customer bulletin describes LHT Philippines' intensified focus on services for LCC Airbus A320 fleets. As I said, it planned to devote a hangar to LCC operations. That hangar now is up and running as part of the Blue Ocean Strategy LHT Philippines developed for the region's LCCs. (It's called 'Blue Ocean' because "in the so-called blue ocean, there is an untapped market space with a high growth potential.")

    LHT Philippines’ fifth and most recently built hangar has been transformed as the LCC location with a capacity to house three to four Airbus A320/A321 aircraft for light C checks and 4C/6Y checks.

    But the MRO made other changes as well, aiming to further cut costs. LEAN concepts standardized all areas of the maintenance events involving LCC aircraft. All-inclusive prices with volume-driven discounts are being offered, based on high consideration of the operator’s high fleet utilization.

    Changes also took place in the management structure, says Dinnaga Padmaperuma, MRO Lite project owner and head. LHT Philippines restructured to a flat organization for better flexibility and efficiency. With this new setup, a core team now handles all communications relating to the LCC MRO product. “We developed a ‘one face’ system where a single focal point of contact becomes the owner of an event," Padmaperuma says.

    Jetstar Airways was launch customer for the LCC service package, with two maintenance events in the last quarter of 2010.

    Tags: om99, lcc, mro

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