Global aviation giant lands in Alberta
Lufthansa Technik Canada invests $120 million in Alberta's aerospace and aviation sector.
FB_IMG_1739474241122.jpg
Lufthansa Technik Canada is establishing a state-of-the-art maintenance and repair facility at Calgary International Airport, specializing in Leading Edge Aviation Propulsion (LEAP) engines. As one of only five global operators certified for these next-generation engines, this $120 million investment places Alberta at the heart of the global narrow-body aircraft market. This investment is a key catalyst for WestJet to secure a 15-year, multi-billion dollar maintenance contract with Lufthansa Technik, which will build and support Alberta's aviation industry for years to come.
"The Government of Alberta is proud to welcome this historic partnership between WestJet and Lufthansa Technik Canada here in Calgary. This agreement will have a significant impact on our economy and demonstrates the great confidence that investors have in our province. Alberta is a place where you can grow your business and thrive in the future. With our low corporate tax rate and highly skilled workforce, Alberta continues to be one of the most business-friendly jurisdictions in North America. Today's investment is further testament to Alberta's national and international reputation as a leading aerospace and aviation hub."
Danielle Smith, Premier of Alberta
"This new state-of-the-art facility is an important step in making Calgary and Alberta a world leader in aviation innovation. Our government is proud to partner with the Calgary Airport Authority, industry leaders and all levels of government to strengthen Canada's aviation sector." We won this opportunity against strong competition, demonstrating our region's spirit of innovation and commitment to reducing emissions. Together, we are developing and adopting cutting-edge technologies that will increase the competitiveness of small and medium-sized businesses across the aviation supply chain."
Terry Duguid, Federal Minister of Sport and Minister Responsible for Prairie Economic Development
Lufthansa Technik Canada is the latest recipient of a grant from the Alberta Investment and Growth Fund (IGF), receiving $3 million in provincial funding to build a new airspace maintenance facility at the Calgary airport. The IGF is one of several investor support services and programs offered by the Government of Alberta.
The Alberta government is also providing $4.45 million through the Aerospace Workforce Development Grant to provide training and employment support to ensure Lufthansa Technik Canada has the skilled workers it needs to expand in the province. This grant is administered by Calgary Economic Development as part of the Opportunity Calgary Investment Fund to attract investment, drive innovation and stimulate transformative economic development in the aerospace sector. Lufthansa's investment is helping to further diversify Alberta's economy and create important jobs for hard-working Albertans. Lufthansa Technik Canada's investment will create up to 160 permanent jobs and up to 170 temporary jobs in the construction sector, giving Albertans greater access to stable, well-paying jobs in a growing sector. These jobs will cover a range of roles, from highly skilled technicians to engineers and support staff, meeting the requirements of next-generation LEAP engines. This job growth comes as Alberta diversifies its economy and grows key industries, making these roles a critical part of the province's economic growth trajectory.
"Lufthansa Technik Canada's investment is the latest addition to our growing aviation and aerospace sector. Alberta continues to attract world-class companies like Lufthansa Technik Canada because of its business-friendly policies, low taxes and innovative talent. This investment will create hundreds of jobs for hard-working Albertans and further diversify our economy."
Matt Jones, Minister of Employment, Economy and Trade
Lufthansa Technik Canada provides mobile engine maintenance and test bench services at Calgary International Airport, offering Canadian aircraft operators a more economical and efficient alternative to overseas maintenance. This increases operational efficiency while reducing costs. Its new facility in Calgary will contribute to the growth of Alberta's aerospace and aviation sector and create valuable jobs for Alberta.
"Our agreement with WestJet represents one of the largest awards ever given to a CFM LEAP engine maintenance, repair and overhaul service provider in the world. "This contract highlights Lufthansa Technik's leading position in supporting next-generation engine types. At the same time, we are grateful for the strong support of our local allies in Canada, which is essential to moving forward with the establishment of a new engine repair shop and test bed in Calgary."
Soeren Stark, CEO of Lufthansa Technik
This investment is based on a Memorandum of Understanding signed in 2022 between WestJet and the Government of Alberta. WestJet has committed to making Calgary its global headquarters, with both parties agreeing to work together to grow Alberta's aerospace and aviation industry, including attracting significant investment in aviation infrastructure. The facility is expected to open in mid-2025 and be completed in 2027. WestJet will be Lufthansa Technik Canada's first customer at the newly established engine maintenance facility, underscoring the trust of the partnership in local expertise and innovation. WestJet's RFP award was the largest contract in WestJet's history and the largest contract awarded to a leading engine overhaul and repair service provider in America.
"WestJet was founded to make air travel better and more affordable for Canadians. The award of this historic contract will allow us to bring essential engine repair operations back to Canada and provide greater cost efficiency and safety for a critical part of our operations, while demonstrating our commitment to improving our competitiveness and supporting Alberta's economy. We are proud to partner with Lufthansa Technik. This is an extraordinary moment for WestJet, our guests, WestJetters, the communities of Western Canada and our suppliers."
Alexis von Hoensbroech, President and CEO, WestJet Group "After years of hard work and collaboration to see our city grow and build relationships with industry partners, we are thrilled to see Lufthansa Technik land in Blue Sky City. Calgary's competitive business environment and deep talent pool position us for future growth, and the creation of Lufthansa Technik's Western Canada hub in our city demonstrates what is possible as we continue to establish ourselves as a global aerospace leader."
Brad Parry, President and CEO, Calgary Economic Development
"This project is a remarkable example of what can be achieved when our aviation ecosystem and all levels of government come together – Lufthansa Technik as a key supplier, WestJet as a key customer, critical support from Calgary Economic Development and the Government of Alberta through the Ministry of Labour, Economy and Trade, and funding from Calgary Airport, Canada, Economic Development, Calgary Foundation. By building this state-of-the-art facility in Calgary, we are ensuring that WestJet and all Canadian airlines have access to reliable, effective and efficient maintenance services, while building critical engineering, training and business infrastructure to make Calgary and Alberta a centre of aviation excellence in North America. »
Chris Dinsdale, President and CEO, Calgary Airport Authority
"We are proud to commit $172 million in funding for infrastructure that supports aviation services at Calgary International Airport. Our partnership with the Calgary Airport Authority moves their project from the planning stage to the start-up phase. The world-class facility will strengthen Canada's aviation infrastructure and bring long-term quality jobs and economic growth to the region."
Ehren Cory, CEO, Infrastructure Bank of Canada
The Government of Alberta will continue to work with Lufthansa Technik Canada to expand its presence in Alberta once this project is operational. With strong government support and a strategic position in the international marketplace, Alberta remains a top place to live, work and invest in the future.
Quick Facts
The Investment and Growth Fund (IGF) is designed to be offered in certain late-stage investment decisions where Alberta can compete with comparable jurisdictions that may offer other benefits or incentives to investors. As of fall 2021, 12 FIC grants have been announced, creating more than 1,100 permanent full-time jobs and more than 1,100 temporary jobs, with a total capital investment of more than $765 million. FIC has helped raise nearly $29 in private investment for every dollar of FIC financing. Alberta's aviation and aerospace industry is booming, with revenue growth of more than 17% from 2021 to 2023. The Alberta Aerospace Workforce Development Grant supports recruitment and training in the aviation and aerospace sector and aims to attract new investment by supporting the expansion of aerospace businesses in Alberta.
[attachment deleted by admin]