Lufthansa Technik Canada invests $120 million in Alberta’s aerospace

Global aviation giant lands in Alberta
Lufthansa Technik Canada  invests $120 million in  Alberta's aerospace and aviation  sector.
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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.

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