Lufthansa Technik and Canada’s WestJet have signed a new service agreement, which will see the German company provide engine maintenance services for CFM LEAP-1Bs that power the airline’s 737 fleet.
The 15-year multi-billion-dollar contract will see Lufthansa Technik establish a new engine repair station in Calgary, dedicated to servicing LEAP-1B engines for near-wing and quick-turn work.
The partnership covers WestJet’s current fleet of more than 50 737 MAX aircraft. This number is expected to grow to over 130 by the end of the decade, based on the airline’s current order book.
“We are grateful for the strong support from our local allies in Canada, which is essential in advancing the creation of a new engine repair shop and test cell facility in Calgary,” commented Soeren Stark, chief executive officer of Lufthansa Technik.
The project has been partly facilitated through funding from partners including the Government of Canada, the Government of Alberta, Opportunity Calgary Investment Fund (OCIF), Calgary Economic Development, Calgary International Airport, and the Canada Infrastructure Bank.
The Canadian government, through federal agency PrairiesCan, is investing $8 million for the Calgary Airport Authority to construct, fit out, and equip the new 150,000-square-foot aircraft engine maintenance and test facility at Calgary International Airport.
The Government of Alberta is providing a total support amount of $7.45 million to the Lufthansa Technik engine test cell and maintenance facility, consisting of $3 million from the Investment and Growth Fund and $4.45 million from the Aerospace Workforce Development Grant.
Operations are set to begin in 2027, with WestJet as the launch customer.