Lufthansa Technik and Rolls-Royce announced today that they are to form a 50-50 joint venture specialising in repair and overhaul of three types of Rolls-Royce Trent engine.
The new operation will be called N3 Engine Overhaul Services. The joint venture’s operational site will be decided by 2004 on the basis of which European location offers the most competitive advantage.
Subject to approval by the relevant competition authorities, N3 Engine Overhaul Services will start operations in 2007, overhauling Trent engines for Airbus A330, A340-500/600 and A380 series aircraft for customers in Europe, the Americas and Africa.
The joint venture workforce will grow to around 250 by the end of the first year of operations and is expected to increase to around 450 after three years. In its first year N3 Engine Overhaul Services expects to overhaul about 50 engines and to double that total within two years. The facility will have the capacity to handle 200 engines a year. The investment of the two partners for the joint venture totals more than 100 million Euros.
Servicing the Trent engines of Lufthansa’s own planned fleet is expected to account for up to 40 percent of its work volume. A similar volume of work is expected to come from engines covered by Rolls-Royce’s Total Care agreements.
Lufthansa has chosen Trent series engines for all three types of its new Airbus wide-body aircraft. The airline’s recent selection of the Trent 700 for its A330s followed orders for the Trent 500 on its A340-600s and Trent 900s to power its A380 superjumbos.
In addition to engine servicing, N3 Engine Overhaul Services will carry out the repair of engine parts.