Lufthansa seals PAL deal

Lufthansa seals PAL deal

MANILA (AFP): Lufthansa Technik AG, a subsidiary of the German airline Lufthansa, has formally sealed its acquisition of the engineering and maintenance unit of Philippine Airlines (PAL).

It has also forged a pact to handle PAL's maintenance needs, PAL said in a statement Wednesday.

PAL said Lufthansa Technik Philippines, a joint venture between the German firm and local cargo-handler, MacroAsia Corp., had signed the purchase and technical services agreement with PAL.

Under the accords, PAL will sell its maintenance and engineering facilities in Manila and the central city of Cebu to Lufthansa Technik Philippines.

The joint venture would act as exclusive provider of aircraft- related technical services to PAL for 10 years.

Lufthansa Technik Philippines would invest more than US$200 million in the country over the next five years, the statement said.