WestJet and Lufthansa Technik have announced an exclusive agreement between the two. In this deal, Lufthansa Technik will provide engine maintenance services for WestJet’s Boeing 737 fleet, precisely their CFM International LEAP-1B engines.
The Deal
As a result of the deal, Lufthansa Technik will establish a new engine repair station in Calgary, Canada. This station will be dedicated to servicing LEAP-1B engines for near-wing and quick-turn work. The facility itself will include a modern test cell for next generation engines and drive job creations in the region. This is a first-of-its-kind facility on Canadian soil.
The 15-year, multi-billion dollar contract is WestJet’s largest in their 30-year history. The operation is set for 2027, with WestJet as the launch customer.
Alexis von Hoensbroech, WestJet Group CEO, said:
“WestJet was founded on the idea of improving air travel and making it affordable for Canadians. This historic contract award will allow us to bring critical engine repair operations home to Canada and provide greater efficiency and cost certainty to a critical part of our operations, all while demonstrating our commitment to improving our competitiveness and supporting the Alberta economy.”
Growing an aviation hub in Western Canada
WestJet credit the Canadian government and the government of Alberta for creating the facility. Also, non-governing bodies such as Opportunity Calgary Investment Fund, Calgary Economic Development, Calgary International Body, and the Canada Infrastructure bank. WestJet say these partners have been “vital” in fostering the growth of Calgary’s aviation cluster. The parties mentioned will be providing up to $18 million for Lufthansa Technik in order to develop the facility.
Calgary Airport Authority welcomes the long-term lease agreement with Lufthansa Technik. The Authority will oversee the financing, planning, construction and deployment phases of the facility. The facility itself, separated into a series of buildings, will stretch over 9 acres of airport real estate. Calgary Airport will integrate the development into its strategic growth
WestJet says the facility will boost economic development and reinforce Calgary as a gateway for international aviation. Economic benefits include creating up to 160 jobs in Calgary by 2030.
Matt Jones, Minister of Jobs, Economy and Trade, said:
“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 because of its pro-business policies, low taxes, and innovative talent. This investment will create hundreds of jobs for hard-working Albertans and further diversify our economy.”
Calgary as an aviation hub
It’s clear that WestJet are focusing on regional development in Calgary. These investments will ensure the hub remains as the most connected mid-sized hub in North America.
WestJet says the addition of the facility will strengthen Calgary’s position in the global aviation landscape. It will also encourage economic prosperity in the region.
The partnership between WestJet and Lufthansa Technik builds on the foundational WestJet-Government of Alberta Memorandum of Understanding to stimulate economies, create sustainable employment and build infrastructure for continued expansion.
This is WestJet’s biggest deal this year, despite recently forming a partnership with Canada’s professional women’s soccer league.
What do you think about this new partnership? Let us know in the comments!
