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Air India Awards Lufthansa Technik A350 APU MRO Contract

Air India selects Lufthansa Technik for multi-year MRO of 40 Honeywell HGT1700 APUs on its Airbus A350 fleet.

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Air India (AI) has selected Lufthansa Technik for the exclusive maintenance, repair, and overhaul (MRO) of the auxiliary power units (APUs) on its new fleet of Airbus A350 aircraft. The multi-year agreement, announced on June 9, 2026, covers 40 Honeywell HGT1700 APUs and deepens an existing technical partnership between the two companies.

The contract secures dedicated engineering support for the Indian flag carrier as it expands its long-haul operations. According to a press release issued by Lufthansa Technik, all maintenance services will be performed at the company’s specialized APU workshops located in Hamburg, Germany.

Expanding the technical partnership

Air India is the first operator of the Airbus A350 in India. The airline is utilizing the widebody aircraft to support a broader fleet transformation and international route expansion. The Honeywell HGT1700 APU is designed exclusively for the Airbus A350, and Lufthansa Technik serves as an official authorized warranty and maintenance provider for this specific model.

The new APU contract builds upon an established relationship between the operator and the maintenance provider. Lufthansa Technik currently operates an ongoing component support program for Air India’s Boeing 777 fleet.

“As India’s first Airbus A350 operator, we require a maintenance partner with extensive technical expertise and a strong track record in supporting next-generation aircraft systems,” said Jeremy Yew Jin Kit, Senior Vice President of Engineering and Maintenance at Air India. “Lufthansa Technik’s capabilities in maintaining HGT1700 APUs provide us with the confidence and reliability needed to support our expanding A350 operations.”

Authorized maintenance capabilities

Under the terms of the agreement, Lufthansa Technik will provide spare APU support and engineering services alongside the core MRO work. The Hamburg facility is equipped to handle the specific technical requirements of the HGT1700 system, ensuring the airline has access to certified repairs and replacement parts.

“Having delivered exceptional component support on Air India’s Boeing 777 fleet, we are delighted to further expand our collaboration to include the Airbus A350 fleet,” said Johanna Koch, Vice President Corporate Sales Asia Pacific at Lufthansa Technik. “As Air India continues its transformation journey, we are proud to be a trusted partner at their side.”

AirPro News analysis

Securing reliable MRO support for the Airbus A350 is a critical step for Air India as it scales its widebody operations. By consolidating its APU maintenance with an authorized Honeywell service provider, the airline mitigates supply chain risks and ensures operational reliability for its flagship aircraft. We view this contract as a logical extension of Air India’s strategy to partner with established global tier-one suppliers during its rapid fleet modernization phase, rather than attempting to build specialized in-house capabilities for new systems immediately.

Sources: Lufthansa Technik

Photo Credit: Lufthansa Technik

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MRO & Manufacturing

AAR CORP. Expands Miami MRO Facility by 33 Percent

AAR CORP. opens a 114,000-sq-ft MRO expansion at Miami International Airport, adding 3 maintenance lines and 200 jobs.

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AAR CORP. officially opened its expanded airframe maintenance facility at Miami International Airport (MIA) on August 17, 2026, increasing the site’s capacity by 33 percent to support long-term partner United Airlines.

The ribbon-cutting ceremony marked the completion of a 114,000-square-foot addition to the company’s Maintenance, Repair, and Overhaul (MRO) footprint in South Florida. According to a press release issued by Miami International Airport, the expansion introduces three new heavy maintenance lines dedicated to narrow-body Commercial-Aircraft and is projected to generate 200 full-time aviation jobs in the region.

Facility capabilities and economic impact

The $50 million construction project, initially approved in July 2023, was developed in close coordination with local government. Miami-Dade County committed to reimbursing the construction costs over time, viewing the facility as a critical driver for local employment and infrastructure development.

During the project’s development, Miami-Dade County Mayor Daniella Levine Cava highlighted the strategic importance of the investment.

“As a leader in international passengers and cargo, MIA is one of the busiest and best mega airports in the country and AAR’s significant infrastructure investment only advances our local aviation industry. This expansion will strengthen the robust training and repair programs AAR is known for and bring more than 200 new jobs to Miami-Dade County.”

The August 17 ceremony was attended by key stakeholders, including AAR Chairman, President, and CEO John M. Holmes, MIA Director and CEO Ralph Cutié, and several U.S. Representatives and local commissioners.

Strategic growth and United Airlines partnership

The Miami expansion is directly tied to AAR’s extended MRO agreement with United Airlines. In July 2023, the two companies announced a contract extension through 2030, which necessitated the additional heavy maintenance capacity in Florida. The new three-bay facility is specifically configured to handle narrow-body airframes, addressing a critical need for domestic fleet maintenance.

Holmes previously noted that the construction was a vital component of the company’s broader Strategy to serve its primary Airlines customers while strengthening the South Florida aviation sector.

“The construction of this facility is an important step in AAR’s growth strategy that enables us to best serve our valued customers. We are enthusiastic that our expansion in Miami will create career opportunities and continue to strengthen the aviation industry in South Florida.”

Broader North American MRO consolidation

The Miami ribbon-cutting follows a period of aggressive North-American expansion for AAR. As airlines face multi-year backlogs for heavy maintenance, the company has systematically increased its domestic footprint. In January 2026, AAR completed an 80,000-square-foot expansion at its Oklahoma City facility, adding three maintenance bays to support the Boeing 737 fleet operated by Alaska Airlines.

This organic growth is paired with strategic acquisitions. In November 2025, AAR acquired HAECO Americas, significantly expanding its capacity and market share in the North American MRO sector. Subsequently, in May 2026, the company disclosed a corporate reorganization designed to wind down its legacy commercial programs and concentrate resources on its highly profitable MRO and parts supply divisions.

AirPro News analysis

We view AAR’s completion of the Miami facility as a clear indicator of the sustained demand for domestic heavy maintenance capacity. By securing long-term commitments from major carriers like United Airlines and Alaska Airlines before breaking ground, AAR has effectively de-risked its infrastructure investments. The willingness of municipal partners like Miami-Dade County to underwrite construction costs further highlights the economic premium placed on skilled aviation jobs. As the commercial airline industry continues to grapple with supply chain constraints and delayed new aircraft deliveries, the reliance on existing fleet maintenance will likely keep these expanded MRO facilities operating at maximum capacity through the end of the decade.

Sources: Miami International Airport

Photo Credit: Miami International Airport

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MRO & Manufacturing

Alfor Aviation Plans £50M PTF Conversion Campus at Teesside

Alfor Aviation advances a £50M A330 freighter conversion campus at Teesside Airport, targeting 24 aircraft annually by 2027.

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Executives from Alfor Aviation have advanced plans for a £50 million passenger-to-freighter (PTF) conversion campus at Teesside International Airport (MME), following an August 12, 2026, site visit to finalize the relocation of the company’s global headquarters.

The planned facility is forecast to begin operations by the end of 2027. According to a press release from Teesside International Airport, the site will have the capacity to convert up to 24 Cargo-Aircraft annually and is expected to create 250 permanent, high-skilled jobs.

Advancing the Teesside conversion campus

The site visit follows a 50-year lease agreement signed between Alfor Aviation and the airport during the Farnborough International Airshow on July 23, 2026. The new campus will be located within the Teesside Freeport, a designation that played a significant role in the company’s site selection process.

Alfor Aviation Director and CEO Omer Mafa cited the free trade zone as a primary draw for the aerospace business.

“A key factor in our decision was Teesside Freeport. As the UK’s largest free trade zone, it provides exactly the kind of internationally competitive environment innovative aerospace businesses need,” Mafa said.

Teesside International Airport Managing Director Phil Forster noted that the agreement aligns with broader growth strategies for the region, positioning the Airports as a comprehensive hub for maintenance, repair, overhaul, and conversion operations.

The Internal Loading System technology

Alfor Aviation, a joint venture founded in 2023 by Turkish industrial group Alarko and British aviation specialists Foravia, is developing a proprietary conversion method for Airbus A330-200 and Airbus A330-300 aircraft.

The company’s Internal Loading System (ILS) diverges from traditional PTF conversions by eliminating the need to cut a large cargo door into the main deck structure. Instead, the ILS utilizes the aircraft’s existing lower-deck cargo doors. Freight is loaded into the lower hold and transferred to the main deck via two internal elevators.

According to technical details reported by Aviation Week, this approach significantly reduces the structural modifications required, lowering costs and shortening the conversion downtime to a targeted three months.

Alfor is currently modifying its first proof-of-concept widebody aircraft at a facility in Beja, Portugal. Ground testing for the system is scheduled for October 2026, with the company aiming to complete the European Union Aviation Safety Agency (EASA) approval process by late 2026.

AirPro News analysis

We view Alfor Aviation’s ILS technology as a highly ambitious structural departure from established widebody conversion programs. Traditional A330 conversions require extensive fuselage reinforcement to accommodate a main-deck cargo door. By bypassing this requirement, Alfor could theoretically offer a faster and less capital-intensive conversion option.

The success of the Teesside campus hinges entirely on securing EASA Certification for the elevator system. Moving heavy freight between decks introduces novel weight, balance, and structural load considerations that regulators will scrutinize closely. If the October 2026 ground tests validate the concept and EASA grants approval, the promised three-month turnaround time would make the Teesside facility a highly competitive player in the European PTF market.

Sources: Teesside International Airport

Photo Credit: Teesside International Airport

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MRO & Manufacturing

Pilatus Opens CHF 100M Schwarzhorn Composite Facility

Pilatus Aircraft Ltd opens its CHF 100M Schwarzhorn composite center in Switzerland, its largest single-facility investment.

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On August 14, 2026, Pilatus Aircraft Ltd officially opened its new “Schwarzhorn” composite manufacturing center at its headquarters in Nidwalden, Switzerland, marking the company’s largest single-facility investment to date at 100 million Swiss francs (CHF).

Announced in a company press release, the ultra-modern facility consolidates the development and production of advanced composite components under one roof. The center will house 300 employees and support the manufacturer’s expanded use of lightweight materials in primary aircraft structures, a shift designed to reduce aircraft weight and improve fuel efficiency across its product line, including the Pilatus PC-24 Super Versatile Jet.

Consolidating composite manufacturing

Pilatus has utilized composite materials for 40 years, historically limiting their application to non-load-bearing secondary structures. The introduction of the Pilatus PC-24 Super Versatile Jet prompted a shift toward using these materials for primary structures.

The Schwarzhorn building represents a strategic move to bring both the engineering and manufacturing of these complex components into a single dedicated space. By uniting these disciplines, the Swiss manufacturer aims to streamline production processes and enhance quality control for its composite parts.

Financial investment and corporate strategy

The CHF 100 million cost makes the Schwarzhorn center the most expensive building project in the history of Pilatus Aircraft Ltd. The investment underscores a broader corporate strategy to maintain domestic manufacturing capabilities.

In the press release, Pilatus CEO Markus Bucher emphasized the regional importance of the new site.

“With this building, Pilatus is once again reaffirming its commitment to Switzerland as a place of innovation, manufacturing, and training and to our sustainable development here at our home base, where our roots lie. Costing 100 million Swiss francs, this building is the most expensive facility we have invested in to date.”

The facility is also designed with sustainability in mind. According to reporting by Aviation International News, the building is targeting Leadership in Energy and Environmental Design (LEED) Platinum certification.

AirPro News analysis

We view the opening of the Schwarzhorn facility as a necessary evolution for Pilatus as it scales production of the PC-24 and looks toward future clean-sheet designs. Transitioning from secondary composite structures to primary load-bearing components requires tight integration between engineering and the factory floor. By spending CHF 100 million to keep this expertise in-house rather than outsourcing to specialized aerostructures suppliers, Pilatus is prioritizing supply chain control and intellectual property retention over short-term cost savings.

Sources: Pilatus Aircraft Ltd

Photo Credit: Pilatus Aircraft Ltd

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