WestJet has announced a multibillion-dollar, long-term commercial agreement with German aircraft services firm Lufthansa Technik to build a new engine repair station in Calgary.
Lufthansa Technik will establish and operate the aircraft engine maintenance facility at the Calgary airport to service WestJet’s approximately 50 Boeing 737 Max airplanes, which WestJet says make up around a quarter of its fleet.
The airline is projected to have more than 130 of the aircraft before the end of the decade, WestJet CEO Alexis von Hoensbroech said.
The facility will “ensure greater capacity, efficiency, cost certainty and rapid turnaround times for aircraft by servicing engines right here at our global home and global hub of operations,” he said at an announcement Thursday.
Terry Duguid, federal minister responsible for Prairies Economic Development Canada, called the facility a “game changer.”
“It will allow the newest generation of narrow body jet engines to be maintained and tested right here in Calgary, rather than shipped overseas. That means reduced downtime, lower operating costs and fewer emissions,” he said.
The facility will be built by the Calgary Airport Authority and is expected to cost about $120 million. It is scheduled to begin operating in 2027.
The project includes funding from the federal and provincial governments as well as Opportunity Calgary Investment Fund, Calgary Economic Development, Calgary International Airport and the Canada Infrastructure Bank.
WestJet says the 15-year contract with Lufthansa Technik is the largest in the carrier’s 30-year history.
The project is expected to create up to 160 new jobs in Calgary by 2030, according to the press release.
The engine repair station will be dedicated to servicing LEAP 1-B engines, with Lufthansa Technik providing a range of services, including on-wing repairs and full performance restorations. Overhauls will continue to be done at the main facility in Hamburg, Germany.