Canadian airline WestJet and Lufthansa Technik have signed a 15-year, multi-billion-dollar agreement for the maintenance of CFM LEAP-1B engines powering WestJet’s Boeing 737 fleet.
The deal, the largest in WestJet’s 30-year history, was secured through a competitive global sourcing process.
As part of the agreement, Lufthansa Technik will establish a dedicated engine repair facility in Calgary, marking its first test cell for next-generation engines in Canada. Operations are set to begin in 2027, with WestJet as the launch customer.
Alexis von Hoensbroech, WestJet Group chief executive, 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.”
Lufthansa Technik will provide WestJet with a comprehensive suite of services, including quick turn shop visits, on-wing repairs, and full performance restorations. The partnership covers WestJet’s growing 737 MAX fleet, expected to reach over 130 aircraft by the end of the decade.
The project is backed by the Government of Canada, the Government of Alberta, and local partners, with financial support exceeding $17 million. The Calgary Airport Authority will oversee the $120-million investment in the facility, set to create up to 160 jobs by 2030.
Soeren Stark, chief executive of Lufthansa Technik, said: “This agreement represents one of the largest awards ever granted to any MRO provider for CFM LEAP engines worldwide. It’s a contract that underlines Lufthansa Technik’s leading position in the support of new generation engine types. We greatly value WestJet’s strong confidence in our extensive expertise and our ability to serve as a trusted long-term partner. At the same time, we are grateful for the strong support from our local allies in Canada, which is essential in advancing the creation of a new engine repair shop and test cell facility in Calgary.”
Construction of the engine maintenance facility is scheduled to begin mid-2025 and is expected to take about two years.
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