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More Melbourne maintenance jobs to go

written by australianaviation.com.au | July 27, 2012

LTQ has struggled to secure non-Qantas business.

A partly Qantas-owned aircraft maintenance company will shut its doors in September, leaving 164 Melbourne-based workers out of a job.

LTQ Engineering, a joint venture between Qantas and Lufthansa Technik, confirmed yesterday that it would close down, citing a lack of demand for engine overhauls. The company serviced CFM56 engines for Qantas’ 737 fleet but had struggled to secure business from other airlines.

“Reduced regional demand, tough international competition and more reliable new generation engines have directly impacted the viability of the business,” LTQ chairman and Lufthansa Technik chief executive August Wilhelm Henningsen said in a statement.

“Simply put, LTQ does not have the scale of engine maintenance work to be competitive.”

LTQ said that Lufthansa had earlier advised Qantas that it could not continue to invest in the loss-making facility. The company said all employees would receive full redundancy packages and assistance finding a new job.

The closure comes on the heels of Qantas’s decision to close its aircraft maintenance facility at Melbourne’s Tullamarine Airport.


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