Lufthansa Technik lease renewal could decide NAIA’s aviation future

Lufthansa Technik Philippines (LTP) is close to renewing its 25-year lease at NAIA, securing over 3,200 jobs and preserving Manila’s position as an aviation hub. But the talks hinge on steep rental hikes from San Miguel-led New NAIA Infrastructure Corp., with proposed rates jumping elevenfold to ₱160 million monthly.

LTP’s presence is critical: it services aircraft from Cebu Pacific, Philippine Airlines and leading global carriers, anchoring Manila’s MRO competitiveness. For MacroAsia, which owns 49% of LTP, negotiating a preferential or phased rate is vital to protect margins and sustain profitability, especially as earnings from LTP surged 75% in the first half of 2025.

Industry analysts warn that sudden cost spikes could squeeze cash flow, pressure dividends and risk passing higher charges onto airlines. A resolution is expected soon, with government officials pushing to keep LTP at NAIA given its strategic importance.

Read the full article for insights into how this lease battle could reshape the Philippines’ aviation growth trajectory.