Lufthansa Technik in Saudi support deal

Dubai: Lufthansa Technik, a part of Germany's Lufthansa airline group, has signed a seven-year agreement with Saudi Arabia's low-fare Sama Airlines to provide material and engineering services.

The services will start in March. The airline has a fleet of six Boeing 737-300s and hopes to expand it to 35 aircraft by 2012.

Sama CEO Mark Breen said the deal is worth a "low three-digit" figure in dollar terms, but did not disclose the exact value.

Lufthansa Technik said its Total Material Operations product will cover all material operations including maintenance, repair and overhaul services and the supply with all aircraft materials from consumables and expendables to cabin parts.

In Saudi Arabia, Lufthansa Technik has existing service agreements with Saudia and NAS Air.

Walter Heerdt, senior vice president of marketing and sales of Lufthansa Technik, told Gulf News the company is in talks with about 10 regional airlines to offer its technical support services.

Asked if the German firm will consider setting up an operations base in Saudi Arabia or Dubai World Central, he said: "We are willing to explore every opportunity."

The company has been cushioned against adverse impact of the ongoing economic downturn because of its diversified nature of business that covers not only commercial planes but also military and VIP aviation.

"That helped us to overcome the downturn," he said, adding that if the crisis deepens further Lufthansa Technik will be affected.

Heerdt said the global economic crisis has claimed some of the company's clients and the air travel downturn remains a concern.