WestJet and Germany’s Lufthansa Technik are set to develop a new $120-million aircraft repair facility in Calgary, marking a significant expansion of the city’s aviation sector.

The project is part of a record 15-year, multi-billion contract between WestJet and Lufthansa Technik whereby the aircraft maintenance and repair firm will service the airline’s fleet of 50 Boeing 737 Max airplanes.

“WestJet was founded on the idea of improving air travel and making it affordable for Canadians,” said Alexis von Hoensbroech, the company’s CEO. “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.”

WestJet will be Lufthansa Technik’s first customer with other airlines also slated to service their aircraft at the centre.

The facility, which will be located at Calgary International Airport, will focus on maintenance, repair, and overhaul (MRO) services, supporting WestJet’s growing fleet and enhancing the region’s aviation infrastructure. The project is part of WestJet’s effort to expand its global aviation hub in Calgary, where the airline is headquartered.

The future facility is also part of a broader effort to strengthen Western Canada’s aviation industry. Lufthansa Technik, a global leader in aircraft maintenance, brings its expertise to the initiative, while WestJet continues to expand its operations with a focus on efficiency and reliability.

The new centre will provide specialized maintenance services, reducing the need for airlines to send aircraft elsewhere for repairs.

“This agreement represents one of the largest awards ever granted to any MRO provider for CFM LEAP engines worldwide,” Soeren Stark, Lufthansa Technik’s CEO. “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.”

The federal government is investing $180 million for the Calgary Airport Authority to construct, fit out and equip the new 150,000-square- foot facility. Ottawa’s investment includes $172 million in financing from the Canada Infrastructure Bank and $8 million in non-payable contributions from the government’s regional economic development agency PrairiesCan.

The Province of Alberta ($7.5 million), the City of Calgary, and Calgary Economic Development are also among the key partners backing the project.

The facility is expected to generate 160 permanent Lufthansa Technik jobs by 2030 and 170 temporary construction jobs, along with economic activity that reinforces Calgary’s role in the global aviation sector.

The Calgary Airport Authority is also playing a central role in the development, integrating the new facility into the airport’s broader expansion plans. The addition of the repair centre aligns with ongoing efforts to modernize the airport and support the growth of air travel in the region.

Construction is slated to begin in mid-2025 and conclude in 2027.

Pictured: WestJet CEO Alexis von Hoensbroech (left) and Lufthansa Technik Chief Operations Officer Harald Gloy (right) sign historic aircraft-engine maintenance contract in Calgary.

Photo: CNW Group/WestJet