Lufthansa Technik Canada is establishing a state-of-the-art maintenance and repair facility at Calgary International Airport, specializing in Leading Edge Aviation Propulsion (LEAP) engines. As one of just five certified global operators for these next-generation engines, this $120-million investment positions Alberta at the heart of the global narrow-body aircraft market. This investment is a key catalyst for WestJet to enter into a 15-year, multi-billion-dollar maintenance contract with Lufthansa Technik, which will build and support Alberta’s aviation industry for years to come.
“Alberta’s government is proud to welcome this historic partnership between WestJet and Lufthansa Technik Canada right here in Calgary. This agreement will have a far-reaching impact on our economy and it serves as a testament to the strong levels of investor confidence in our province. Alberta is a place where you can grow your business and thrive into the future. With our low corporate tax rate and highly educated workforce, Alberta continues to be one of the most business-friendly jurisdictions in North America. Today’s investment is further proof of Alberta’s national and international reputation as a leading aerospace and aviation hub.”
“This new, state-of-the-art facility is a major step toward making Calgary and Alberta global leaders in aviation innovation. Our government is proud to partner with the Calgary Airport Authority, industry leaders, and all levels of government to strengthen Canada’s aviation sector. We beat out strong competition to secure this opportunity, showcasing our region’s innovative spirit and commitment to reducing emissions. Together, we’re developing and adopting cutting-edge technologies that will boost the competitiveness of small- and medium-sized businesses across the aviation supply chain.”
Lufthansa Technik Canada is the latest grant recipient of Alberta’s Investment and Growth Fund (IGF), receiving $3 million in provincial funding to build a new aerospace maintenance facility at the Calgary airport. The IGF is one of several investor support services and programs offered by Alberta’s government.
Alberta’s government is also providing $4.45 million through the Aerospace Workforce Development Grant to provide training and employment supports to ensure Lufthansa Technik Canada has the skilled workers it needs to expand into the province. This grant is administered through Calgary Economic Development as part of the Opportunity Calgary Investment Fund to attract investment, drive innovation and spur transformative economic development in the aerospace sector.
Lufthansa’s investment is helping to further diversify Alberta’s economy and create important jobs for hard-working Albertans. Lufthansa Technik Canada’s investment will create up to 160 permanent jobs and up to 170 temporary construction jobs, giving Albertans more access to stable, well-paying jobs in a growing sector. These jobs will span across various roles, from highly skilled technicians to engineers and support staff, catering to the demands of the next-generation LEAP engines. This surge in jobs is taking off at a time when Alberta is diversifying its economy and expanding key industries, making these roles a vital part of the province's economic growth trajectory.
“Lufthansa Technik Canada’s investment is the latest addition to our growing aviation and aerospace sector. Alberta continues to attract world-class companies like Lufthansa Technik Canada because of its pro-business policies, low taxes and innovative talent. This investment will create hundreds of jobs for hard-working Albertans and further diversify our economy.”
Lufthansa Technik Canada will offer mobile engine maintenance and test cell services at Calgary International Airport, providing Canadian aviation operators with a more cost-effective, efficient alternative to overseas maintenance. This boosts operational efficiency while cutting costs. Its new Calgary facility will contribute to the growth of Alberta’s aerospace and aviation sector and create valuable jobs for Albertans.
“Our agreement with WestJet represents one of the largest awards ever granted to any maintenance, repair and overhaul 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. 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.”
This investment builds on a memorandum of understanding signed in 2022 between WestJet and Alberta’s government. WestJet committed to make Calgary its global headquarters, with both parties agreeing to work together to grow Alberta’s aerospace and aviation industry – including through attracting important aviation infrastructure investments. The facility is expected to break ground in mid-2025, with completion expected in 2027. WestJet will be Lufthansa Technik Canada’s first customer at the newly created engine maintenance facility, underscoring the partnership’s confidence in local expertise and innovation. WestJet’s request for proposal award was the largest contract in WestJet’s history and the largest award granted to any premier maintenance and repair provider for such engines in the Americas.
“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. We are proud to partner with Lufthansa Technik. This is an extraordinary moment for WestJet, our guests, WestJetters, Western Canada’s communities and our suppliers.”
“After years of hard work and collaboration to showcase our city and build connections with industry partners, we are excited to see Lufthansa Technik land in the Blue Sky City. Calgary’s competitive business environment and deep talent pool position us for future growth, and the establishment of Lufthansa Technik’s Western Canada hub in our city proves what’s possible as we continue to establish ourselves as a global aerospace leader.”
“This project is a remarkable example of what can be achieved when our aviation ecosystem and all levels of government come together - Lufthansa Technik as the premier supplier, WestJet as a vital cornerstone customer, critical support from Calgary Economic Development and the Government of Alberta through the Ministry of Jobs, Economy and Trade along with funding from the Calgary Airport Authority, the Canada Infrastructure Bank, Prairies Economic Development Canada and Opportunity Calgary Investment Fund. By building this cutting-edge facility in Calgary, we ensure that WestJet and all Canadian airlines will have access to reliable, cost-effective and efficient maintenance services while building essential infrastructure in engineering, training and enterprise to make Calgary and Alberta a centre of aviation excellence within North America.”
“We are proud to commit $172 million in financing towards infrastructure that supports aviation services at the Calgary International Airport. Our collaboration with the Calgary Airport Authority moves its project from the planning stage into shovels in the ground. The world-class facilities will strengthen Canada’s aviation infrastructure, and bring long-term, high-quality jobs and economic growth to the region.”
Alberta’s government will continue to work with Lufthansa Technik Canada to expand its footprint in Alberta once this project is in operation. With strong government support and a strategic position in the international market, Alberta remains the best place to live, work and invest in the future.
Quick facts
- The Investment and Growth Fund (IGF) is designed to be offered in select late-stage investment decisions, when Alberta may be competing with comparable jurisdictions that may offer other benefits or incentives to investors.
- Since fall 2021, 12 IGF grants have been announced that will create more than 1,100 permanent full-time jobs and more than 1,100 temporary jobs, with a total capital investment of more than $765 million.
- The IGF has helped to secure nearly $29 in private investments for every $1 in IGF funding.
- The aviation and aerospace industry in Alberta is thriving with a growth in revenues of more than 17 per cent from 2021 to 2023.
- Alberta’s Aerospace Workforce Development Grant supports attraction and training in the aviation and aerospace sector and aims to attract new investment while supporting the expansion of aerospace companies in Alberta.