YYC to Build $120 Million Lufthansa Technik Aircraft Engine Maintenance Facility in Calgary

Calgary Airport Authority (The Authority) announced today that it will invest $120 million to build a state-of-the-art engine maintenance and test cell facility on nine acres at Calgary International Airport (YYC) in partnership with Lufthansa Technik, a global leader in aircraft maintenance, repair and overhaul.

The facility will onshore critical aviation services, providing a made-in-Canada solution that will benefit passenger and cargo airlines from across the country. The Calgary site was chosen as part of a multi-billion-dollar contract and partnership agreement between Lufthansa Technik and WestJet, which bases its domestic and international operations out of YYC.

“Aviation connects our great country, and to have reliable and affordable air travel, we need to ensure that the entire aviation services ecosystem is able to thrive locally in Canada,” says Chris Dinsdale, President & CEO of The Calgary Airport Authority. “We are grateful to all our partners for making this facility a reality. It positions Calgary as a centre of strategic services and infrastructure that will support both cargo and passenger flights in and out of the region, making us a central node in the North American aviation services network.” 

“Our new engine maintenance and test facility will provide the crucially needed capacity for the growing demand of mid-sized engine maintenance events. With target work-scopes and significantly reduced turnaround times this facility plays an important role in ensuring engine and aircraft availability for all of our North American customers, fueling their growth and constant work to improve Canada's connection to the world,” says Max Schramm, President and CEO of Lufthansa Technik Canada.

The project is made possible with co-financing from Canada Infrastructure Bank, as part of a larger financing package for aviation infrastructure with the Calgary Airport Authority. Additional funding for this project has been provided by Prairies Economic Development Canada (PrairiesCan), the Government of Alberta through the Ministry of Jobs, Economy and Trade, and Calgary Economic Development through the Opportunities Calgary Investment Fund.

“We are proud to commit $172 million towards infrastructure which supports aviation services,” says Ehren Cory, CEO, Canada Infrastructure Bank. “Our collaboration with the Calgary Airport Authority moves their project from the planning stage into shovels in the ground. The world-class facilities will strengthen Canada’s aviation infrastructure, bringing long-term, high-quality jobs and economic growth to the region.”

“This new, state-of-the-art facility is a major step toward making Calgary and Alberta global leaders in aviation innovation,” says The Honourable Terry Duguid, Minster for PrairiesCan. “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 international 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.” 

This project will establish Calgary as a premier aviation hub, positioning the city as a centre of excellence for aviation maintenance and engine technology. Beyond job creation, it will catalyze skills development, attract top-tier talent, and enhance the entire aviation ecosystem, from airlines and suppliers to educational institutions and local businesses.

“WestJet was founded on the idea of improving air travel and making it affordable for Canadians,” says Alexis von Hoensbroech, WestJet Group Chief Executive Officer. “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.” 

Designed to integrate seamlessly with YYC’s strategic growth plans, the project will break ground in the spring of 2025, and The Calgary Airport Authority will oversee planning, development, construction and deployment. The project is expected to be completed in 2027.