Varcoe: WestJet deal with global aviation giant to spur new engine repair facility — puts Calgary hub ‘on the map’​on February 13, 2025 at 3:00 pm

“Calgary is actually where strategy met opportunity,” he said.

“We’re looking at really growing this as our biggest North American footprint, and to stay here and become one of the most attractive employers for . . . the engine repair sector in North America.”

The engine maintenance work for WestJet’s aircraft has traditionally been done in Cincinnati, Montreal and Germany.

For the Calgary-based airline, the contract will provide price certainty for the work and ensure it has access to the maintenance capacity, von Hoensbroech noted. Having such a facility built at the Calgary airport will also allow it to have the work done locally.

For Calgary, it means more highly skilled jobs, and it’s another step to accelerate the development of the aviation sector.

Aside from WestJet, De Havilland Aircraft of Canada announced plans in 2022 to build an aircraft manufacturing complex east of Calgary in Wheatland County.

The presence of Lufthansa Technik Canada and the new aircraft engine maintenance facility in Calgary is also expected to attract other industry players to Alberta.

“The concept here is to bring as much of the critical aviation services (and) ecosystem to our doorstep as possible. Of course, you’re also creating jobs,” said Calgary Airport Authority CEO Chris Dinsdale.

“We’re lucky because we’ve got a big cornerstone client (in WestJet). which helps to attract, but this facility is for all airlines.”

He noted this announcement will allow the local sector to increase its capacity, and it’s the first of the authority’s planned projects to expand the aviation hub at the airport.

“Lufthansa Technik is one of the A-list service providers in the aviation sector,” Dinsdale added. “When you have a big player like that come in — and they’re truly a global player — it really puts Calgary on the map and it actually starts to attract others.”

Under the announcement, financial incentives will be provided by federal, provincial and municipal organizations.

The province will provide the new facility with $7.45 million of assistance, including $4.5 million from its Aerospace Workforce Development Grant.

The federal government will invest $8 million for the airport to build and equip the new maintenance and related test cell facility at the airport, while the Opportunity Calgary Investment Fund (OCIF) will provide up to $2.5 million over four years to support Lufthansa Technik setting up a headquarters in the city.

Additionally, the Canada Infrastructure Bank is committing $172 million, providing co-financing to the authority for several projects, including this development.

Jobs and Economy Minister Matt Jones said the province expects aerospace industry revenues to increase from about $3 billion to almost $5 billion by the end of the decade, and employment to grow from 4,000 today to about 7,000 in that period.

“We’re getting to the point where we have the critical mass to attract larger and even larger industry players,” he said.

Lufthansa Technik, which is part of the German-based Lufthansa Group, also has engine repair station facilities in Montreal and Tulsa, Okla., as well as in Frankfurt, Dublin and Shenzhen, China.