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The Government of Canada announced federal investments totaling $180 million for the Calgary Airport Authority to construct, fit out and equip a new 150,000 square foot aircraft engine maintenance and test facility at the Calgary International Airport (YYC). This facility will allow for the onshoring of maintenance and testing of engines used in the commercial aviation sector while also facilitating a transition to lower emission engines and sustainable aviation fuels. “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,” said Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada. These investments include $172 million in financing from the Canada Infrastructure Bank (CIB) and $8 million in non-repayable contributions from PrairiesCan through the Community Economic Development and Diversification (CEDD) program. They are part of a multi-partner collaboration that includes the Province of Alberta, the City of Calgary, Calgary Economic Development, YYC Calgary International Airport, and Lufthansa Technik to advance a regional vision for a western aviation hub. The project builds on western Canada’s established strengths in engine testing and aviation technologies. “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 their project from the planning stage into shovels in the ground. The world-class facilities will strengthen Canada’s aviation infrastructure, bring long-term, high-quality jobs and economic growth to the region,” said Ehren Cory, CEO, Canada Infrastructure Bank. The new facility will be unique to Canada in its capacity to accommodate the next generation of narrow body, lower emission jet engines, which will help position Canadian airlines to meet Canada’s commitment to net-zero emissions. In addition to better environmental outcomes, the facility will provide engine maintenance and repair services to help airlines improve cost competitiveness and reduce downtime. “The Calgary Airport Authority is extremely appreciative of the $8 million contribution from PrairiesCan to support the growth of a new state-of-the-art aircraft engine maintenance and testing facility. This investment represents a significant step forward for the Calgary International Airport (YYC), which is overseeing the planning, construction, and deployment phases to ensure the multi-partner project is delivered to the highest standards. The Authority will continue to work tirelessly to establish Calgary as a premier aviation hub, positioning Calgary as a centre of excellence for aviation training, maintenance and engine technology,” Chris Dinsdale, president and CEO, Calgary Airport Authority The project will support approximately 160 permanent full-time jobs that are expected to be created by Lufthansa Technik at the facility by 2030 and up to 170 temporary construction jobs related to the development of the facility. Over 30 small- and medium-sized businesses operating in the aviation supply chain, such as those providing avionics maintenance and component manufacturing, will also benefit. The facility is expected to break ground in mid-2025 and be completed in 2027. The facility will serve all airlines, with WestJet as a cornerstone client for Lufthansa Technik. The announced investments build on recent PrairiesCan support for Alberta’s aerospace and aviation industry. This includes over $4.3 million announced in November 2024 for manufacturing and commercializing new technologies, connecting small- and medium-sized firms with procurement opportunities, and creating new career paths for underrepresented groups. In October 2023, PrairiesCan announced $3 million to double Mount Royal University’s pilot and flight training capacity to meet industry needs. And in June 2023, PrairiesCan also announced $4 million to establish an Aerospace Innovation Hub at the University of Calgary, as well as Canada’s first remotely piloted aviation training centre for heavy-lift drones training, maintenance, and certification at the Southern Alberta Institute of Technology (SAIT). “This agreement represents one of the largest awards ever granted to any MRO 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. 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,” said Soeren Stark, CEO of Lufthansa Technik. |
