Austrian Airlines Technik and Lufthansa Technik firmed an April MOU and signed a 10-year contract to increase a strategic cooperation, highlighted by the establishment of a 777 MRO center in Vienna that will service LHT clients and third-party customers.

The center will be the first of its kind in Europe and is scheduled to be operational in July 2008 at the latest. "First we will start with 777 engineering, then we want [to offer] more. The cooperation means a promising future not only for our 1,120 Technik employees but the possibility to increase our workforce in a very tough market," Austrian CFO Thomas Kleibl said.

Kleibl revealed that he expects cost savings in the double-digit million euros thanks to the LHT cooperation, which will fill more maintenance capacity in Vienna. Eventually, up to 70% of Austrian Technik's capacity may be used by LHT clients.

Lufthansa does not operate the 777 but LHT handles MRO on the aircraft for third-party customers. Austrian Airlines flies four 777-200ERs. Austrian currently performs C checks on LH Airbus widebodies in Vienna and plans to continue to do over the next decade even as LHT expands its A330/A340 capability with establishment of its Malta base.

Separately, Kleibl said Austrian is seeing greater potential in its F70/100 MRO center in Bratislava. "Besides Alpi Eagles from Italy, we have around eight third-party customers and the figure is increasing," he said.