Canada invests $180 million in new aircraft engine maintenance facility at Calgary International Airport

The Government of Canada is investing $180 million to support the construction of a state-of-the-art aircraft engine maintenance and test facility at Calgary International Airport (YYC). Announced by the Honourable Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada (PrairiesCan), this investment aims to bolster Canada’s aviation sector, reduce emissions, and enhance the competitiveness of small- and medium-sized businesses. The facility, spanning 150,000 square feet, will focus on the maintenance and testing of next-generation, lower-emission jet engines, playing a crucial role in Canada’s net-zero emissions commitment.

Details of the funding

The funding includes $172 million from the Canada Infrastructure Bank (CIB) and $8 million in non-repayable contributions from PrairiesCan, as part of a multi-partner collaboration with the Province of Alberta, City of Calgary, Calgary Economic Development, YYC Calgary International Airport, and Lufthansa Technik. The project will create approximately 160 permanent full-time jobs by 2030, along with up to 170 temporary construction jobs. Over 30 small- and medium-sized businesses in the aviation supply chain will also benefit from the new facility.

The facility will be the only one of its kind in Canada, offering services to narrow-body, lower-emission jet engines, which will help airlines enhance cost competitiveness and reduce downtime. WestJet will be a cornerstone client for Lufthansa Technik at the site. The project is set to break ground in mid-2025 and is expected to be completed by 2027.

This investment is part of a broader strategy to position Alberta and Calgary as leaders in aviation innovation and clean technologies. The Government of Canada has previously supported Alberta’s aerospace sector, with over $4.3 million announced in November 2024 for new technology commercialisation and workforce development in the industry. The creation of an Aerospace Innovation Hub at the University of Calgary and Canada’s first remotely piloted aviation training centre for heavy-lift drones were also recent initiatives to strengthen the sector.

Quotes: “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.” – The Honourable Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada.

“This project is about showcasing Alberta’s growing global reputation for innovation in aviation and clean technologies.” – George Chahal, Member of Parliament for Calgary Skyview.

“The Calgary Airport Authority is extremely appreciative of the $8 million contribution from PrairiesCan.” Said Chris Dinsdale, President and CEO, Calgary Airport Authority.