ST Aerospace Engineering bags $520m new deals in Q2

It redelivered 229 aircraft in just three months.

Singapore Technologies Engineering Ltd (ST Engineering) yesterday announced that its aerospace arm has secured new contracts worth $520m in 2Q14. 

These new orders span the aerospace sector repertoire of capabilities covering airframe, component and engine maintenance, freighter conversion, cabin modification, engine wash and pilot training.

“Included in the 2Q2014 contracts is a five-year agreement with a regional US airline for heavy maintenance of 42 Embraer E-170 and E-175 aircraft at the aerospace sector’s San Antonio facility. This came shortly after clinching a two-year agreement in 1Q2014 for heavy maintenance of 20 Embraer E-190 aircraft,” noted ST Engineering.

Here’s more:

In 2Q2014, ST Aerospace redelivered a total of 229 aircraft for airframe maintenance and modification work.

In addition to airframe redeliveries, a total of 11,191 components, 56 landing gears and 49 engines were processed, while 2,505 engine washes were conducted for both commercial and military customers.

The second quarter’s aircraft redeliveries included four additional Boeing 767-300 aircraft to Air Canada rouge, after a full turnkey cabin reconfiguration programme. This follows the completion of the first two aircraft in 1Q2014.

On aircraft capability, ST Aerospace’s airframe facility in Guangzhouhas received Part 145 certifications from the Civil Aviation Administration of China, the European Aviation Safety Agency and the US Federal Aviation Administration (FAA) respectively, allowing it to extend maintenance services to aircraft operators from these regions.

On component capability development, ST Aerospace is setting up new repair and overhaul capabilities in Singapore, for the first batch of UTC Aerospace Systems’ electrical and air management system components installed on the Boeing 787 Dreamliner aircraft. Concurrently, the aerospace sector’s Scandinavian facility has added new component capabilities for the Boeing 737NG, 767 and Airbus A330 aircraft.

Leveraging new technologies, ST Aerospace’s investment casting foundry started using 3D printing for rapid prototyping and small scale production of parts.

In the US, VT Aerospace has acquired 100% equity interest in Aviation Academy of America, a FAA Part 141-approved flight school, to grow the aerospace sector’s pilot training business. In Singapore, ST Aerospace’s training academy was awarded an extension contract to train another 40 cadet pilots for Juneyao Airlines.

The above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.