ST Aerospace seals $80m repair contract with AirAsia

ST Engineering’s aerospace arm will provide maintenance support for AirAsia's A320 aircraft fleet over a 10-year period.

The contract involves component repair management Maintenance-By-the-Hour (MBHTM) support for 75 of AirAsia’s Airbus A320 aircraft, and is expected to commence immediately, said ST Aerospace in a release.

ST Aerospace is currently supporting AirAsia on an existing component repair management MBHTM programme for 100 A320 aircraft. With this contract, ST Aerospace will effectively support 175 of AirAsia’s A320 aircraft.

“Through high aircraft utilisation and paramount importance placed on flight safety and quick turnaround time, AirAsia has managed to achieve high efficiency in operations to keep our costs low. ST Aerospace has been a reliable partner, consistently providing us with high quality and cost effective maintenance, repair and overhaul services. We have enjoyed 10 years of partnership, and we look forward to continuing this successful relationship,” said Tony FERNANDES, Group CEO, AirAsia

“ST Aerospace is honoured to further our partnership with AirAsia. This contract is a testimony to our performance and ability to provide our customers with safe and dependable maintenance, repair and overhaul solutions. It also reflects AirAsia’s confidence in ST Aerospace’s services over the last decade. ST Aerospace is fully committed to building our relationship with AirAsia as the airline continues to grow its operations worldwide,” said CHANG Cheow Teck, President, ST Aerospace.

This contract is 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.