STEng – BT

ST Engg unit wins contract from major US airline

ST Aerospace, the aerospace arm of ST Engineering, has won a contract worth up to US$170 million to provide airframe maintenance services for a major US airline.

The deal includes a US$90 million contract to undertake C- checks and heavy maintenance visits (HMVs) on a fleet of Airbus A320 and Boeing 767 aircraft over three years, with an option to extend for two more years.

Including the option, the total contract value is about US$170 million.

The name of the client was not disclosed, at the request of the airline.

This is ST Aero’s second major contract from a US client in recent months.

In November, it clinched a multi-million-dollar deal to install a new onboard automatic fire-suppression system (FSS) in planes operated by global logistics giant FedEx Corp.

The work will be carried out at ST Aero’s facility in Mobile, Alabama, from the first quarter of 2010.

Commenting on the latest deal, ST Aero president Tay Kok Khiang said the contract affirms the company’s ability to bring value to airlines globally.

‘It extends our position as a preferred supplier of maintenance, repair and overhaul (MRO), and freighter conversion services to airlines large and small,’ he said.

ST Aerospace, which accounts for about half the income of its parent ST Engineering, is the world’s largest independent MRO operator, with a network with facilities in the Americas, Asia-Pacific and Europe.

With about 7,000 employees and technical specialists worldwide, it offers a spectrum of services that include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and management services.

The latest contract brings the total value of new projects clinched by ST Aero this year to US$220 million.

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