STEng – BT

ST Aero bags US$105m China airline contract

It’ll service A320 jets of Spring Airlines in eight-year deal

IF there is one company that is on a roll, it has to be ST Aerospace. The ST Engineering unit yesterday announced another contract win – this time a US$105 million deal with Shanghai-based budget carrier Spring Airlines for component maintenance-by-the-hour (MBH) services.

The news comes just days after ST Aero announced one of its biggest-ever single deals – the 10-year US$750 million MBH contract with India’s Jet Airways.

Under the Spring Airlines deal, ST Aero will provide maintenance, repair and overhaul services for the carrier’s current fleet of 15 Airbus A320 aircraft, which will grow to 78 of the same type.

The contract starts this month and will last eight years. It also includes setting up a warehouse at Spring’s base at the Pudong International Airport. The airline already has a warehouse at its base at Hongqiao International Airport. The new warehouse will allow easy access to component consignment services at Pudong.

ST Aero’s relationship with Spring began in 2005 when it secured an MBH contract to provide component services, including component maintenance, repair and overhaul, pool access and consignment services. Since then, ST Aero has also provided airframe services, seats and slides overhaul and aircraft-on-ground and tapped on its aviation logistics facility at Guangzhou to provide import, export, warehousing and logistics services of components.

The latest contract underscores the popularity of ST Aero’s MBH offering, especially for narrow-body Boeing 737 and Airbus A320 aircraft. ST Aero is providing engine and component support for more than 650 aircraft on an MBH basis for a large number of airlines.

Spring is one of China’s pioneer low-cost carriers. Established in 2005 by Spring Travel, China’s domestic travel agency, it started operating with three Airbus A320s. Today it operates out of Shanghai’s Hongqiao and Pudong airports as well as Sanya’s Fenghuang Airport, serving more than 50 routes within mainland China. It hopes to go international this year.

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