U.S.-based MRO provider AAR and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) are pursuing another transatlantic partnership, this time for nacelle maintenance in Asia-Pacific.
The two maintenance companies have announced a joint venture for new-generation nacelle maintenance out of AAR’s facility in Chonburi, Thailand.
It will perform nacelle MRO services, including on-wing or on-site inspections, and ensure parts availability.
“Our joint venture will be positioned with strong capability to meet the needs of the largest fleets in the [Asia-Pacific] region, and we plan to continue to cover additional engine nacelle types in the future,” said Jim Berberet, AAR’s senior vice president of component services.
This is the second joint venture to be formed by the companies. The first was formed in 2021 by Triumph Product Support, which was acquired by AAR earlier this year, and AFI KLM E&M to serve the Americas region.
Prior to the acquisition, Triumph and AFI KLM E&M had agreed a joint venture to provide expanded "new-gen" nacelle MRO services for customers based in North and South America.
After AAR’s fiscal first-quarter results, CEO John Holmes lauded the performance of its then-recent acquisition of Triumph’s product support division for an aggregate price of $725 million, which had driven better margins.
AAR posted a 20% jump in sales in its fiscal first quarter, with commercial aircraft maintenance and parts provision remaining at the core of its business.
Third-party sales of AFI KLM E&M grew again in the third quarter, although costs related to the supply chain kept a lid on profits.
Helped by booming engine maintenance business, the MRO provider’s sales to customers outside its parent airline grew climbed 16% to €507 million ($531 million) in the three months to Sept. 30, and were up 27% for the first nine months of the year.
This followed a strong 2023 in which third-party sales climbed 23% and accounted for 40% of all revenue at AFI KLM E&M. So far this year, third-party work accounts for a little more than 41%.
Related Content
