Kuala Lumpur-based Asia Digital Engineering (ADE) has demonstrated its need for extra capacity after throughput fell in the second quarter due to extended turnaround times.
The Capital A subsidiary said that “extensive heavy checks” for older aircraft had increased time in the hangar, meaning it only completed 13 base maintenance visits in the three months to June 30, versus 19 in the prior-year period.
However, there was better news from ADE’s component workshops, where completed orders rose 23% in the quarter.
ADE’s main customer is AirAsia and its associated airlines, for which it performs Airbus A320 and A330 maintenance.
Last year it also won a contract from Air France for heavy checks on the flag carrier’s A330-200 aircraft.
Yet almost 90% of its work remains with AirAsia Group, which has cut capacity and continues to struggle with some of its short- and long-haul airlines.
AirAsia Group said after disappointing results in the second quarter that it would return 25 older leased aircraft this year to reduce fixed maintenance drag. Excluding foreign exchange impact, the airline group posted a MYR500 million ($122 million) loss for the quarter.
At the end of the period, the group said it had 161 aircraft in service, but also around 90 on the ground due to ongoing fleet rationalization and capacity optimization initiatives to maximize financial performance and operational efficiency.
ADE is in the process of building a third hangar at Kuala Lumpur International Airport, which it has previously said should open in September or October next year. Capital A did not respond to requests for comment about the progress of its maintenance facility development.
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