Gallery: News Roundup From MRO Asia-Pacific 2023

ST Engineering announced the ground breaking of a new S$170 million ($124.4 million) airframe MRO hangar at Changi Creek that will eventually contribute to 10% of the company’s current global airframe MRO capacity when fully completed in 2026. The 904,000 ft² facility will have four hangar bays, inclusive a hybrid paint and maintenance bay. The first hangar will be operational by mid-2025, followed by the remaining three by end 2026, and will feature automated guided vehicles to retrieve and transport tools and parts, as well as digital tools for a paperless shop floor. ST Engineering said it will create over 550 jobs in areas such as licensed aircraft engineers, planning and production control specialists, mechanics, warehouse and logistics personnel and generate 1.3 million MRO manhours annually. The Singaporean-based company also announced that Japan Airlines will be the first customer to induct its aircraft into the new facility for servicing. 

Another ST Engineering milestone announced at the event was the signing of a five-year contract with Indonesian airline group Lion Air Group to undertake engine MRO services for its Boeing 737 MAX-family Leap-1B engines. Under the terms of the agreement, all 36 Leap-1Bs operated by group carriers Lion Air, Batik Air, Batik Air Malaysia and Thai Lion Air in Indonesia, Malaysia and Thailand are covered. Lion Air Group is the launch customer for ST Engineering's Leap-1B services.

Pratt & Whitney plans to expand MRO capacity for its geared turbofan engines by adding 48,000 sq. ft. at its Singapore engine center, Eagle Services Asia. The facility, a joint venture between the OEM and SIA Engineering Co., inducted its first PW1100G-JM engine for overhaul in 2019.

The topic of India and its expected growth over the next decade was a key discussion point of MRO Asia. Domestic providers are anticipating more MRO activity in the country over the next few years in the form of joint ventures and added capability additions to serve domestic flights, which are expected to more than double over 10 years. Several western MRO providers say the country is on their radar and they are evaluating how best to either form or grow a presence in India.

One company actively looking at India is Thales, which is considering setting up a shop for its avionics business. “India, like China, is a market obviously we cannot be out of,” says Francois Piolet, Thales Avionics' vice president and general manager for Aviation Global Services in Asia Pacific and China, told Aviation Week at MRO Asia-Pacific.

Speaking at a panel at the Aviation Week MRO Asia-Pacific conference, Christopher Rodrigues—SMBC Aero Engine Lease senior vice president for Asia sales and marketing—said the short-term priority is to ensure engine quantity over quality. Airlines need the capacity, he said, and manufacturers will not be able to increase quality units for a few years. These new engines are to either replace those on grounded aircraft, or for undelivered aircraft.

As part of plans to establish an in-house maintenance organization, Vietnamese low-cost carrier VietJet Air plans to launch an MRO facility by 2026 to service third-party operators. Speaking at Aviation Week’s MRO Asia-Pacific conference, Michael Hickey, group chief operating officer at VietJet, says the airline envisages the facility supporting both narrowbody and widebody aircraft to reflect the airline’s fleet, which is comprised currently of Airbus A320 and A330 variants. “Because we have a fleet of narrowbody and widebody aircraft, we’re going to build a facility capable of supporting both,” Hickey says.

Singapore-based low-cost carrier Scoot has expanded its Embraer E-Jet support and services capabilities by signing for a Pool Program services agreement with the Brazilian manufacturer.The Singapore Airlines subsidiary is slated to take delivery of the first of nine E190-E2s in 2024. The Embraer component distribution center is already based in Singapore’s Changi free trade zone, which covers exchanges and repair services for more than 300 repairable parts

Indonesia-based MRO provider GMF AeroAsia is looking at potential partnerships as well as capability additions in order to further drive growth in a challening aftermarket. Given capacity shortages, Andi Fahrurrozi, the company's CEO, says it is seeking partners to expand its base maintenance capabilities and engine maintenance. "Another significant concern is the shortage of critical aircraft components and spare parts," Fahrurrozi says. "We are working closely with its suppliers and exploring alternative sourcing options to mitigate these parts shortages and ensure a steady supply for its maintenance operations. The company is also exploring partnerships and collaborations with other MRO providers to leverage additional capacity and expertise."

Capital A, the parent company of Malaysia-based airline Air Asia, announced plans to setup an MRO joint venture in Cambodia with domestic company Sivilai Asia. Air Asia Digital Engineering (ADE), Capital A's MRO subsidiary, will become a 60% partner in the JV while its partner will hold the remaining 40% stake. Meanwhile, ADE signed an agreement with Collins Aerospace to grow its expertise in nacelle repairs for CFM56-5B engines.

Some parts specialists note that demand for parts exchanges is stronger in Asia-Pacific than in other major global regions. Speaking on a panel about the state of the MRO supply chain, James Bennett, chief commercial officer at UK-headquartered parts repair specialist and supplier AerFin, says parts exchanges – where an operator buys a part for an exchange fee before trading an unserviceable part removed from an aircraft - contribute to around 50% of its overall revenues in the Asia-Pacific region. “This much higher than in the U.S. and Europe,” he says of the number of exchanges, noting that quite a high number of the U.S. airlines he speaks with can't even accommodate exchanges. 

Flag carrier Philippine Airlines has announced two maintenance services agreements relating to CFM56-7B engine MRO and Boeing 777 airframe maintenance. First, Philippine Airlines (PAL) has renewed its contract with German maintenance specialist Lufthansa Technik covering the MRO services for eight CFM56-7B engines. The three-year agreement encompasses the engines for PAL’s Airbus A320ceo aircraft fleet and will take effect in 2024. The second is an extended agreement with Jordanian maintenance company Joramco for 777 maintenance services. The new contract has been modified to include servicing and modifications for five additional 777 aircraft in the PAL fleet with work to be carried out at Joramco’s facility in Amman.