ST Engineering To Set Up MRO JV With Vietnam Airlines
To tap on the demand for MRO services in Vietnam and the region, Singapore Technologies Engineering has signed a MOU with Vietnam Airlines to study an airframe MRO services joint venture in Vietnam’s Hanoi and Ho Chi Minh City.
While the scope of the JV is not fully ironed out, it is highly likely that it will first cover primarily Vietnam Airlines’ aircraft, consisting mainly of Airbus A350, Boeing 787 as well as A320 family.
Low-cost carrier Vietjet Air is also one of the largest A320 operator in the Indochina region, with around 78 A320 family aircraft in service.
ST Engineering recently began its presence in Vietnam after opening a component MRO facility in September 2019, to service aircraft including but not limited to the A320 family, A350, 787 and ATR72.
The work scope covers pneumatics, hydraulics, electrical components, wheels and brakes as well as safety equipment. The Singapore company has a 49% stake while the Vietnam Airlines Engineering Company (VAECO) the remaining 51%.
“The establishment of a joint venture will bring more aircraft and added value to Vietnam. Likewise, it will help to improve the technical level of the domestic aircraft maintenance industry as well as the competitiveness of the national airline,” said Vietnam Airlines president and CEO Duong Tri Thanh.
“Together with ST Engineering and other potential airline partners around the world, we believe that this joint venture will stimulate and strengthen the Vietnamese job market and aviation industry."
The Singapore MRO company is the world’s largest MRO service provider in terms of manhours. Currently it has airframe MRO facilities in Guangzhou, China, San Antonio in Texas as well as the new Pensacola International Airport in Pensacola, Florida.