July 13 (Bloomberg) -- Singapore Technologies Aerospace Ltd. extended a component repair contract with AirAsia, adding $80 million in work as it bolsters its services division serving airlines.
ST Aerospace will maintain an additional 75 of AirAsia’s fleet of Airbus A320s, extending an existing contract covering 100 planes, said Chang Cheow Teck, president of ST Aerospace, in an interview at the Farnborough Air Show. The agreement spans 10 years, with ST Aerospace getting monthly fees to cover any maintenance needed.
ST Aerospace’s strategy is to offer a range of services including maintenance and repair of engines and landing gear, as well as pilot training,and engineering, including conversion of passenger planes to freighters.
“Our ambition is to be an international total aviation support player,” said Chang. “On the Airbus A320 and Boeing Co. 737NG we can support engines, airframes, and components. And now we’re looking at asset management, even providing pilots.”
ST Aerospace is already the world’s largest commercial airframe maintenance and repair provider, with customers including airlines, air freight companies and military plane operators. It started out in military work and introduced services for civil aircraft in 1990. It now derives three quarters of revenue from the civil area.
Chang expects revenue for 2012 to be ’’comparable within 5 percent’’ to that of 2011, while profit will be better, he said.
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