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ST Aerospace to Provide MRO Solutions to Vietnam Airlines

: Apr 26, 2018 - : 3:53 am

ST Aerospace and Vietnam Airlines have signed a deal to boost aviation operations.

 

The two companies signed a memorandum of understanding (MOU) on April 26, to set up a joint venture for ST Aerospace to provide Vietnam Airlines with Maintenance, Repair and Overhaul (MRO) solutions.

 

The joint project will be headquartered in the Noi Bai International Airport in Hanoi to cater to Vietnam Airlines’ requirements, as well as the region’s growing needs for aircraft MRO services. It will start with support for a wide range of technology groups including pneumatics, hydraulics and electrical components, before potentially increasing the collaboration to include aerostructure and airframe MRO.

 

This agreement was among 16 MOUs that were signed and witnessed by Singapore’s National Development Minister Lawrence Wong and Vietnamese Prime Minister Nguyen Xuan Phuc, on the second day of his official visit to Singapore.

 

Currently Vietnam Airlines send its aircraft overseas for maintenance and repairs. The deal, according to which the maintenance work will now be carried out in Vietnam, is expected to help the airlines shorten its turnaround time. This will also help to save costs and create higher operational efficiency.

The two companies have also entered into a 14-year component Maintenance-By-the-Hour (MBH™) contract that will support the airline’s whole fleet of 58 A321CEOs and 20 A321NEOs, including other A321s that will be delivered, in component maintenance starting from mid-2018. Under the MBH™ contract, ST Aerospace will set up an inventory base in Vietnam to provide timely services to Vietnam Airlines.

 

The partnership will leverage Vietnam Airlines’ maintenance subsidiary, Vietnam Airlines Engineering Company (VAECO)’s existing facilities in Hanoi and Ho Chi Minh City, as well as ST Aerospace’s core expertise in MRO to develop these facilities and their capabilities.

 

Mr Lim Serh Ghee, President of ST Aerospace said, “We are happy that Vietnam Airlines has decided to entrust their A321CEO and A321NEO fleet to us for component support, and even more so by the prospect of deepening our partnership with the exploration of a joint venture. The robust development of the economy and a burgeoning middle class have created an ideal environment for the growth of the aviation industry in the Asia Pacific region, and Vietnam’s double-digit growth in the air travel sector is the best reflection of this. Riding on this growth, strategic partnerships with established industry participants such as Vietnam Airlines will enable us to increase our regional footprint and better penetrate high-growth markets.”

 

Mr Dang Ngoc Hoa, Executive Vice President of Vietnam Airlines said, “We are delighted to partner with ST Aerospace to establish a joint venture as well as to provide MRO support for the A321 aircraft family, which is the majority of our fleet. This partnership not only improves our fleet efficiency and world-class service quality, but also represent a major step forward for Vietnam’s aviation industry in general, contributing to the boost of bilateral economic, trade and aviation relations between Vietnam and Singapore.”

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