Another Parts JV Opens For Business In Asia-Pacific.jpg AFI KLM E&M

Another Parts JV Opens For Business In Asia-Pacific

Component repair business announced in summer 2017 by AFI KLM E&M and Sabena technics inaugurated its new workshop at the Singapore Airshow.

Amidst a flurry of joint venture activity in Asia-Pacific, one of last year’s most prominent announcements in the form of AFI KLM E&M-Sabena technics’ Singapore Component Solutions (SCS) inaugurated its new workshop at the Singapore Airshow on Tuesday (Feb. 7).

SCS, which will focus on parts found on Airbus A320 family and all ATR aircraft types, will be based in Singapore's Seletar aviation cluster, established by the country's government in 2010. Repair capabilities will cover avionics, components including mechanical, hydraulic and pneumatic, as well as structural parts along with cabin and safety equipment.

As well as existing AFI KLM E&M and Sabena technics’ customers in the Asia-Pacific region, the JV said it will also focus on attracting new third-party customers. This strategy is unsurprising, as demand for component repair in Asia-Pacific from customers is projected to be strong over the next decade and aircraft like the A320 could provide something of a sweet spot for some MROs.

According to Aviation Week’s 2018 Fleet & MRO Forecast data, the A320 family will generate $39.4 billion worth of demand between this year and 2027, with the highest repair segment being components, which will account for 37% of that total.

In a statement, Thibaut Campion, who will oversee the JV alongside Jacques Montmayeur, revealed that further growth plans are already in the works. This year will see SCS grow its footprint at Seletar by taking over three new buildings at the location, while also intending to double its workforce in 2018 before eventually taking staff numbers up to around 200 in 2022.

“A broad array of capabilities will be developed over the next three years, including the installation of a high-tech ATEC avionics test cell, air cycle machine bench, pneumatic and hydraulic valve test fixtures,” he added.

While not entering into a JV in this instance, GE Aviation is another company looking to capture more of the parts market in Asia Pacific where it has held a repair presence for more than three decades. On Monday (Feb. 5), it confirmed plans to start manufacturing GE9X engine parts in Singapore, with the engine powering the forthcoming Boeing 777X, expected to enter into service in late-2019. To date, the aircraft competitor to the A350 has already won orders from the likes of Singapore Airlines and Cathay Pacific.

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