ST Aerospace has signed a memorandum of understanding with Vietnam Airlines to set up a joint venture to provide component MRO.
The joint venture, to be headquartered at Noi Bai International Airport in Hanoi, will start with support for a wide range of technology groups including pneumatics, hydraulics and electrical components, before potentially increasing collaboration to include aerostructure and airframe MRO.
According to both parties, the JV will leverage Vietnam Airlines’ maintenance subsidiary, Vietnam Airlines Engineering Co.’s (VAECO) existing facilities in Hanoi and Ho Chi Minh City, while ST Aerospace will use its MRO expertise to help VAECO develop its facilities and capabilities.
In addition to the JV, the two companies have also entered into a 14-year component maintenance-by-the-hour contract to support 58 A321ceos and 20 A321neos.
ST Aerospace will set up an inventory base in Vietnam to provide timely services to Vietnam Airlines, which is taking delivery of its neo aircraft order from this year to 2019.
Lim Serh Ghee, president of ST Aerospace, said in an April 26 release that Asia-Pacific’s economic development and burgeoning middle class have created “an ideal environment” for the region’s aviation growth.
“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,” he added.