Assembly of 737NG and A320 main landing gear (photo : ST Aerospace)Singapore, - ST Engineering's aerospace arm, ST Aerospace, has clinched about S$320m worth of new maintenance contracts in the fourth quarter of 2010. Ranging from three to 12 months, these contracts will be carried out at its facilities in the Americas, Asia Pacific and Europe. This is in addition to the Maintenance-By-the-Hour (MBHTM) contract awarded by China Airlines announced in November last year.
The Aircraft Maintenance & Modification (AMM) business secured new airframe contracts involving heavy maintenance checks, passenger-to-freighter (PTF) conversions, passenger-to-passenger/cargo (combi) (PTC) conversions and interior refurbishments on various commercial and military aircraft types, including Airbus A300, A320 and A330, Boeing 747, 757, 767, MD10, MD11, L100/C130 Hercules, F16 Falcon and Super Puma.The Component Total Support (CTS) business clinched new component contracts, including MBHTM, avionics and mechanical component maintenance, aerostructure and landing gear repair and overhaul.
The Engine Total Support (ETS) business secured new engine maintenance contracts, which include on-wing maintenance, off-wing maintenance, technical management and asset management on various engines types, including CFM56, Pratt & Whitney JT8D, F100, Rolls-Royce Allison T56, General Electric J85, F404, Honeywell T53, T55, and Turbomeca Makila. These contracts will be carried out at ST Aerospace's Singapore facility over the next three months on a time-and-material basis.
Between 1 October and 31 December 2010, ST Aerospace redelivered 103 aircraft to various customers, for airframe related maintenance and modification work. For PTF conversions alone, it has redelivered a total of six converted freighters in 4Q2010. In the same period, ST Aerospace has serviced 62 engines and 11,938 components for both commercial and military customers.
During the fourth quarter of 2010, ST Aerospace added a two-bay wide-body hangar to the existing six wide-body and seven narrow-body hangar bays at its US facility in San Antonio, Texas, bolstering its global network of MRO facilities. Commissioned in December 2010, the new hangar will serve customers operating and flying into the US.
Besides capacity expansion, ST Aerospace has also been growing its 757-200 aircraft conversion capability offerings. It received two Supplemental Type Certificates for its Boeing 757-200SF PTF conversion programme from the Civil Administration of China (CAAC) and Transport Canada respectively. It also expanded into the commercial market for 757-200 PTC conversion, signing on its first commercial customer, GAP, for a 757-200 PTC conversion for TNT Airways S.A. ST Aerospace will also be working in tandem with the aerospace division of ST Engineering's US subsidiary, VT Systems, to undertake a PTC conversion programme, for the 757-200 aircraft, for North American Airlines.
On component capability development, ST Aerospace continued to augment repair capabilities to support MBHTM initiatives for the Boeing 737NG, 757, Airbus A320, A330 and military aircraft. It also added repair and overhaul capabilities for the A330 and A340 landing gears, complementing its maintenance, repair and overhaul offering for A320 landing gears.
On engine capability development, ST Aerospace has successfully completed training at GE's customer technical education centre in the US, following the appointment as GE-approved On-Wing provider for the GEnX-1B and GEnx-2B engines in January 2009. Equipped with the expertise in the management of the key on-wing activities expected during the engines' Entry-in-Service maintenance phase, ST Aerospace is ready to support customers on GEnx engines that power Boeing 787 and 747-8 aircraft, with international airworthiness certifications underway.
The contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
(STEng)
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