Singapore, 7 February 2020 - To cater to Vietnam Airlines (VNA) and the Asia Pacific region’s rising needs for Maintenance Repair and Overhaul (MRO) services, ST Engineering is exploring the setting up of an airframe MRO joint venture (JV) in Vietnam with Vietnam Airlines and other potential airline partners. The JV will operate out of Vietnam Airlines’ facilities located at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City to provide base maintenance services.
The joint venture will leverage the rich MRO expertise of ST Engineering, and the extensive networks of its airline partners to tap the growing MRO market in the region. According to industry forecasts, the commercial aircraft in-service fleet and the MRO demand in Asia-Pacific are estimated to increase at a compound annual growth rate of 4.5% and 5.0% respectively over the next decade.
Duong Tri Thanh, President & CEO of Vietnam Airlines said, “The establishment of a joint venture will bring more aircraft and added value to Vietnam. Likewise, it will help to improve the technical level of the domestic aircraft maintenance industry as well as the competitiveness of the national airline. Together with ST Engineering and other potential airline partners around the world, we believe that this joint venture will stimulate and strengthen the Vietnamese job market and aviation industry."
“This is an exciting development for us given that Asia Pacific is a focus market for ST Engineering. Following the setting up of our first component MRO facility in Vietnam in September 2019, this new joint venture will help to expand our offerings to include component and airframe MRO for our customers,” said Mr Lim Serh Ghee, President of ST Engineering’s Aerospace sector. “Collaboration with trusted customers like Vietnam Airlines will be a strong factor contributing to our success as we will continue to increase our network of facilities to capture opportunities in the region.”
ST Engineering is the world’s largest commercial airframe MRO provider by maintenance manhours, backed by a track record of over 15,000 commercial aircraft maintained and modified since 1990. With a global network of facilities in the North America, Asia Pacific and Europe capable of accommodating 44 widebody, 26 narrowbody and 24 general aviation aircraft simultaneously, ST Engineering provides support to a broad customer base that includes leading airlines, airfreight and military operators.
ST Engineering is showcasing its MRO solutions and other aerospace capabilities at the Aviation cluster of the ST Engineering Pavilion (G01) at the Singapore Airshow 2020 from 11 – 16 February.
About ST Engineering
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries. With more than 500 smart city projects across 70 cities in its track record, the Group continues to help transform cities through its suite of Smart Mobility, Smart Security and Smart Environment solutions. Headquartered in Singapore, ST Engineering reported revenue of $6.7b in FY2018 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, SGX ESG Transparency Index and SGX ESG Leaders Index.
The Aerospace sector provides integrated aerospace services and solutions through a global network of facilities and affiliates in the Americas, Asia Pacific and Europe, supporting a broad customer base that comprises leading airlines, airfreight operators and armed forces. Its wide spectrum of maintenance and engineering solutions include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; as well as aviation materials and asset management services. The sector also has original equipment manufacturing capabilities and holds proprietary designs in products such as aircraft seats. For more information, please visit www.stengg.com.
About Vietnam Airlines
Vietnam Airlines - a member of SkyTeam Alliance - is the flag carrier of Vietnam and the major carrier in the South East Asia, operating 100 routes to 18 domestic and 34 international destinations with an average of 400 flights per day. Vietnam Airlines is the first airline in the world to successfully operate both next-generation aircraft Boeing 787-9 Dreamliner and Airbus A350-900 XWB at the same time.
Skytrax - the world’s leading airline and airport rating organization- has ranked Vietnam Airlines as a 4-Star Airline for four consecutive years. Vietnam Airlines has spearheaded Vietnam’s aviation market - one of the fastest-growing domestic markets in the world - throughout 20 years of development at a double-digit annual growth rate. Positioning itself as a modern carrier with an internationally recognisable brand characterised by Vietnamese traditional culture, Vietnam Airlines aims to achieve 5-star status and become a major airline in Asia.
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