Singapore-based ST Aerospace has entered a memorandum of understanding with Vietnam Airlines to establish a new joint venture (JV) to provide component maintenance, repair and overhaul (MRO) solutions.
The JV will be based at Noi Bai International Airport in Ha Noi, Vietnam, and will provide MRO services to Vietnam Airlines’ A321CEO and A321NEO fleet, and other operators in the region.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Initially, the JV will offer support for various technology groups, including pneumatics, hydraulics and electrical components. It has future plans to provide aerostructure and airframe MRO, as well as other services.
The JV will benefit from subsidiary Vietnam Airlines Engineering Company (VAECO)’s existing facilities in Hanoi and Ho Chi Minh City, as well as ST Aerospace’s expertise in MRO capabilities.
It expects to reduce Vietnam Airlines’ turnaround time for maintenance and repairs with work being conducted in Vietnam. The JV also aims to offer cost savings and improved operational efficiency to Vietnam Airlines.
ST Aerospace president Lim Serh Ghee said: “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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“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.”
In addition, ST Aerospace signed a component maintenance-by-the-hour contract with Vietnam Airlines.
The 14-year long contract will cater to the airline’s entire fleet of 58 A321CEOs and 20 A321NEO aircraft, including the A321 planes that are yet to be delivered.
Scheduled to be operational within this year, the deal will enable ST Aerospace to establish an inventory base in Vietnam to provide efficient services to Vietnam Airlines.
